Category: Crime

  • Frederic Bourke tried for bribery, while business partner stays in Bahamas

    When the economy nosedives, the scams – a la Madoff and Stanford Financial – rise to the surface.

    But the criminal case against Frederic Bourke and Viktor Kozeny, who encouraged investors to put millions into a high-risk oil venture in Azerbaijan, was assembled when the market was still in the stratosphere. They were indicted in 2005, on charges that they conspired to bribe Azerbaijan government officials to seize control of the state oil company.

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    Bourke, a founder of the fashion accessories firm Dooney & Bourke, is now on trial in federal court in New York.

    Kozeny, president and chairman of Oily Rock Group Ltd., is a fugitive living in the Bahamas. He has admitted paying off authorities, but says U.S. anti-bribery laws don’t apply to him. Charges have been dropped against a third defendant, former American International Group executive David Pinkerton.

    Kozeny is a Czech native with a history of exploiting opportunities in eastern Europe. Fortune magazine has called him the “Pirate of Prague” for the profits he made in his homeland in the early 1990s.

    Bourke, former husband of Eleanor Clay Ford of the Detroit Fords, met Kozeny in Aspen, where they both have houses. Bourke also has homes in Greenwich, CT, and Seal Harbor, ME.

    Kozeny pitched Oily Rock as a venture that could return high profits from privatization occurring in Azerbaijan after the breakup of the Soviet Union. The company attracted investments from George Mitchell, current envoy to the Middle East and former Democratic Senate majority leader; hedge funder Leon Cooperman; and the now-beleaguered AIG.

    Reuters reports that Bourke has denied knowing about the bribes and has accused Kozeny of stealing $180 million from him and other investors.

    Mitchell also testified last week that he had no idea that bribes were being paid. “If I’d known of any fraud or other illegal activity, I would not have become involved,” he told jurors.

    The Azeri oil operation, SOCAR, is still state-owned. The company announced last week that it had begun development of a Caspian oil field without any foreign investment.

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    • News of Jobs’ transplant was well timed

      June 24, 2009 at 10:35am

      Whoever leaked the story about Steve Jobs’ liver transplant could hardly have timed it better for Apple.

    • R. Allen Stanford charged with fraud and obstruction

      Texas financier R. Allen Stanford has been indicted on fraud and obstruction charges in a $7 billion investment scam, the Justice Department announced today.

      Three other Stanford company executives were also named in the indictment.

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      Stanford was arrested by FBI agents yesterday outside his girlfriend’s home in Virginia.

      According to the indictment unsealed today, Stanford and his co-defendants defrauded investors who bought $7 billion in certificates of deposit administered by Stanford International Bank in Antigua. About $1.6 billion allegedly was diverted in personal loans to Stanford.

      Stanford and the other execs are accused of lying about the bank’s assets, saying that they grew from $1.2 billion in 2001 to approximately $8.5 billion in December 2008.

      Also charged were Laura Pendergest-Holt, chief investment officer of Stanford Financial Group; Gilberto Lopez, chief accounting officer; Mark Kuhrt, global controller; and Leroy King, the former administrator and CEO of Antigua’s Financial Services Regulatory Commission.

      Pendergest-Holt was previously charged with misleading investigators in their probe of Stanford International Bank’s dealings.

      Stanford and three of his companies were named in an SEC civil lawsuit in February, accused of conducting a Ponzi scheme involving billions of dollars of investor funds.

      The commission said Stanford and “the close circle of family and friends with whom he runs his businesses” had fraudulently promised investors high returns, based on fabricated profits from past years.

      After the suit was filed, Stanford’s companies were placed in receivership and ceased operations. Office furnishings and artwork are being sold off by liquidators.

      James M. Davis, former chief financial officer of Stanford Financial and Stanford’s former roommate at Baylor University, is cooperating with investigators.

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      • Mark Walsh gets another crack at Lehman funds

        June 21, 2009 at 10:10am

        The man some blame for the investments that brought Lehman Brothers Holdings down is getting a second chance to profit from those investments.

      • Monica Conyers, wife of congressman, offered plea deal

        These days Congressman John Conyers, Michigan Democrat and chairman of the House Judiciary Committee, has taken to introducing his wife by her maiden name, Monica Eskers.

        But in Detroit, where she’s now being squeezed by the feds to accept a plea deal ahead of being indicted for bribery, she’s known as Detroit City Council President Pro Tem Monica Conyers.

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        Detroit media have reported that the councilwoman was videotaped accepting a bribe payment – which with others totaled $6,000 – to buy her vote for a $1.2 billion city sludge-disposal contract. Conyers originally opposed the contract, but changed her mind, swinging her vote for a 5-4 approval.

        She’s now mulling over a plea, but a deal has been stalled because she wants to stay out of jail and be charged with nothing more than a misdemeanor, not the 5-year felony offered by prosecutors.

        Conyers’ criminal woes are the latest produced by a years-long, wide-ranging FBI investigation into public corruption in Detroit. It’s had a lot to work with, although the highest profile crook to date, convicted felon and former mayor Kwame M. Kilpatrick, was brought down in a Pulitzer Prize-winning investigation by The Detroit Free Press.

