Madoff Sentenced - 150 Years for Fraud

As Bernie Madoff begins his 150 year prison sentence, victims are now looking to lay blame at the door of the SEC (Securities and Exchange Commission) according to reports from Bloomberg.com

Whilst initial responses to the sentencing appear satisfactory, Madoff himself is 71 making a prison sentence of that length somewhat excessive other than to make a point.

It would seem many victims feel the US regulators should have had systems, either manual or technical in place to spot one of the largest ever Ponzi schemes, the penalty issued being 6 times that of the sentences issued to former Enron executives.

Quite how much change in regulation will happen and when remains to be seen. With new investment frauds coming to light as the economy hardens, it would seem there is no question that regulations will need to be tightened on a global scale.

Fake Villa Scam In Turkey - Update

According to various sources it has been reported that financial details have been "significantly lacking" in the case against Kevin O'Kane regarding an alleged multi-million Euro property fraud involving the sale of 2.5 million Euro worth of villas with fake deeds.

O'Kane faces proceedings bought about by some 80 investors from Northern Ireland.

The case continues as Kevin O'Kane continually denies any wrong-doing.

Investment Warning - June 2009 Updates

Warnings have been issued by the relevant authorities about the following companies.

Warning against Wellesley International Group

Wellesley International Group is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services. Wellesley International Group has a website (www.welleslyinternational.com) using the following addresses:

2-4 Messogion Avenue,
Athens Tower (Building A),
115 27 Athens.
Greece.

Unite 10-18, 32/F,
Tower 1,
Millennium City 1,
388 Kwun Tong Road,
Kwun Tong,
Kowloon,
Hong Kong.

World Trade Center Building,
1st Floor - Commercial Area,
Marbella 53 Str.,
Panama City.
Panama.

Edificio D piso 1,
San Jose.
Costa Rica.

Wellesley International Group's representatives contact investors in Sweden by telephone, cold calling.

Courtesy of The Finansinspektionen

Warning against Omega Global Trading Inc.

Omega Global Trading Inc is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services. Omega Global Trading, Inc has a website (www.oglobaltrading.com) using the following address:

660 Fifth Avenue,
24th Floor,
New York,
NY 10103-0040.

Omega Global Trading Inc's representatives contact investors in Sweden by telephone, cold calling.

Courtesy of The Finansinspektionen

Warning against East Financial Group Inc.

East Financial Group, Inc. is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services. East Financial Group, Inc. has a website (www.eastfinancialgroup.net) using the following address:

1675 Broadway,
30th FL.,
New York,
NY 10019-5820.

East Financial Group Inc.'s representatives contact investors by telephone and offer to buy their holdings of shares in an American OTC company.

Courtesy of The Finansinspektionen

The UK's FSA has warned agianst the following companies, although fails to provide any further data to speak of. The FSA list of alerts can be seen here.

Dragon Partners Inc
Sullivan Investment Group
Barringer & Co
World Capital Group
Milton Hayward
Alpha Securities
Winthorpe Morgan Group

The Hellenic Republic Capital Market Commission has issued the following warning.

Plus500 Ltd., Universal Engine Ltd, which maintains the web-site "www.Plus500.gr" is not authorised or supervised by the Hellenic Capital Market Commission and therefore is not authorised to provide investment services in Greece.

It is noted that according to article 6 of Law 3606/2007, the provision of investment services without prior authorisation from the competent authorities is not permitted and constitutes a criminal offence, which is subject to criminal and administrative sanctions.

The original warning can be seen here.

The CBFA (Belgian Authorities) have issued the following warning.

The Banking, Finance and Insurance Commission (CBFA) warns the public against the offers of investment services made by McLeod Walker Capital Ltd. (www.mcleodwalker.com) from its alleged premises at

Uitbreidingsstraat 84 / 3,
2600
Berchem.

McLeod Walker Capital Ltd. does not have the authorization required to offer investment services in or from within Belgium. The CBFA thus advises the public against responding to any offers of investment services made in the name of McLeod Walker Capital Ltd. and against transferring money to any account number they might mention.

Courtesy of the CBFA

Warning against Doyle John Joseph LLP.

Doyle John Joseph llp is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Doyle John Joseph llp has a website (www.doylejohnjoseph.com) using the following address:

2 Rector Street,
21st Floor
New York,
NY
10006.

Doyle John Joseph LLP's representatives contact investors in Sweden by telephone, cold calling.

Courtesy of The Finansinspektionen

Warning against Affinity Group Solutions

Affinity Group Solutions is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Affinity Group Solutions has a website (www.affinitygroupsolutions.com) using the following address:

Pobřežní 95/74,
187 00 Prague 8,
Czech Republic.

Affinity Group Solutions' representatives contact investors in Sweden by telephone and offer them to buy shares in an OTC company, Tombstone Exploration Corporation, (TMBXF).

Courtesy of The Finansinspektionen

Not sure if you have been scammed?

Investment Warning - May 2009 Updates

The following companies have appeared on the relevant regulatory warning websites.

Young Chow Feng Corp. Ltd.

Young Chow Feng Corp. Ltd. is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services. Young Chow Feng Corp. Ltd. using the following addresses:

Huadong, Jiangyan.
and,
New York, NY 10286.

Young Chow Feng Corp. Ltd.'s representatives contact investors by telephone and offer to buy their holdings of shares. However, the investor must first pay a fee in advance. This is an advance fee fraud scheme.

The original warning can be seen at the Finansinspektionen

Option One International

Option One International is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Option One International has a website (www.optiononeinternational.com) using the following address:

Ed. Neptuno local #7,
Via Tumba Muerto,
Ciudad de Panama,
Republica de Panama.

Option One International's representatives contact investors by telephone, cold calling.

The original warning can be seen at the Finansinspektionen

Armstrong & Knight

Armstrong and Knight is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Armstrong and Knight has a website (www.armstrongknight.com) using the following address:

Seefeldstrasse 69,
8008 Zurich,
Switzerland.
Armstrong and Knight's representatives contact investors in Sweden by telephone, cold calling.

The original warning can be seen at the Finansinspektionen

Rothman Capital

Rothman Capital is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Rothman Capital has a website (www.rothmancapital.com) using the following addresses:

Theodor-Huess-Allee 60, 60486 Frankfurt, Germany.
and,
Nybrogate 11, Stockholm 10964, Sweden.

Rothman Capital's representatives contact investors abroad by telephone, cold calling.

The original warning can be seen at the Finansinspektionen

Lambert McMillan Corporation

Lambert McMillan Corporation
80 S 8th Street
Ids Center & Crystal Court Building,
8th Floor Minneapolis,
MN 55402
United States
Ph 612 246 4553
Fax 612 465 2241
www.lambertmcmillan.com

The original warning can be seen at the ASIC website

First Nevada Securities Ltd

First Nevada Securities Ltd. is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.
First Nevada Securities Ltd. has a website (www.firstnevadasecurities.com) using the following address:

5300 Scarsdale Circle,
Reno,
NV 89502-9692.

First Nevada Securities Ltd.'s representatives contact investors in Sweden by telephone, cold calling.

The original warning can be seen at the Finansinspektionen

All Property Limited

Pursuant to Article 4 para. 7 of the Bankwesengesetz (BWG; Banking Act), the Financial Market Authority (FMA) is entitled in individual cases to disclose to the general public by publication in the official gazette "Amtsblatt zur Wiener Zeitung", or in any other official bulletin with nationwide circulation, the name of a company not entitled to carry out certain banking transactions (Article 1 para. 1 no. 1 and 7 BWG).

By publication in the official gazette "Amtsblatt zur Wiener Zeitung" of 19 May 2009, the FMA is exercising this right and warns against the conclusion of banking transactions requiring a licence with the following provider:

All Property Limited
Fairmont Tower,
Sheikh Zayed Road
7th Floor 712,
P.O. Box 65886
Dubai,
U.A.E.
Registration Nr. O.F 1268
Phone: 0097-14-312-4095
Fax: 0097-14-312-4098
office@all-property-dubai.com

This provider does not possess a licence issued by the FMA to carry out certain banking transactions in Austria. The acceptance of funds from other parties for the purpose of administration or as deposits (deposit business) as well as trading for one's own account or on behalf of others is therefore not allowed.

The original warning can be seen at the FMA

Euro Credit Group

By publication in the official gazette "Amtsblatt zur Wiener Zeitung" of 05 May 2009, the FMA is exercising this right and warns against the conclusion of banking transactions requiring a licence with the following provider:

Euro Credit Group
04085 Kiev
Prospekt Frunze 22 OF 135
http://eurocreditgroup.com/

This provider does not possess a licence issued by the FMA to carry out certain banking transactions in Austria. The acceptance of funds from other parties for the purpose of administration or as deposits (deposit business) is therefore not allowed.

