_________::::___#412 - May 10, 2007________________
FRAUDBARON.com
The Anti-Fraud Professionals'
Source for Fraud News
#412 Updated: 5/10/07 9:11 a.m.

Financial-Statement Fraud not a Solo Job, According to Study of Pre-Sox Years
Rather than being the solo work of a rogue executive, financial-statement fraud is
a product of collaboration, involving an average of seven people, according to a
new study conducted by the Institute for Fraud Prevention (IFP).  Full story, ACFE


Morgan Stanley to Pay $7.9 Million to Settle Best Execution Case with SEC
The United States Securities and Exchange Commission today announced settled
fraud charges against Morgan Stanley & Co. Incorporated (Morgan Stanley) for its
failure to provide best execution to certain retail orders for over-the-counter (OTC)
securities.  Full story, SEC

JURY CONVICTS GRANDVIEW MAN FOR $1.5 MILLION FRAUD AGAINST
CHURCH, INDIVIDUALS
Branch solicited investors through sales seminars in Kansas City, Florida and
Georgia, as well as through the Internet and by using independent mortgage or
financial brokers to assist in the sale of loan products. Branch solicited potential
investors to one or more loan or investment products he offered, depending upon
the investor's willingness and ability to pay. In some instances, large investors
were offered the opportunity to obtain sizeable loans after paying advance fees
that ranged from $20,000 to $200,000, or were offered investment opportunities
with high rates of return. In other instances, smaller investors were offered
programs such as Poverty Breakers International, a multi-level marketing program
in which each investor paid $100 to $200 to fund an account with INT Gold, an
Internet entity. In reality, Branch had no source of funding for the promised loans
or lines of credit and never intended to provide such loans or lines of credit; in
every case, the investment opportunities did not actually exist. Instead, Branch
converted the funds provided by investors to his own use.  Full story, FBI

Partner says Black OK'd questionable fees
David Radler, longtime business partner of former Hollinger International Inc.
chairman Conrad Black, testified they received $5 million in exchange for a sham
agreement not to compete with a newspaper they owned.  Full story, Boston.com

Is Your Ethics Program Working?
Ethical behavior, honesty and integrity are issues that senior executives routinely
identify as top priorities on their companies' agendas. But the mere presence of
codes of conduct, compliance training and publicized reporting systems does not
ensure a company has eliminated an environment that allows or encourages
unethical misconduct. This is particularly true when constant pressure to perform
and meet targets for short-term objectives drive employee behavior. Full story,
Smartpros.com

Benq Chairman, Executives Charged for Insider Trading
Benq Corp. Chairman K.Y. Lee and four executives were charged with insider
trading in the company's stock, Taiwanese prosecutors said today.  Full story,
Bloomberg.com