        Also reportedly under federal investigation are the disgraced mayor’s father, Bernard N. Kilpatrick, a self-described business consultant, for taking $25,000 to grease the same sewage contract (his ex-wife and the ex-mayor’s mother is U.S. Congresswoman Carolyn Cheeks-Kilpatrick); city councilmember and ex-U.S. Congresswoman Barbara-Rose Collins, who is better known for wearing a princess tiara to council on her 70th birthday than any legislative achievements; and councilwoman Martha Reeves, who began her term by campaigning to have statues erected downtown of Motown’s best-known artists – including herself. Both Collins and Reeves also voted for the sludge contract.

        The squeeze was put on Monica Conyers when James Rosendall Jr. resigned as vice president of Texas sludge recycler Synagro Technologies and pleaded guilty to bribery conspiracy in January; and Rayford Jackson, a sub-rosa dealmaker, pleaded guilty this week to arranging the bribes.

        A local TV news wunderkind, Fox 2 anchorwoman Fanchon Stinger, was fired by the station after it became known that she showed up with Jackson to promote the sludge contract to a community group.

        Before earning notoriety in the bribe scandal, Monica Conyers was a darling of YouTubers for calling Detroit City Council President Ken Cockrel Jr. “Shrek” in open session, then losing a Detroit News-sponsored videotaped debate with an 8th-grade girl who questioned the councilwoman’s behavior. Since entering Detroit politics, she has also been in a bar fight, threatened to shoot somebody, and to have someone else beaten.

        With Detroit facing an election primary in August, Cockrel this week said he hopes federal investigators get on with their indictments.

        “I know in my experience with federal investigations, they tend to be slow and meticulous,” he said, “but when they come, they come like a ton of bricks. My feeling is if they’re going to come like a ton of bricks, they ought to come now.”

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        1 Comments

        • #1.   Hermoine Couther 06.20.2009

          I hope the Feds have what they need to take Monica down. She has been out of control for a very long time.

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        • Mark Walsh gets another crack at Lehman funds

          June 21, 2009 at 10:10am

          The man some blame for the investments that brought Lehman Brothers Holdings down is getting a second chance to profit from those investments.

        • Ex-Surgeon General Antonia Novello pleads not guilty

          New York politicians and political appointees are falling faster than bank stocks these days.

          The latest to be criminally charged is former U.S. Surgeon General Antonia Novello, who pleaded not guilty Tuesday to forcing state employees to work overtime to handle her personal chores when she was New York’s health commissioner from 1999 to 2006.

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          In a case reminiscent of the one that ended the career of former state Comptroller Alan Hevesi, who pleaded guilty in 2006 to using state workers to chauffeur his wife, Novello faces a 20-count indictment charging her with theft of government services, defrauding the government and filing a false instrument.

          Now an executive with Disney Children’s Hospital at Florida Hospital in Orlando, Novello, 64, could face up to 12 years in prison if convicted of all charges.

          It is a huge fall from grace for the politically connected physician and public health administrator. When George H.W. Bush appointed her Surgeon General in 1990, she was the first Puerto Rican and the first woman to serve in that job.

          Novello has long been a darling of the Republican Party, as well as a star in the public health world. During her tenure as Surgeon General, which continued until 1993, Novello focused on the health of women, children and minorities, as well as on underage drinking, smoking, and AIDS.

          But she was controversial among abortion rights advocates for supporting a policy prohibiting family planning program workers who received federal aid from discussing abortion with their patients.

          When former New York Gov. George Pataki, a Republican, appointed her health commissioner in 1999, she was considered a catch for New York.

          But almost from the start, there were complaints from those who worked with her. A scathing, January, 2009 report by state Inspector General Joseph Fisch found that she habitually abused the services of four state health department employees, requiring them to serve as her personal chauffeurs for shopping trips, driving around visiting relatives, buying her groceries, moving furniture and even watering the plans in her apartment when she was out of town.

          Medicaid fraud investigator Noreen Schifini, told state investigators that she was too busy driving the commissioner to Macy’s and Saks Fifth Avenue, among other destinations in New York City, to carry a portfolio of investigations.

          On numerous occasions, the report found that Novello had state workers drive her or her mother from the Albany area to Newark Liberty International Airport, roughly 300 miles round trip, to fly to Puerto Rico for personal business.

          On one occasion, she purchased a heavy statue of Buddha during a shopping excursion in Troy, N.Y., then required a Health Department security guard to move it into her apartment, and then a few days later move it to another spot in her home because she didn’t like how it looked, according t the report.

          Security guards who acted as her drivers said in interviews with state investigators that she would embarrass and yell at them if they did not do things the way she wanted and expected them to be at her beck and call at all hours.

          Fisch referred the case to Albany County District Attorney David Soares’ office, which brought the case to a grand jury.

          Novello’s attorney, E. Stewart Jones, said the charges were politically motivated and should have been addressed in a lawsuit, not a criminal case.

          “She is here because she has a bull’s-eye on her back,” he told the Asssociated Press. “Because politics is a contact sport. Because there are people who are vindictive and who wanted to get her ever since she left the state.”

          The investigation against Novello started in July 2007 under former Inspector General Kristine Hamann, an appointee of Democratic former Gov. Eliot Spitzer. Soares, Albany County’s district attorney, is also a Democrat.

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          • Characters in Lost would be lost without Jacob

            May 15, 2009 at 10:26am

            In NBC’s hit drama Lost, connections count. And the season finale this week introduced viewers to the most connected character of all: Jacob.

          • Lawyer Marc S. Dreier awaits sentencing after plea

            But for Bernard L. Madoff, Marc S. Dreier might be a household name.