The original warning can be seen at the FMA

Ponzi Style Property Fraud In Italy Uncovered

Major fraud scheme in Italy real estate uncovered

The fraud investigation unit of the Tax Office, the FIOD, has uncovered a major fraud case involving property investments in Italy. The independent supervisory authority for savings, investment and insurance markets (AFM) had reported WSM, a property and project development company, to the Tax Office, claiming that WSM did not conform to the standards set by AFM.

WSM offered to invest in Italian real estate on behalf of 130 private investors. The financial supervisory authority suspected that return on investment was paid with money from new investors. It is estimated that up to ten million euros have been paid by private investors to WSM. The FIOD made two arrests in Amsterdam and Hilversum, after conducting searches in private homes.

The website used by the company was www.wsmbv.com

Story courtesy of Radio Netherlands.

Lehman Brothers Investigation Backed By UK MPs

MPs back investigation into UK Lehman Brothers victims

MPs are rallying round to support the 6,000 UK investors who lost savings when Lehman Brothers collapsed. It is estimated some £200 million is savings was lost be investors who put their cash into structured products that guaranteed their capital.

The average age of the investors is 65. However, small print of the investments hid the fact that "there is a risk that the issuer may fail to meet its obligations". When Lehman Brothers went under all the investors' cash was lost.

The scandal has now reached the attention of MPs – hoping pressure on the government may resolve the problem. An Early Day Motion issued this week by MP Edward Vaizey, shadow minister for culture, calls for an investigation from the Financial Services Authority (FSA).

It states: "This House notes that more than 6,000 people invested more than £200 million of their savings in structured products backed by Lehman Brothers; further notes that such products were marketed as 100 per cent secure by the companies that sold them." Some investors were also unaware that their products were even backed by Lehman Brothers. The victims may be able to receive money by complaining they were missold or not warned of risks to the firms that sold the investments or the Financial Ombudsman Service (FOS).

Currently the FOS is looking at a handful of enquiries, with cases in very early stages.

Courtesy of MyFinances.com

Investment Warning - Updates

The following investment firms have been added to the respect financial regulator warning lists.

Liberty Advisory Group Inc

Kredittilsynet has been informed that Liberty Advisory Group Inc

1440 Broadway Suite
2304 New York,
New York
10018

Has approached Norwegian investors offering to purchase shares on their behalf subject to payment of an advance fee. The company also offers services from a website www.libertyadvisorygroup.com

Kredittilsynet wishes to make it clear that Liberty Advisory Group Inc is not authorised to provide investment services in Norway, and therefore lacks the licence required under Norwegian law. The company is consequently not subject to Kredittilsynet’s supervisory oversight, nor has Kredittilsynet approved the services offered by the company. Kredittilsynet therefore recommends investors not to enter into agreements with or transfer assets to Liberty Advisory Group Inc.

Peterson & Jones Associates

Peterson and Jones Associates has been added to the UK's FSA warning list. Unfortunately no further information is available.

Verein Zukunft Neu

Pursuant to Article 4 para. 7 of the Bankwesengesetz (BWG; Banking Act), the Financial Market Authority (FMA) is entitled in individual cases to disclose to the general public by publication in the official gazette "Amtsblatt zur Wiener Zeitung", or in any other official bulletin with nationwide circulation, the name of a company not entitled to carry out certain banking transactions (Article 1 para. 1 no. 1 BWG).

By publication in the official gazette "Amtsblatt zur Wiener Zeitung" of 28 April 2009, the FMA is exercising this right and warns against the conclusion of banking transactions requiring a licence with the following provider:

Verein Zukunft Neu
Mooslackengasse
171190
Vienna
www.zukunft-neu.eu

This provider does not possess a licence issued by the FMA to carry out certain banking transactions in Austria. The acceptance of funds from other parties for the purpose of administration or as deposits (deposit business) is therefore not allowed.

Dufresne and Andy International

Dufresne and Andy International is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Dufresne and Andy International has a website (www.dufresneandandyint.com) using the following address:

1535 Broadway,
New York,
NY
10036
USA.

Dufresne and Andy International's representatives contact investors by telephone and offer to buy their holdings of shares in an American OTC company. However, the investor must first pay a fee in advance, "Restriction Fee per Unit". This is an advance fee fraud scheme.

Knoll Ridge Group

Knoll Ridge Group is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Knoll Ridge Group has a website (www.knollridgegroup.com) using the following address:

205 South 49th St.,
Atlanta,
GA,
United States.

Knoll Ridge Group's representatives contact investors by telephone and offer to buy their holdings of shares in an American OTC company. However, the investor must first pay a fee in advance, "Margin Equity". This is an advance fee fraud scheme.

Pacific Rim Wealth Management

Pacific Rim Wealth Management is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Pacific Rim Wealth Management has a website (www.pacificrimwealthmgmt.com) using the following address:

16 Westlands Road,
Hong Kong.

Pacific Rim Wealth Management's representatives contact investors by telephone and offer to buy their holdings of shares in an American OTC company, World Wide Child Care Corp. (WWCC) formerly International Child Care Corp. (ICCR)

Morgan Singleton Associates

Morgan Singleton Associates is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Morgan Singleton Associates has a website (www.morgansingleton.com) using the following address:

PO Box 62889,
Seattle,
Washington,
98381-1926,
USA.

Morgan Singleton Associates' representatives contact investors by telephone and offer to buy their holdings of shares in an OTC company, Phoenix Biologicals.

Milton Willard Financials

Milton Willard Financials is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Milton Willard Financials has a website (www.miltonwillard.com) using the following address:

500 North Michigan
Suite 303,
Chicago,
Illinois
60611
United States.

Milton Willard Financials' representatives contact investors by telephone and offer to buy their holdings of shares in an American OTC company, Interact-TV, Inc. (ITVI).

Investment Warning - US Update

Latest additions to the SEC Investor Complaints List

The following company names have been added to the Public Alert: Unregistered Soliciting Entities (PAUSE) in the USA.

FinTrade Advisors Inc.
Morisson Ventures Inc.
Nevada Transfer Agent.
Quantum Reliance Group.
U.S. Financial Management Service.
York & Williamson.
Alliance Group Inc. / Alliance Insurance Agency.
Alliance Transfer Inc.
Capgemini Law Mergers & Acquisitions.
Colonial Trust Transfer Agency LLC.

The SEC (Securities Exchange Comission) has looked into these complaints and has learned that in many cases, the soliciting entities are not registered in the United States as they claim or imply. In an effort to warn the public about these entities, the SEC is publishing information it has learned in reviewing these complaints.

For each of the entities named below, our staff has determined either (1) that there is no US registered securities firm with this name, or (2) that there is a US registered securities firm with the same (or a similar) name but that solicitations appear to have been made by persons who are not affiliated with the US registered securities firm.

Any call out of the blue to sell or even offer to buy any shares you may hold is likely to be a boiler room. With the downturn in the economy it is important to be more careful than ever. Elaborate stories of takeovers of what would appear to be worthless companies are on the increase from fave investment firms, only later to require a security deposit of trading fee of some kind. This is an extention of the traditional boiler room scam.

Been contacted by a boiler room? Find out what you can do.

Investment Warning - Latest Updates

Investment Warnings Update

The following companies have had warnings issued about them from the relevant authorities regarding their trading activities.

Brentwood Group Ltd

By publication in the official gazette "Amtsblatt zur Wiener Zeitung" of 03 April 2009, the FMA is exercising this right and warns against financial service transactions requiring a licence with the following provider:

Brentwood Group Ltd.
Level 15,
Tokyo Ginko Kyokai Building,
1-3-1 Marunouchi,
Chiyoda-Ku,
Tokyo,
Japan
100-0005
Tel: +813-4580-1760, +813-6688-4521
Fax: +813-4496-6228

This provider does not possess a licence issued by the FMA to provide investment services in Austria. Therefore, it is neither allowed to provide investment advice regarding financial instruments, nor portfolio management, i.e. managing portfolios for individual customers who authorise a room for manoeuvre, provided that the customer portfolio contains one or several financial instruments. Furthermore, the provider is also not entitled to accept or transmit transactions, provided that such activity involves one or several financial instruments.

Reality National Bank (RNB)

According to the Jersey Financial Services Commission RNB is carrying on or holding out that it is carrying on deposit taking business in Jersy when it is not authorised to do so pursuant to the provisions of the banking business law.

