industryterm:bank fraud

  • Reality Winner Has Been in Jail for a Year. Her Prosecution Is Unfair and Unprecedented.

    https://theintercept.com/2018/06/03/reality-winner-nsa-paul-manafort

    THIS IS A tale of two defendants and two systems of justice.

    Christmas was coming, and Paul Manafort wanted to spend the holiday with his extended family in the Hamptons, where he owns a four-acre estate that has 10 bedrooms, a pool, a tennis court, a basketball court, a putting green, and a guest cottage. But Manafort was under house arrest in northern Virginia. Suspected of colluding with the Russian government, the former campaign manager for Donald Trump had been indicted on a dozen charges involving conspiracy, money laundering, bank fraud, and lying to federal investigators.


    Paul Manafort’s Hamptons estate, left, and the jail in Lincolnton, right.

    A lobbyist who became mysteriously wealthy over the years, Manafort avoided jail by posting $10 million in bond, though he was confined to his luxury condo in Alexandria, Virginia. That’s why, in mid-December, his lawyers asked the judge to make an exception. Manafort’s $2.7 million Virginia home could not provide “adequate accommodations” for his holiday guests, some of whom would have difficulty traveling because of health problems, the lawyers stated. A day later, the judge agreed to the request. Manafort could have his Christmas getaway in the Hamptons.

    Hundreds of miles away, another defendant in an eerily related case was not so blessed. Reality Winner, an Air Force veteran and former contractor for the National Security Agency, was sitting in a small-town jail in Lincolnton, Georgia. Arrested a year ago today, on June 3, 2017, Winner was accused of leaking an NSA document that showed how Russians tried to hack American voting systems in 2016.

    The bail system plays to the advantage of wealthy defendants like Paul Manafort and Harvey Weinstein (who paid his $1 million bond with a cashier’s check), because they can provide the government with fantastic sums; freedom is quite literally for sale, as in a story Anton Chekhov might have written about czarist Russia. The poor and the unlucky are stuck behind bars, punished before their guilt is determined. Defendants who are unable to pay bail have sometimes been held for years without a trial.

    IMAGINE THAT YOU are facing trial but are forbidden from searching for evidence to prove you are innocent. It is a scenario from a totalitarian “Alice in Wonderland” – you may do anything you want to defend yourself except the one thing that might actually help.

    That’s a rough approximation of the situation Winner’s lawyers have faced due to a strange twist in her case. She is accused of potentially causing “exceptionally grave damage” to national security by leaking a classified document that, the government claims, contains “national defense information.”

    Winner’s lawyers have stated in public filings that they needed to search on the internet to determine whether information in the document was known to a large number of government officials or was in the public domain. This was crucial to their effort to prove that the document did not merit NDI status. But because the document is classified, and because researching its contents on the internet could disclose search queries to hackers who theoretically could compromise the lawyers’ computers or access their routers, they were prohibited from Googling key phrases, according to court filings. In essence, Winner’s lawyers were forbidden from finding out if the document was as sensitive as the government claimed.

  • Israel must extradite Teodoro Gauto, wanted for crimes in Argentina’s ’dirty war’ - Haaretz Editorial - Israel News | Haaretz.com
    https://www.haaretz.com/opinion/editorial/1.826821

    Argentina’s internal security ministry this week offered a $30,000 reward for information leading to the arrest of Teodoro Anibal Gauto. He is wanted for questioning on crimes against humanity — murder, torture and the abduction of minors — in the “dirty war” during the 1976-83 military dictatorship. But Gauto’s whereabouts are known. He fled to Israel in 2003, and according to Interior Ministry records lives here under the name Yosef Carmel.
    Gauto served as a civilian in Argentina’s military intelligence Battalion 601, which was notorious for its involvement in abductions and murders.
    In 2003, Interpol issued an international arrest notice on a criminal matter (suspicion of bank fraud), which was in effect until 2009, when the statute of limitations expired on those allegations. In 2011 a second Interpol “red notice” was issued for Gauto’s alleged role in the crimes of the junta. Israel is ignoring the warrant. In 2015, Gauto was exposed by journalist Shlomo Slutzky on the Israel Channel 2 investigative program “Mabat Sheni.” He admitted having worked for the Argentine military but denied any involvement in crimes against humanity and claimed all he did was to classify left-wing operatives and build cases against them.
    Slutzky, one of whose relatives was abducted and murdered in the “dirty war,” petitioned the High Court of Justice to extradite Gauto to Argentina. He argued that Gauto, who was granted Israeli citizenship under the Law of Return because he wife is Jewish, obtained that citizenship fraudulently because he did not disclose the investigations and pending legal proceedings in Argentina. As a result, Slutzky argued, Gauto’s citizenship should be revoked and he should be deported.

  • Why does the UK legal system fail to prosecute bank fraud?
    https://contributoria.com/issue/2015-02/54934e46d41ddf4f4800005d

    Financial fraud committed by our unaccountable #elite is carefully repackaged and sanitised: airbrushing the bloated, rotting corpse that is the City of London’s public image into visual material with the aesthetic of being fit for public consumption. This #media relations complex is centred upon “The City UK” – the PR mouthpiece for London’s financial services sector. Speak no evil – the British Bankers Association, the City UK™ and the City of London CorporationListen to the City UK wax lyrical on the merits of the City of London, and you would be forgiven for thinking the constant crimewave ongoing within the square mile has no impact on UK society at large, despite severe damage inflicted on the UK economy and society, amounting to trillions of pounds.

    Compare and contrast media coverage of the banking crisis with civil disorder events such as the student demonstrations, or London riots, which generated months of media outrage despite the minimal economic damage caused.

