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   Strategies & Market TrendsAnthony @ Equity Investigations, Dear Anthony,


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To: scion who wrote (116339)5/29/2013 8:52:38 AM
From: scion
   of 122017
 
U.S. accuses currency exchange of laundering $6 billion

11:30am BST
By Emily Flitter
uk.reuters.com

NEW YORK (Reuters) - U.S. prosecutors have filed an indictment against the operators of digital currency exchange Liberty Reserve, accusing the Costa Rica-based company of helping criminals around the world launder more than $6 billion in illicit funds linked to everything from child pornography to software for hacking into banks.

The indictment unsealed on Tuesday said Liberty Reserve had more than a million users worldwide, including at least 200,000 in the United States, and virtually all of its business was related to suspected criminal activity.

U.S. Attorney Preet Bharara called the case perhaps "the largest international money laundering case ever brought by the United States".

"Liberty Reserve has emerged as one of the principal means by which cyber-criminals around the world distribute, store and launder the proceeds of their illegal activity," according to the indictment filed in U.S. District Court for the Southern District of New York.

Officials said authorities in Spain, Costa Rica and New York arrested five people on Friday, including the company's founder, Arthur Budovsky, and seized bank accounts and Internet domains associated with Liberty Reserve.

Switzerland's Federal Office of Justice said the United States had requested legal assistance on May 16. The Swiss said they complied with the request in full by May 21, seizing a computer server used by Liberty Reserve.

The indictment detailed a system of payments that allowed users to open accounts under false names with blatant monikers like "Russia Hackers" and "Hacker Account".

The use of digital currency has expanded over the past decade, attracting users ranging from video gamers looking for ways to buy and sell virtual goods to those who lack faith in the traditional banking system.

Touted by some investors as the future of money, these virtual currencies have gained the attention of U.S. regulators looking to bring them under anti-money-laundering rules.

The U.S. Treasury said on Tuesday it named Liberty Reserve under the USA Patriot Act as "specifically designed and frequently used to facilitate money laundering in cyber space".

That designation, a first against a virtual currency exchange, prohibits banks or other payment processors from doing business with Liberty Reserve, even under a new name.

The Treasury also said Liberty Reserve's virtual currency was used to anonymously buy and sell software designed to steal personal information and attack financial institutions.

CRACKDOWN ON VIRTUAL MONEY?

Liberty Reserve, with around 12 million transactions per year, laundered over $6 billion in criminal proceeds since it began operating in 2006, the indictment said.

A ring of hackers who recently stole $45 million from two Middle Eastern banks by hacking prepaid debit cards used Liberty Reserve to distribute their take, according to court papers.

Tech blogger Brian Krebs, a former Washington Post reporter who now runs the blog Krebs On Security, wrote on Tuesday "the action against Liberty Reserve is part of a larger effort by the U.S. government to put pressure on virtual currencies".

Treasury Undersecretary for Terrorism and Financial Intelligence David S. Cohen told a press conference it was a response to a specific abuse of the financial system. "I want to make clear that today's action does not mean that we are trying to eliminate virtual currencies and their providers," he said.

On Tuesday, the company's website, www.libertyreserve.com, displayed the message: "This domain name has been seized by the United States Global Illicit Financial Team."

In addition to Budovsky, who was arrested in Spain along with his deputy, Azzedine El Amine, co-founder Vladimir Kats was arrested in Brooklyn, New York. Two technology designers, Maxim Chukarev and Mark Marmilev, were also arrested, Chukarev in Costa Rica and Marmilev in New York.

Two more company employees were still at large in Costa Rica, according to officials: Ahmed Yassine Abdelghani and Allan Esteban Hidalgo Jimenez. According to the indictment, almost all of the men used the alias Eric Paltz.

None of the men could be reached for comment.

Investigative police in Costa Rica said that along with computers and files, six cars were seized from Budovsky's house in the wealthy suburb of Escazu: three Rolls Royce, two Jaguars and one Mercedes Benz.