Global Asset Group

Global Asset Group is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Global Asset Group has a website (www.global-asset-group.com) using the following address:

Beulstrasse 20,
Hergisvil,
Switzerland
6052.

Global Asset Group's representatives contact investors in Sweden by telephone, cold calling.

Silverman International

Silverman International has been listed on the FSA warning list, unfortunately there is no further information available from the authority to inform investors.

Lehman Brothers & Associates Corp

The Danish Financial Supervisory Authority has been informed that a company named Lehman Brothers & Associates Corp, unsolicited has contacted a Danish citizen. The company appears to operate from Montréal in Canada and the company's homepage is http://lehmanbrotherscorp.com

According to the information given to The Danish Financial Supervisory Authority, the company has offered transmission of orders in shares.

Lehman Brothers & Associates Corp. does not have authorization from the Danish Financial Supervisory Authority in accordance with the Financial Business Act to carry out such services in Denmark.

Have you been mis-sold an investment? Find out more about what you can do about it.

Turkish Investment Property Fraud Goes To EU Parliment

DİDİM - Claiming they were victims of a property scam, a group of British and Irish expatriates take their legal battle to the next level. They are about to start interviews at the EUParliament, while one couple is taking the case to the European Court of Human Rights.

A group of British and Irish residents in Aydın’s Didim claim they were deceived when buying property in the area and were going to the European Parliament on the grounds their rights were not equally observed in Turkey. The group said they would also complain to governments and the press in their own countries and have named themselves the "Association Seeking Justice." Three members of the group have left for Brussels for a series of interviews at the EU Parliament to present their case.

Meanwhile, Irish parliamentarian, Jim Allister, has also sent a letter to Justice Minister Mehmet Ali Şahin asking him to take the complaints into consideration. Didim is a popular town in Turkey’s Aegean region for British and Irish pensioners looking to retire, but for some the seaside paradise has been marred by property scam nightmares.

After a rise in property scams, victims in Didim established the "Association Seeking Justice" to protect their rights. The popularity of seaside resorts has led to similar problems in other countries. In Spain, "Abusos-Urbanisticos No!" is a group of mostly foreign nationals who have suffered real estate injustices and have been fighting their way through the EU Parliament for years.

Fighting fraud

One British couple in Turkey is prepared to take their case the European Court of Human Rights, as real estate fraud increases internationally. The 150-member association’s spokesman who went to Brussels yesterday, Robert Bailei, explained the reason for their visit to the European Parliament: "We are going to have talks to ask the European Parliament to take a firm and active role in preventing real estate fraud in Turkey and push the Turkish government to punish these people who scam foreigners. "Our next stop will be the Turkish Parliament. We will ask Turkish parliamentarians to take action to clarify the law on property ownership of foreigners and increase controls on real estate. If Turkey cannot solve this real estate corruption, I am afraid it will be very hard for Turkey to enter the European Union because EU citizens are being deceived here."

Most of the association’s members claim that two people involved, Irishman Kevin O’Kane and his Turkish partner, Kubilay Atmaca, used fake title deeds in selling property. O'Kane and Atmaca are being judged in both Turkey and Ireland.

Courtesy of Hurriyet Daily News

Worldwide Destinations - Peter Morris Held In Egypt

"I’M LOCKED UP OVER PROPERTY CON BUT I DID NOTHING WRONG"

A BRITISH businessman is being held in an Egyptian jail after being arrested in connection with a suspected multi-million pound property fraud.

Peter Morris, 46, has been locked in a filthy cell for five weeks after Egyptian authorities said he was behind an international scam involving Sean Woodhall, a convicted conman who went missing in a mysterious plane crash in Brazil last year.

Mr Morris became the sole director of Worldwide Destinations, a property company owned by the Woodhall family, in February following a request from administrators. He pleaded last night: “Please help me. It is killing me to be in here. I have committed no crime.” During the past three years, the company based in Cambridgeshire has sold hundreds of off-plan apartments to British investors in the Red Sea resort of Hurghada. Some 300 investors paid an average of £40,000 as deposits, but the builders El Riad claim that more than £2million of the money failed to reach them and is now refusing to hand over any keys until it has been paid. El Riad invited Mr Morris to Egypt for negotiations last month, but soon after touching down he was arrested and accused of fraud.

Mr Morris, who shares a cell with 50 others, including alleged murderers, claims he was entrapped. Woodhall, 43, received an 18-month suspended sentence in 2001 for an advertising fraud in Birmingham. Worldwide Destinations foundered and half-brother Mark Lovelock ran Worldwide, but revenues dried up. When clients started complaining about problems completing their deals, Mr Morris was asked to help by Grant Thornton administrators.

After five weeks’ sleeping on a cell floor and sharing one toilet with 50 other inmates, Mr Morris is in poor health. Yet no formal charges have been made. He said: “I only came out here to try to help people who were having problems with their properties and I ended up being arrested.”
His wife Helen, 36, and daughter Danni, 11, are anxiously waiting for news at their home in Great Cambourne, Cambridgeshire. Mrs Morris, who has only had one two-minute phone call with her husband and an email in which he told her a visit would be too distressing, said: “We are both distraught.

“I just hope he holds it together out there and this all ends as quickly as possible. I just wish Peter had never got involved with the Woodhall family.”

Builders El Riad claim that Mr Morris, when he was Worldwide’s master agent, was not legally entitled to sign purchase contracts with British investors, but he insists he had full power of attorney from Sean Woodhall.

El Riad has now told hundreds of British customers that if they do not fly to Egypt to sign new contracts and pay “maintenance and legal costs” of £4,000, they risk losing their apartments.
Mohamed Hussein, a partner in El Riad, said: “I cannot understand why people who have paid around £40,000 for their apartments would not spend £400 on a plane fare to come and sort out the problem.

“I like the British and I want to do more business with them. I am trying to help these people. I have lost a lot of money already because I have not been paid by them.”
Britons living in Wordwide Destinations’s Desert Pearl resort claim that El Riad has cut their power supplies. They are also concerned that their properties were not “free of encumbrance”, as their contracts claimed, as the landowners had taken out a prior mortgage on the site, which now risks being called in.

Former printer Gary Barrett, 41, and his wife Kim, 40, of Romford, Essex, spent £35,000 on one apartment and £19,000 on a second, which is still under construction. Kim said: “We were told out of the blue that the builder had padlocked the gates and changed the locks and that the apartment is no longer ours. The same is going to happen to the second.”

A Foreign Office spokesman said it has monitoring Mr Morris’s situation.

Courtesy of The Daily Express

UPDATE: An extensive forum can be seen on Worldwide Destinations at Propertyhotspotsworldwide.com

Investment Warning - IntraTech Capital

Investment Warning against IntraTech Capital

IntraTech Capital is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

IntraTech Capital has a website (www.intratechcapital.com) using the following address:

Place Mozart,
2 Bis Avenue,
Durante 06000
Nice,
France.

IntraTech Capital's representatives contact investors in Sweden by telephone and offer them to buy shares in an American OTC company.

Courtesy of The Swedish Financial Supervisory Authority.

Have you been called by an unlicenced broker offering Over The Counter shares?

Investment Warning - Hua-tong Finance and Investment Company Limited

Warning against Hua-tong Finance and Investment Company Limited.

According to The Securities and Futures Commission (SFC) Hua-tong Finance and Investment Company Limited is an unlicensed entity, claiming to be a financial investment company set up in Hong Kong in November 1985 and have HK$9.8 billion in its investment portfolio. It appears to target overseas investors to provide gold and futures trading.

The Company details are given as;

1 International Finance Centre.
1 Harbour View Street,
Central.
Hong Kong.

www.hk-huatong.com

Courtesy of The Securities and Futures Commission (SFC)

Investment Warning - Peninsula Capital Limited

Warning against Peninsula Capital Limited.

According to Invested and The Securities and Futures Commission (SFC), Peninsula Capital Limited is an unlicensed entity.

Contact details used by the company are;

Room 3607,
The Center.
99 Queen's Road.
Central
Hong Kong

www.peninsulacapitalhk.com

The Company is said to be targeting non-US investors to buy over the counter (OTC) stocks.

Courtesy of the investor portal of the SFC.

Investment Warning - Partners and Ru Asset Management

Warning against Partners & Ru Asset Management

Partners & Ru Asset Management is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Partners & Ru Asset Management has a website (www.partnersruassetmanagement.com) using the following address:

1090 Vermont Ave N.W.
Washington DC 20005,
USA.

Partners & Ru Asset Management's representatives contact investors in Sweden by telephone, cold calling.

