_________::::___#469 - September 7, 2007________________
FRAUDBARON.com
The Anti-Fraud Professionals'
Source for Fraud News
#469 Updated: 9/7/07 11:51 a.m.

BURBANK MAN ARRESTED IN $8.7 MILLION SCAM
According to the 11-count indictment, Thomas Mitchell Johnson represented himself to his
victim-investor as a successful businessman with experience negotiating sophisticated
transactions that he called “high-yield interest opportunities.” Through his company, Zurich
Capital Holdings, Inc., Johnson offered an investment opportunity to the victim-investor,
promising to make investments only with the authorization of the victim-investor. In
response to these promises, the victim-investor transferred $10 million to an account
Johnson controlled.   FBI press release.

Two Sentenced in Investment Scam
Thomas J. Whelan sentenced Kenneth Kempton to serve 87 months in custody, serve a
three-year term of supervised release, forfeit $2.3 million, and to pay $20,282,532 in
restitution to more than 50 victims. Judge Whelan sentenced Kenneth Hodgell to serve 120
months in custody, serve a three-year tem of supervised release, forfeit $2.3 million, and to
pay $40,565,065 in restitution to more than 50 victims.   FBI press release.

Three metro women punished for mortgage fraud
A Decatur, Ga., woman and two of her sisters-in-law have been sentenced to jail time
and/or fined for their participation in a mortgage fraud scheme.   Full story, bizjournals.com

London revealed as hot spot for online credit card fraud
By tracking the postal codes of addresses where fraudulently obtained goods are delivered,
fraud information group Early Warning has created a map showing the worst-offending
regions in the country. Card-not-present fraud has risen by 22 percent in the United
Kingdom in the past year, according to Early Warning.  Full story, news.com

SEC Charges 26 Defendants in $428 Million Securities Fraud That Targeted Senior
Citizens
The investments were structured as timeshares in several hotels in Cancun, Mexico,
coupled with a pre-arranged rental agreement that promised investors a high, fixed rate of
return. The fraudulent Universal Lease scheme eventually collapsed, leaving investors with
losses that exceed $300 million. SEC press release.

Oak Bluffs School worker charged with embezzlement
Oak Bluffs police last week filed charges in Edgartown District Court against an Oak Bluffs
School secretary they said embezzled more than $15,000 from a school account under her
control.  Full story, mvtimes.com

Tecumseh man charged with tax evasion
From 1999 to 2004, $238,000 allegedly embezzled from home care company.  Full story,
cjonline.com

Ex-treasurer of West Boynton Little League accused of embezzlement
Dennis Walsh is charged with stealing $13,896.22 from the West Boynton Beach Little
League through a series of checks he cashed as treasurer between March 2005 and July
2006, Detective William Griffin said.  Full story, sun-sentinel.com

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