            Accused of money laundering, wire fraud, securities fraud and other charges, Dreier pleaded guilty Monday in federal court in Manhattan. He had been charged with selling nearly $700 million in fake promissory notes. Investors may have lost as much as $400 million.

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            He faces a sentence of 20 years to life on each of the most serious charges against him.

            “I understand that everything I was doing was illegal,” Dreier told U.S. District Judge Jed Rakoff on the day before his 59th birthday, Bloomberg news reported.

            Rakoff allowed Dreier to remain under house arrest until his July 13 sentencing.

            By a purely monetary standard, Dreier’s offenses did not match those of Madoff, who took investors for as much as $68 billion.

            However, Dreier beats Madoff on style points, according to Robert Kolker of New York Magazine.

            “Dreier took a starring role in his own financial drama,” Kolker wrote. “Where Madoff was outwardly quiet and self-effacing, Dreier was openly egotistical, even smug. He seemed to think he could lie to his victims’ faces and get away with it, to thrill, even, in the art of deceiving people.

            A graduate of Harvard Law School, Dreier was the founder of Dreier LLP, a 250-member firm that had offices in New York City and Los Angeles before it fell apart after Dreier’s arrest.

            Seemingly successful, Dreier lived the high life before his troubles became public. He collected cars, art, celebrity friends. He gave to charities; dated beautiful women.

            He also created a financial house of cards that began to tumble last year as some investors asked for their money back.

            Scrambling for funds, Dreier flew to Toronto in December. While there, he represented himself to a hedge fund executive as an official with the Ontario Teachers’ Pension Plan.

            Something seemed wrong to the hedge fund guy; the police were tipped off. Dreier was arrested for impersonation. He spent a few days in jail and then was released on $100,000 bail.

            Unshaven, looking like someone coming up for air after a binge, Dreier headed back to the U.S. Authorities welcomed him a LaGuardia Airport with an arrest warrant.

            He stayed in jail until February when he was released on a $10 million bond.

            Under the terms of his bail, Dreier, who is represented by defense attorney Gerald L. Shargel, can’t leave his Upper East Side apartment without court permission.

            He has to pay for security guards and can’t have a cell phone. (The apartment is now for sale for $10 million.)

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            • GM considers move from Detroit’s Renaissance Center

              May 14, 2009 at 8:08am

              When GM CEO Fritz Henderson raised the possibility that the automaker could vacate the Renaissance Center, it raised the threat of both real and symbolic devastation for Detroit.

            • Judge rejects hardship plea from ex-Detroit mayor

              Convicted felon and former Detroit mayor Kwame M. Kilpatrick today lost a hardship bid to reduce $6,000 in monthly restitution payments to the city for his crimes.

              As part of a plea deal last year to end criminal prosecution in a sex and obstruction-of-justice scandal, the ex-mayor agreed to repay Detroit taxpayers $1 million, resign his office, serve four months in jail, forfeit his law license and refrain from running for elected office for five years.

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              After his release from jail, Kilpatrick moved his family to a Dallas suburb where he lives in a 2,800-square-foot home, drives a Cadillac Escalade, and earns a base salary of more than $100,000 with income potential of as much as $360,000 a year as a software salesman for Covisint, a subsidiary of Detroit-based Compuware Corp.

              Chairman and CEO Peter Karmanos, who moved Compuware headquarters to downtown Detroit in a political deal with Kilpatrick, said when he hired the confessed perjurer that he is “on a short leash,” and will be fired if an ongoing federal investigation of corruption in Detroit leads to new charges against him.

              Kilpatrick claimed hardship in the terms of his restitution, saying that after all monthly living expenses, only $6 remained to repay the city.

              Wayne County Circuit Judge David Groner, who had ordered those terms as part of Kilpatrick’s plea deal, said Kilpatrick will have to reconsider the “lifestyle in which he has grown accustomed.”

              “In other words,” Groner ruled, the ex-mayor “may not be able to sustain an upper-middle-class existence while he still owes a debt to society and a substantial financial debt to the citizens of Detroit.”

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              • Dave Bing, political neophyte, will be Detroit’s oldest mayor

                May 10, 2009 at 12:42pm

                When pro basketball hall-of-famer Dave Bing was elected May 5 as Detroit’s third mayor in less than a year, a voter turnout of just 14 percent showed they’d prefer a duke to an emperor, and age to outrage.

              • Glitterati may testify at trial of Brooke Astor’s son

                The witness list for the trial of socialite Brooke Astor’s son might have been ripped from the Social Register.

                David Rockefeller, Barbara Walters and Henry and Nancy Kissinger are among the prominent figures who may be called to testify at the trial of Anthony D. Marshall.

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                So may Annette de la Renta, the wife of designer Oscar de la Renta, and former United Nations boss Kofi Annan and his wife, Nane.

                Others on the list given to potential jurors Tuesday include Vanity Fair editor Graydon Carter, New York Public Library chief Paul LeClerc, novelist Louis Auchincloss and Philippe de Montebello, former head of the Metropolitan Museum of Art.

                Brooke Astor
                Brooke Astor

                “That is the circle that Brooke Astor traveled in,” Assistant District Attorney Joel Seidemann told the panel which will decide whether Marshall is guilty of stealing millions from his mother before her death two years ago at age 105.