THIRD PARTY GATEWAYS

Liberty Reserve's currency unit was called the "LR". Users opened accounts at Liberty Reserve giving only a name, address and date of birth that the company made no attempt to verify, according to the indictment.

Once a user had a Liberty Reserve account, he or she could use cash to purchase LRs from third-party exchange merchants, separate companies trading LRs with each other in bulk and charging fees to make the conversions between LRs and hard cash.

Liberty Reserve users could transfer the digital currency units to each other, to be redeemed in different parts of the world for cash using the exchange merchants.

The third-party exchange companies provided the gateway to more conventional payment systems.

According to information from Liberty Reserve's archived web pages, the company had relationships at one time with at least 35 different exchange companies, some of which transferred cash back and forth to customers using PayPal, Western Union, MoneyGram, credit cards including Visa, Mastercard, American Express, and CitiBank Global Money Transfer.

PayPal said it has not allowed payments to be processed for Liberty Reserve for the last five years. Spokesmen for Western Union, MoneyGram, Visa, Mastercard and Citigroup did not respond to requests for comment. A spokeswoman for American Express said American Express sold Amex Bank to Standard Chartered in 2007.

The indictment said Liberty Reserve did not collect any banking or transaction information from the third-party exchange companies. It also let its users hide their Liberty Exchange account numbers when making transactions.

The U.S. is expected to seek extradition for the people arrested in Spain and Costa Rica. It was unclear when the two people arrested in Brooklyn, New York, would appear in court.

The Costa Rican prosecutor's office said Liberty Reserve had been operating illegally in Costa Rica since 2006. Budovsky, a Ukranian-born former American citizen, had already pleaded guilty to U.S. charges that he operated an illegal financial services firm out of New York. Officials said they suspected that Liberty Reserve relocated to Costa Rica from the United States after U.S. authorities began looking into its operations.

Costa Rica's investigative police said Budovsky operated five offices in the wealthy suburbs of Escazu and Santa Ana in the outskirts of the capital city. The companies identified by Costa Rican investigative police were called Silverhand Solutions & Technology, Worldwide E-Commerce Business, Grupo Lulu Limitada, Triton Group and Cyberfuel.com.

The U.S. Treasury Department's anti-money-laundering unit, the Financial Crimes Enforcement Network (FinCEN), issued guidance in March that labeled digital currency firms as money transmitters, thereby obliging them to put in place anti-money-laundering programs and register with FinCEN.

Tokyo-based Mt. Gox, a top exchange for Bitcoin, the best known virtual currency, failed to register with FinCEN earlier this month and had its U.S. dollar accounts seized by authorities.

Over the past week, a Bitcoin unit has traded at around $130, according to the website Bitcoincharts.com.

(Reporting by Emily Flitter in New York; Additional reporting by Nate Raymond, Joseph Ax, Peter Rudegeair and Matthew Goldstein in New York, Brett Wolf in St. Louis and Isabella Cota Schwarz in San Jose, Costa Rica, Martin de Sa'pinto in Zurich; Editing by Jeffrey Benkoe, Tim Dobbyn, Jan Paschal and Will Waterman)

uk.reuters.com

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From: StockDung5/29/2013 2:40:26 PM
   of 122017
 
Green Tea company backed by ex-A.G. Mark Shurtleff is fined
Scandal » Video featuring ex-A.G. used in court; judge finds the firm in violation.

By Tom Harvey
| The Salt Lake Tribune
First Published May 28 2013 05:24 pm • Updated 3 hours ago

A Utah company has been fined $110,000 for illegally pitching business opportunities — in one instance apparently under the nose of the state’s top cop.

In fact, a video of then-Attorney General Mark Shurtleff’s 2009 appearance before a meeting of The Green Tea Co. was introduced as evidence in the case brought by state regulators.

The Swallow, Shurtleff allegations

Utah Attorney General John Swallow and his predecessor, Mark Shurtleff, have come under scrutiny on a number of fronts:

» Indicted businessman Jeremy Johnson has, at times, accused Swallow of helping to arrange to bribe Senate Majority Leader Harry Reid, D-Nev. Swallow says he only helped Johnson set up a lobbying deal.