Courtesy of The Swedish Financial Supervisory Authority

Find out more about cold calls and investment offerings

Investment Warning - New York Capital Investment

Investment warning against New York Capital Investment.

New York Capital Investment is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

New York Capital Investment has a website (www.nycapitalinvestment.com) using the following address:

2 Penn Plaza
44 Wall Street
New York,
NY 10121.

New York Capital Investment's representatives contact investors in Sweden by telephone, cold calling.

Courtesy of The Swedish Financial Supervisory Authority

Find out more about this type unauthorized investment offering.

11 Year Sentence for Mortgage Scam

11 Years For Con Mastermind.

A BUSINESSMAN who masterminded a £800,000 mortgage scam has been jailed for 11 years.

Accountant and financial advisor Rashid Farid ran a sophisticated con using the internet to alter Land Registry records and obtain mortgages or remortgages on properties, netting £787,050.

During a nine-week trial at Bradford Crown Court a jury heard money paid out by Birmingham Midshires and The Mortgage Business, which were both part of the Halifax Bank of Scotland, was then laundered through other people's accounts and large sums sent to Pakistan. Prosecutor Tom Storey said legitimate householders then had to spend significant time and money persuading the Land Registry to put properties back into their names.

Farid, 30, of Lemans Drive, Batley, was a registered mortgage broker for Lifestyle Mortgages (Kirklees) in Daisy Hill, Dewsbury. His barrister Jonathan Mann accepted there had been victims of the fraud. Mr Mann said: "Mr Farid was a successful businessman before committing these offences," adding that his client did not need the cash or have a lavish lifestyle. "The root cause of the offending was more to do with the intellectual challenge of beating the system," said Mr Mann. Judge Jonathan Durham Hall QC called for an urgent review of the Land Registry Act which provided "a gaping opportunity" for the offences to be committed.

Farid used details of other people without them knowing or altered information held by the Land Registry to apply for the mortgages. He was found guilty of conspiracy to commit fraud by false representation, perverting the course of justice and transferring criminal property. He was jailed with his brother Mohammed Jahangir Farid, 26, and his father Mohammed Farid, 53, also of Lemans Drive. They were both convicted of a money-laundering offence and jailed for four years and two years respectively.

The judge told Rashid Farid he had destroyed his family by involving them in the deceit which happened between March 2006 and October 2007. He added: "This was an utterly sophisticated, meticulously organised crime." Two other men who admitted an involvement and money-laundering, Mohammed Rafiq, 50, of Queens Road, Halifax, and Mohammed Ali, 42, of All Saints Court, Keighley, were jailed for three-and-a-half years. Imran Hussain, 31, of Burley Road, Leeds and another man, who cannot be named for legal reasons, also received three-and-a-half year after being found guilty of money laundering. Five other men were cleared of any involvement: Javed Iqbal, 43, of Wigan; Nadim Farid, 29, of Lemans Drive, Batley; Ihsan Meer, 45, of West Park Street, Dewsbury; Attif Ashraf, 31, of Brander Close, Bradford and Wasim Nazir, 31, of Moorend Lane, Dewsbury. The Crown Prosecution Service and its counsel worked with a specialist team from the Metropolitan Police, who uncovered the scam as part of a wider investigation into theft and money laundering.

After Tuesday's sentencing CPS prosecutor Julian Briggs said the complexity of the case had taken 18 months to unravel and it was believed the cash was invested in property overseas.

Courtesy of The Dewsbury Reporter

Problems with a mis-represented mortgage?

Investment Warning - Midas International

Investment warning against Midas International

Midas International is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Midas International has a website (www.midasworldwide.com) using the following addresses:

33 Throgmorton Street,
London,
EC2N 2BR.
U.K.

Burjuman Tower,
18th Floor,
P.O. Box 121828,
Dubai, 43659
U.A.E.

One International Finance Centre 33rd Floor,
1 Harbour View Street,
Central,
Hong Kong

Sydney Citigroup Centre,
39th Floor,
2 Park Street,
Sydney,
NSW2000.

Australia Midas International's representatives contact investors in Sweden by telephone, cold calling.

Courtesy of The Swedish Finanacial Supervisory Authority

Sir Allen Stanford Claims "Not a Ponzi Scheme"

'Clients lost no money' said Sir Allen Stanford.

Sir Allen Stanford, accused of an $8b fraud by U.S. regulators, has insisted no money was lost by customers dealing with his financial services companies. In an emotional interview with ABC, the Texan financier wept as he spoke about how much he loved his employees.

He later threatened to punch anyone who repeated allegations that Sir Allen was involved in the laundering of Mexican drug money.

He has already denied any wrongdoing in the case. But the U.S. financial regulator, the Securities and Exchange Commission (SEC), has said Sir Allen is guilty of fraud of “shocking magnitude”, and criminal charges are expected to follow.

By court order, the Texan billionaire is denied access to his own money, and he said the seizure of his assets had left him with little money and few changes of clothing. Even though in the past he has reportedly owned both a castle and an island he insists his lifestyle was always frugal.
Throughout the interview Sir Allen ran rapidly across a wide spectrum of emotion from the mawkish to combative, says the BBC's Kevin Connolly in Washington.

He insisted any attempt to compare his investment companies with those of the disgraced Wall Street financier Bernard Madoff was unfair. He added that customers who have tried to recover their money from his banks have been able to do so.

In one of his more dramatic moments, he said he would “die and go to hell” if his investment plans were proved to be financial pyramid schemes, or Ponzis. “If it was a Ponzi scheme, why are they finding billions and billions of dollars all over the place?” he asked.

Sir Allen came to prominence last year when he sponsored a high-profile Twenty20 cricket tournament, which culminated in a match between England and an all-stars West Indies team that gave each winning player $1m.

His property in the Caribbean state of Antigua and Barbuda, where many of his business interests are based, has already been seized by the islands' government.

Courtesy of The BBC

Think you might be a victim of a Ponzi Scheme?

Investment Warning - Sumitomo International

Investment warning against Sumitomo International

Sumitomo International is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Sumitomo International has a website, (www.sumitomoint.com) and using the following address:

20-1 Sakuragaoka-Cho
Shibuya Infos Tower 8F,
Shibuya-Ku,
Tokyo,
Japan.
150-0031.

Sumitomo International's representatives contact investors by telephone and offer to buy their holdings of shares. However, the investor must first pay a fee in advance. This is an advance fee fraud scheme. Information suggests that Sumitomo International takes over the operation of Masahiro International. Please, see warning against Masahiro International issued 16 November 2007.

Courtesy of The Swedish Financial Supervisory Authority

Have you been a victim of mis-sold investments? Contact us for a no obligation chat.

Investment Warning - Goldsmith and Harris

Investment Warning against Goldsmith and Harris.

Goldsmith & Harris is not authorised by Finansinspektionen (the Swedish Financial Supervisory Authority) and is therefore not entitled to provide financial services.

Goldsmith & Harris has a website (www.ghasset.com) using the following address:

80 Pine Street,
New York,
NY 10005.

Goldsmith & Harris' representatives contact investors by telephone and offer to buy their holdings of shares in an American OTC company. However, the investor must first pay a fee in advance, "insurance policy $.50/share/warrants". This is an advance fee fraud scheme.

Courtesy of The Swedish Financial Supervisory Authority

Mis-sold an investment? Contact Missoldinvestments.com

Buy to Let Investment Fraud Sentencing

House scam bosses are sentenced

Five Gateshead company directors who conned property investors out of almost £80m have been sentenced. John Potts, Peter Gosling, Natalie Laverick, Eric Armstrong and Peter Graham ran Practical Property Portfolio (PPP), which was closed down in 2004. Investors were told their properties would be refurbished and rented out but much of the work was not done. The five admitted fraud charges - four were jailed and one defendant was given a 21-month suspended sentence.

The five had faced a four-month trial charged with conspiracy to defraud between January 2001 and March 2003. However, last month Potts of Silksworth Hall Drive, Sunderland; Gosling, 57, of Rothbury Gardens, Lobley Hill; and Laverick, 28, also of Silksworth Hall Drive, admitted the conspiracy charge.

Graham, 62, of Topcliffe, Sunderland, admitted three counts of fraudulent trading and Armstrong, 55, of Moorside North, Fenham, Newcastle, two fraudulent trading counts. Potts was jailed for five years; Gosling was jailed for three years and both Armstrong and Graham were jailed for two years.

