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The trial of Louis Rivas on a multitude of bankruptcy and non-bankruptcy criminal charges arising from the collapse of his foreign curency exchange firm, The Forex Project (discussed in this post), has been re-scheduled to July 20, 2009. U.S. District Judge Curtis Collier granted a common defense motion to extend the speedy trial limits due to the complexity of the case.  Among voluminous discovery materials to be reviewed, the case includes over 500 witness located in more than 20 states.  A summary of the charges and access to the indictment is available here.
11 years 6 months ago
The trial of Louis Rivas on a multitude of bankruptcy and non-bankruptcy criminal charges arising from the collapse of his foreign curency exchange firm, The Forex Project (discussed in this post), has been re-scheduled to July 20, 2009. U.S. District Judge Curtis Collier granted a common defense motion to extend the speedy trial limits due to the complexity of the case.  Among voluminous discovery materials to be reviewed, the case includes over 500 witness located in more than 20 states.  A summary of the charges and access to the indictment is available here.
11 years 6 months ago
According to this news report, Calisto Tanzi, the founder of Italian food manufacturer Parmalat was sentenced earlier this month in Milan to serve ten years in prison for his criminal role in the firm's well-publicized collapse.  Tanzi was convicted and sentenced on bankruptcy fraud and criminal association charges.  Dubbed "Europe's Enron," the Parmalat collapse resulted in a series of criminal trials including two of Tanzi's adult children (who negotiated lighter prison sentences) and numerous other defendants.  Three employees of Bank of America were acquitted of related charges.  Tanzi is the first Parmalat executive to sentenced to prison.
11 years 6 months ago
According to this news report, Calisto Tanzi, the founder of Italian food manufacturer Parmalat was sentenced earlier this month in Milan to serve ten years in prison for his criminal role in the firm's well-publicized collapse.  Tanzi was convicted and sentenced on bankruptcy fraud and criminal association charges.  Dubbed "Europe's Enron," the Parmalat collapse resulted in a series of criminal trials including two of Tanzi's adult children (who negotiated lighter prison sentences) and numerous other defendants.  Three employees of Bank of America were acquitted of related charges.  Tanzi is the first Parmalat executive to sentenced to prison.
11 years 6 months ago
Anthony Dehaney, whose conviction in a multi-million dollar mortgage fraud scheme we previously reported on here, was sentenced today in the Southern District of Florida to eight years in prison.  Dehaney pleaded guilty to conspiracy, mail fraud and making a false declaration in a bankruptcy case last October.  He admitted before sentencing that he began investing in real estate in 2002 when advisors instructed him that nobody would review the details of his mortgage applications.  He also ackowledged lying on numerous loan applications between 2003 and 2006.  When the real estate market turned for the worse, Dehaney filed fraudulent (forged) bankruptcy petitions on behalf of three straw buyers in order to stop pending foreclosure proceedings. The sentence imposed by U.S. District Judge William Dimitrouleas exceeded prosecutors' recommendations by approximately three years according to published reports.
11 years 6 months ago
Anthony Dehaney, whose conviction in a multi-million dollar mortgage fraud scheme we previously reported on here, was sentenced today in the Southern District of Florida to eight years in prison.  Dehaney pleaded guilty to conspiracy, mail fraud and making a false declaration in a bankruptcy case last October.  He admitted before sentencing that he began investing in real estate in 2002 when advisors instructed him that nobody would review the details of his mortgage applications.  He also ackowledged lying on numerous loan applications between 2003 and 2006.  When the real estate market turned for the worse, Dehaney filed fraudulent (forged) bankruptcy petitions on behalf of three straw buyers in order to stop pending foreclosure proceedings. The sentence imposed by U.S. District Judge William Dimitrouleas exceeded prosecutors' recommendations by approximately three years according to published reports.
11 years 6 months ago
Sonia Alburez was charged last week with four counts of bankruptcy fraud for allegedly filing fraudulent bankruptcy petitions in the Northern District of California.  According to the indictment, Alburez solicited homeowners who were delinquent in their mortgage payments and convinced them that her company, Community Home Saver Program, could prevent or delay foreclosure if the homeowners would transfer a fractional interest in their home to one of several fictitious entities and paid Alburez' fees.  She is accused of then filing fraudulent bankruptcy petitions listing the properties to trigger the automatic stay while she collected between $1,500 and $2,500 per month from the homeowners.
11 years 6 months ago
Sonia Alburez was charged last week with four counts of bankruptcy fraud for allegedly filing fraudulent bankruptcy petitions in the Northern District of California.  According to the indictment, Alburez solicited homeowners who were delinquent in their mortgage payments and convinced them that her company, Community Home Saver Program, could prevent or delay foreclosure if the homeowners would transfer a fractional interest in their home to one of several fictitious entities and paid Alburez' fees.  She is accused of then filing fraudulent bankruptcy petitions listing the properties to trigger the automatic stay while she collected between $1,500 and $2,500 per month from the homeowners.
