Category Archives: Securities Fraud

Revisiting Minnesota’s Second-Largest Ponzi Scheme

By Fred Abrams on January 3rd, 2013 Posted in Asset Search/Fraud Investigation, Securities Fraud, White-Collar Crime Generally

A StarTribune article says that Trevor Cook’s currency program fraud was the second-largest Ponzi scheme in Minnesota history. The article too mentions that prosecutors have accused one of the scheme’s participants, Gerald Durand, of a murder-for-insurance plot. The suspected plot surfaced at the “Government’s Motion For An Evidentiary Hearing Regarding Durand“, filed December 26, 2012… Continue Reading

Asset Search News Roundup: December 14, 2012

By Fred Abrams on December 14th, 2012 Posted in Asset Search News, Financial Institutions, Money Laundering, Securities Fraud

A whistleblower claim against Deutsche Bank and HSBC’s settlement with U.S. Treasury: At “Human Intelligence & The SEC’s Whistleblower Program”, Labaton & Sucharow partner Jordan A. Thomas examines the critical role whistleblower tips will have in the SEC’s detection of fraudsters / recovery of assets. One example of the foregoing might be the whistleblower tip… Continue Reading

Seminar to Discuss $104 Million IRS Reward & Blowing the Whistle

By Fred Abrams on September 19th, 2012 Posted in Asset Search/Fraud Investigation, Divorce & Child Support, Financial Institutions, Securities Fraud, Swiss Banks, Tax Fraud

As demonstrated by the $104 million dollar IRS award to UBS Swiss bank whistleblower Bradley Birkenfeld, one may hit a home run by blowing the whistle. Some however, face criminal charges or other extraordinary difficulties because of their whistleblowing. The New York City Bar Association seminar “The Ins & Outs Of Recovering Assets Via Whistleblowers… Continue Reading

Asset Search News Roundup: July 21, 2012

By Fred Abrams on July 21st, 2012 Posted in Asset Forfeiture, Asset Search News, Securities Fraud, Tax Fraud, White-Collar Crime Generally

Peter Madoff’s $4 million dollar co-op and the effort to recover assets from Peregrine Financial Group, Inc. The NYC Park Avenue co-op which belonged to Bernard Madoff’s younger brother Peter, has just been listed for sale. The $4 million dollar co-op is being sold as part of the asset forfeiture agreement connected to Peter Madoff’s June… Continue Reading

Asset Search News Roundup: June 17, 2012

By Fred Abrams on June 17th, 2012 Posted in Asset Search News, Money Laundering, Securities Fraud

Secreting Ponzi scheme proceeds and the conviction of three former money managers: “Secreting Assets Without A Border Trace” highlights methods determined criminals employ to conceal their assets from domestic authorities and everyone else. It supplies the fact pattern of a securities fraudster who conceivably could have concealed Ponzi scheme proceeds by utilizing offshore jurisdictions, a… Continue Reading

Recovering Assets Via Whistleblowers & Other Tipsters

By Fred Abrams on June 10th, 2012 Posted in Asset Search/Fraud Investigation, Divorce & Child Support, Securities Fraud, Tax Fraud

At the New York City Bar Association, 42 West 44th Street New York, NY 10036, from 6:00 PM– 9:00 PM on September 27, 2012, Fred Abrams and distinguished lawyers Jack Blum and Jordan A. Thomas, will present “The Ins & Outs Of Recovering Assets Via Whistleblowers & Other Tipsters”. This program first analyzes how vast sums… Continue Reading

The Asset Recovery Case Of Cohen v. S.A.C. Trading Corp.

