February 15, 2013 in Afghanistan
Kabul Bank’s controlling shareholders, key supervisors and managers led a sophisticated operation of fraudulent lending and embezzlement predominantly through a loan-book scheme. This resulted in Kabul Bank being deprived of approximately $935 million funded mostly from customer’s deposits. The loan-book scheme provided funds through proxy borrowers without repayment; fabricated company documents and financial statements; and used information technology systems that allowed Kabul Bank to maintain one set of financial records to satisfy regulators, and another to keep track of the real distribution of bank funds. Shareholders, related individuals and companies, and politically exposed people were the ultimate beneficiaries of this arrangement. Over 92 percent of Kabul Bank’s loan-book – or approximately $861 million – was for the benefit of 19 related parties (companies and individuals).
July 14, 2012 in Department of Defense, Iraq
SIGIR audits, inspections, and investigations have found serious weaknesses in the government’s controls over Iraq reconstruction funds that put billions of American taxpayer dollars at risk of waste and misappropriation. The precise amount lost to fraud and waste can never be known, but SIGIR believes it is significant. As of June 30, 2012, SIGIR audit reports had questioned $635.8 million in costs, and SIGIR Investigations, working with other agencies, had resulted in $176.84 million in fines, forfeitures, and other monetary results.
June 30, 2011 in Afghanistan, U.S. Agency for International Development
In May 2011, the USAID Office of the Inspector General published a report on the agency’s supervision and oversight of assistance activities in Afghanistan and the Kabul Bank crisis. This report was quickly withdrawn and the Federation of American Scientists’ Steven Aftergood quoted a USAID official as saying that “At the time our report was issued, it was written utilizing information from non-classified sources. After our report had been issued, USAID subsequently classified two documents that were cited in our report. This action resulted in the report becoming classified and we removed it from the web site.” Now that an “Unclassified” version of the report has been released, a comparison of the two versions reveals the “classified” portions of the report that were concealed by USAID. These sections of the report indicate that a material loss review was commissioned by USAID/Afghanistan and completed in May 2010 indicating that $850 million, or 94 percent of the value of the bank’s outstanding loans, had been fraudulently diverted to “insiders” connected with the bank. The concealed sections also indicate that Deloitte and Da Afghanistan Bank failed to provide this report to USAID for nearly six months.
June 19, 2011 in World Bank
Because an extensive, well maintained network of roads is essential for economic development, road construction and maintenance projects have been a mainstay of the World Bank’s lending portfolio since its founding. This long experience in the roads sector is reflected in favorable project evaluations. The Bank’s Independent Evaluation Group reports that roads and other transport projects consistently score higher on measures of outcomes, institutional development, and sustainability than non-transport projects and the Bank’s Quality Assurance Group has found that roads projects are well-supervised. At the same time, roads projects around the globe remain plagued by fraud, corruption, and collusion. A Transparency International poll ranked construction as the industry most prone to corruption and a survey of international firms revealed that companies in the construction industry were more likely than firms in any other sector to have lost a contract because of bribery. World Bank-financed projects are not immune. Roughly one-fourth of the 500 plus projects with a Bank-funded roads component approved over the past decade drew one or more allegations of fraud, corruption, or collusion; to date, the Bank’s Integrity Vice Presidency (INT) has confirmed allegations in 25 projects resulting in 29 cases of misconduct under Bank rules.
February 9, 2011 in Federal Bureau of Investigation, Kansas, Missouri, Texas
Warrants in Jasper County, Missouri, Cass County, Missouri, Clay County, Missouri and Grand Saline, Texas have been issued for Donald Anthony Moses, aka Tony Moses, for financial exploitation of the elderly and felony theft targeting senior citizens by committing home-repair schemes. The most recent confirmed date that Moses committed a home-repair scheme was on 18 January 2011 in Manhattan, Kansas.
October 26, 2010 in Federal Bureau of Investigation
Deputy Assistant Director Michael C. Mines Lecture to the BKA Autumn Conference 2008 on Mortgage Fraud in Relation to the Subprime Crisis Briefing.
June 9, 2010 in Department of Transportation
It appears another new round of fraudulent USDOT letters are starting to circulate among motor carriers. The letters appear to be from the “U.S. Department of Transportation Procurement Office” and signed by a fictitious name of “Julie P. Weynel – Senior Procurement Officer”. The letters are attempting to obtain banking information from the targeted companies.
April 16, 2010 in Securities and Exchange Commission
The Commission brings this securities fraud action against Goldman, Sachs & Co. (“GS&Co”) and a GS&C6 employee, Fabrice Tourre (“Tourre”), for making materially misleading statements and omissions in connection with a synthetic collateralized debt obligation (“CDO”) GS&Co structured and marketed to investors. This synthetic CDO, ABACUS 2007ACI, was tied to the performance of subprime residential mortgage-backed securities (“RMBS”) and was structured and marketed by GS&Co in early 2007 when the United States housing market and related securities were beginning to show signs of distress. Synthetic CDOs like ABACUS 2007-ACI contributed to the recent financial crisis by magnifying losses associated with the downturn in the United States housing market.
March 23, 2010 in Corporate
Bernie Madoff List of Counterparties, February 3, 2009.
February 19, 2010 in News
The former New York police chief who became a national hero after the September 11 terrorist attacks was sentenced yesterday to four years in prison. Bernard Kerik, the city’s only police commissioner to ever plead guilty to a crime, confessed to eight felonies, including tax fraud and lying to White House officials. The sentencing marked a dramatic downfall for the son of a prostitute who began his career as a pony-tailed undercover officer and rose to become the head of America’s largest police department.
November 20, 2009 in Government Accountability Office
GAO found that 40 executives for 10 companies received approximately $350 million in pay and other compensation in the years leading up to the termination of their companies’ underfunded pension plans. GAO identified salaries, bonuses, and benefits provided to small groups of high-ranking executives at these companies during the 5 years leading up to the termination of their pension plans. For example, beyond the tens of millions in base salaries received, GAO found that executives also received millions of dollars in stock awards, income tax reimbursements, retention bonuses, severance packages, and supplemental executive-only retirement plans.
October 3, 2009 in Corporations, Criminal, Military
American Police Force is a private military company which claims to “service all 50 states and international countries” through law enforcement training, surveillance, kidnapping and ransom recovery services, as well as providing security to coalition forces in Iraq and Pakistan. At this time, it is difficult to verify any of these claims. The company is not listed in government contract databases, is not registered as a private investigative service, and only has “virtual offices” without physical addresses.
August 12, 2009 in Corporate
Executive Compensation Practices
* AIG is focused on repaying the govemnment and the taxpayers, selling assets, and preserving the value of AIG’s diverse businesses.
* In recognition of AlG’s obligation to taxpayers, the company has taken several voluntary steps to restrict executive compensation beyond the requirements of TARP. These restrictions are far more onerous than measures taken by any other company that has received federal assistance
* In all, 2008 total compensation for the top 47 AIG executives is 56% lower than their 2007 total compensation.