» Three Utah businessmen have said Swallow, as a fundraiser for Shurtleff in 2009, suggested that a contribution to Shurtleff’s campaign would get them special consideration if there were complaints about their operations to the attorney general’s office.

» A complaint has been made to the Utah State Bar by the state’s former director of consumer protection, alleging Swallow violated attorney-client rules by discussing a consumer-protection case with a potential donor and suggesting the target meet with Shurtleff.

» The lieutenant governor’s office is in the process of hiring a special counsel to investigate a complaint that Swallow concealed business interests on his candidate financial disclosure forms, including a company central to the Johnson deal.

» Convicted businessman Marc Sessions Jenson said Swallow and Shurtleff took posh vacations to his Newport Beach, Calif., villa on Jenson’s dime while he was free on a plea deal with the attorney general’s office. During the trips, Jenson said they pressed him for fundraising help and other financial deals.

» Businessman Darl McBride provided a recording of a 2009 breakfast meeting in which Shurtleff offered him $2 million to take down a website criticizing Mark Robbins, Jenson’s former business partner. Shurtleff said he could get the money from Jenson because of his plea deal. Jenson said he refused.

The Utah Division of Consumer Protection fined and issued a cease-and-desist order against Green Tea after an administrative law judge determined the Lehi operation failed to comply with state law while selling mall-cart franchises to peddle its products.

Shurtleff was attorney general in 2009 when he appeared at a Green Tea meeting at Salt Lake City’s Alta Club — one of a string of such get-togethers ­— where the company was pitching attendees on opportunities to sell its green-tea-based nutritional and health products.

Judge Andrea Hendricks mentioned the meetings in her ruling that found Green Tea violated a state law requiring companies selling franchises or business opportunities to notify the state that they are complying with federal regulations.

Shurtleff did not respond Monday to messages seeking comment for this story.

The case is one of several that have come to light recently in which Shurtleff appeared before or accepted campaign donations from companies that had regulatory issues or were in industries prone to consumer complaints in which his office potentially could have become involved.

In videos posted on YouTube in 2009, Shurtleff appears before a Green Tea meeting at the Alta Club to tout his new historical novel, Am I Not a Man? The Dred Scott Story. He also takes the opportunity to endorse the company’s products and to laud multilevel marketing, a controversial business model involving independent distributors who earn commissions by recruiting others.

"You have to have a really good product, that’s key to me in law enforcement, and you do, you’ve proven that," Shurtleff says in the video. An investigator used the video as evidence to show the company was promoting business opportunities without complying with state law.

Investigator Elizabeth Blaylock said at a March hearing that the Shurtleff video — and another of company officials at similar meeting with prospective clients — made the point that "selling Green Tea is simple, easy, low cost, low risk.

An attorney for the company did not return an email and a voice message seeking comment on the ruling.

Although the company’s contracts stated it was not selling franchises, the judge determined that its rules and the ways it controlled those who bought the mall carts showed it was offering franchises under federal rules.

Utah law says such companies must register with the state by declaring they are heeding those federal rules.

The ruling tells of several people who bought mall carts only to find they came nowhere close to the earnings potential the company had promoted, including figures given out at Alta Club meetings.

The $110,000 fine stemmed from an assessment set in state law of $2,500 for each of 44 violations, according to Jennifer Bolton, spokeswoman for the Utah Department of Commerce.

"This amount is large," she said Monday. "It is unusual for a franchise to engage in multiple franchise or business-opportunity sales without the appropriate registration."

The company can appeal the ruling.

tharvey@sltrib.com

Twitter: @TomHarveySltrib

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From: StockDung5/29/2013 5:17:39 PM
   of 122017
 
Secret recording: Mark Shurtleff offers $2 million to silence critic
Scandal » Utah businessman says 2009 meeting with ex-A.G. was “like an episode in ‘Bizarro World.’ ”
By Robert Gehrke

| The Salt Lake Tribune



First Published May 23 2013 05:43 pm • Last Updated May 24 2013 09:51 am
On the breakfast table at Mimi’s Cafe, Darl McBride had eggs and potatoes served in a fried tortilla and an offer of $2 million from Utah’s then-attorney general, Mark Shurtleff, if he would just shut his mouth.

