_________::::___#422 - May 29, 2007________________
FRAUDBARON.com
The Anti-Fraud Professionals'
Source for Fraud News
#422 Updated: 5/29/07 11:12 a.m.

MORTGAGE BANKERS GUILTY OF “FLIPPING” FRAUD
According to the Justice Department, a former West Los Angeles, California
mortgage banker has agreed to plead guilty to federal criminal charges in a
massive mortgage fraud scam that caused more than $18.5 million in losses to
banks, including his former employer.  Full story, AmericanChronicle.com

Fraud: An Inside Job
JCI Inc., a rock-crushing equipment manufacturer in Eugene, recently got a wake-
up call. It accused a former employee of manipulating payroll records and racking
up thousands of dollars of personal purchases on a company credit card.  Full
story, RegisterGuard.com

Sterling Financial deals with fraud case
Sterling said the Equipment Finance employees concealed credit delinquencies,
falsified financing contracts and related documents, and subverted internal
controls. Five Equipment Finance employees were fired, including the chief
operating officer and executive vice president.  Full story, PennLive.com

Union chief charged with embezzlement
Graham Paul Vane, 49, was president of the San Mateo-based National
Association of Letter Carriers, AFL-CIO, Branch 1280, from January 2002 through
2006 and allegedly used a union-issued credit card and 10 personal credit cards
to rack up massive personal expenses such as dining, family travel, spa
treatments, satellite television, jewelry, wine, pet care, personal utility bills,
groceries and gas.  Full story, InsideBayArea.com

Hoosier found guilty of fraud
Jurors concurred with the SEC's accusation that Timothy Harcharik, former director
of risk management for the Plainfield, Ind.-based cell phone distributor, helped
use a round-trip insurance transaction with American International Group to hide
a loss and inflate earnings, the SEC said Friday.  Full story, IndyStar.com

Former Wis. utility official pleads guilty in fraud case
Prosecutors said she set up a fictitious business named Ditel Communications,
opened an account in its name at PNC Bank in Pittsburgh, set up a vendor account
for Ditel at Terasen, and issued numerous fraudulent checks from Terasen to
Ditel.  Full story, zwire.com

Guilty plea in embezzlement case at Citizens Bank
The indictment alleged that between Aug. 1, 2005 and Dec. 26, 2006 Ferguson
embezzled $29,146 that Citizens had designated for donations to local
organizations, and deposited the funds into his own account for personal use.  
Full story, BizJournals.com