| From: anniebonny | 1/7/2009 8:04:15 PM | | | | | | AremisSoft Ex-CEO Settles With SEC
06/10/05 - 05:06 PM EDT
, TSCM TSC Staff
The former chief of AremisSoft agreed to pay $200 million to settle charges he defrauded investors by making false statements about the software company's finances.
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The SEC will distribute the funds to defrauded investors in the AremisSoft post-bankruptcy estate. Poyiadjis also agreed to a final judgment permanently enjoining him from future violations of the antifraud, reporting and other provisions of the federal securities laws and prohibiting him from ever acting as an officer or director of a public company.
The complaint alleged that AremisSoft inflated the value of certain contracts, its revenue and its stock price through fraudulent means. Of some $123.6 million the company reported in revenue in 2000, the SEC said, more than $45 million was based on "purported sales to entities that either do not exist as operating businesses or did not purchase product."
The SEC's complaint charged that AremisSoft and co-CEOs Poyiadjis and Lycourgos Kyprianou made fraudulent statements in public filings and press releases, including:
Reporting in AremisSoft's 2000 financial statements millions of dollars in sales to entities that either did not exist as operating businesses or did not purchase product from AremisSoft.
Reporting in AremisSoft's 1999 and 2000 financial statements that the company paid a total of $32.7 million to acquire three software companies, when in fact the actual purchase prices paid ranged from roughly $100,000 to $300,000.
Misrepresenting the value of and revenue earned from a contract with Bulgaria's Health Insurance Fund in press releases and public filings.
In July 2001, AremisSoft sued short-sellers and TheStreet.com Inc. (TSCM Quote - Cramer on TSCM - Stock Picks), publisher of this Web site, claiming they were conspiring to drive down the company's stock price by distributing false and misleading information.
AremisSoft dropped that suit a month later after revealing that it was under investigation over some of the very same issues. The executives resigned in August 2001 following a lengthy trading halt, when the company conceded that its revenue would miss expectations and that it was being investigated by the SEC. |
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| To: Sir Auric Goldfinger who wrote (671) | 11/12/2009 2:29:28 PM | | From: StockDung | | | | Multi-millionaire who bankrolled Miss World competition jailed for laundering proceeds of Wall Street share scam
By Jaya Narain and Claire Ellicott
Business tycoon Trevor Baines, 69, who was named on the Sunday Times Rich List, and his wife Wendy, 50, were involved in a massive share swindle.
The so-called 'pump and dump' scam used false accounting details and completely fictitious market reports to hugely inflate the value of the shares of companies which were then sold off at a massive profit.
Trevor Baines (left) has been jailed for six years for his part in a Wall Street share scam; his wife Wendy was given a suspended nine month sentence
The tycoon was accused of transferring around £111million from Switzerland to bank accounts in the Isle of Man, where he lived, whilst knowing or suspecting the huge sums of money were the proceeds of crime.
Baines and his wife Wendy Nicolau de Almeida Baines, 50, were both convicted following a five-week trial on the Isle of Man.
And yesterday Baines was jailed for six years while his wife received a suspended nine month sentence for their part in the scam.
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The Isle of Man Court heard it was one of the largest cases of money laundering ever seen on the island.
Acting Deemster Peter Birkett told Baines: 'As far as the Isle of Man is concerned it will not become a safe haven for dirty money.
'Anyone engaged in money laundering can expect to receive a substantial period in custody.'
The financier, who was ranked 349th on the Rich List in 2008 alongside rock stars Eric Clapton and Phil Collins, made a £130million fortune from private banking and trading.
A view of St Moritz: Baines mixed with celebrities in the resort in Switzerland
He ran his company from his £2.75million Victorian villa in Douglas on the tax haven island and lived a luxury lifestyle.
Baines mixed with celebrities in the businessman's playground of St Moritz in Switzerland, and claimed to know Pippa Middleton, the sister of Prince William's girlfriend Kate.
But he and his wife became involved in a complex share scam on Wall Street with a Greek businessman.
The £111m funds had been amassed by Roys Poyiadjis, the crooked senior executive of American software firm AremisSoft, the court heard.
Baines admitted playing a leading role in the transfer of the money but he denied knowing that Poyiadjis was a crook or that the money had been obtained fraudulently.
The Isle of Man Bank rejected a $200 million transfer when staff grew very suspicious about where it had come from.
But the money was accepted by Flemings bank after its managers flew out to Monte Carlo to meet with Poyiadjis and were satisfied by his account.
Baines was convicted of holding assets on Poyiadjis's behalf and transferring funds to the Isle of Man, which he denied.
He and his wife also denied creating a bogus invoice to cover up missing money from AremisSoft's contract with the Bulgarian health service.
Officials on the tax haven of the Isle of Man warned yesterday that scams affected the island's international reputation.
Poyiadjis is awaiting sentence in the US for his part in the share scam.
Detective Chief Inspector John Mitchell, head of the Isle of Man Police Financial Crime Unit, said: 'This was a very lengthy and complex investigation involving multiple jurisdictions across the world and we are extremely happy with the result.
'The six year sentence sends out a message globally that the Isle of Man will not be a safe haven for laundered money.
'The logistics of such an investigation would test any law enforcement authority, and I am very proud and pleased that our unit has been able to undertake and complete this massive four-year investigation to a successful conclusion.'
Read more: dailymail.co.uk |
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| From: StockDung | 7/27/2010 9:47:24 AM | | | | | | Ex-AremisSoft CEO Poyiadjis Avoids Prison After `Almost Unthinkable' Fraud
By David Glovin - Jul 26, 2010
Roys Poyiadjis, the ex-chief executive officer of AremisSoft Corp., a maker of business- management software, was sentenced to probation for a $254 million fraud that a judge said was “of almost unthinkable magnitude.”
Poyiadjis, 45, was ordered to serve six months of home confinement for his role in a decade-old crime on July 22 in a proceeding that was not publicized by U.S. prosecutors. U.S. District Judge Laura Swain in Manhattan handed down the sentence -- which also requires 600 hours of community service and a $200 million restitution payment -- because of Poyiadjis’s cooperation with the government.
“You committed a terrible crime, a crime of almost unthinkable magnitude,” Swain told Poyiadjis at the sentencing, according to a transcript of the proceeding. The “sophisticated” AremisSoft fraud “shows that you’re capable of causing great harm” and “making that very hard to detect.”
Poyiadjis and Lycourgos Kyprianou, AremisSoft’s former chairman, were indicted in 2001 by a U.S. grand jury and charged with securities fraud, insider trading and money laundering. In addition to fabricating $90 million in revenue, Poyiadjis was accused of making fraudulent representations about his sale of millions of shares in |
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