                Seidemann said he wanted to make sure they would not be too star struck to focus on their deliberations.

                Kissinger, 85, Walters, 77, Rockefeller, 93, and De la Renta, 69, were close friends of Astor, New York’s leading philanthropist and unofficial first lady. They are expected to be asked about her mental state during her final years, how her son treated her and what they know about what he planned to do with her money when she died.

                Marshall, 84, is charged with fraud, conspiracy and grand larceny and faces 25 years behind bars if convicted at his trial, which could last three months.

                Prosecutors allege he stole more than $60 million from his mother, who was stricken with Alzheimer’s disease in her final years.
                They argue she wanted to leave her money to the institutions to which she had devoted her life, including the Met and the public library, but that Marshall conned her into changing her will to enrich himself and his wife.

                Co-defendant Francis Morrissey, a lawyer Marshall hired, is charged with conspiracy and forgery for allegedly faking Astor’s signature on the updated will.

                The two men say they are innocent, and will argue Astor was lucid at the time the will was changed.

                It is the lesser known names on the witness list – among them, Astor’s former butler, nurses, chauffeur and gardeners – who are expected to provide some of the most damning testimony, according to the New York Daily News.

                One nurse, Pearline Noble, kept a diary in which she used code names to describe people in Astor’s life – including “Miss Piggy” for Marshall’s wife, Charlene, prosecutors said.

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                • Brill and partners want to help online publishing’s bottom line

                  April 19, 2009 at 7:27am

                  Joined by two other media heavyweights, the man who created Court TV has launched a venture that could bring much-needed revenues to the embattled newspaper and magazine industry.

                • Holder to drop case against former Alaska Sen. Ted Stevens

                  The slate will be wiped clean for former Alaska Sen. Ted Stevens.

                  In the eyes of the law, at least, the man who narrowly lost re-election last fall after he was convicted of failing to report more than $250,000 worth of gifts from a contractor seeking political favors, will be considered innocent.

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                  The decision to ask the judge to void the conviction was made by U.S. Attorney General Eric Holder, after a new prosecution team discovered a previously undocumented interview with the star witness, William Allen, which sharply contradicted his most dramatic testimony in the four-week trial. The information had never been turned over to the defense, the Justice Department said in its motion to void the conviction.

                  “After careful review, I have concluded that certain information should have been provided to the defense for use at trial,” Holder said in a statement this morning. “In light of this conclusion, and in consideration of the totality of the circumstances of this particular case, I have determined that it is in the interest of justice to dismiss the indictment and not proceed with a new trial.”

                  The government is seeking dismissal of the charges “with prejudice,” meaning that they cannot be filed again.

                  The case against Stevens had been plagued by allegations of prosecutorial misconduct. Following his October conviction, an FBI special agent in Anchorage alleged that the lead female agent had had an “inappropriate relationship” with Allen, the chairman of defunct oil-field services company, Veco Corp., who was also the star witness against Stevens. The whistleblower also contended that prosecutors had withheld important information from the defense.

                  In February, U.S. District Court Judge Emmet G. Sullivan held four prosecutors in contempt, including DOJ Public Integrity Section Chief William Welch, for failing to produce documents relating to the agent’s claims.

                  At that point, the government appointed a new team, led by Paul O’Brien, chief of the Narcotics an Dangerous Drugs Section, whose group substantiated several of the allegations.

                  Stevens, who is 85, said in a prepared statement that he felt vindicated, but complained it had come too late to save his political career.

                  “I am grateful that the new team of responsible prosecutors at the Department of Justice has acknowledged that I did not receive a fair trial and has dismissed all the charges against me,” he said.

                  But he added: “It is unfortunate that an election was affected by proceedings now recognized as unfair. It was my great honor to serve the State of Alaska in the United States Senate for 40 years.”

                  Stevens lost his re-election bid to the former Anchorage mayor, Democrat Mark Begich a little more than a week after his conviction. Since then, his lawyers have filed several motions to dismiss the original indictment or to have a judge grant him a new trial.

                  While the attorney general’s decision doesn’t exactly exonerate Stevens, it shifts the focus to government misconduct.

                  “When you think of Ted Stevens, there will always be a little asterisk,” Sarah Binder, an expert on Congress at the Brookings Institution told NPR. “But this gives you a little pause to think that, in the end, there were allegations that the government couldn’t get it together to prove.”

                  Others noted the irony of a Democratic attorney general effectively voiding the conviction of a longtime Republican lawmaker.

                  Sen. Sheldon Whitehouse (D-R.I.), a fierce critic of the Bush Justice Department and a former U.S. attorney, noted that if Republicans wanted to complain that the Justice Department had wrongly cost them a Senate seat, they should recall that it was Bush’s Justice Department which brought the case.

                  Holder’s decision comes as a big blow to the Public Integrity Section of the Justice Department, which is responsible for conducting investigations into corrupt lawmakers. Stevens’ conviction was the unit’s biggest win in more than decade. Now that conviction will be tossed out, and prosecutors and FBI agents involved in the case are being investigated themselves.

                  Holder, himself a former prosecutor and judge, noted that the department’s Office of Professional Responsibility was conducting a review of the first etam’s conduct, raising the possibility that the prosecutors themselves could now face ethics charges.

                  Judge Sullivan ordered a hearing for April 7 on the government’s motion.

