Tag Archives | Fraud

Prosecuting Wall Street

With a story about prosecuting Wall Street featured on the most mainstream of TV news shows, CBS's Sixty Minutes, might there finally be enough momentum for some banking executives go to jail? In this segment, two high-ranking financial whistleblowers say they tried to warn their superiors about defective and even fraudulent mortgages. Reporter Steve Kroft questions why the companies and their executives haven't been prosecuted.
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Wyoming: The New Cayman Islands

Cayman IslandsKelly Carr and Brian Grow recently reported in Yahoo Finance:

The secretive business havens of Cyprus and the Cayman Islands face a potent rival: Cheyenne, Wyoming.

At a single address in this sleepy city of 60,000 people, more than 2,000 companies are registered. The building, 2710 Thomes Avenue, isn’t a shimmering skyscraper filled with A-list corporations. It’s a 1,700-square-foot brick house with a manicured lawn, a few blocks from the State Capitol.

Neighbors say they see little activity there besides regular mail deliveries and a woman who steps outside for smoke breaks. Inside, however, the walls of the main room are covered floor to ceiling with numbered mailboxes labeled as corporate “suites.” A bulky copy machine sits in the kitchen. In the living room, a woman in a headset answers calls and sorts bushels of mail.

A Reuters investigation has found the house at 2710 Thomes Avenue serves as a little Cayman Island on the Great Plains.

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Foghorn Leghorn Speaks On Matters in Wisconsin

FoghornLeghornIs it possible to channel a fictional character? Specifically, the Southern-gentrified blowhard from the Warner Bro.’s 1960’s “Foghorn Leghorn” franchise? Based upon experiments performed over the weekend, I can report a firm and conclusive “yes”. But the ritual requires copious volumes of an obscure Sri Lankan stout called “Lion“. And Mr. Legohorn seems to have quite a bit to say about Wisconsin people and places . . . .

“The behavior on display before us in this instance constitutes a perfect SCANDAL in the eyes of our sacred parliamentary traditions. This method of proceeding cannot call to mind words any loftier or more noble than “poltroon” and “knave”. I understand that the accepted standards of comportment may not be all they could in some of the darker corners of the great state of Wisconsin, but I see no reason to drag them into the sacred halls of our legislature.”

—Regarding the extraordinary violation of Wisconsin’s open meetings law by which Republican majority leader “Big Fitz” Fitzgerald surreptitiously passed Gov.… Read the rest

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Why Don’t More People Care About Criminal Activity in Our Recent ‘Financial Crisis’? (Video)

Other Guys CreditsIf I had to pick one issue that I think many more people should really, really be curious about, I'd say the backstory behind so-called recent "financial crisis", (which has been documented in such films as Inside Job, Capitalism: A Love Story and Plunder: The Crime of Our Time to name a few), is at the top of my list. Therefore, I was surprised when I saw at the end of the Will Ferrell and Mark Wahlberg comedy, The Other Guys, to find this "message" embedded in a mainstream entertainment film. As Gary Susman wrote on Moviefone's Blog:
The movie may be a silly farce about New York cops who stumble upon a Bernie Madoff-like Ponzi scheme that threatens to defraud billions from city workers. But buried in the comedy is a serious point about what really constitutes grand theft these days, a point illustrated over the closing credits by a PowerPoint-like presentation full of jazzy infographics and serious statistics outlining just how much Wall Street and corporate leaders have enriched themselves at the expense of American workers and taxpayers... It's a fascinating sequence, both from a design perspective and from the unlikely prospect of seeing a major corporation (in this case, Sony) release a mass-entertainment movie that also wants to educate moviegoers about the legalized wealth-grab that's benefiting major corporations...
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Los Angeles Man Who Created Fake U.S. Army Unit Arrested

60873363 This takes elaborate ruses to new level. Californian Yupeng Deng used uniforms, IDs, basic training exercises, and military parades in a scam tricking Chinese immigrants into believing they had joined a “special forces reserve” of the U.S. military. The New York Times reports:

To the Chinese immigrants he recruited, Yupeng Deng was known as Supreme Commander. He offered them United States Army uniforms, conducted training exercises on Sundays, led marches in municipal parades and promised a path toward American citizenship.

The uniforms were real, but Mr. Deng’s U.S. Army/Military Special Forces Reserve unit was a sham, the authorities said.

On Wednesday, Mr. Deng, 51, was arraigned in Los Angeles County Court on 13 felony charges related to the fake military operation, which concentrated on Chinese immigrants, eager to become American citizens, in the San Gabriel Valley, east of Los Angeles.

More than 100 immigrants paid upwards of $300 to join the bogus unit, the authorities said, and $120 to renew their memberships each year.