11 years 6 months ago
According to this news report, Juan Tenorio and Charlene Tenorio each were sentenced to terms of probation after a jury in the District of Guam convicted them of concealing nearly $75,000 in income from their engineering firm during their 2002 bankruptcy case.  U.S. District Judge Francis Tydingco-Gatewood sentenced Juan to five years probation, a fine and restitution.  Charlene received a two-year term of probation, a fine and will be required to make restitution as well.  
11 years 7 months ago
According to this news report, Juan Tenorio and Charlene Tenorio each were sentenced to terms of probation after a jury in the District of Guam convicted them of concealing nearly $75,000 in income from their engineering firm during their 2002 bankruptcy case.  U.S. District Judge Francis Tydingco-Gatewood sentenced Juan to five years probation, a fine and restitution.  Charlene received a two-year term of probation, a fine and will be required to make restitution as well.  
11 years 7 months ago
According to this AP story, Italian financial police have said that they have arrested fashion designer Gai Mattiolo on charges of fraudulent bankruptcy in Rome.  The charges relate to Mattiolo's allegedly siphoning funds from his fashion house before filing bankruptcy. As described, the charge of fraudulent bankruptcy appears to be the more serious of two potentially applicable charges under Italian bankruptcy law.  Fraudulent bankruptcy carries a jail sentence of 3-10 years while the lesser "bankruptcy offence" provides for a sentence of six months to two years.
11 years 7 months ago
According to this AP story, Italian financial police have said that they have arrested fashion designer Gai Mattiolo on charges of fraudulent bankruptcy in Rome.  The charges relate to Mattiolo's allegedly siphoning funds from his fashion house before filing bankruptcy. As described, the charge of fraudulent bankruptcy appears to be the more serious of two potentially applicable charges under Italian bankruptcy law.  Fraudulent bankruptcy carries a jail sentence of 3-10 years while the lesser "bankruptcy offence" provides for a sentence of six months to two years.
11 years 7 months ago
William H. Spencer and Paul Boghosian were convicted on numerous federal charges relating to their fraudulent conduct in proposing a reorganization plan in the 2003 Hawaiian Airlines bankruptcy case.  Spencer was convicted following a two-week jury trial in Manhattan.  Boghosian pleaded guilty on October 29th. According to trial evidence, in connection with a bankruptcy court's consideration of two competing reorganization plans, one backed by Hawaiian Investment Partners Group LLC ("HIP Plan") and another jointly backed by the trustee and Hawaiian Holdings Inc., Spencer submitted false affidavits to the bankruptcy court claiming he could provide between $300 and $500 million to fund the HIP Plan through a trust that he controlled. He later submitted a supplemental affidavit, with attached purported bank records, in which he represented that the trust had agreed to commit $500 million to fund the HIP Plan, and that the money was being held in a Netherlands bank account.  Both defendants also gave false deposition testimony and used the false affidavits to solicit interested parties to support the HIP Plan. As it turned out, the funds did not exist and the documents submitted to the bankruptcy court were completely fraudulent. Sentencing is scheduled for January 30, 2009 
11 years 7 months ago
William H. Spencer and Paul Boghosian were convicted on numerous federal charges relating to their fraudulent conduct in proposing a reorganization plan in the 2003 Hawaiian Airlines bankruptcy case.  Spencer was convicted following a two-week jury trial in Manhattan.  Boghosian pleaded guilty on October 29th. According to trial evidence, in connection with a bankruptcy court's consideration of two competing reorganization plans, one backed by Hawaiian Investment Partners Group LLC ("HIP Plan") and another jointly backed by the trustee and Hawaiian Holdings Inc., Spencer submitted false affidavits to the bankruptcy court claiming he could provide between $300 and $500 million to fund the HIP Plan through a trust that he controlled. He later submitted a supplemental affidavit, with attached purported bank records, in which he represented that the trust had agreed to commit $500 million to fund the HIP Plan, and that the money was being held in a Netherlands bank account.  Both defendants also gave false deposition testimony and used the false affidavits to solicit interested parties to support the HIP Plan. As it turned out, the funds did not exist and the documents submitted to the bankruptcy court were completely fraudulent. Sentencing is scheduled for January 30, 2009 
11 years 7 months ago
The Deloitte Forensic Center and its Reorganization Services Group has produced the findings of a report that studied the correlation between bankruptcy and fraud.  The primary question examined was whether the increased scrutiny that follows a company's bankruptcy filing leads to more incidents of fraud claims as compared to companies that have not filed bankruptcy.    The report is available here. Among its findings: ·         Companies filing for bankruptcy protection are three times more likely than non-bankrupt companies to face enforcement action by the SEC relating to alleged financial statement fraud. ·         Companies that were issued financial statement fraud-related SEC Enforcement Releases were more than twice as likely to file bankruptcy protection as those not issued one. ·         Approximately one in seven financial statement fraud SEC Enforcement Releases issued to companies that filed for bankruptcy protection were issued prior to their bankruptcy filings. These situations may provide a warning signal of potential bankruptcy filing.