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                  • We are all Keynesians now – but especially Paul Krugman

                    April 3, 2009 at 11:20am

                    Economist Paul Krugman, who describes John Maynard Keynes as his “economic idol,” may be the right man at the right time. But supporters of Barack Obama certainly hope not.

                  • Stanford accused in a scam ‘of shocking magnitude’

                    Anyone suffering from Madoff fatigue may have a new money manager to deplore.

                    The Securities and Exchange Commission yesterday accused R. Allen Stanford and three of his companies with “orchestrating a fraudulent, multi-billion dollar investment scheme.”

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                    The scheme was connected to an $8 billion program in certificates of deposit, the complaint alleged.

                    A Texas judge has frozen Stanford’s assets to protect investors, according to an SEC statement.

                    “We are alleging a fraud of shocking magnitude that has spread its tentacles throughout the world,” said Rose Romero of the SEC’s Fort Worth office in the statement.

                    The New York Times reported on its website that police officers entered the Stanford Group’s offices in Houston yesterday.

                    Stanford, a dual citizen of the U.S. and Antigua and Barbuda and the billionaire chairman of Stanford Financial Group, allegedly used false data to lure investors.

                    The three Stanford Financial Group companies named in the complaint are: Stanford International Bank in St. John’s, Antigua, West Indies, Stanford Capital Management and Stanford Group Company of Houston.

                    According to the SEC, Stanford International Bank sold $8 billion in certificates of deposit by “promising improbable and unsubstantiated high interest rates.”

                    The commission’s complaint alleges that bank falsely claimed its investments lost only 1.3 percent in 2008 at a time when the S&P 500 lost 39 percent.

                    The complaint also points up the improbable coincidence that the bank reported identical earnings of 15.71 percent in 1995 and 1996.

                    And it alleges that only two people, Allen Stanford and James M. Davis, a director and CFO of Stanford Financial Group, are aware of the details of the bank’s investment portfolio.

                    Davis, Stanford’s roommate when they attended Baylor University, is also named in the complaint, as is Laura Pendergest-Holt, the chief investment officer of the bank and of Stanford Financial Group.

                    The complaint states that Stanford and Davis refused to testify in the investigation. Pendergest-Holt did testify.

                    According to The Wall Street Journal, word of investigations into Stanford International Bank had already sent investors rushing to Antigua to withdraw their money.

                    Allen Stanford had earlier told company employees that there would be a “temporary moratorium on early redemptions of CDs,” the paper reported.

                    A native of Texas, Stanford is the chairman and sole shareholder of the Stanford Investment Bank in Antigua.

                    According to the SEC, the bank claimed 50,000 clients in 2007. It does not loan money. Rather, it sells CDs through the Stanford Group Company.

                    Stanford became a citizen of Antigua and Barbuda 10 years ago. He was knighted there and is referred to as Sir Allen Stanford on his company’s website.

                    Stanford Financial Group sponsors a variety of sporting events, most recently a cricket tournament in Antigua with $20 million in prizes, reportedly the most lucrative in the history of the sport.

                    The Stanford International Bank had told investors in an earlier report that it had no exposure to funds controlled by Bernard L. Madoff, the investment manager who may have run a $50 million Ponzi scheme.

                    The Times reported, however, that the Stanford bank did lose $400,000 in an investment in a Madoff feeder fund.

                    According to federal records, Stanford has made extensive campaign contributions over the years.

                    Recipients of donations from Stanford, his companies or his employees include Democratic Senators Christopher J. Dodd of Connecticut and Charles Schumer of New York and Republican Senators John McCain of Arizona and John Cornyn of Texas.

                    Contributions have also gone to several members of the House of Representatives, including Charles Rangel of New York, a Democrat, and Republican Rep. John Boehner of Ohio.

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                    3 Comments

                    • #1.   Pellucid 02.18.2009

                      Your headline said he as arrested.

                      WHERE, HOW ???

                    • #2.   Zyskandar A. Jaimot 02.18.2009

                      The ‘SCAMSTER’ STANFORD’s friends in the US CONGRESS…
                      The latest ‘SCAMSTER’ on the WORLD FINANCIAL SCENE is
                      ALLEN STANFORD bilking people out of $8BILLIONS+[now of parts unknown cuz he has fled the US or made himself unavailable to authorities!] His ‘friends’ included among the top recipients and favorites getting the ‘SCAMSTERS’ illicit monies/favors: Senaturd Bill Nelson (D-Fla.), REPREHENSIBLE Congressman Pete Sessions (R-Texas), Senaturd John McCain (R-Ariz.), Senaturd Chris Dodd (D-Conn.) and Senaturd John Cornyn (R-Texas), one of the members who took a trip to Antigua where he was entertained by Stanford. GREAT ROSTER OF SCUMMY SYCOPHANTS EH THESE US SENATURDS???

                    • #3.   John Lloyd Scharf 02.18.2009

                      National Ponzi Scheme – Recovery.Gov – ARRA – Stimulus Plan

                      The $787 billion American Recovery and Reinvestment Act (ARRA) is an extention of the National Debt by $2580 for every man, woman, and child.

                      Of that, President Obama claims $288 billion is “Tax Relief,” or $944 per person. Then, he claims the “Tax Relief” includes $15 billion for infrastructure and science, $61 billion for “protecting the vulnerable,” $25 billion for education and training, and $22 billion for “Energy.”