McBride says he had invested $286,000 with a prominent businessman, Mark Robbins, who had allegedly promised him a $5 million return that McBride hoped would sustain a grueling legal battle over intellectual-property rights between his company, The SCO Group, and IBM.





Published May 28, 2013


At a glance



Excerpts from recording of Shurtleff-McBride meeting

Mark Shurtleff: “Do you know this Marc Jenson?

Darl McBride: “I’ve heard the name.”

Shurtleff: “He left here [inaudible] supposedly sold his home, he had to do a bunch of stuff to pay his debts.”

McBride: [Inaudible].

Shurtleff: “I do think he is [good for it]. … I don’t believe Robbins has the money, but I believe Jenson does. … I’ve kind of got a weird relationship [with Jenson] because he is still under a plea-in-abeyance program. We put him on a three-year plea-in-abeyance. He’s got to pay the money back. If he does that, the charges will be dropped. [Inaudible] He’s got every motivation in the world.

-----

Shurtleff: [Once] you’ve got your money, you’ve got to promise us there can’t be anything else from you. It’s just straight up. … I can try [asking Jenson]. I’m going to shut down my team on him. … I’ve never in my 25 years of prosecuting ever prosecuted anybody who had more friends come to his rescue than this guy [Jenson] has. They’re coming in from all walks of life. Mission presidents in Korea saying basically he’s a good guy, it wasn’t his deal. You’re prosecuting the wrong guy. I hope if I ever get charges, I have that [kind of friends].”


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But, facing a bench warrant in a separate civil case, Robbins had vanished. McBride took his pursuit of Robbins to the Internet, setting up a website called Skyline Cowboy, a sort of virtual bounty-hunting operation aimed at flushing out Robbins.

So it was that McBride found himself sitting across from Shurtleff in May 2009, listening to the state’s chief law-enforcement officer trying to persuade him to ditch the website and offering to get McBride $2 million if he backed off Robbins.

McBride recorded the conversation and has turned over a copy to federal agents, part of a wide-ranging investigation into alleged misconduct in the attorney general’s office under Shurtleff and his successor, John Swallow.

"He [Robbins] is very concerned, because he can’t get any deals done because people go out and see that [website]," Shurtleff says on the recording, before launching into the pitch: "What can I do?"

McBride says he needs $2 million. Shurtleff replies that he doesn’t think Robbins has that kind of money, but he believes he can get it from one of Robbins’ associates — Marc Sessions Jenson. A year earlier, Shurtleff’s office had charged Jenson with six securities-related felonies, but the businessman was free at the time as a result of a plea deal struck with the attorney general’s office.

"I think he’d do it," Shurtleff says. "I’ve kind of got a weird relationship [with Jenson] because he is still under a plea-in-abeyance program. We put him on a three-year plea-in-abeyance. He’s got to pay the money back. If he does that, the charges will be dropped. … He’s got every motivation in the world."

Shurtleff then tells McBride that he soon will be flying to Southern California to see Jenson and will try to get the money.

McBride never heard back.


story continues below

story continues below




"It was like an episode in Bizarro World," McBride told The Salt Lake Tribune. "The top cop is out protecting the bad guy, and he’s saying we’ll get the other guy who could be going to prison to come up with the money. It’s like an unsolvable Rubik’s Cube."

Shurtleff declined to comment on the meeting and the events surrounding it.

Jenson, too, has told investigators of Shurtleff’s pitch, which he said in an interview at the Utah State Prison left him flabbergasted and feeling trapped.

"These aren’t play numbers. These aren’t make-believe. He asked me to pay $2 million for no reason," Jenson said. "I was shocked by it."

At the time, Jenson was supposed to be scraping together $4.1 million in restitution as part of his plea deal and protested that he didn’t have $2 million to spare. At the same time, he was under Shurtleff’s thumb.

