| #545 - January 29, 2008 |
 | |  | |  | |  | |  |
| #545 Updated: 1/29/08 10:14 a.m. Prosecutors let SocGen fraud rap drop reuters.com | 1/29/08 | Thierry Leveque PARIS (Reuters) - French prosecutors will not appeal against a decision to throw out the accusation of fraud leveled against a trader blamed for huge losses at Societe Generale, a senior judicial source said on Tuesday. If confirmed, the move would represent a blow for SocGen managers, who last week branded trader Jerome Kerviel a "fraudster" and said the bank had been the victim of "massive fraud". The judicial source said it was also "inevitable" that many staff within SocGen would be questioned over the affair. Investigating judges reviewing the case decided on Monday to place Kerviel under formal investigation for lesser allegations concerning breach of trust, computer abuse and falsification, which carry a maximum three-year prison term. Being placed under investigation can lead to trial, but falls short of filing formal charges. Prosecutors had asked the magistrates also to consider charges of fraud and "aggravated breach of trust", which carries a maximum seven-year prison term. Judges Renaud Van Ruymbeke and Francoise Desset decided there was not enough evidence to back this up. They also rejected a request by prosecutors that Kerviel remain in custody as investigations continue. The judicial source said although prosecutors have decided to let the fraud decision pass, they have appealed against Kerviel's release. However, they have not fast-tracked the request, and a ruling could take up to two weeks. Kerviel has told police he concealed trades because he wanted to enhance his reputation as a trader, not out of any desire to hurt the bank. He admitted hiding his activities from superiors, but said fellow traders had also shunned bank rules. Junior Achievement and Deloitte Challenge High School Seniors to Apply Ethical Decision- Making csrwire.com | 1/28/08 | Press Release COLORADO SPRINGS, CO – January 28, 2008 – Junior Achievement (JA) and Deloitte today announced the launch of their fourth annual "Excellence through Ethics" essay contest, in which high school seniors are asked to apply their knowledge of ethical decisionmaking and share their views on the importance of ethics in business. To enter, high school seniors must compose an original essay of 500 words or less in response to an ethical dilemma posted on Junior Achievement's Web site, located at www.ja.org. Entries must be submitted online and will be accepted starting today, until March 28, 2008. The contest is part of Deloitte's $2 million commitment to Junior Achievement to promote ethical decision-making among young people. Results of the fifth annual JA/Deloitte Teen Ethics Survey revealed that the majority of teens surveyed (71 percent) feel fully prepared to make ethical decisions when they enter the workforce. Yet, 38 percent of that group believes it is sometimes necessary to cheat, plagiarize, lie or even behave violently in order to succeed. Nearly one-quarter (24 percent) of all teens surveyed think cheating on a test is acceptable on some level, and more than half of those teens (54 percent) say their personal desire to succeed is the rationale. (Excerpt) Sigue charged with failing to maintain anti-money laundering program bizjournals.com | 1/28/08 | Staff Writer Sigue Corp. and Sigue LLC, a San Fernando, Calif.-based money service businesses, entered into a deferred prosecution agreement on charges of and will forfeit $15 million to the U.S. government, federal officials announced Monday. A criminal information filed Monday at the U. S. District Court for the Eastern District of Missouri charges Sigue with one count of failing to maintain an effective anti-money laundering program. Sigue agreed to the filing of the information, and accepted responsibility for its conduct as described in a factual statement accompanying the information. The company will pay $15 million to the United States and has agreed to commit an additional $9.7 million to improving its anti-money laundering program. The government will recommend the dismissal of the charge in 12 months, provided the company fully implements the significant anti-money laundering and Bank Secrecy Act measures required by the agreement, and complies in all other respects with the terms of the agreement. The Financial Crimes Enforcement Network has also assessed a $12 million civil money penalty against Sigue for violations of the Bank Secrecy Act, which will be satisfied by the $15 million forfeiture. The charges filed Monday arose out of transactions conducted by Sigue and its authorized agents from November 2003 through March 2005. Sigue operates by and through more than 7,000 money remitter agents across the country. During this time, more than $24.7 million in suspicious transactions were conducted through registered agents of Sigue, including transactions conducted by undercover U.S. law enforcement agents using funds represented to be proceeds of drug trafficking. Sigue filed suspicious activity reports (SARS) on the obviously structured transactions, but ultimately failed to identify the broader patterns of money laundering activity and prevent the unlawful activity from continuing. Sigue failed to create systems and procedures to identify suspicious financial transactions being conducted by related senders and beneficiaries, from the same or multiple remitter agent locations on the same day, or over several days, months, and, in some cases, years. Charges in embezzlement investigation gaylordheraldtimes.com | 1/28/08 | Staff Writer GAYLORD — A police investigation into alleged missing funds involving the Northern Michigan Chapter of Associated Builders and Contractors is complete, and the organization's former executive director is facing charges of embezzlement and forgery. According to a Monday press release from the Gaylord Police Department, investigators have determined over $150,000 is missing from the business, of which Linda Wiseley of Indian River was the former executive director. Wiseley turned herself in to authorities Friday after a two-count felony warrant had been issued. She has been arraigned on one count each of embezzlement and forgery, and was released on a personal recognizance bond. Pawnshop owner pleads guilty to money laundering sundaygazettemail.com | 1/28/08 | Andrew Clevenger A man accused of using his Charleston pawnshop to sell stolen goods over the Internet pleaded guilty in federal court Monday to money laundering. Toney Lee Corey admitted that he earned roughly $350,000 between May 2004 and June 2006 by selling stolen goods on the eBay Web site. Assistant U.S. Attorney Anna Forbes said that investigators from the Charleston Police Department, Internal Revenue Service, U.S. Postal Inspection Service and the Federal Bureau of Investigation all contributed to the investigation into illegal activity at the Trading Post, Corey's East End pawnshop. Corey routinely paid 25 percent of the value of stolen merchandise, including electronics, from a loosely organized shoplifting ring that lifted goods in West Virginia, Ohio and Virginia, she said. The items were unopened with retail price tags still on them, allowing him to market them online as in-the-box new, Forbes said. Using his "tradingpost987" eBay account, Corey sold the merchandise online, then transferred the proceeds into his bank account using PayPal, an online payment processor, according to court documents. As part of his plea deal, Corey agreed to provide information about other individuals and make restitution of $350,000. During the hearing, Forbes said Corey's cooperation had been helpful. She declined to comment on whether any other people involved in funneling stolen goods through the pawnshop were facing additional charges. Last month, federal authorities moved to seize seven East End properties owned by Corey, including the pawnshop. The government alleged that Corey either conducted illegal activity in the properties or bought them with proceeds from his illegal activities. In an agreement entered on Jan. 16, Corey agreed to forfeit more than $2,800 seized in his bank account in October 2006 and to pay $77,000 within 10 days. The property at 600 Ruffner Ave. will be sold, and the proceeds will be put towards his court-ordered restitution, the order states. In exchange, prosecutors released the six other properties from forfeiture. Earlier this month, Corey testified as a prosecution witness in the murder trial of Michael Merrifield in Putnam County. Merrifield was convicted of first-degree murder in the death of 2-year-old Logan Goodall in 2005. ________________________ |