Brazen fraud

Laverick was given a 21-month prison sentence suspended for two years for offering to give evidence against the others. The court heard PPP had been set up in the late 1990s and its offices were based at the Team Valley Trading Estate. The hearing heard that investors were asked to put money into derelict properties, but they were just left unoccupied. Judge Guy Whitburn QC said: "Where did the money go? The nature of what has been termed a pyramid scheme is that it may disappear into a black hole.

"It is abundantly clear - Potts in particular, Gosling to a lesser extent, and the others - led an extraordinary lifestyle.

"It was in particular a brazen fraud."

Courtesy of the BBC

FBI Comments on Investment Property Fraud

John S. Pistole. Deputy Director Federal Bureau of Investigation
Statement Before the House Committee on the Judiciary
April 1, 2009.

Good morning Mr. Chairman, Ranking Member, and Members of the Committee. I want to thank you for the opportunity to testify before you today about the Federal Bureau of Investigation’s (FBI) efforts to combat mortgage fraud and other financial frauds. Much the same as the Savings and Loan (S&L) Crisis of the 1980s crippled our economy, so too has the current financial crisis. Many of the lessons learned and best practices from our work during the past decade, such as the Enron investigation, will clearly help us navigate the expansive crime problem currently taxing law enforcement and regulatory authorities.

In the late 1980s and early 1990s, the United States experienced a similar financial crisis with the collapse of the savings and loans. The Department of Justice (DOJ), and more specifically the FBI, were provided a number of tools through the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) and Crime Control Act of 1990 (CCA) to combat the aforementioned crisis. As stated in Senate Bill 331 dated January 27, 2009, “in the wake of the Savings and Loan crisis of the 1980s, a series of strike forces based in 27 cities was staffed with 1000 FBI agents and forensic experts and dozens of federal prosecutors. That effort yielded more than 600 convictions and $130,000,000 in ordered restitution.”

However, today’s financial crisis dwarves the S&L crisis as financial institutions have reduced their assets by more than $1.2 trillion related to the current global financial crisis compared to the estimated $160 million lost during the S&L crisis. Mortgage and related corporate fraud were not the sole sources of the current financial crisis; however, it would be irresponsible to neglect mortgage fraud’s impact on the U.S. housing and financial markets.

As the FBI’s Assistant Director for the Criminal Division testified in 2004 before the House Financial Services Sub-Committee: “If fraudulent practices become systemic within the mortgage industry and mortgage fraud is allowed to become unrestrained, it will ultimately place financial institutions at risk and have adverse effects on the stock market. Investors may lose faith and require higher returns from mortgage backed securities. This may result in higher interest rates and fees paid by borrowers and limit the amount of investment funds available for mortgage loans.”

He also noted that the FBI supported new approaches to address mortgage fraud and its effects on the U.S. financial system, to include:

• a mechanism to require the mortgage industry to report fraudulent activity,
• and the creation of “ Safe Harbor” provisions to protect the mortgage industry under a mandatory reporting mechanism.

What has occurred has been far worse than predicted. Mortgage fraud and related financial industry corporate fraud have shaken the world’s confidence in the U.S. financial system. The fraud schemes have adapted with the changing economy and now individuals are preyed upon even as they are about to lose their homes. But what is mortgage fraud?

Although there is no specific statute that defines mortgage fraud, each mortgage fraud scheme contains some type of material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan.

The FBI delineates mortgage fraud in two distinct areas:

1) Fraud for Profit; and

2) Fraud for Housing.

Fraud for Profit uses a scheme to remove equity, falsely inflate the value of the property or issue loans relating to fictitious property(ies). Many of the Fraud for Profit schemes rely on “industry insiders”, who override lender controls. The FBI defines industry insiders as appraisers, accountants, attorneys, real estate brokers, mortgage underwriters and processors, settlement/title company employees, mortgage brokers, loan originators, and other mortgage professionals engaged in the mortgage industry.

Fraud for Housing represents illegal actions perpetrated by a borrower, typically with the assistance of real estate professionals. The simple motive behind this fraud is to acquire and maintain ownership of a house under false pretenses. This type of fraud is typified by a borrower who makes misrepresentations regarding the borrower’s income or employment history to qualify for a loan.

The FBI compiles data on mortgage fraud through Suspicious Activity Reports (SARs) filed by financial institutions and through the Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) reports. The FBI also receives complaints from the industry at large.

While a significant portion of the mortgage industry is void of any mandatory fraud reporting and there is presently no central repository to collect all mortgage fraud complaints, SARs from financial institutions have indicated a significant increase in mortgage fraud reporting. For example, during Fiscal Year (FY) 2008, mortgage fraud SARs increased more than 36 percent to 63,173. The total dollar loss attributed to mortgage fraud is unknown. However, 7 percent of SARs filed during FY 2008 indicated a specific dollar loss, which totaled more than $1.5 billion. Only 7 percent of SARs report dollar loss because of the time lag between identifying a suspicious loan and liquidating the property through foreclosure and then calculating the loss amount. As of February 28, 2009, there were 28,873 mortgage fraud SARs filed in fiscal year 2009.

Fraud Trends

The current financial crisis has produced one unexpected consequence: it has exposed prevalent fraud schemes that have been thriving in the global financial system. These fraud schemes are not new but they are coming to light as a result of market deterioration. For example, current market conditions have helped reveal numerous mortgage fraud, Ponzi schemes and investment frauds, such as the Bernard Madoff scam. These schemes highlight the need for law enforcement and regulatory agencies to be ever vigilant of White Collar Crime both in boom and bust years.
The FBI has experienced and continues to experience an exponential rise in mortgage fraud investigations. The number of open FBI mortgage fraud investigations has risen from 881 in FY 2006 to more than 2,000. In addition, the FBI has 566 open corporate fraud investigations, including matters directly related to the current financial crisis. These corporate and financial institution failure investigations involve financial statement manipulation, accounting fraud and insider trading. The increasing mortgage, corporate fraud, and financial institution failure case inventory is straining the FBI’s limited White Collar Crime resources.

Although there are many mortgage fraud schemes, the FBI is focusing its efforts on those perpetrated by industry insiders who are part of organized enterprises engaged in Mortgage Fraud for Profit. Industry insiders are of priority concern as they are, in many instances, the facilitators that permit the fraud to occur. The FBI utilizes SAR data to help identify fraud schemes perpetrated by insiders. However, SAR data does not capture suspicious activity identified by the entire mortgage industry. Requiring the entire industry to report suspicious activity would give us a more complete data set to exploit. The FBI is engaged with the mortgage industry in identifying fraud trends and educating the public. Some of the current rising mortgage fraud trends include: equity skimming, property flipping, mortgage identity related theft, and foreclosure rescue scams.

Equity skimming is a tried and true method of committing mortgage fraud and criminals continue to devise new schemes. Today’s common equity skimming schemes involve the use of corporate shell companies, corporate identity theft and the use or threat of bankruptcy/foreclosure to dupe homeowners and investors.

Property flipping is nothing new; however, once again law enforcement is faced with an educated criminal element that is using identity theft, straw borrowers and shell companies, along with industry insiders to conceal their methods and override lender controls.

Identity theft in its many forms is a growing problem and is manifested in many ways, including mortgage documents. The mortgage industry has indicated that personal, corporate, and professional identity theft in the mortgage industry is on the rise. Computer technology advances and the use of online sources have also assisted the criminal in committing mortgage fraud. However, the FBI is working with its law enforcement and industry partners to identify trends and develop techniques to thwart illegal activities in this arena.

Foreclosure rescue scams are particularly egregious in that fraudsters take advantage and illegally profit from other individuals’ misfortunes. As foreclosures continue to rise across the country, so too have the number of foreclosure rescue scams that target unsuspecting victims. These scams include victims losing their home equity or paying thousands of dollars in fees, and then receiving little or no services, and ultimately losing their home to foreclosure. The FBI is again working with our law enforcement and regulatory partners along with industry partners to target, disrupt and dismantle the individuals and/or companies engaging in these fraud schemes.

Proactive Approach to Financial Frauds

The FBI has implemented new and innovative methods to detect and combat mortgage fraud. One of these proactive approaches was the development of a property flipping analytical computer application, first developed by the Washington Field Office, to effectively identify property flipping in the Baltimore and Washington areas. The original concept has evolved into a national FBI initiative which employs statistical correlations and other advanced computer technology to search for companies and persons with patterns of property flipping. As potential targets are analyzed and flagged, the information is provided to the respective FBI field office for further investigation. Property flipping is best described as purchasing properties and artificially inflating their value through false appraisals. The artificially valued properties are then sold at a higher price to an associate of the “flipper” at a substantially inflated price. Often flipped properties go into foreclosure and are ultimately repurchased for a fraction of their original value.