By Fred Abrams on March 12th, 2012 Posted in Asset Search/Fraud Investigation, Divorce & Child Support, Money Laundering, Securities Fraud, Tax Fraud

The New York Post and Bloomberg wrote last month about the appeal pending in Cohen v. S.A.C. Trading Corp., et. al., (11-1390-cv). The Cohen appeal is over the trial court’s March 30, 2011 dismissal of Patricia Cohen’s Second Amended Complaint. The Second Amended Complaint accused Ms. Cohen’s ex-husband, (billionaire hedge fund manager Steven Cohen), of tax… Continue Reading

Asset Search News Roundup: March 4, 2012

By Fred Abrams on March 4th, 2012 Posted in Asset Search News, Securities Fraud, Tax Fraud

Todays “Asset Search News Roundup” mentions whistleblower programs: An Asset Search Via Whistleblowers & Other Tipsters comments on IRS and SEC efforts to sniff out fraudulently concealed assets with the help of reward programs. Forbes’ March 2nd article IRS Whistleblowers See Little Reward, also describes these programs. The article compares one to the other and… Continue Reading

Prosecutors Add To Indictment Connected To Ponzi Scheme Case

By Fred Abrams on February 27th, 2012 Posted in Asset Search/Fraud Investigation, Financial Institutions, Money Laundering, Securities Fraud

At “Hockey bid a factor in Beckman’s Ponzi trial”, the StarTribune analyzes the Second Superseding Indictment filed in the criminal prosecution against Jason Bo Beckman, Gerald Durand and Patrick Kiley. This StarTribune article explains the three are accused of money laundering and other alleged crimes arising out of Trevor Cook’s securities fraud which was one… Continue Reading

Forex Dealer Sued For Allegedly Ignoring Red Flags Of Fraud

By Fred Abrams on February 13th, 2012 Posted in Asset Search/Fraud Investigation, Money Laundering, Securities Fraud

A February 3rd civil complaint filed against Forex dealer Peregrine Financial Group, (“PFG”), alleges “PFG ignored or failed to discern a myriad of objective red flags of fraud…” Complaint at pp. 5-6 ¶12. The complaint asserted a $48 million dollar claim under Minnesota’s fraudulent conveyance law and it was filed by Receiver R.J. Zayed, who… Continue Reading

An Asset Search Via Whistleblowers & Other Tipsters

By Fred Abrams on January 1st, 2012 Posted in Asset Search/Fraud Investigation, Divorce & Child Support, Money Laundering, Securities Fraud, Tax Fraud

“Human Intelligence & The SEC’s Whistleblower Program” examines the government’s handling of tips in its search for assets concealed by securities fraudsters. The IRS Whistleblower Program too seeks tips from informants who help the IRS detect assets concealed in tax frauds. Besides these whistleblower programs, tips can often be generated in a variety of ways. … Continue Reading

Human Intelligence & The SEC’s Whistleblower Program

By Fred Abrams on November 17th, 2011 Posted in Asset Search/Fraud Investigation, Securities Fraud

A Primer For Gathering Financial Intelligence pronounces “Human intelligence can be the only practical way to uncover some sophisticated asset concealment schemes.” The SEC Whistleblower Program sniffs out human intelligence by offering rewards for tips regarding securities fraudsters. A November 2011 report shows the Whistleblower Program generated 334 tips during the seven week period… Continue Reading

Asset Search News Roundup: July 13, 2011

By Fred Abrams on July 13th, 2011 Posted in Asset Search News, Money Laundering, Securities Fraud, White-Collar Crime Generally

Common methods for concealing assets and Minneapolis money manager Christopher Pettengill- The January 4, 2011 “Asset Search News Roundup” advised that assets are routinely hidden by utilizing portable valuable commodities like diamonds, bulk cash smuggling and checks & wire transfers. Another common method for concealing assets is trade-based money laundering. As p.19 of “Money Laundering… Continue Reading

Asset Search News Roundup: June 24, 2011

By Fred Abrams on June 24th, 2011 Posted in Asset Search News, Financial Institutions, Money Laundering, Securities Fraud

At an April 26, 2010 Moneylaundering.com article*, I basically explained that the damaged investors of a Ponzi scheme can not successfully recover money damages on the ground that a financial institution violated the Bank Secrecy Act: (To Read The Article, Click On The Image Above) This Moneylaundering.com article mentioned a 2009 lawsuit damaged investors brought… Continue Reading

Asset Search News Roundup: May 23, 2011

By Fred Abrams on May 23rd, 2011 Posted in Asset Search News, Securities Fraud, Swiss Banks

