The securities fraud complaint in Nesbeth v. USMIO, Docket No: 09−cv−62042−WJZ, alleges that Wachovia Bank caused damage to the supposed victims of a Ponzi scheme. This complaint, (referred to hereinafter as “the Florida Complaint“), also asserts claims against: MasterCard Worldwide, Mr. David Smith of Jamaica, Overseas Locket Corporation formed in Jamaica, Former Premier Michael Misick of the Turks and Caicos Islands, etc.

The Florida Complaint alleges that Mr. David Smith had operated a Ponzi scheme which reportedly involved six thousand victims from the Jamaican community and might have caused $220 million in losses. Florida Complaint at  ¶¶31, 37 & 38.  The suspected illicit proceeds of the scheme may have been used to invest in businesses and possibly pay for: real property, a lavish cruise, valuable watches (i.e. portable valuable commodities), ornamental furniture and exotic automobiles.  Florida Complaint at ¶52.

According to the Florida Complaint at ¶49, proceeds from the scheme had additionally been laundered through bank accounts, including one maintained at Wachovia.  Like the Wisconsin Complaint earlier provided at “Associated Bank Sued For Supposedly Ignoring Red Flags“, the Florida Complaint essentially claims that a bank’s anti-money laundering program / Customer Identification Program pursuant to 31 CFR 103.121 ¶ (b) (2) (i), failed.

Continue Reading Lawsuit Claims Wachovia Bank Facilitated Alleged Ponzi Scheme

Former Turks and Caicos premier Michael Misick is the subject of today’s “Asset Search News Roundup”.  The Former Premier is the ex-husband of U.S. actress and model LisaRaye McCoy and his pending New Jersey litigation is discussed at “Target Of Corruption Probe Sues Hip-Hoppers For Supposed Fraud” & “Could Former Premier Misick Face U.S. Forced Collection Proceedings?“.

The Former Premier is also a co-defendant in two civil complaints that are related to each other and have been removed from state court to Florida federal court.  Paragraphs 50-60 of the first complaint, accuses the Former Premier of possible involvement in a civil RICO scheme.  Paragraph 58 of the second complaint, alleges that the Former Premier might not have “implement[ed] appropriate supervisory methodologies” in connection with a supposed securities fraud / Ponzi scheme.  To access the two complaints, click on each of the images below:

   

Copyright 2010 Fred L. Abrams

Governmental authorities sometimes use data mining and money laundering typologies to detect financial fraud trends.  An earlier financial fraud trend we will undoubtedly see in 2010, is beneficial owners hiding assets through nominee bank accounts.  Another likely continuing trend for 2010, is the use of Delaware-based shell companies to facilitate money laundering in some cases.

Financial investigators around the world know that beneficial owners may try to hide their assets by  using relatives, money managers, etc. as bank signatories on nominee bank accounts.  Beneficial owners may even use a "nominee incorporation service" to supply a bank signatory in order to circumvent customer identification rules at banks.  At "Fighting Financial Fraud At UK Banks", I mentioned this form of bank account abuse.

Shell companies which lack transparency and are based in Delaware, could also play significant roles in some financial frauds carried out in 2010.  As "Domestic Shell Companies & An Asset Search" indicated, Delaware-based shell companies can particularly pose a money laundering risk.  My article "Following The Money Trail From Poland To Delaware", provided the details of three different financial fraud investigations which focused on possible shell companies in Delaware.

Copyright 2010 Fred L. Abrams

The Association of Certified Anti-Money Laundering Specialists is a private sector anti-money laundering credentialing organization and Colby Adams is a reporter affiliated with it.  Mr. Adams telephoned me this week to discuss my thoughts about abusive offshore tax avoidance schemes and The "John Doe" Summons Case, which was settled with UBS AG.

My comments on The "John Doe" Summons Case have just been published by MoneyLaundering.com / ComplianceAdvantage.com, as part of Mr. Adams’ article, "Nearly a Year into Bank Secrecy Crack Down, Little Progress Seen": 

(Click On The Image Below, To Read Mr. Adams’ Article)*

*"Nearly a Year into Bank Secrecy Crack Down, Little Progress Seen", Copyright 2010 Alert Global Media, reprinted with permission.

The January 6th article “Three in al Qaeda drug case plead not guilty in NY” discussed suspected terrorist financing by some West African men.  According to a December 18, 2009 press release, the criminal case against these men involved the alleged transnational funding of Al Qaeda terrorists through narco-trafficking.

“Terrorist Financing, Money Laundering & Financial Intelligence Units” referred to another case of suspected terrorist funding.  It mentioned the Egmont Group’s money laundering typology case numbered 06063:

 (Above Case# 06063: Courtesy of The Egmont Group)

Continue Reading Transnationally Tracking The Assets Of Terrorists

The January 9th "Asset Search News Roundup" provides an update on a couple of matters from Minnesota:

  1. Both "Money Laundering By Minneapolis Managers?" and "Associated Bank Sued For Supposedly Ignoring Red Flags" described pending civil complaints against suspected securities fraudsters Trevor Cook, Patrick Kiley and their companies.  Another complaint filed against them was commenced on November 23, 2009, in Minnesota by the U.S. Commodity Futures Trading Commission.  Click here, to view the November 23rd complaint.
  2. My October 20, 2009, article "Has Auto Magnate Dennis Hecker Hidden His Assets?" discussed Mr. Hecker’s bankruptcy and divorce proceedings in Minnesota.  On January 6, 2010 "Judge’s patience with Hecker runs out", reported that Mr. Hecker had delayed discovery sought by bankruptcy creditor Chrysler Financial.