For his part, Robbins insists he never owed McBride money — although court records show McBride won a $109,000 default judgment against Robbins’ wife in 2009.

Robbins also maintains he never asked Shurtleff to meet with McBride and only found out about the get-together long after it took place.

"If the meeting was on my behalf, it was without my knowledge," Robbins said. "I have never asked Mark Shurtleff, [or] John Swallow … to do anything for me nor have I ever donated to them, contributed anything to them, paid them or done any favors for them — not directly and not indirectly through anyone else."

McBride says he’d previously gone to Shurtleff to complain that Robbins — whom McBride met when he coached Robbins’ son in football — had taken his money, but never got a response. McBride went to the FBI, as well, but the agency said it was overwhelmed with white-collar investigations.

So McBride launched the Skyline Cowboy website.

Shortly after a news story ran about Robbins’ disappearance and his partnership with Terry Diehl in a development near a Utah Transit Authority FrontRunner stop, McBride says he started getting threatening calls from Tim Lawson, who told him he was phoning on Shurtleff’s behalf.

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To: StockDung who wrote (116434)5/30/2013 8:43:42 AM
From: scion
   of 122017
 
Anonymous Payment Schemes Thriving on Web

By NICOLE PERLROTH
Published: May 29, 2013
nytimes.com

SAN FRANCISCO — Eight years ago, Ernie Allen, the head of the International Center for Missing and Exploited Children, called the heads of major banks and credit card companies. Why, he wanted to know, were they letting child pornographers move illicit profits through their systems?

And so began a collaboration between his organization, major banks, credit card companies, Internet service providers, payment processors, and Internet companies like Google and Microsoft. They had hoped to follow the money and quash child pornography for good.

But at some point the money trail went cold. For the last year, Mr. Allen has been working with global law enforcement and financial leaders to find out why.

He may be getting closer to an answer. Today, cybersecurity experts say billions of dollars made from child pornography and illicit sales of things like national secrets and drugs are being moved through anonymous Internet payment systems like Liberty Reserve, the currency exchange whose operators were indicted Tuesday for laundering $6 billion. Preet Bharara, the United States attorney in Manhattan, described it as the largest online money-laundering case in history.

“What we have concluded is that illegal enterprises — commercial child pornography, human trafficking, drug trafficking, weapons trafficking and organized crime — has largely moved to an unregulated system that is not connected to any central bank or national authority,” Mr. Allen said. “The key to all of this has been anonymity.”

Liberty Reserve was shut down last weekend, but cybersecurity experts said it was just one among hundreds of anonymous Internet payment systems. They said online systems like the Moscow-based WebMoney, Perfect Money, based in Panama, and CashU, which serves the Middle East and North Africa, require little more than a valid e-mail address to initiate an account. The names and locations of the actual users are unknown and can be easily fabricated. And they worry that the no-questions-asked verification system has created a safe harbor for illicit activity.

“There are a multitude of anonymous payment systems out there, similar to Liberty Reserve, of which there are over one hundred,” said Tom Kellermann, a vice president at the security company Trend Micro. “Many pretend to ‘know your customer’ but do not actually do due diligence.”

Representatives for WebMoney, Perfect Money and CashU did not return e-mailed requests for comment.

Currency exchanges like Liberty Reserve do not take or make payments of actual cash directly. Instead, they work with third parties that take payments and, in turn, credit the Liberty Reserve account.

After the authorities went after Liberty Reserve, underground forums buzzed with comments from people mourning the potential loss of frozen funds and others offering alternatives, including Bitcoin, the peer-to-peer payment network started in 2009 to offer a decentralized way to create and transfer electronic cash around the world.

In closed underground Russian-language forums, one person wrote, “I had almost 6k there. Where to now?” Another suggested, “Maybe another alternative is Perfect Money? I wonder if Bitcoin exchange rate will go up or not.”

Indeed, the value of the Bitcoin virtual currency spiked temporarily on news of the Liberty Reserve shutdown. But law enforcement officials say Liberty Reserve operated with more anonymity than Bitcoin. Unlike Liberty Reserve and other anonymous payment systems, Bitcoin transactions are stored in a public ledger, called a block chain, that make it possible to trace Bitcoin transactions even years after the fact.

