_________::::___#458 - August 8, 2007________________
FRAUDBARON.com
The Anti-Fraud Professionals'
Source for Fraud News
#458 Updated: 8/8/07 7:50 a.m.

The Rising Cost of White-Collar Defense
"I will know I have made it when I can afford to hire myself as an attorney."  Full article,
law.com

First Bancorp Settles SEC Financial Fraud Charges Involving "Non-Conforming"
Mortgages
According to the Commission, the mortgage-related transactions were not true sales under
generally accepted accounting principles because senior management of Doral Financial
agreed orally and in emails to extend the recourse provision from the 24-month period
included in the written agreements to full recourse for the duration of the mortgages.  SEC
press release.

REAL ESTATE AGENTS AND APPRAISERS INDICTED  IN PROPERTY-FLIPPING SCHEME
Two real estate agents, as well as two state-licensed real estate appraisers, were indicted
this morning by a federal grand jury for allegedly participating in a massive mortgage fraud
scam that caused more than $40 million in losses to federally insured banks.  FBI press
release.

Parkville woman pleads guilty to embezzlement
On at least 184 occasions from Nov. 1, 2000, to May 9, 2006, Jenifer Lyne Merriman
fraudulently embezzled company checks for a total of least $440,430, Wood said. In each
case, she forged the company president's signature on the check without his permission.  
Full story, bizjournals.com

Former Brocade Chief Convicted in Backdating Fraud
Gregory Reyes, the former head of Brocade Communications Systems Inc., was found guilty
of all charges in a trial over the improper backdating of stock option grants, becoming the
first chief executive convicted by a jury in a broad U.S. crackdown on the practice.  Full
story, bloomberg.com

Two more charged in Home Builders case
According to police reports, Deidre Rhine wrote 546 unauthorized checks on the
association's account and made them payable to herself, in some cases, as well as her
husband and two sons.  Full story, timesrecordernews.com