Other methods employed by the FBI include sophisticated investigative techniques, such as undercover operations and wiretaps. These investigative measures not only result in the collection of valuable evidence, they also provide an opportunity to apprehend criminals in the commission of their crimes, thus reducing loss to individuals and financial institutions. By pursuing these proactive methods in conjunction with historical investigations, the FBI is able to realize operational efficiencies in large scale investigations.

In December 2008, the FBI dedicated resources to create the National Mortgage Fraud Team at FBI headquarters in Washington, D.C. The Team has the specific responsibility for all management of the mortgage fraud program at both the origination and corporate level. This Team will be assisting the field offices in addressing the mortgage fraud problem at all levels. The current financial crisis, however, has required the FBI to move resources from other white collar crime and criminal programs in order to appropriately address the crime problem. Since January 2007, the FBI has increased its agent and analyst manpower working mortgage fraud investigations. The Team provides tools to identify the most egregious mortgage fraud perpetrators, prioritize pending investigations, and provide information to evaluate where additional manpower is needed.

Partnerships

One of the best tools the FBI has in its arsenal for combating mortgage fraud is its long-standing partnerships with other federal, state and local law enforcement. This is not a new tool employed by the FBI. Collaboration, communication, and information-sharing have long been a proven solution to the nation’s most difficult crimes. In response to a growing gang problem, for example, the FBI stood up Safe Streets Task Forces across the country. In response to crimes in Indian Country, the FBI developed the Safe Trails Task Force Program. In response to this new threat, the FBI stood up Mortgage Fraud Task Forces across the country.

Presently, there are 18 mortgage fraud task forces and 47 working groups in the country. With representatives of federal, state, and local law enforcement, these task forces are strategically placed in areas identified as high threat areas for mortgage fraud. Partners are varied but typically include representatives of HUD-OIG, the U.S. Postal Inspection Service, the Internal Revenue Service, FinCEN, the Federal Deposit Insurance Corporation, as well as State and local law enforcement officers across the country.

While the FBI has increased the number of agents around the country who investigate mortgage fraud cases from 120 Special Agents in FY 2007 to currently over 250 Special Agents as of February 28, 2009, this multi-agency model serves as a force-multiplier, providing an array of resources to adequately identify the source of the fraud, as well as finding the most effective way to prosecute each case, particularly in active markets where fraud is widespread. We are pleased to report that the model is working.

Last June, for example, we worked closely with our partners on “Operation Malicious Mortgage” – a massive multiagency takedown of mortgage fraud schemes involving more than 400 defendants nationwide. That operation focused primarily on three types of mortgage fraud: lending fraud, foreclosure rescue schemes, and mortgage-related bankruptcy schemes. Among the 400-plus subjects of “Operation Malicious Mortgage”, there have been 164 convictions and 81 sentencings so far for crimes that have accounted for more than $1 billion in estimated losses. Forty-six of our 56 field offices around the country took part in the operation, which has resulted in the forfeiture and/or seizure of more than $60 million in assets.

In addition to the effort placed in standing up mortgage fraud task forces, the FBI is one of the DOJ participants in the national Mortgage Fraud Working Group (MFWG), which DOJ chairs. The MFWG represents the collaborative effort of multiple Federal agencies and facilitates the information sharing process across the aforementioned agencies, as well as private organizations. Together, we are building on existing FBI intelligence databases to identify large industry insiders and criminal enterprises conducting systemic mortgage fraud.

The FBI is also a member of the President’s Corporate Fraud Task Force which is comprised of investigators from the Securities and Exchange Commission, the Internal Revenue Service, the U.S. Postal Inspection Service, the Commodity Futures Trading Commission, and the FinCEN. The purpose of the Corporate Fraud Task Force is to maximize intelligence sharing between membership agencies and to ensure the violations related to corporate fraud are appropriately addressed. The FBI also participates in the Securities and Commodities Fraud Working Group, a national interagency coordinating body established by DOJ to provide a forum for exchanging information and discussing violation trends, law enforcement issues and techniques. In addition, since April 2007, FBI headquarters personnel have met with representatives from the Securities and Exchange Commission once a month to coordinate the respective Corporate Fraud inventories focused on the current financial crisis and to share intelligence.

Industry Liaison

In addition to its partners in law enforcement and regulatory areas, the FBI also continues to foster relationships with representatives of the mortgage industry to promote mortgage fraud awareness. The FBI has spoken at and participated in various mortgage industry conferences and seminars, including those sponsored by the Mortgage Bankers Association (MBA).
To raise awareness of this issue and provide easy accessibility to investigative personnel, the FBI has provided contact information for all FBI Mortgage Fraud Supervisors to relevant groups including the MBA, Mortgage Asset Research Institute, Fannie Mae, Freddie Mac and others. Additionally, the FBI is collaborating with industry to develop a more efficient mortgage fraud reporting mechanism for those not mandated to report such activity. The FBI supports providing a “safe harbor” for lending institutions, appraisers, brokers and other mortgage professionals similar to the provisions afforded to financial institutions providing SAR information. The “ Safe Harbor” provision would provide necessary protections to the mortgage industry under a mandatory reporting mechanism. This will also better enable the FBI to provide reliable mortgage fraud information based on a more representative population in the mortgage industry.

Lenders are painfully aware that fraud is affecting their bottom line. Through routine interaction with FBI personnel, industry representatives are aware of our commitment to address this crime problem. The FBI frequently participates in industry sponsored fraud deterrence seminars, conferences and meetings which include topics such as quality control and industry best practices to detect, deter, and prevent mortgage fraud. These meetings play a significant role in training and educating industry professionals. Companies share current and common fraud trends, loan underwriting weaknesses and best practices for fraud avoidance. These meetings also increase the interaction between industry and FBI personnel.

Additionally, the FBI continues to train its personnel and conduct joint training with HUD-OIG and industry on mortgage fraud. As a training model, the FBI seeks industry experts to assist in its internal training programs. For example, industry has assisted training FBI personnel on mortgage industry practices, documentation, laws and regulations. Industry partners have offered to assist the FBI in developing advanced mortgage fraud investigative training material and fraud detection tools.

Conclusion

Mr. Chairman, the FBI remains committed to its responsibility to aggressively investigate significant financial crimes which include mortgage fraud. We will continue to work with the Office of Management and Budget, and the Congress to ensure that adequate resources are available to address these threats. To maximize our current resources, we are relying on intelligence collection and analysis to identify emerging trends to target the greatest threats. We also will continue to rely heavily on the strong relationships we have with both our law enforcement and regulatory agency partners.The FBI looks forward to working with you and other members of this committee on solving this serious threat to our nation’s economy. Thank you for allowing me the opportunity to testify before you today. I look forward to taking your questions.

Courtesy of the FBI

Investment Warning - Shanghai Wang Venture Inc.

Investment Warning - Shanghai Wang Venture.

According to the FSA and the Finansinspektionen,

Shanghai Wang Venture Inc.

Located at;
Shui On Plaza,
333 Huai Hai Road,
Luwan District,
Shanghai.
China
200021
Phone: +86 21 5116 7111
Fax: +86 2161 6383 54
Web: www.asiamacn.com
Email: info@asiamacn.com

Complaints have been received about the above company. Although details issued are not specific, companies appearing on government regulator websites have either received complaints, or are known to be operating illegally in the jurisdictions where listed.

Securities and Exchange Commission looks to private sector to help uncover fraud

Securities and Exchange Commission looks to private sector to help uncover fraud.

(Reuters) - Mary Schapiro, the new chairman of the U.S. Securities and Exchange Commission (SEC), is looking to enlist private sector help in uncovering fraud, the Financial Times reported.

According to an interview posted on the paper's website, Schapiro said the SEC was exploring new approaches to enforcement, particularly in the oversight of investment advisors.
"We need to find some ways to increase staffing but beyond that, leveraging third parties without abdicating our responsibility," Schapiro told the paper.

Beyond ramping up staffing at the agency, Schapiro said that using third parties such as auditors, who can do compliance reviews, is one way of employing outside help.

Schapiro, whose agency came under harsh criticism for not uncovering Bernie Madoff's $65 billion investment fraud, has set an aggressive agenda to rebuild the SEC's credibility by strengthening rules for money market funds and investment advisers, as well as giving shareholders more rights.

Courtesy of Reuters

Practical Property Portfolio - Fraud Hearing

Gateshead firm's bosses conned investors in property scam
By Matt McKenzie (Sundaysun.co.uk)

Five company directors funded a lavish lifestyle by ripping off investors during a multimillion-pound property scam, a court heard today. John Potts, Peter Gosling, Natalie Laverick, Eric Armstrong and Peter Graham conned investors out of an estimated £80m.