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9/11 Commemorative Coin Challenged As “Scam”

9/11cCoinVia Fox News:
A coin commemorating the 10th anniversary of the Sept. 11, 2001, terror attacks is drawing the ire of consumers and politicians who have learned that the coin may be just a worthless trinket that has no affiliation with the U.S. government and does not benefit the 9/11 Memorial. Katie Smith and John Shughart of Carlisle, Pa., thought they were buying a priceless piece of history. Now, the coin they bought may have not even a cent of value. "I think it's a complete rip-off," says Smith. "It's a scam." The couple called a 1-800 number and ordered a 9/11 Tenth Anniversary Commemorative Coin after seeing a commercial on TV. The commercial claims the coin has "sculptures of the USS New York and the World Trade Center towers, inset with jeweler precision on its obverse, each entirely clad in .999 pure silver actually recovered from beneath the ashes of ground zero."
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Doctor Who Linked Autism and Vaccines Is A ‘Fraud,’ Says British Medical Journal

news-graphics-2007-_640547aJenny McCarthy take note: Britain’s leading medical journal has declared that Andrew Wakefield’s discredited 1998 autism study was not merely riddled with errors, but was a case of deliberate, “elaborate fraud.” CNN reports:

A now-retracted British study that linked autism to childhood vaccines was an “elaborate fraud” that has done long-lasting damage to public health, a leading medical publication reported Wednesday.

An investigation published by the British medical journal BMJ concludes the study’s author, Dr. Andrew Wakefield, misrepresented or altered the medical histories of all 12 of the patients whose cases formed the basis of the 1998 study — and that there was “no doubt” Wakefield was responsible.

“It’s one thing to have a bad study, a study full of error, and for the authors then to admit that they made errors,” Fiona Godlee, BMJ’s editor-in-chief, told CNN. “But in this case, we have a very different picture of what seems to be a deliberate attempt to create an impression that there was a link by falsifying the data.”

Britain stripped Wakefield of his medical license in May.

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The Dark World Of Honey Laundering

cheng3 As domestic bee colonies collapse in droves, the United States is being flooded with cheap, perhaps dangerous, Chinese honey in “the largest case of food fraud in history.” The Globe and Mail reports:

As crime sagas go, a scheme rigged by a sophisticated cartel of global traders has all the right blockbuster elements: clandestine movements of illegal substances through a network of co-operatives in Asia, a German conglomerate, jet-setting executives, doctored laboratory reports, high-profile takedowns and fearful turncoats.

What makes this worldwide drama unusual, other than being regarded as part of the largest food fraud in U.S. history, is the fact that honey, nature’s benign golden sweetener, is the lucrative contraband.

What consumers don’t know is that honey doesn’t usually come straight – or pure – from the hive. Giant steel drums of honey bound for grocery store shelves and the food processors that crank out your cereal are in constant flow through the global market.

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Non-Surprise: Assange’s Accuser Linked To CIA

Anna Ardin

Anna Ardin

An interesting ‘coincidence’ in the still unfolding honey pot trap that has ensnared Julian Assange. From Kirk Murphy at Firedoglake.com:

Yesterday Alexander Cockburn reminded us of the news Israel Shamir and Paul Bennett broke at Counterpunch in September. Julian Assange’s chief accuser in Sweden has a significant history of work with anti-Castro groups, at least one of which is US funded and openly supported by a former CIA agent convicted in the mass murder of seventy three Cubans on an airliner he was involved in blowing up.

Anna Ardin (the official complainant) is often described by the media as a “leftist”. She has ties to the US-financed anti-Castro and anti-communist groups. She published her anti-Castro diatribes (see here and here) in the Swedish-language publication Revista de Asignaturas Cubanas put out by Misceláneas de Cuba. From Oslo, Professor Michael Seltzer points out that this periodical is the product of a well-financed anti-Castro organization in Sweden.

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U.S. Scientists Significantly More Likely to Publish Fake Research

Professor FrinkVia LiveScience:

U.S. scientists are significantly more likely to publish fake research than scientists from elsewhere, finds a trawl of officially withdrawn (retracted) studies, published online in the Journal of Medical Ethics.

Fraudsters are also more likely to be “repeat offenders,” the study shows.

The study author searched the PubMed database for every scientific research paper that had been withdrawn — and therefore officially expunged from the public record — between 2000 and 2010.

A total of 788 papers had been retracted during this period. Around three quarters of these papers had been withdrawn because of a serious error (545); the rest of the retractions were attributed to fraud (data fabrication or falsification).

The highest number of retracted papers were written by first authors in the U.S. (260), accounting for a third of the total. One in three of these was attributed to fraud.

The UK, India, Japan, and China each had more than 40 papers withdrawn during the decade.

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