November 2009

On November 23rd the U.S. SEC commenced its enforcement action by filing the following civil complaint for suspected securities fraud against Minneapolis money managers Trevor Cook and Patrick Kiley:

 

(To Read The SEC’s Complaint, Click On It)

As I last wrote in my  October 29th "Asset Search News Roundup", Mr. Cook and Mr. Kiley could conceivably also face money laundering charges.  If this happens, they would be following in the footsteps of other suspected Ponzi schemers who were named in SEC civil complaints and then criminally prosecuted for alleged money laundering or other suspected financial frauds.Continue Reading Asset Search News Roundup: November 28, 2009

The General Inspector of Financial Control in Poland received an anonymous tip letter about alleged suspicious activity.  This tip ultimately related to Ukraine resident Sergly Savchuk;  Prime Invest L.L.C. of Florida and the Sesa Polska & Tecza Mazur limited liability companies of 50 Platowcowa Street, Warsaw:

The Warsaw Circuit Prosecutor’s Office next started their financial fraud investigation of Sesa Polska and Tecza Mazur at 50 Platowcowa Street.  These Warsaw prosecutors presumably wanted to determine whether the Platowcowa Street companies, Prime Invest LLC and Mr. Savchuk, had laundered money in violation of Article 299 of Poland’s penal law.

It soon became apparent that Prime Invest L.L.C was a suspected shell company that had maintained a bank account in Poland.  Mr. Savchuk might have also beneficially owned Prime Invest L.L.C. and had possibly used it in 2004 for the nominee purchase of the former “Evita” mineral water plant in Biskupiec.Continue Reading Warsaw Prosecutors Eye Possible Money Laundering At 50 Platowcowa Street

This "Asset Search News Roundup" mentions the sentence of a former Louisiana congressman and the 14,700 U.S. taxpayers who sought partial amnesty from the IRS:

  • A November 13th FBI press release explained that Former Louisiana Congressman William Jefferson was sentenced to thirteen years in prison for public corruption and other crimes.  As I discussed at

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A complaint verified by Former Premier Michael Misick of the Turks and Caicos Islands, claims hip- hop pioneers David Mays and Raymond Scott breached the Z & M Media LLC operating agreement, at Exhibit “A”.  The Former Premier, Mr. Mays, Mr. Scott and others, are believed to hold ownership interests in Z & M Media, which is the operating company for the biweekly  “Hip Hop Weekly Magazine“.

The complaint additionally seeks damages for more than a million dollars from Mr. Mays and Mr. Scott because of an alleged fraud / embezzlement scheme. Amended Complaint at ¶¶ 161-164.  It asserts that Mr. Mays and Mr. Scott might have misappropriated cash from Z & M Media. Id. at ¶¶ 33-44.

In responding to the complaint, Mr. Mays denied any wrongdoing via his opposing affidavit.  He also stated that Hip Hop Weekly was “the bible of the hip hop industry” with an estimated readership of one million. Opposing Affidavit ¶4.  Since February 2009, the magazine has been sold by the “CVS” chain and at many other retailers throughout the U.S., according to a letter from its distributor:

(Click On The Letter To Enlarge It)

On April 20, 2009 the Court issued a temporary restraining order against Mr. Mays and Mr. Scott, which prohibited any violation of the above-mentioned operating agreement.  This restraint was continued by the Court’s Order dated May 19, 2009.  Via their July 14, 2009 answer, counterclaim and third-party complaint, Mr. Mays and Mr. Scott however, alleged that the Former Premier had unjustifiably brought the complaint to gain complete control of Z & M Media.  The Former Premier would then supposedly sell Z & M Media and its assets to fund his defense against a “likely criminal prosecution by the British government“. (Answer, Counterclaim & Third-Party Complaint, at pp. 23-24, ¶3).Continue Reading Target Of Corruption Probe Sues Hip-Hoppers For Supposed Fraud

The Financial Action Task Force (“FATF”), is the bellwether for the fight against global money laundering and terrorist financing.  Its leading role is recognized by U.S. lawmakers in the Bank Secrecy Act at  31 U.S.C. §5311, which states:

“FATF’s Forty Recommendations on Money Laundering and the … Special Recommendations on Terrorist Financing are…

In "Forfeiture & The DEA’s Asset Search" Donnie the former DEA Special Agent spoke about the effectiveness of asset forfeiture.  In that article, Donnie said: ‘asset forfeiture… can stop those who supply pseudophedrine to the meth super labs and Mexican cartels‘.  "A Strategy Of Seizing Sinaloa Drug Cartel Assets" also recently explained that asset forfeiture was a vital tool in the fight against the Mexican drug cartels.

Notwithstanding the benefits of an ethical asset forfeiture program, there can be occasional abuses.  Eight plaintiffs raise the issue of supposed improper seizure or asset forfeiture in James Morrow et. al. v. City of Tenaha Deputy City Marshal Barry Washington et. al., U.S. District Court for the Eastern District of Texas, Index No. 2:08-CV-288.  These plaintiffs claim in their civil rights lawsuit pursuant to 42 U.S.C §1983, that some law enforcement officers in or near Tenaha Texas, had essentially seized assets in a racial profiling scheme. 

Furthermore, an August 20, 2009 Memorandum Decision & Order reveals that the presiding judge intends to certify the plaintiffs’ case as a class action lawsuit under Fed. R. Civ. P. 23(b)(2).  The plaintiffs who are African-Americans, assert they were driving in Tenaha Texas or on nearby state Highway 59.  They allege they were subjected to unconstitutional traffic stops and cash seizures based on their race or ethnicity. Continue Reading Seizing Assets In A Suspected Racial Profiling Scheme?