The five did not just feather their own nests they also ensured the loyalty of staff at Gateshead-based Practical Property Portfolio with plush offices, large salaries and generous bonuses.
Nicholas Dean QC, prosecuting, told Newcastle Crown Court: "The prosecution are not suggesting that these defendants set up the investment scheme as a fraud from the start. The scheme became a fraud for one main reason - the defendants, and particularly Potts, were both greedy and careless."

"Their greed meant that the scheme became a fraud and could only be continued as a fraud."
"Greed, driven by Potts, meant that income became the focus of PPP’s business at the expense of prudent acquisition, refurbishment and management of property."
"The extravagant use of investors’ funds extended to most aspects of administration of PPP particularly in the form of excessive wages, bonuses and commissions paid to staff."
"The defendants bought loyalty and hard work from employees and also achieved a willingness amongst some employees to turn a "blind eye" to the shortcomings of the scheme."
"Above all the defendants rewarded themselves very generously."

The defendants had faced a four-month trial at Newcastle Crown Court charged with conspiracy to defraud between January 2001 and March 2003 when PPP was closed down.
However, last month Potts, 60, of Silksworth Hall Drive, Sunderland; Gosling, 57, of Rothbury Gardens, Lobley Hill; and Laverick, 28, also of Silksworth Hall Drive, admitted the conspiracy charge.

Graham, 62, of Topcliffe, Sunderland, admitted three counts of fraudulent trading and Armstrong, 55, of Moorside North, Fenham, Newcastle, two fraudulent trading counts.
Today they returned to Newcastle Crown Court for the start of a three-day sentencing hearing.
The court was told that during the period of the conspiracy, investors were persuaded by false and misleading information to invest in the company which bought houses and flats - many in run-down areas - for refurbishment.

But scores of investors were to discover properties - across the North East, Yorkshire and Lancashire - had not been renovated or tenanted and were sometimes derelict or even burnt-out shells.
"The vast majority of investors never saw the property they were allocated and relied upon the literature and what they were shown by salesmen - it is clear we say that the salesmen only showed potential investors properties that would create a favourable impression," said Mr Dean.
Mr Dean said that Potts "oozed warmth and confidence'' in order to seal a deal with a potential investor.

One investor, Margaret Patrick, had bought a property in Gower Street, Sunderland, for £25,000. She was later to discover when visiting it with her husband Philip, that it was burnt out following a gas explosion and the rest of the houses on the road had also been bought by PPP.
"Mr and Mrs Patrick visited 20 Gower Road on September 29, 2002 - they found a burnt out derelict shell of a house in a street of burnt out derelict shells," said the prosecutor.

The video the Patricks made of their visit to the abandoned street - showing graffiti of "The Gazza Strip" (sic) sprayed on a wall - was played to the court today. Another investor, chartered accountant Brian Fox, who lost around £500,000 in the scam, even took senior managers from the now-collapsed HBOS Group to a meeting with PPP to consider investments.
"He attended (a meeting) with a representative of the Bank of Scotland, who were considering investing with Mr Fox - a glimpse too of how banks became involved in the acquisition of "toxic" assets," said Mr Dean.

Many investors learnt of the scam only when the Department of Trade intervened, because they lived outside the North East or even abroad and had never seen the properties concerned.
The company attracted around 1,750 investors, many of whom lost significant sums - including Mr Fox who was conned out of £500,000 and others who lost their life savings.
At the time the company was wound up, investor claims totalled £16m. However, PPP had claimed that its portfolio of 3,211 properties was worth £80m - meaning each property was worth around £25,000, which equalled the cost of a single investment.
PPP and its spin-off firms used adverts in national newspapers, brochures and a slick sales pitch to persuade investors to part with their money.

The court heard that PPP had been set up in the late 1990s and its offices were based at the Team Valley Trading Estate in Gateshead. Alan Trevitt, who was an early investor in setting up the company before leaving prior to the fraud starting, told investigators of how Potts operated.
He describes Potts as "having total control over the running of the company and he made all the decisions," said Mr Dean.

"Gosling did everything he was told including acting as Potts’ chauffeur when Potts wanted to impress clients." "Trevitt thought Gosling was a pleasant but weak individual who did exactly as he was told by John Potts." The former Department of Trade and Industry closed down PPP and its associated companies after a High Court petition. The prosecutions were brought by the Serious Fraud Office, who carried out a four-year investigation in conjunction with Northumbria Police’s economic crime unit.

The hearing was adjourned until tomorrow.

Fake Villa Scam In Turkey

Irishman questioned in £10 million "property scam"

AN IRISHMAN has been questioned in a £10 million ‘fake villa scam’ which is believed to have duped dozens of British and Irish families in Didim and Bodrum. Kevin O’Kane was taken in by police in Didim and taken to Bodrum yesterday for questioning about falsely marketing 41 villas at Golden Beach Villas, at Imbat Bay, in Altinkum.

Police in Bodrum are investigating claims that as many as up to 80 families may have been swındled based on promises of luxury villas in Bodrum and Altinkum which O’Kane and his business partner Kubilay Atmaca were not entitled to sell. O’Kane has been released on police bail while the inquiry continues. He has had his passport confiscated.When he appeared before a court in Bodrum yesterday as part of the criminal investigation, O’Kane said; “I have been advertising the villas in Altinkum and Bodrum at international real estate and tourist fairs. “I also purchased a villa and have not received the deed yet. I too have been treated unjustly and have no idea about sales involving fake deeds.” His passport has been confiscated while enquiries continue.

Victims, including Tom Barry, from Northern Ireland, have spoken of handing over £75,000 each for the three-bed luxury villas. In one case, three members of one family paid a total of £225,000 for three villas only to find later that they did not actually own them. At least eight Irish citizens applied to police headquarters and the prosecutor's office, and the Northern Ireland Police have launched an investigation after receiving 80 complaints on this issue. Özlem Arslanparçası, the lawyer representing eight Irish citizens who purchased villas in Golden Beach Holiday Resort said the number of the defrauded people is increasing each day.
Police are still searching for 38-year-old Atmaca, a taxi driver two years ago but now in the construction business, and his 40-year-old wife Hande Bakkal.

They are also accused of selling villas with fake deeds, but have managed to evade police capture.

Courtesy of Altinkum Voices Newspaper

Investment Warning - MyCreditBrokers

Vienna, 26/03/2009

Pursuant to Article 4 para. 7 of the Bankwesengesetz (BWG; Banking Act), the Financial Market Authority (FMA) is entitled in individual cases to disclose to the general public by publication in the official gazette "Amtsblatt zur Wiener Zeitung", or in any other official bulletin with nationwide circulation, the name of a company not entitled to carry out certain banking transactions (Article 1 para. 1 no. 3 BWG).

By publication in the official gazette "Amtsblatt zur Wiener Zeitung" of 26 March 2009, the FMA is exercising this right and warns against the conclusion of banking transactions requiring a licence with the following provider:

MyCreditBrokers
04085
Kiev
Prospekt Frunze 22 OF 135
http://mycreditbrokers.com/

This provider does not possess a licence issued by the FMA to carry out certain banking transactions in Austria. Therefore, the provider is neither allowed to conclude loan agreements nor to grant loans (credit business) on a commercial basis.

Courtesy of Financial Market Authority

Investment Warning - Legacy Global Wealth

Vienna, 26/03/2009
Pursuant to section 92 para 11 of the Wertpapieraufsichtsgesetz 2007 (WAG; Securities Supervision Act), Austria's Financial Market Authority (FMA) has the right to inform the general public, in individual cases by way of announcement on the Internet, in the official gazette "Amtsblatt zur Wiener Zeitung" or any other official paper with nationwide circulation, that a particular company is not entitled to provide certain financial services (section 3 para 2 nos. 1 to 4 WAG 2007).

By publication in the official gazette "Amtsblatt zur Wiener Zeitung" of 26 March 2009, the FMA is exercising this right and warns against financial service transactions requiring a licence with the following provider:

Legacy Global Wealth with alleged business location:
Via Barberini 3/A,
Rome 00187
Italy
Phone: +39 0660 5131 20
Fax: +39 0660 5131 40
http://www.legacyglobalwealth.com/
admin@legacyglobalwealth.com

This provider does not possess a licence issued by the FMA to provide investment services in Austria.