    3. The delay was apparently caused by Mr. Hecker’s claim that he was somehow entitled to Fifth Amendment protection against self-incrimination, in his civil bankruptcy case.  As "Judge to Hecker: Repay or go to jail" stated, Mr. Hecker also reportedly "looted" $125,000 which was the subject of his now finalized Hennepin County divorce proceeding.

Copyright 2010 Fred L. Abrams

At first glance, there was nothing unusual about the lawsuit filed in New Jersey involving Former Premier Michael Misick of the Turks and Caicos Islands. The complaint in the lawsuit executed by the Former Premier, claimed that Hip Hop Weekly Magazine founders David Mays and Raymond Scott had misappropriated the magazine’s cash.

Mr. Mays and Mr. Scott separately alleged in their answer, counterclaim and third-party complaint, that the Former Premier had been an investor in the magazine and was basically one of its owners. On March 23, 2010, there was a status and settlement conference scheduled in the lawsuit, as mentioned by the Court’s docket entry:

(Click On The Above Image To View The Docket Report)

“Target Of Corruption Probe Sues Hip-Hoppers For Supposed Fraud” meanwhile, explained that the Former Premier had been the subject of a public corruption probe by the Turks and Caicos Islands Commission of Inquiry. The Inquiry issued its Redacted Final Report, which had once been available here. This Final Report asserted that the Former Premier was known to have enjoyed a “Hollywood lifestyle” beyond his salary and allowances as a politician. It also raised the critical questions: Had the Former Premier been a party to public corruption and could he have taken illicit monies?

Continue Reading Could Former Premier Misick Face U.S. Forced Collection Proceedings?

The Polish power and telecommunications company Elektrim SA has been in bankruptcy proceedings since 2007.  It still controls, (and owns an estimated 47% of),  Zespol Elektrowni Patnow-Adamow-Konin SA (“ZE PAK”).  ZE PAK generates about 8.5% of all of Poland’s electricity, as was just mentioned by “Enea, ‘Several’ Others Bid for Polish Power Group PAK (Update2)“.

Elektrim is also the subject of a criminal investigation by Warsaw prosecutors who have uncovered alleged irregularities believed to have occurred between 1999 and 2002.  They claim that Elektrim may have failed to perform trade agreements and conceivably caused property loss in violation of Article 296 paragraphs 1 & 3 of Poland’s Criminal Code.

These same prosecutors additionally appear to be focused on U.S. businesswoman Barbara J. Lundberg, who had been Elektrim’s president from 1999 until she was fired in 2001.  Time Magazine’s “Mrs. Big’s Big Deals” published in 2000, had characterized Ms. Lundberg as “one of Warsaw’s most influential executives“.  The Warsaw prosecutors meanwhile claimed via their March 21, 2006 letter rogatory pictured below, that there were “changes in the existing profile of the company’s business” after Ms. Lundberg became Elektrim’s president:

 

 (To Read The Letter Rogatory Click On The Image Above)

Continue Reading Alleged Irregularities At Elektrim Lead Warsaw Prosecutors To Delaware

The "Asset Search News Roundup: January 26, 2009 " mentioned that Heartland Payment Systems was subjected to what might have been the biggest credit / debit card information theft in the U.S.  Mr. Albert Gonzalez was ultimately indicted for that privacy law violation / computer intrusion and other ones.  In fact, Mr. Gonzalez pleaded guilty to criminal charges respectively brought in New Jersey, New York and Massachusetts. 

As "Using Foreign Computer Evidence Against An Accused Hacker" indicated, Mr. Gonzalez had initially been accused of using multiple jurisdictions / cross-border elements to facilitate computer hacking, identity theft and money laundering.  A December 29th Department of Justice press release also apparently indicated that Mr. Gonzalez had used cross-border elements to commit his crimes. 

According to the December 29th press release, Mr. Gonzalez was an "international hacker" convicted because of "coordination across….geographical lines".  Page 7 paragraph (1) (c) of a November 20, 2009 plea agreement additionally suggests that Mr. Gonzalez used cross-border elements in his crimes.  It stated that he had leased or controlled computer servers in Latvia and Ukraine:

  (To Read The Plea Agreement, Click On It)

 

Copyright 2010 Fred L. Abrams

My article "Money Laundering By Minneapolis Money Managers?" reports that a lawsuit against Patrick Kiley, Trevor Cook and other money managers, had raised the question of whether Associated Bank breached a duty to prevent suspected money laundering.  As I mentioned in that article, Associated Bank could have conceivably failed to follow a written Customer Identification Program under 31 CFR 103.121 ¶ (b) (2) (i).

After I wrote "Money Laundering By Minneapolis Money Managers?", two lawsuits were filed against Associated Bank raising these same issues.  The gravamen of said lawsuits, was that Associated Bank had supposedly been negligent in allowing suspected securities fraudsters to open and maintain a nominee bank account in the name of Crown Forex LLC.  Crown Forex LLC was reportedly a sham business entity and its Associated Bank account was possibly used as a laundering link to wash some of the proceeds of a suspected securities fraud.

The first of these lawsuits was briefly filed in Minneapolis federal court via a November 4, 2009, third amended complaint.  That Minneapolis lawsuit against Associated Bank, was soon voluntarily dismissed pursuant to a December 9, 2009 filing and the Court’s December 10, 2009, Order.  The second lawsuit against Associated Bank, (Herman Grad vs. Associated Bank NA, Brown County Case #2009-CV-002949), is however, still pending in Wisconsin. 

Continue Reading Associated Bank Sued For Supposedly Ignoring Red Flags