_________::::___#456 - August 2, 2007________________
FRAUDBARON.com
The Anti-Fraud Professionals'
Source for Fraud News
#456 Updated: 8/2/07 12:13 p.m.

SEC Announces Distribution of $267 Million to Qwest Investors
"Since the 2002 passage of the Sarbanes-Oxley Act, the Commission has now returned
more than $2.4 billion to investors," said Linda Chatman Thomsen, Director of the Division
of Enforcement. "The Qwest Fair Fund is the latest example of our continuing commitment
to ensuring that injured investors are compensated for their losses."  SEC press release.

WHO BLOWS THE WHISTLE ON CORPORATE FRAUD?
" Fraud detection relies on a wide range of, often improbable, actors. No single type
accounts for more than 20 percent of the cases detected…only just over 35 percent of the
cases of fraud were revealed by the people appointed to search for it." Full story, NCPA.org

Businessman convicted in bank fraud
Frank Peters, 59, who authorities say was living in homes in Palm Desert, Calif., and Aspen,
Colo., before his arrest, had maintained a $10.5 million line of credit between Chase
Manhattan Bank and World Auto Parts.   Full story, buffalonews.com

China Bank Fraud Drops About Two-Thirds in First Half
Banks in Asia's second-biggest economy are overhauling their management and technology
to cast off a legacy of bad debt caused by decades of state-directed lending. Until the free-
market policy changes of the 1990s, local Communist Party committees approved the
appointment of branch managers, loan oversight was lax and fraud flourished.  Full story,
bloomberg.com

Woodinville man charged with fraud
The Securities and Exchange Commission has filed fraud charges against a Woodinville man
who is alleged to have run a Ponzi scheme in which more than 100 investors lost at least
$5 million.   Full story, seattlepi.com

Ex-Allou CEO Jacobowitz gets 15 years for fraud
The former chief executive of what was once one of Long Island's largest companies was
sentenced yesterday to 15 years in prison for heading a decade-long fraud that kept the
company afloat, but ended up costing creditors and stockholders $177million.   Full story,
newsday.com

Restaurant owners indicted on federal money laundering charges
The Solanos structured deposits into the restaurant’s Chevy Chase Bank business account
to be less than $10,000 to avoid triggering the bank’s legal reporting requirements,
according to the indictment. For example, on one morning, Francisco Solano deposited of
$5,000 at 9:55 a.m. and $8,000 at 10:19 a.m.  Full story, gazette.net