Therefore, it is neither allowed to provide investment advice regarding financial instruments, nor portfolio management, i.e. managing portfolios for individual customers who authorise a room for manoeuvre, provided that the customer portfolio contains one or several financial instruments. Furthermore, the provider is also not entitled to accept or transmit transactions, provided that such activity involves one or several financial instruments.

Courtesy of Financial Market Authority

Repossessions on the rise says FSA

Repossessions on the rise says FSA

A total of 46,750 properties in the UK were repossessed during 2008 - an increase of 68% on 2007 figures, according to the financial services authority (FSA).

However, it said banks are taking measures to avoid ejecting homeowners from their properties where possible meaning that many of the repossessed properties will be buy-to-let, abandoned or will have been used for property fraud. The number of properties being taken into possession during Q4 2008 was slightly lower than it had been over the previous quarter, but this was still 60% up on Q4 2007. The regulator’s results also showed a rise in the number of borrowers falling into arrears, up 31% from 2007 to 377,000 at the end of 2008.

Research company Datamonitor in a report today called 'UK Buy-to-let Mortgages 200' said a greater percentage of buy-to-let properties had been taken into possession at the end of the first half last year than properties in the mainstream mortgage market. Roderick Logan, who wrote the report, said: 'This trend is set to continue, as there is less reluctance on the part of lenders to repossess properties if the owner lives elsewhere and owns a whole portfolio of properties. Other factors have also contributed to an increase in repossessions such as relaxed lending policies which enabled property fraud and property owners abandoning their properties. 'As a result, the increase in repossessions is not as bad as the headline figure suggests and can serve to expose activities such as illegal property fraud.'

Courtesy of Propertyweek

Madofff's arm to be sold.

Arm of Madoff's firm set to be sold to Castor Pollux

NEW YORK (Reuters) - The market-making arm of jailed swindler Bernard Madoff's firm is set to be sold to Castor Pollux, a Boston financial company, for $500,000 plus future payments of up to $15 million, according to a statement by a court-appointed trustee.

Madoff, 70, pleaded guilty on March 12 to running the biggest investment fraud in Wall Street's history, which prosecutors have said involved as much as $65 billion. His Bernard L. Madoff Investment Securities LLC had a market-making business and an investment advisory business. The fraud took place in the investment arm but the entire operation is still under investigation.
Now, unless a better bid emerges in an auction that is being overseen by a bankruptcy judge, the market-making business will be sold to Castor Pollux, the designated "stalking horse" in the bidding process.

Under the current bid, Castor Pollux would buy the infrastructure and intellectual property of the business. The sale would exclude cash and securities related to the business. Castor Pollux would pay $500,000 right away, then make payments of up to $15 million based on certain criteria through 2012, according to the statement by the court-appointed trustee. The court-appointed trustee Irving Picard, a New York lawyer, noted the difficulty of selling the division.
"We have faced many challenges in this process," he said in a statement. "The initial proceeds reflect that the business has not been operational since December 12 and that significant capital is required to restart operations."

Picard is working with the Securities Investor Protection Corp (SIPC) to recover as much of Madoff's assets as possible to sell or collect money to give to his defrauded customers.
The trustee said this week that so far he has located just more than $1 billion. SIPC was established by Congress in 1970 to maintain a reserve for investors of failed brokerages.

Courtesy of Reuters

SEC OBTAINS EMERGENCY ASSET FREEZE TO HALT ONGOING FRAUD

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20968 / March 23, 2009

Securities and Exchange Commission v. International Realty Holdings, Inc., et al., United States District Court for the Central District of California, Civil Action No. CV 09-01945 DDP (JWJx)
SEC OBTAINS EMERGENCY ASSET FREEZE TO HALT ONGOING FRAUD

The Securities and Exchange Commission today obtained an emergency court order to halt an ongoing scheme by a Palmdale, California company and two individuals who have defrauded investors through a series of false claims including that Warren Buffett is associated with the company.

According to the SEC's complaint, International Realty Holdings, Inc. (IRH), Ottoniel Medrano (a prison guard at California City Correctional Center), and Leticia Isabel Medrano have raised hundreds of thousands of dollars from investors in several states since October 2008. The defendants defrauded investors by falsely claiming, among other things, that Warren Buffett is IRH's "Honorary Chairman," that Berkshire Hathaway and Credit Suisse are involved in the investment, and that IRH has $4.8 billion in total assets and owns various properties throughout Asia. After obtaining money from investors, the Medranos transferred funds to offshore bank accounts.

The SEC's complaint, filed in federal district court in Los Angeles, CA, charges IRH and the Medranos with raising at least $485,000 and likely more than $700,000 in selling preferred stock in IRH. The rate at which the defendants have raised funds has increased substantially over the last two months, averaging about $250,000 per month. According to IRH's offering materials, defendants intended to raise up to $6 billion in the offering.

In its lawsuit, the SEC obtained an order:

(1) freezing the assets of IRH and the Medranos;
(2) requiring the repatriation of assets;
(3) requiring accountings;
(4) prohibiting the destruction of documents;
(5) granting expedited discovery;
and
(6) temporarily enjoining IRH and the Medranos from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC also seeks preliminary and permanent injunctions, disgorgement, and civil penalties against IRH and the Medranos. A hearing on whether a preliminary injunction should be issued against the defendants is scheduled for April 2, 2009 at 2 p.m.

Courtesy of U.S. Securities and Exchange Commission.

Corrupt Equity Release Scheme - Landisbanki Aftermath

Deadline Landsbanki.

Victims of a “corrupt” equity release scheme run by the failed Icelandic bank Landsbanki face a strict deadline in a battle to save their homes. The failure of the scheme – a form of financial package already outlawed in the UK – has meant householders have racked up millions of Euros in debt after investments failed to perform and pay the interest on their loans as promised.

Now liquidators of the wholly-owned subsidiary Landsbanki Luxembourg, Franz Prost Deloitte SA, are forging ahead with plans to sell off any remaining assets from the deadline day – April 12th. However, Spanish lawyers acting for the Landsbanki Victims Action Group will use a legal team in Luxembourg to register claims against members’ property – making it clear that court action is underway in Spain for an alleged fraud and no action can be taken against the individuals. The action group believes Deloitte will not want a drawn out and expensive legal battle that threatens to dilute the remaining value of Landsbanki assets.

CRIME

And top lawyers Martinez-Echevarria Perez Ferrero – already acting for over 100 members of the action group – have launched a criminal case in Spain alleging the bank and financial advisors fraudulently mis-sold the scheme. The legal team is confident of winning an injunction under strict consumer protection laws to ‘ring fence’ property and have contracts with Landsbanki declared null and void.

Under the Landsbanki deal, asset-rich Europeans, many of them pensioners, were able to raise a loan against the value of their homes. They were able to take a quarter of the loan in cash and the remainder was invested in the bank’s Luxembourg subsidiary Lex Life. Sadly, it has become a poisoned chalice. Promised a loan for life with the investment paying interest on the loan and even providing an income, victims have seen the value of their holding shrink and debts rise.

This week Round Town News was told by action group coordinators John Hemus and Mike McInnes it was vital that anyone of the estimated 600 victims in Spain urgently get in contact and join the fight to save their homes. “This is the last chance saloon,” said John. “Anyone with any doubts at all must realise that unless they get in touch with us urgently, it will be too late.

BANK

“The bank has not told people of the deadline because they are trying to sell off remaining assets. “It is a matter of urgency – people must either decide to leave everything to chance – which means they have no chance at all – or get in touch.” Mike said there were Landsbanki victims in France who were also taking legal action against Landsbanki and financial advisors for fraud – although the case was presented differently because of the country’s different laws. “French lawyers are not only going after the bank to have the contracts declared null and void but are also seeking compensation for loss of earnings and the stress the whole thing has caused,” he said.

“I am following this up to see if we can do the same thing here in Spain.” Mike said the April 12th deadline was never communicated to the legal team in Spain and was only recently discovered. “It is quite serious because if claims are not submitted by that date, the liquidators will start saying certain assets were not disputed – those assets will be put in the pot for creditors.”

DIRE

“It means the consequences could be quite dire for victims – but everyone signing up will be taken care of by our lawyers. If there is anyone sitting on the fence, they should take action now.” He accused Landsbanki of being “very selective” in the information it communicated to clients and yet the bank and the administrations had been informed of legal action in Spain and France.

“It was not in the bank’s interests to impart this information to potential purchasers of the assets – obviously this will now change.” Mike alleged victims were dealing with “crooks and thieves” but now the reputation of Luxembourg’s banking system and its apparent lack of regulation was no on the line.

Written by Jack Troughton

Thursday, 26 March 2009

Courtesy of Round Town News