    Such hypocrisy and cognitive dissonance is not new when exploring the phenomenon of white-collar crime and the power dynamics inherent between the perpetrators and victims of financial crime in the City. Victims of financial fraud are an endangered species as far as the City PR machine is concerned, rarely seen and deserving of neither compensation, nor comment.

  • CONTRA COSTA COUNTY SUPERIOR COURT JUDGE JUDY JOHNSON ACCUSED OF EMBEZZLEMENT

    A former employee of the State Bar of California — who California Governor Jerry Brown appointed to the Contra Costa County Superior Court bench under questionable circumstances involving his cousin, former California Public Utility Commissioner Geoffrey Brown — is accused in federal court of committing myriad financial crimes and acts of fraud.

    Documents filed in the United States District Court for the District of Columbia reveal that Judy Johnson of Rodeo allegedly engaged in predicate acts of racketeering through and by means of money laundering, mail and bank fraud, as well as conversion of funds.

    Johnson, female, black, is no stranger to financial schemes. For the past 8 years, she has been quietly serving as the president of an entity with a misleading name (California Consumer Protection Foundation AKA “CCPF”). This entity absorbed close to $30 million in class action cy pres awards, as well as fines and settlements imposed by the California Public Utilities Commission on utility companies. CCPF forwarded those funds to mostly questionable ACORN-like entities in South Los Angeles or to an entity headed by Michael Shames known as UCAN — presently under federal grand jury investigation in San Diego.

    It appears that Johnson misused her position with the State Bar of California as “clout” to obtain cy pres awards from the settlement of class actions prosecuted and defended by various law firms in courts and before the CPUC. In addition, while never prosecuted for the scheme, some have speculated that Johnson and cohorts Robert Hawley (whom Johnson labeled the “Wizard of OZ”) and Starr Babcock were “in” on a financial scheme perpetrated by former State Bar employee Sharon Pearl, who was lightly prosecuted by then-attorney general Jerry Brown, cousin of Geoffrey Brown.

    The lawsuit, filed as a civil-racketeering action by Marina Del Rey-based community activist Daniel Dydzak, also names as a defendants Starr Babcock and Robert Hawley.

    According to confidential sources familiar with the situation, Dydzak filed the suit in Washington DC, because he is extremely concerned that given the caliber of the defendants and the fact that they are in control of the justice system in California, they will seek to injure him in various ways, including in seeking to somehow derail the suit.

    According to these sources, Tom Layton, investigator from the State Bar of California who is well connected with Los Angeles Sheriff Lee Baca, in the past paid a visit to Dydzak’s neighborhood, and sought to convince his neighbors to falsely accuse Dydzak of various acts of misconduct, including providing improper and unlawful legal counsel.

  • LOS ANGELES COUNTY SUPERIOR COURT JUDGE HOLLY FUJIE ACCUSED OF MISAPPROPRIATION OF FUNDS, MONEY LAUNDERING

    A former partner of Los Angeles-based Buchalter Nemer — who California Governor Jerry Brown appointed to the Los Angeles County Superior Court bench under questionable circumstances involving his cousin, former California Public Utility Commissioner Geoff Brown — is accused in federal court of committing myriad financial crimes and acts of fraud.

    Documents filed in the United States District Court for the District of Columbia reveal that Holly Fujie of Los Angeles allegedly engaged in predicate acts of racketeering through and by means of money laundering, mail and bank fraud, as well as conversion of funds.

    The lawsuit, filed as a civil-racketeering action by Marina Del Rey-based community activist Daniel Dydzak, also names as a defendant Bet Tzedek Legal Services of Los Angeles and Eric George — the son of the controversial former chief justice of California, Ronald George.

    Both Holly Fujie and Eric George were directors of Bet Tzedek, an entity which obtained millions of dollars from the various trusts funds maintained and operated by the State Bar of California, as well as funds from the California Bar Foundation, where Holly Fujie presently serves as the vice-president.

    Both the State Bar of California and the California Bar Foundation are under the direct control of the California Supreme Court.

    The various legal trust funds maintained by the State Bar of California are overseen by the Legal Services Trust Fund Commission where, coincidently, Holly Fujie also served as director.

    Heading the commission is David Lash of O’Melveny & Myers, another lawyer who is a director of Bet Tzedek, and Bonnie Rubin of 1st Century Bank — a bank owned by former president of the State Bar of California Alan Rothenberg. Coincidently, Eric George is part owner of 1st Century Bank.

    Dydzak alleges in his lawsuits that part of the millions originated from the State Bar of California and its foundation headed to Bet Tzedek were embezzled by the various actors and were siphoned to off shore bank accounts.

    Bet Tzedek is headed by CEO Sandor “Sandy” Samuels — former Chief Trial Counsel at embattled Countywide Financial Services — who according to Dydzak was appointed President and CEO of Bet Tzedek largely due to his working knowledge of how to operate an enterprise which engages in myriad financial crimes.

    According to confidential sources familiar with the situation, Dydzak filed the suit in Washington DC, because he is extremely concerned that given the caliber of the defendants and the fact that they are in control of the justice system in California, they will seek to injure him in various ways, including in seeking to somehow derail the suit.

    According to these sources, Tom Layton, investigator from the State Bar of California who is well connected with Los Angeles Sheriff Lee Baca, in the past paid a visit to Dydzak’s neighborhood, and sought to convince his neighbors to falsely accuse Dydzak of various acts of misconduct, including providing improper and unlawful legal counsel.

    Key words:
    California Governor Jerry Brown, Holly Fujie, Buchalter Nemer, California Public Utility Commission, Geoff Brown, Los Angeles County Superior Court, Bet Tzedek Legal Services, Eric George, Ronald George, State Bar of California, California Bar Foundation, California Supreme Court, Legal Services Trust Fund Commission, David Lash, O’Melveny & Myers, 1st Century Bank , Alan Rothenberg, Tom Layton