Jan. 22, 2013 (TSR) – The following are intelligence briefs that are mostly given to those who are in high level activities such as our Founder & Publisher, and thus not reported in the mainstream media at all.

Iceland: Former investment company head charged with fraud

The former head of an Icelandic investment group (UID 173517) has been charged with fraud relating to the collapse of an Icelandic bank. The bank is reported to have funded his company’s expansion. In addition the chief executive and two other directors of the investment company have also been charged. In 2009 the investment company filed for bankruptcy with purported debts of more than £1 billion.

Charges brought in a multi-million pound business loan scam

Two senior managers at a UK high street bank (UID 1346641, 1933742) together with two executives at a consultancy firm, and four other individuals have been charged in an alleged £35 million bank loans for business scam. The defendants have been charged with a number of offences including fraudulent trading, conspiracy to corrupt, and money laundering.

Estonia: Currency exchange bureau allegedly used to launder €64 million

Four individuals including Mr G (UID 1932385) have been charged with setting up an organized crime syndicate to launder money. According to reports the individuals profited by at least €200,000 and more than US$100,000 from their illegal operations. The group is purported to have hired frontmen to open accounts in the name of various companies and then hand over control to the four accused. The defendants are then reported to have forged documentation, including receipts and billing information for services, to hide the source of the money.

UK: Hedge fund founder accused of fraud

Mr P (UID 1090192), founder of a US$580 million hedge fund firm, has been charged with fraud. According to reports he has been charged with six offences including false trading, false accounting and forgery. Civil proceedings in 2012 culminated in a judgment in favor of the liquidators but the investigation by the Serious Fraud Office was closed in September 2011. It was concluded that there was ‘no reasonable prospect of conviction’. The SFO inquiry was reopened in July 2012, culminating in charges being brought against Mr P in December 2012.

Former health centers owner took part in Healthcare fraud scheme

Mr G (UID 1738896), who was the owner of a number of mental health care centers in Florida and one in North Carolina, US, has pleaded guilty for his role in a US$63 million scheme to defraud Medicare and Medicaid programs. He admitted to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. In terms of the plea agreement he will reportedly also forfeit his interest in property valued at several million dollars, together with just under a million dollars in cash.

Puerto Rico: Woman sentenced for money laundering

Ms A (UID 1602085) who was reported to be a facilitator for a Puerto Rican drug trafficking group, was imprisoned for ten years in December 2012. The leader of this group (UID 1088733) was captured in 2009 and convicted and sentenced to life imprisonment. Ms A was found guilty of conspiracy to launder more than US$1 million of drug trafficking money associated to the group.

Guilty plea in US$42 million biodiesel fuel fraud

Mr G (UID 1803565) a former chief executive officer of a fuel company in Texas, US, pleaded guilty to 51 wire fraud counts and 24 counts of money laundering. The CEO was accused of selling federal renewable fuel credits to oil refiners and brokers without making the biodiesel to go with them. He will be sentenced at a later date.

Jail sentence for investment banker

Mr A (UID 1556903), an investment banker has been sentenced in the UK to 2 years and 8 months imprisonment on two counts of insider dealing and two counts of encouraging insider dealing. In late 2008 and 2009, Mr A had access to inside price sensitive information relating to a takeover. He reportedly used that information to make substantial earnings from trading in shares. Authorities state that he earned several hundred thousand pounds. Confiscation orders will be dealt with at a later date.

US: Investment scammer jailed for 8 years

In September 2012 Mr K (UID 1762701) pleaded guilty to wire fraud and money laundering. In January he was sentenced to eight years and one month for defrauding investors out of US$2.2 million. He masterminded a foreign currency investment scam which promised investors good profits. Instead Mr K used his clients’ money to fund his own lavish lifestyle. To keep his scam running he reportedly sent his clients false financial statements showing that their investments were growing.

MONITORING BRIEFS

Indonesia: Look at new legislation to freeze terror related assets

The deputy chairman of the Indonesia Financial Transaction Reports and Analysis Centre (PPATK), recently said PPATK have been working on regulation for three years to allow authorities to freeze bank accounts used to finance terrorism. The body is hoping for the legislation to be passed by February 2013. Indonesia is currently one of two G-20 countries that does not have regulations regarding the funding of terror-related activities.

UK authority conducts survey of fraud in charity sector

The National Fraud Authority (NFA) in the UK is conducting a survey across a selection of charities to better understand the issue of fraud within this sector. The results of the survey will be published in the NFA Annual Fraud Indicator Report published in 2013. The Home Office has stated that a survey conducted in 2011 by the NFA found that the sector could be losing as much as £1 billion to fraud.

India: Mauritius may co-operate on tax defaulters’ issue

During the recent visit to India by the Mauritian President, the government reportedly raised the issue of shell companies registered in Mauritius being misused by Indians to avoid tax. Mauritius has reportedly indicated that it would be amenable to sharing tax related information in order to curb this practice.

Pressure on Philippines to pass AML Act amendments

The Philippines is under pressure from the Finance Action Task Force (FATF), to amend its AML legislation. FATF have requested that transactions including the purchase of expensive jewelry, real estate amongst other which can be used to disguise illegally acquired currency would be included in the list of monitored activities. Failure to pass this amended by end of the first quarter of 2013 could result in FATF downgrading the country, making international monetary transactions more difficult.

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