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FRAUDBARON.com
The Anti-Fraud Professionals'
Source for Fraud News
#505 Updated: 11/12/07 8:26 a.m.

'Robin Hood' Banker Jailed for Fraud
ap.google.com | 11/10/07 | Staff Writer
PEORIA, Ill. (AP) — A former bank executive who was said to have "Robin Hood" mentality
has been sentenced to 41 months in federal prison for taking money from some accounts
and repaying others, as well as pocketing some of the money for himself.  The judge at
Friday's sentencing hearing also ordered Thomas J. Mariotti, 37, to repay more than
$691,000 to his former employer and to Tall Oaks Country Club, one of the affected
accounts. Mariotti will remain free on bond until he surrenders himself to prison officials next
month.  A psychologist who testified at the sentencing hearing said Mariotti had a "Robin
Hood" mentality because he took money from the bank to help support bad loans he had
made. In one case, he paid off a $45,000 loan, said his attorney, Ron Hamm.  In June,
Mariotti waived indictment and pleaded guilty to one count of bank fraud.

Fraud charge in Man-UBS case
msnbc.msn.com | 11/10/07 | Stephanie Kirchgaessener
US prosecutors have charged Paul Eustace, a Canada-based hedge fund manager at the
centre of a messy legal battle between the former brokerage of Man Group and UBS, with
engineering a fraud that caused hedge fund investors to lose $200m (£96m).  Mr Eustace,
the founder and principal trader of the now failed Philadelphia Alternative Asset
Management Company (PAAM), was accused by US attorney Pat Meehan of creating
accounts that showed his hedge fund was making money when in fact he was losing tens
of millions of dollars.  The defendant was also charged with increasing his management
fees on the basis of the bogus accounts, and making loans to himself with investors' cash,
including $500,000 to pay off a legal settlement.  According to a two-count fraud indictment,
Mr Eustace opened several accounts at Man, including one called the "10 account", where
profitable trades were placed, and one called the "50 account", where losing trades
were held.  He also opened an account at UBS, which was administered by the Swiss
bank's Cayman Island operations.  According to the indictment, Mr Eustace caused false
information about his trades to be conveyed to UBS Cayman through an unidentified
"Person #1", who prosecutors said was employed at Man at a location where "many" of the
offshore fund's trading accounts were maintained, and by other means.  Prosecutors allege
that Mr Eustace hid the existence of the "50 account" at Man from UBS, and UBS did not
have access to the account, UBS only received reports from Man that involved profitable
trades.  The indictment could have an effect on a series of lawsuits that have been filed in
connection with the fraud.  The methods Mr Eustace used to hide his alleged scheme lie at
the heart of a long legal fight between Man Financial, now renamed MF Global, and the
Cayman Island operations of UBS.  Both groups have been accused by the receiver of PAAM
of negligently allowing its manager to hide $179m in loss-making trades. Man has rejected
the claims and counter-sued UBS, saying it should have spotted the problems. UBS has also
denied responsibility.  PAAM's receivers have accused Man of failing to oversee Thomas
Gilmartin, a college friend of Mr Eustace who they allege was key to the scam. Man and Mr
Gilmartin are also accused in the litigation of failing to comply with money laundering
regulations. Both deny the claims.

Man is sentenced for embezzlement
vindy.com | 11/10/07 | Staff Writer
YOUNGSTOWN — A former office manager, who the prosecutor said embezzled some
$300,000 over six years from a group of local urologists, has been sentenced to three
years' probation, with the first six months to be served in the Mahoning County
Misdemeanor Jail.  Judge Maureen A. Sweeney of Mahoning County Common Pleas Court,
imposed the sentence Friday on Conrad Straub, 44, of West Wilson Street, Struthers, who
had pleaded guilty Sept. 24 to a felony level theft charge.  Straub was taken immediately to
the misdemeanor lockup, which is permitted to house nonviolent felons. The judge also
sentenced him to 200 hours of community service and to complete a crime victim
awareness program.  The indictment said Straub stole the money between March 1999 and
March 2005 from NEO Urology Associates Inc. of Parmelee Avenue, which consists of Drs.
Richard Memo and Robert and Vincent Ricchiuti.  Straub forged the doctors' signatures on
checks to himself and to merchants and opened unauthorized credit cards in the company's
name, said J. Michael Thompson, assistant county prosecutor.  During one semester, he
charged his son's college tuition to the physicians, the prosecutor said. Straub also used
corporate credit cards without authorization to pay for clothing, jewelry, personal laptop
computers, expensive cameras, major repairs to his cars, vacations for himself and his
family, and cellular phone bills for himself and his son, Thompson said.  "What mattered to
the victims was that he be convicted of a felony and that he spend some time incarcerated.
They're perfectly satisfied with this sentence," Thompson added.

Woman pleads guilty in cemetery association embezzlement case
blog.mlive.com | 11/9/07 | Tom Gantert, Ann Arbor News
A Manchester woman who pleaded guilty to embezzlement from a cemetery association has
until Thursday to make a $20,000 payment or she could face jail time, according to the
Washtenaw County prosecutor's office.  Robin Scully has already paid back $180,000 to the
Oak Grove Cemetery Association after pleading guilty to stealing the money.  Steve Hiller,
deputy chief assistant prosecutor for Washtenaw County, said Scully must also pay back
$1,666 a month in restitution for 12 months.  If she makes those payments and meets all
the conditions of a delayed sentencing, she could be placed on probation for up to five
years, Hiller said.  Scully, who could not be reached for comment, is facing a maximum of 10
years in  prison.  John Schaible of Manchester, president of the cemetery association, said
he isn't happy with Scully's deal because she would not end up paying back all of what she
took from the association, which he said is $339,000.  "You have any idea how we get our
money back?" he asked.  Scully became treasurer of the Oak Grove Cemetery Association in
1998. Members of the cemetery association became concerned about the group's finances
in 2006 after Scully missed meetings and failed to provide financial records.  Schaible said
that when he got the financial records from Scully last December, the association had just a
little more than $1,000.  Michigan State Police Trooper Greg Setla completed a seven-month
investigation that led to Scully being arraigned in August. Oak Grove Cemetery is located on
August Road in Manchester Township.

Woman gets 3 years for embezzlement
signonsandiego.com | 11/9/07 | JLJ
NORTH COUNTY COURTS: A Mira Mesa woman who gambled away nearly all of $800,000
stolen from her employer was sentenced to three years in prison by a Superior Court judge
yesterday.  Patricia Doney, 58, pleaded guilty Oct. 19 to felony embezzlement. The
bookkeeper for an Escondido drywall installer spent most of the money at Harrah's, Barona
and Valley View casinos, said prosecutor Anna Winn in an interview.  The bookkeeper, hired
in 1997, started stealing in 2001 and was not discovered until April when the owner
suggested hiring an assistant. Doney left the office and never returned, and her
replacement found the embezzlement.  Doney was arrested June 13 during a search of her
home. When told how much she had stolen, Doney said: “Are you kidding? Cool.”
She also was ordered to reimburse the employer, and Doney deeded her house to the
company's owner, who plans to sell it to recoup some of the losses.

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