“You can track specific Bitcoin movements just as you would the serial number on a U.S. dollar,” said Jeff Garzik, a Bitcoin developer. The real concern, security experts say, are private payment services that claim to do due diligence, but do not do even the most basic verification.

Typically, money transfers are subject to strict regulation, which include maintaining customer identification records, filing suspicious activity reports, mandatory reporting on large currency transfers, and “know-your-customer requirements.” But security experts say there are a multitude of anonymous payment systems that require no customer identification and have little capability to detect or report suspicious activities.

“You would think they would be regulated but there is no regulation,” Mr. Kellermann said.

Of online payment processors, PayPal is considered the gold standard. The company, now owned by eBay, has payment experts to ensure PayPal is compliant with “know-your-customer” regulations and with law enforcement agencies in each country in which it operates.

“It’s unfortunate that as many of these new services come on board, it’s the people looking to abuse them who are the first to use them,” said Anuj Nayar, a spokesman at PayPal. “There’s a lot more than just having the right technology in place to be an efficient global payment processor.”

In March, the Treasury Department’s Financial Crimes Enforcement Network, or FinCen, began applying anti-money laundering rules to virtual currencies, amid worries that new forms of cash purchased on the Web, like Bitcoin, were being used to finance illicit enterprises.

While Bitcoin is just a software system, there are multiple gateways and exchange points that allow Bitcoin owners to exchange their Bitcoins for cash. Federal authorities recently seized accounts associated with a United States intermediary of Mt. Gox, the world’s largest Bitcoin exchange, because it was not FinCen compliant. That, and other exchanges in the United States are now racing to be fully compliant with “know-your-customer laws” and anti-money laundering requirements.

Mr. Allen said he believed that was a good first step.

“With anonymous payment systems, tracking has become virtually impossible,” he said. “How do you prevent these kinds of problems when you are dealing with an unregulated currency, monitored by nobody? The answer, I think, is there has to be some kind of structure.”

This article has been revised to reflect the following correction:

Correction: May 30, 2013

Because of an editing error, an earlier version of this article referred incorrectly to Bitcoin, a peer-to-peer payment network started in 2009. It was meant to offer a decentralized way to create and transfer electronic cash, not a centralized way.


nytimes.com

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From: StockDung5/30/2013 9:03:31 AM
   of 122017
 
Weekly note to Mark Harris: Still time to drop dime on Bryant Cragun money laundering. The DOJ may cop you a better deal if you out crooks you have delt with in the past. You ran Cragun's boiler Rooms and you have the goods regulators need. Just because Brent Baker did not care about Cragun's money laundering you can do something about it.

Face it Mark, you are facing 100 years in jail. Dime out everyone and be the first to squeel they may only give you 5 to 7 years.

While your at it brokeragte firms like World Trade Financial that where involved in you scheme need DOJ attention. You have the goods on them Mark. As you know FINRA stinks and as a matter of a fact just gave World Trade Financial a slap on the wrist for helping sell millions of shares of unregistered stock.

I can see your headlines now Mark: "Local idiot does good"

Good Luck to you CRIMM and becareful who you SLAPP!!

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From: scion5/30/2013 10:32:09 AM
   of 122017
 
Sen. Warren Asks SEC for Any Research on Benefits of 'No Admission' Settlements

Bruce Carton
May 30 2013
complianceweek.com

In February 2013, Sen. Elizabeth Warren ushered in her first hearing as a senator by asking the nation's seven top financial regulators, "How tough you are? .... Tell me a little bit about the last few times you've taken the biggest financial institutions on Wall Street all the way to a trial? As discussed here, none of the regulators testifying at the hearing could provide any information on when their agency had actually taken a large financial institution to trial.