                      So, after all those special tax cut programs are removed, that leaves $165 billion of more general “Tax Relief,” for all of us not in those categories, or $540 per person. So, you are going into debt for investing $2580 for $540 in tax relief.

                      A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from profit. Is the ARRA any less of a Ponzi Scheme when the Federal Government does this than when Charles Ponzi or Bernard Madoff does this? Does it matter whether Nicolas Cosmo, Allen Stanford, or Barack Obama does this?

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                    • Antitrust nominee Christine Varney described Google as a monopolist

                      February 20, 2009 at 10:24am

                      New legal challenges for search giant Google Inc. may be looming – and from chief executive Eric Schmidt’s new BFF Barack Obama, of all people.

                    • Madoff adjusts to life in a gilded jail – his neighbors not so much

                      Disgraced trader Bernard Madoff may be relieved not to have to trade in the comforts of his $7 million East Side penthouse for a jail cell, but his neighbors are none too happy.

                      Residents like Today show host Matt Lauer and Barclays director Diego Gradowczyk now have to contend with throngs of cameramen and angry demonstrators every time they want to dash out to nearby Madison Avenue to do some Christmas shopping.

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                      This was not what life in an exclusive Lenox Hill coop was supposed to be.

                      But Manhattan Federal Magistrate Judge Gabriel Gorenstein, who originally demanded four co-signers to back Madoff’s $10 million bail, changed his mind after the trader came up with just two – his brother and wife.

                      Instead of locking him up, Gorenstein ordered Madoff confined to his 12th-floor apartment at 133 E. 64th St, where he is required to wear an electronic ankle bracelet to monitor his every move. The apartment was used as collateral to secure the bond, along with Madoff’s mansions in Montauk, New York and Palm Beach, Florida.

                      But why is the mastermind of a $50-billion fraud getting such kid-gloved treatment?

                      The New York Daily News cites unnamed sources that Madoff has been the target of numerous death threats.

                      Another theory has it that he is providing valuable help to the agents digging through a morass of books to trace the scope of the alleged Ponzi scheme.

                      In any case, the apartment, as well as the other properties, are likely to be liquidated in the future to pay back Madoff’s legions of swindled investors. Little is known about the apartment. But a story in the Jewish Daily Forward recalls a grand foyer and living room lined with Greek and Egyptian statues and gold sconces, which were glimpsed during a visit five years ago.

                      Madoff’s firm, meanwhile, has also been put into receivership, and the Securities Investor Protection Corp., a government fund, has begun fielding calls from investors seeking remuneration.

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                      • Lymphoma foundation escapes Madoff wrecking ball

                        December 20, 2008 at 7:08pm

                        One charity with Madoff connections has managed to emerge unscathed.

                      • Trading legend Bernard Madoff charged with ‘massive’ securities fraud

                        Bernard L. Madoff, the founder of Bernard L. Madoff Investment Securities and a former NASDAQ governor, was arrested Thursday morning and charged with multi-billion-dollar criminal securities fraud.

                        A complaint filed by the Securities and Exchange Commission alleges that Madoff told two senior employees Wednesday that his business was “a giant Ponzi scheme” that had lost $50 billion over a period of years, that he had “absolutely nothing” and “it’s all just one big lie.”

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                        The disclosure came after the 70-year-old founder had tried to hand out early bonuses to employees. When questioned by the senior employees, he reportedly said he had a couple of hundred million dollars left and wanted to distribute it before turning himself in to authorities.

                        The senior employees understood him to be saying that he had been paying returns to certain investors out of the principal received from other, different investors, according to the SEC complaint filed in federal court in Manhattan.

                        “We are alleging a massive fraud — both in terms of scope and duration,” said Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement. “We are moving quickly and decisively to stop the fraud and protect remaining assets for investors, and we are working closely with the criminal authorities to hold Mr. Madoff accountable.”

                        The SEC is seeking emergency relief for investors, including an asset freeze and the appointment of a receiver for the firm.

                        Regulatory filings show the Madoff firm had more than $17 billion in assets under management as of the beginning of 2008. It appears that virtually all assets of the advisory business are missing, the SEC complaint said.

                        Madoff Investment Securities is one of the largest independent trading firms in the securities industry. The company web site says that its clients include “scores of leading securities firms, banks and financial institutions from across the United States and around the world.”

                        Madoff appeared this afternoon before U.S. Magistrate Judge Douglas Eaton and was charged with a single count of securities fraud. He was released on a $10-million bond guaranteed by his wife and two others, according to Bloomberg News.

                        “Bernard Madoff is a longstanding leader in the financial services industry,” said defense attorney Dan Horwitz. “We will fight to get through this unfortunate set of events. He’s a person of integrity.”

                        Madoff started his firm in 1960 with $5,000 of savings and took advantage of securities-law changes in the 1970s designed to spur competition in U.S. stock markets, according to a profile posted on the web site Finance Tech.

                        He was chief of the Securities Industry Association’s trading committee in the 1990s and early this decade, where he represented brokerage firms in discussions with regulators about new stock-market rules as electronic-trading systems and networks gained prominence.

                        He was also a member of NASDAQ Stock Market’s board of governors and its executive committee and served as chairman of its trading committee.

                        The firm’s web site boasts of the firm’s “high ethical standards.”

                        “Clients know that Bernard Madoff has a personal interest in maintaining the unblemished record of value, fair-dealing, and high ethical standards that has always been the firm’s hallmark.”

