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FRAUDBARON.com
The Anti-Fraud Professionals'
Source for Fraud News
Source for Fraud News
| #509 Updated: 11/20/07 9:21 a.m. Guilty Verdict in Fake Filings cfo.com | 11/20/07 | Stephen Taub A federal jury has found Brian Adley, former chairman and CEO of Chancellor Corp., guilty of securities fraud in a rare trial arising from an SEC complaint. Adley was held liable for fabricating documents and fraudulent accounting from 1998 through 2000 in a scheme to inflate Chancellor's reported assets, revenue, and income. He also was deemed guilty of paying unwarranted fees to entities that he controlled. The Securities and Commission had alleged that Adley caused Chancellor — a defunct Boston-based transportation equipment leasing company — to file false financial statements in 1999 and 2000. He directed the wholesale fabrication of corporate documents, instructed that the documents be given to the company's auditors, and coordinated the filing of the false financials, the SEC charged. In 1999 Chancellor overstated its revenue by 177 percent, its net profit by 73 percent, and its assets by 12 percent, according to the SEC. In 2000, the company allegedly made false filings overstating its assets and income by 32 percent to 173 percent. The court will determine civil sanctions and remedies at a later date. The SEC previously settled with 10 defendants, including Chancellor Corp. and former company officials including its president, CFO, treasurer, two directors and audit-committee members, outside auditing firm, and three audit-team members. Elon woman charged with embezzlement thetimesnews.com | 11/20/07 | Staff Writer An Elon woman was charged with embezzling more than $10,000 from a Burlington contracting business where she was employed. The Alamance County Sheriff’s Department received a report from Todd Johnson of Johnson and Associates on Nov. 5, after he discovered that Penny Louise Simmons, 41, of Drew Lane, was allegedly writing unauthorized checks from his business account, according to a sheriff’s department release. Simmons managed the office of the small contracting business and was authorized to handle accounts payable and the payroll. She also was permitted to write and sign company checks, according to the release. “After an investigation, it was discovered that Mrs. Simmons was writing company checks for items unauthorized by Mr. Johnson, including checks written to cash, Penny Simmons, Food Lion and a bariatric clinic,” the release states. Simmons allegedly wrote more than $10,000 in checks from May to August, which were returned due to insufficient funds. She was charged Monday with embezzlement and placed under $25,000 bond, the release states. Man Sentenced in 'Baywatch' Fraud Scheme Houston Chronicle | 11/19/07 | Associated Press KANSAS CITY, Mo. — A former Kansas City man was sentenced Monday to three years and eight months in federal prison for defrauding investors who believed his company was associated with the "Baywatch" television series. David William Port, 53, also was ordered to pay $169,985 in restitution for the fraud scheme, U.S. Attorney John F. Wood said. The scheme bilked 18 investors in the United States and Britain out of nearly $360,000, Wood said. Port, originally from Great Britain, had been living in the U.S. during the time of the crimes, which occurred between October 1998 and October 2000. Port, who was brought back to the U.S. to answer to the charges, must serve his sentence concurrently with one he received in a securities fraud case in New York. In the federal case, he pleaded guilty in July to five counts of interstate transportation of money obtained by fraud. Port had victims in England, Utah, New York, California and Delaware, and his offenses involved wire transfers of money from investors ranging from $5,000 to nearly $75,000. Port admitted he falsely told potential investors that his Kansas City-based company, PCG Media, held syndication and merchandise rights to "Baywatch," the lifeguard drama that had been renamed "Baywatch Hawaii" before its 2001 cancellation. Port also told investors that PCG would open "Baywatch"-themed restaurants that would take over the Planet Hollywood franchise and that "Baywatch" star David Hasselhoff was planning to invest in the company, neither of which were true. PCG, described as a $20 million publicly traded company, actually had few assets and was privately held, prosecutors said. Port also told investors that his company counted Coca-Cola, McDonald's and Philip Morris among its clients and that it was a large buyer of T-shirts from Fruit of the Loom. Prosecutors said Port also failed to tell investors that he had been convicted of obtaining property by deception in the United Kingdom in 1994. He fled to Britain after the New York securities fraud conviction. Leitchfield resident faces federal charges for embezzlement gcnewsgazette.com | 11/19/07 | Missy Mudd A Leitchfield resident has been indicted for embezzlement charges involving her former employer. Kimberly Stella Stallings, age 46, was charged with possession and passing checks containing counterfeit signatures, in the amount of $84,636. United States Attorney for the Western District of Kentucky, David L. Huber, continued from page 1 anounced the indictment before a federal Grand Jury on November 7. From November 26, 2002 through April 6, 2007 Stallings allegedly forged her supervisor's signature on 20 checks, for employer Modern Transmission Development, (MTD) of Leitchfield. Checks were made payable to herself, for cashing purposes, or to people that she owed money to, according to federal prosecutors. If convicted Stallings could face a maximum potential penalty of 200 years imprisonment, a $5,000,000 fine, and supervised release for up to three years. Assistant United States Attorney Bryan Calhoun is prosecuting the case, and it was investigated by the United States Secret Service. Stallings is scheduled to appear for arraignment before the United States Magistrate Judge on November 20 at 9:15 a.m. in Louisville. ________________________ Yesterdays News Has Been Archived White-Collar Time for White-Collar Crime Joeseph T. Wells, CFE, CPA |