At the hearing, new SEC Chair Elisse Walter began to testify about how the SEC "look[s] at the distinction between what we could get if we go to trial, and what we could get if we don't," but she was shut down by Sen. Warren who apparently did not want to get sidetracked. In a letter [ warren.senate.gov ] (via World of Securities Regulation) dated May 14, 2013, however, Sen. Warren asked White, as well as the heads of the Federal Reserve and the DOJ, to provide more information on this point. Reiterating her concern that a regulator that is unwilling to actually take large financial institutions to trial has far less leverage in settlement negotiations, Warren asked White, Ben Bernanke and Eric Holder to answer the following question:
“ Have you conducted any internal research or analysis on trade-offs to the public between settling an enforcement action without admission of guilt and going forward with litigation as necessary to obtain such admission and, if so, can you provide that analysis to my office?

Two weeks later, it does not appear that the SEC, Federal Reserve or DOJ have offered any public response to Sen. Warren, but I will keep an eye out for this.

complianceweek.com

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To: scion who wrote (116440)5/30/2013 10:35:00 AM
From: scion
   of 122017
 
Jim Hamilton’s World of Securities Regulation

Sunday, May 26, 2013
jimhamiltonblog.blogspot.co.uk

Senator Warren Asks SEC for Data on Settlement of Enforcement Actions
In a letter to SEC Chair Mary Jo White, Senator Elizabeth Warren (D-MA), a key member of the Senate Banking Committee, asked for an analysis and/or internal research the Commission has done on trade-offs to the public between settling an enforcement action without admission of guilt and going forward with litigation necessary to obtaining such an admission.

In an earlier letter to U.S. Attorney General Eric Holder, Senators Mark Warner (D-VA) and Robert Corker (R-TN), also key members of the Banking Committee, voiced their concern that the DOJ is restricting its enforcement actions based on the size of the culpable financial institution, that is to say that DOJ is indicating that large, complex financial institutions will escape prosecution because their size indicates that an enforcement action against them will negatively impact the U.S. economy. The Senators ask if it is the position of the DOJ that some financial institutions are large enough that their management is above prosecution in the case of a serious crime.

Posted by James Hamilton at 5/26/2013 09:08:00 AM

jimhamiltonblog.blogspot.co.uk

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From: scion5/31/2013 5:07:15 AM
   of 122017
 
Florida-Based Stock Promoter Charged with Lying to SEC Investigators

FOR IMMEDIATE RELEASE
2013-96

Washington, D.C., May 30, 2013 — The Securities and Exchange Commission today announced that the subject of an enforcement inquiry in Florida has has been criminally charged for obstructing justice and lying to SEC investigators looking into his real estate securities offerings to investors.

Additional Materials
U.S. Attorney's Office Press Release
sec.gov

The U.S. Attorney’s Office for the Southern District of Florida has filed criminal charges against former broker and securities fraud recidivist Robert J. Vitale, who lives in Lauderdale-by-the Sea. According to the criminal information filed in U.S. District Court for the Southern District of Florida, the SEC issued subpoenas to Vitale and his investment company Realty Acquisitions & Trust in order to identify investor funds and assets related to the securities offerings. The SEC investigators subpoenaed Vitale for all related bank records and took his sworn testimony.

The criminal information alleges that Vitale lied about the existence of two separate bank accounts that he did not disclose to the SEC. Specifically, Vitale deposited $100,000 into a bank account in Fort Lauderdale under the name of “B.L. Inc.” in the days preceding his testimony to SEC investigators in June 2012. Vitale then did not disclose the existence of the account to the SEC when asked under oath.

Vitale was previously charged by the SEC several years ago for participating in a pump-and-dump market manipulation scheme. Vitale later settled the charges in federal district court and was barred from the brokerage industry.

“Lying to SEC investigators undermines the very foundation of the public trust that investors place in our markets, and it violates criminal law as well,” said Andrew J. Ceresney, Co-Director of the SEC’s Division of Enforcement. “Those who obstruct SEC investigations should realize they will ultimately be held accountable by criminal authorities who work so closely with us to rid the markets of securities law violators, particularly repeat offenders like Vitale. The SEC greatly appreciates the persistence of the U.S. Attorney’s Office and the FBI in pursuing this case.”