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                        3 Comments

                        • #1.   P Roberts 12.11.2008

                          amazing; the tragic thing to think about is the loss in total human life that it will take to make up for this guy’s Madoff’s thievery

                        • #2.   Stu 12.12.2008

                          I keep wondering where all the money went? If it was a ponzi scheme then I guess the early investors made out and the later folks will be getting screwed. $50b is a lot of bananas!

                        • #3.   Mike 12.13.2008

                          How can this man be allowed to make bail at 10 million dollars (by his wife!!???) … Isn’t that money the investors – who he stole? I

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                        • Bailout’s toughest critics were Republicans from states with foreign automakers

                          December 13, 2008 at 8:29am

                          Longtime House Speaker Thomas “Tip” O’Neill once declared, “All politics is local.” So it should come as no surprise that the loudest opponents to the bailout plan for the Big Three automakers were Republican senators whose states are home to factories run by Detroit’s foreign competitors.

                        • In final days, Bush likely to pardon more than turkeys

                          The headline in The Onion may have nailed it: “In Thanksgiving Tradition, Bush Pardons Scooter Libby In Giant Turkey Costume.”

                          Skip the turkey costume, and the reality may not be far off: Many are betting that Vice President Dick Cheney’s former chief of staff will be among those granted clemency before the president steps down.

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                          Bush had already commuted Libby’s prison sentence after his conviction for perjury and obstruction of justice in the outing of CIA operative Valerie Plame. But wiping Libby’s record clean would enable him to practice law again.

                          Libby is unlikely to be the only last-minute pardon. Other top prospects, listed by ProPublica, are said to include:

                          • Michael Milken, the 1980s junk bond king whose pardon application is being handled by former U.S. Solicitor General Theodore B. Olson – a close friend of the president’s, and the lawyer who successfully argued Bush v. Gore before the U.S. Supreme Court.

                          • James Tobin, Bush’s 2004 New England campaign chairman who raised more than $200,000 for the president’s re-election bid. Tobin was indicted in October for making false statements to the FBI in connection with the bureau’s investigation of the plot to jam Democratic Party phones in New Hampshire in 2002;
                          • Brent Wilkes, the defense contractor who was sentenced to 12 years in prison in February for furnishing former California Congressman Randy Cunningham with yachts, vacations and other luxury items in exchange for lucrative contracts, because of his cooperation with federal investigators;
                          • J. Steven Griles, a deputy Interior secretary during Bush’s first term who pleaded guilty to obstruction of justice charge sin connection with his 2005 Senate testimony regarding the Jack Abramoff political corruption scandal.

                          Presidential pardons are a long political tradition, embraced by both parties. In his final days, for instance, George H.W. Bush pardoned former Defense Secretary Caspar Weinberger, along with 10 others who had been convicted in the Iran-Contra scandal, an arms for hostage program during the Reagan administration (when Bush was vice president).

                          That raised eyebrows, but nothing like the reaction to Bill Clinton’s pardon of fugitive financier Marc Rich, whose ex-wife Denise Rich had been a major contributor to his presidential library and to the Democratic Party.

                          The Rich decision, which became the subject of Congressional and criminal investigations, is likely to come up again in the confirmation hearings for Eric H. Holder Jr, Barack Obama’s choice for attorney general, given Holder’s involvement in the decision.

                          (One interesting historic footnote: Rich’s attorney from 1985 until the spring of 2000 was Scooter Libby.)

                          By comparison with his predecessors, the younger Bush has been downright niggardly in his use of pardons, granting clemency to only 171 people over eight years.

                          Most of those have been for penny-ante crimes. For instance, Leslie O. Collier – one of 14 people he pardoned last week – was pardoned for his conviction for the unauthorized use of a pesticide in killing bald eagles.

                          Bush’s most significant clemency to date was commuting Libby’s prison sentence. But of course, he still has almost two months to make up for lost time.

                          Among those who have submitted applications are disgraced Olympic gold medalist Marion Jones, suspended National Football League quarterback Michael Vick, home living doyenne Martha Stewart, former Enron executives Jeffrey Skilling and Andrew Fastow, jailed lobbyist Jack Abramoff and convicted former California Congressman Randy Cunningham.

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                          • Small donors played comparable roles in Obama and Bush campaigns

                            November 30, 2008 at 7:28am

                            A new study by the Campaign Finance Institute shows that Barack Obama received about the same percentage from small donors in 2008 as George W. Bush did in 2004.

                          • AIPAC case: DC grapevine or espionage?

                            What’s a little information-swapping between friends?

                            America’s most powerful pro-Israel lobby says that’s the currency of everyday life in the nation’s capital. The Justice Department, however, is calling it espionage, and will finally get to make its case next month when two former officials of the American Israel Public Affairs Committee (AIPAC), go on trial in federal court in Alexandria, Va., for allegedly passing classified information about Iran and Iraq to Israeli officials, colleagues and the media. (Story continues below interactive map.)

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                            Steven J. Rosen, former policy director for AIPAC, and Keith Weissman, the lobby’s former Iran specialist, are charged with violating a World War I-era espionage act for sharing what the government calls national defense information “with persons not entitled to receive it,” according to an August, 2005 indictment. The names of the recipients are not disclosed in the indictment, but media reports have identified them as Washington Post reporter Glenn Kessler and Naor Gilon, minister-counselor for political affairs in the Israeli Embassy in Washington.