Piercing trusts and competing over $1.2 million dollars in the Trevor Cook asset recovery case– “Concealing Assets In More Than 150 Trusts?” describes some matters in which assets were fraudulently hidden. When available, the right to pierce a trust could lead to a recovery in these situations. In New York for example, Courts can pierce… Continue Reading

Asset Search News Roundup: April 23, 2011

By Fred Abrams on April 23rd, 2011 Posted in Asset Search News, Securities Fraud

“Retired bus drivers lose everything in Ponzi scheme” discussed securities fraudster Thomas Mitchell who just pleaded guilty to violating 18 U.S.C. § 1341. (Mail Fraud). Mr. Mitchell asserted at page 8 of his plea agreement that he induced over 150 victims to invest their retirement monies in a Ponzi scheme: (For Hi-Res Click On the Plea… Continue Reading

Asset Search News Roundup: April 8, 2011

By Fred Abrams on April 8th, 2011 Posted in Asset Search News, Securities Fraud, Swiss Banks, White-Collar Crime Generally

This "Asset Search News Roundup" discusses a letter rogatory from Italian prosecutors and the recent U.S. fines issued in the case involving India’s Satyam Computer Services. A letter rogatory filed April 1st in federal court by the U.S. Attorney, reveals that Italian prosecutors are investigating the Delaware office of a company called "BACKER & MCKENZIE". … Continue Reading

Using Red Flags To Recover Ponzi Proceeds

By Fred Abrams on March 16th, 2011 Posted in Asset Search/Fraud Investigation, Financial Institutions, Money Laundering, Securities Fraud

“Recognizing Hidden Assets, The Red Flags” explained that bankruptcy trustees, tax authorities, financial intelligence units, etc. search for concealed assets by looking for red flags of fraud or other illicit acts. Lawsuits brought by investors damaged by Ponzi schemes also may focus on red flags, as described at “Florida Court Unlikely To Find Wachovia, Mastercard… Continue Reading

India’s Largest Suspected Securities & Accounting Fraud

By Fred Abrams on December 27th, 2010 Posted in Asset Search/Fraud Investigation, Financial Institutions, Money Laundering, Securities Fraud, White-Collar Crime Generally

In his January 7, 2009 letter, Satyam Computer Services Ltd. founder and ex-chairman B. Ramalinga Raju wrote that Satyam had overstated its profits. As a 2009 Reuters article observed, Mr. Raju’s January 7th letter indicated that approximately $1 billion or 94% of Satyam’s cash on its books was a fictitious asset. This article also mentioned… Continue Reading

Secreting Assets Without A Border Trace

By Fred Abrams on December 8th, 2010 Posted in Asset Search/Fraud Investigation, Financial Institutions, Money Laundering, Secreting Assets Without A Border Trace, Securities Fraud, Swiss Banks

Asset Search Blog articles quoting “Roger” the former foreign intelligence officer are “Following The Money Trail In Zurich” and “Offshore Bank Accounts In Liechtenstein“. The end of this article also features “Roger”, although its facts have been sanitized / changed for privacy reasons. As a consequence of his U.S.-based Ponzi scheme, Bill the investment adviser was… Continue Reading

Recovering Assets By Shifting Burdens Of Proof

By Fred Abrams on October 20th, 2010 Posted in Asset Search/Fraud Investigation, Public Corruption, Securities Fraud, Swiss Banks

Kleptocrats hiding assets in Swiss banks and investors subject to clawback claims in the U.S., may have something in common. Each could conceivably bear the evidentiary burden of proof in asset recovery cases brought against them. The Swiss Restitution Of Illicit Assets Act ("RIAA") for example, shifts the burden of proof onto crooked politically exposed… Continue Reading

Asset Search News Roundup: September 12, 2010

By Fred Abrams on September 12th, 2010 Posted in Asset Search News, Financial Institutions, Money Laundering, Securities Fraud, Tax Fraud

The OECD’s latest paper on transparency in tax matters; a Bulgarian money laundering investigation; and Trevor Cook’s September 9th declaration; are featured at this "Asset Search News Roundup". The OECD website has published the September 3rd brief, "Promoting Transparency and Exchange of Information for Tax Purposes". The brief highlights the significance of cross-border cooperation as… Continue Reading