The SEC appreciates the assistance of the Federal Bureau of Investigation along with the U.S. Attorney’s Office for the Southern District of Florida in this matter.

# # #

sec.gov

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From: StockDung5/31/2013 9:49:08 AM
   of 122017
 
Inmate claims Swallow knew about Shurtleff’s $2 million bribe

Updated: 5/30 11:15 am | Published: 5/30 10:58 am
Reported by: Cristina Rendon

Inmate claims Swallow knew about Shurtleff’s bribe

DRAPER, Utah (ABC 4 News) – The accusations keep pouring out from behind the walls of the Utah State Prison where inmate Marc Jenson said the former and current Attorney Generals of Utah tried to get $2 million dollars from him.

Jenson is in jail for a failing to pay $4 million in restitution and he faces a new set of fraud charges that were filed in August 2011.

Jenson met with ABC 4 Utah Reporter Cristina Rendon Wednesday at the Utah State Prison. An audio recording of the interview was allowed, but a video recording was not allowed.

Jenson said Shurtleff asked for the money in 2009 when he paid for Shurtleff and Swallow to visit his posh villa in Newport Beach, California.

“John Swallow was by Shurtleff’s side when Mark Shurtleff asked me for $2 million,” Jenson said. “Mark Shurtleff treated it as if he were asking for $2.”

Jenson claimed Shurtleff needed the money to take care of business with Darl McBride. McBride had invested money with prominent businessman Mark Robbins. After the deal went bad, McBride was pursuing Robbins to get his money back.

McBride said he previously recorded a conversation with Shurtleff offered him $2 million to back off of Robbins and claimed he could get the money from Jenson.

“I said, ‘Mark I cannot.’ First of all I don’t have the money and I cannot give $2 million to someone I don’t know.”

Jenson was a free man at the time after he struck a plea deal with the Attorney General’s Office of six charges of securities fraud filed in August 2005. He said he refused the money because he was in a plea-in-abeyance program and ordered to pay $4 million in restitution.

“Mark Shurtleff said ‘Well you’ve got protection in the AG’s office now’ and John Swallow, all he did was nod his head.”

Jenson said Swallow was confident at the time he would be the Utah’s next Attorney General.

After failing to pay the $4 million in restitution, Jenson was sentenced to prison in August 2011.

Mark Shurtleff has made no comment on the allegations.

A spokesman for the Attorney General’s Office released a statement. It reads:

“Mr. Swallow walled himself off of the Jenson investigation and prosecution in approximately June, 2011. Mr. Jenson is in prison serving his sentence and is being aggressively prosecuted by the Attorney General's Office on additional felony charges. Mr. Jenson is in prison for fraud and there is no reason to believe any of the outrageous claims he is now making especially since he had every opportunity to make them when he pleaded guilty and when he was sentenced.”

Jenson said the truth will come out.

“The truth is going to be a very very hard thing for certain people and it will be a very very good thing for me,” he added.

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To: straight-->arrow who wrote (116428)5/31/2013 11:43:35 AM
From: StockDung
   of 122017
 
Tiger Wood touts Diploma Milll Degree "Dr" R Steven Davidson's products.proprietary formulations as Fuse Science (otcbb: DROP) prepares to enter the sports nutrition and performance categories

Hilarious Cobert Zicam bit featuring "DR" R. Steven Davidson!!! The diploma mill guy
http://www.colbertnation.com/the-colbert-report-videos/231610/june-22-2009/zicam-recall --------------------------------------------------------------------------------------------------------------------

Rob Davidson, the team's managing director, reported today that PDT Inc. has already completed work on three new industry standards and proprietary formulations as Fuse Science prepares to enter the sports nutrition and performance categories. These are:

EnerJel - For active muscle fatigue, a real time anti-inflammatory and energy source applied directly to the problem area to
help athletes finish the game

PowerDrops - Concentrated electrolyte delivery in a single drop before the game for stronger, sustained performance

EnergyDrops - An all-natural, faster-acting
energy source with longer-lasting results in a single drop

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