                            The trial is expected to produce embarrassing revelations about the tight relationships between influence peddlers and government officials. AIPAC, which fired the two officials in 2005, has a particularly close relationship with the Bush White House. The president himself addressed AIPAC members in Washington on May 18, 2004, and Vice President Dick Cheney spoke to the group last year.

                            But the group’s ties extend across party lines. A 2005 National Journal survey of lawmakers ranked it No. 2 in a list of the 25 most powerful lobbies in Washington – ahead of the AFL-CIO and the National Rifle Association, but behind the American Association of Retired Persons.

                            And the trial may be even more politically radioactive coming after publication of The Israel Lobby and U.S. Foreign Policy, a book which argued that the pro-Israel lobby distorts the public debate about Middle East policy and which has stirred bitter debate.

                            There’s no denying the list of potential defense witnesses is a Who’s Who of administration officials. Over Justice Department objections, Judge T.S. Ellis III ruled the defense may call Secretary of State Condoleezza Rice; National Security Adviser Stephen J. Hadley, deputy National Security Adviser Elliot Abrams, former Deputy Secretary of State Richard L. Armitage, former Deputy Defense Secretary Paul Wolfowitz; and a dozen other Bush administration foreign policy officials.

                            The defense aim is to show that information-sharing is a routine part of Washington life, and that the material passed on by Rosen and Weissman was already known by Israeli officials.

                            It will argue that the two men simply listened to Franklin, and repeated information they heard, doing nothing more than “what members of the media, members of the Washington policy community, lobbyists and members of congressional staffs do perhaps hundreds of times every day,” according to a defense memorandum.

                            The prosecution plans on calling top and former intelligence officials, including Dale Watson, who headed the FBI’s investigation of the Sept. 11, 2001, terror attacks; William McNair, the former information review officer for the CIA’s directorate of operations; and Brig. Gen. Paul A. Dettmer, assistant deputy chief of staff for intelligence, surveillance and reconnaissance in the U.S. Air Force, according to court filings.

                            The prosecution argues that Rosen and Weissman received sensitive information from a mid-level Defense Department analyst, Lawrence A. Franklin, a U.S. Air Force Reserve colonel, whom they met in a series of DC-area restaurants.

                            Franklin, a Catholic father of five who worked in the office of Douglas Feith, was a minor player in neocon circles who sought to build pressure for a more aggressive administration policy towards Iran, according to The New Yorker. His efforts included meetings with Rosen and Weissman, officials at the Israeli Embassy and efforts to reach out to Iranian dissidents.

                            In 2001, he and Michael Ledeen, a prominent figure in the Iran-contra scandals of the Reagan administration, met secretly with the Iranian arms dealer Manucher Ghorbanifar in Italy, the man who had brokered Israeli missile sales to Iran in exchange for efforts to free American hostages in Lebanon in the deal that came to be known as Iran-Contra.

                            Franklin had pleaded guilty to passing government secrets and was given more than 12 years in prison – a sentence likely to be reduced as a result of his cooperation after the upcoming trial. He is being represented by Plato Cacheris, the attorney who represented Fawn Hall, the former secretary to Oliver North, a key player in the hostages-for-arms deal, as well as CIA turncoat Aldrich Ames.

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                            • #1.   Institute for Research 03.05.2008

                              It is difficult to believe that a trial, which is fair to the defendants, and thorough on the part of the prosecution team, will actually move forward next month.

                              1. AIPAC and founder Si Kenen came under extreme scrutiny by the Senate Foreign Relations Committee for operating as unregistered foreign agents in the 1960s, but nothing happened.

                              2. AIPAC was found by the FBI to have negotiated the first ever US free trade agreement with purloined International Trade Organization documents; the agreement was signed anyway. FBI did not move forward.

                              3. AIPAC was found to be coordinating political action committees in violation of its tax exempt status. AIPAC was found to be acting as a PAC, without disclosing donors, the case made it to the Supreme Court, but no action was taken and even that decades old case is still in limbo.

                              4. Co-prosecutor Kevin DiGregory has just abandoned the case to take a job in the private sector (reminiscent of the golden parachute of Carol Lam in the US attorney firing scandal).

                              5. AG Mukasey has been lobbied publicly by the Wall Street Journal to toss this prosecution, and likely privately from many different sides. The case may already be hobbled and “damaged goods” in the DOJ, which, like the administration, would probably rather see this all go away.

                              History would indicate that this is the type of subject that doesn’t get a fair hearing in America. (data cited from the book “Foreign Agents: The American Israel Public Affairs Committee from the 1963 Fulbright Hearings to the 2005 Espionage Scandal”

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                          • Linda Stein’s assistant accused of murder

                            New York City police arrested the personal assistant to celebrity real estate broker Linda Stein today, charging her with murdering her boss by bludgeoning her with yoga equipment.

                            Natavia Lowery, 26, confessed to killing Stein after Stein refused to stop blowing marijuana in her face, police said. Lowery told investigators that Stein had verbally abused her and that she had snapped. She said she repeatedly struck Stein with a yoga stick.

                            Stein, former co-manager of the Ramones and real estate agent to the stars, was found dead last week in her apartment on Manhattan’s Upper East Side. Her many clients included Billy Joel, Sylvester Stallone and Debra Winger.

                            Longtime friend Elton John is preparing a memorial service.

                            Related story: Linda Stein, celebrity real estate agent, found murdered