11 years 7 months ago
The Deloitte Forensic Center and its Reorganization Services Group has produced the findings of a report that studied the correlation between bankruptcy and fraud.  The primary question examined was whether the increased scrutiny that follows a company's bankruptcy filing leads to more incidents of fraud claims as compared to companies that have not filed bankruptcy.    The report is available here. Among its findings: ·         Companies filing for bankruptcy protection are three times more likely than non-bankrupt companies to face enforcement action by the SEC relating to alleged financial statement fraud. ·         Companies that were issued financial statement fraud-related SEC Enforcement Releases were more than twice as likely to file bankruptcy protection as those not issued one. ·         Approximately one in seven financial statement fraud SEC Enforcement Releases issued to companies that filed for bankruptcy protection were issued prior to their bankruptcy filings. These situations may provide a warning signal of potential bankruptcy filing.
11 years 7 months ago
Four defendants in the Southern District of West Virginia have been charged in separate cases with various bankruptcy crimes in a small fraud sweep that U.S. Attorney Charles T. Miller hopes will "serve as a warning to those who would abuse the [bankruptcy] system." Victoria Caudill was charged with concealing assets (18 U.S.C. 152(1)), making a false declaration (18 U.S.C. 152(3)) and devising a bankruptcy fraud scheme (157(3)) for allegedly transferring a $60,000 workers' compensation settlement payment to a bank account not in her name and then failing to disclose the account in multiple filings in her bankruptcy case. Clinton Smith was indicted and charged with concealing assets (18 U.S.C. 152(1)), making a false declaration (18 U.S.C. 152(3)) and devising a bankruptcy fraud scheme (157(3)) for allegedly failing to disclose in his bankruptcy case his interest in an income stream from the sale of a 50 acre parcel of property formerly jointly owned with his then wife. Jennifer Longwell was charged by indictment with two counts of making a false oath (18 U.S.C. 152(2)) and one count of concealing assets (18 U.S.C. 152(1)) in her bankruptcy case for allegedly not disclosing the proceeds she received from the sale of two parcels of real estate and then giving false testimony at the meeting of creditors concerning the same transactions.
11 years 7 months ago
Four defendants in the Southern District of West Virginia have been charged in separate cases with various bankruptcy crimes in a small fraud sweep that U.S. Attorney Charles T. Miller hopes will "serve as a warning to those who would abuse the [bankruptcy] system." Victoria Caudill was charged with concealing assets (18 U.S.C. 152(1)), making a false declaration (18 U.S.C. 152(3)) and devising a bankruptcy fraud scheme (157(3)) for allegedly transferring a $60,000 workers' compensation settlement payment to a bank account not in her name and then failing to disclose the account in multiple filings in her bankruptcy case. Clinton Smith was indicted and charged with concealing assets (18 U.S.C. 152(1)), making a false declaration (18 U.S.C. 152(3)) and devising a bankruptcy fraud scheme (157(3)) for allegedly failing to disclose in his bankruptcy case his interest in an income stream from the sale of a 50 acre parcel of property formerly jointly owned with his then wife. Jennifer Longwell was charged by indictment with two counts of making a false oath (18 U.S.C. 152(2)) and one count of concealing assets (18 U.S.C. 152(1)) in her bankruptcy case for allegedly not disclosing the proceeds she received from the sale of two parcels of real estate and then giving false testimony at the meeting of creditors concerning the same transactions.
11 years 7 months ago
As expected, Joey Diekemper has reached a plea agreement with the government and pleaded guilty to conspiracy to commit bankruptcy fraud in Illinois bankruptcy fraud case with ties to a double homocide of two potential witnesses.  Diekemper entered a guilty plea on Wednesday before U.S. Magistrate Judge Clifford Proud.  Outside of court, Diekemper's attorney denied his client had any involvement with the deaths of neighbors who owned the property on which a tractor Diekemper was charged with concealing was allegedly stashed.  Sentencing is scheduled for March 9.  Diekemper's wife, who previously pleaded guilty to conspiring with her husband to conceal assets in their bankruptcy case, will be sentenced on the same date.
11 years 7 months ago
As expected, Joey Diekemper has reached a plea agreement with the government and pleaded guilty to conspiracy to commit bankruptcy fraud in Illinois bankruptcy fraud case with ties to a double homocide of two potential witnesses.  Diekemper entered a guilty plea on Wednesday before U.S. Magistrate Judge Clifford Proud.  Outside of court, Diekemper's attorney denied his client had any involvement with the deaths of neighbors who owned the property on which a tractor Diekemper was charged with concealing was allegedly stashed.  Sentencing is scheduled for March 9.  Diekemper's wife, who previously pleaded guilty to conspiring with her husband to conceal assets in their bankruptcy case, will be sentenced on the same date.
11 years 7 months ago