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IRS to go after more tax havens

April 27th, 2009

Robert Roach, counsel and chief investigator for the U.S. Senate Permanent Subcommittee on Investigations said that the US is losing around $100B annually in taxes because of foreign banks acting as tax havens. The IRS is said to be pursuing other banks after successfully gaining concessions from UBS. The full article can be read here.

Gideon Gono

April 20th, 2009

"Zimbabwe's central bank governor admits he took money from the bank accounts of private businesses and foreign aid groups without permission to keep the country's cash-strapped ministries running." The full AP article can be read here.

UBS agrees to hand over names

February 18th, 2009

UBS has agreed to pay $780M and turn over the names of Americans who used Swiss bank accounts to evade paying some US taxes. You can read more at yahoo.com.

Allen Stanford

February 17th, 2009

Allen Stanford is being charged with a "massive ongoing fraud" in relation to $8B of CDs that were sold to investors with promised returns exceeding 8%. There were 30,000 CDs sold in 131 countries. The full Reuters article can be read here.

State Farm cancels contract with fraud hit Satyam

February 3rd, 2009

State Farm, one Satyam's top ten clients has decided to discontinue its contract with Satyam. Satyam is being investigated to see how much fraud was actually taking place on its balance sheet. The full article can be read at money.cnn.com.

Update in Satyam case has founder fleecing and blaiming the company books

January 17th, 2009

B. Ramalinga Raju may have taken up to $1B from the company rather than the initial claim that the company had made up the money.

"Mr. Raju, who was Satyam’s chairman, said in a letter to the company’s
board on Jan. 7 that about $1 billion of the company’s cash was
“non-existent” and that he had falsified its profits for years to avoid
losing control of the company. But the person involved in the
investigation said that despite Mr. Raju’s claim that he had padded
profits, he relied on hundreds of companies to divert money from

More from the NYTIMES.COM article can be read here.

Satyam Struggles to Pay Employees

January 8th, 2009

As Indian company Satyam tries to recover from the $1B loss of liquidity overnight due to fraud, Investors have their eyes on PricewaterhouseCoopers the accounting firm for the company.

“Pricewaterhouse has signed the balance sheets, and so they are
responsible if there has been a falsification,” said Ravi Nath, a
lawyer with the Rajinder Narain law firm in New Delhi. The firm has
been contacted by several investors looking to sue the auditor.

you’re an auditing company and your client says they have $1 billion in
cash, you do check with the bank,” said Hugh Young, the head of
equities for Aberdeen Asset Management, which was a Satyam investor
until it sold its holdings as problems came to light.

Read the full article at NYTimes.com

Madoff investigators are looking abroad

December 31st, 2008

Investigators of the Madoff Ponzi are looking at possible offshore accounts that may have been used as tax havens for wealthy investors.

"While the inquiries into the role of offshore funds in the scheme
are at an early stage, it is hardly surprising that such funds are
coming under scrutiny. Offshore entities played key roles at
Bayou Management, a Connecticut hedge fund that collapsed in scandal in
2005, as well as at Enron, which used nearly 900 offshore entities, mostly in the Cayman Islands, to conceal bogus trades and accounting fraud."

 "At least a dozen offshore entities were involved with Mr. Madoff’s
firm, according to several regulatory filings. They include funds
linked to the Fairfield Greenwich Group, a fund of funds that lost $7.4
billion of its investors’ money after entrusting it to Mr. Madoff".

Read more at nytimes.com.

$2B Counterfeit Microsoft Business

December 31st, 2008

Chinese courts convicted 11 people of copyright infringement in what turns out to be an enormous fleece. Microsoft and the FBI had been tracking the ring since 2001 and has found illegal material in 36 different countries. The ring was exporting most of the products to countries where they could sell the nearly identical to the real thing products for a much higher price than the $3 similar products would sell for in China. It has been estimated that 80% of computers in China have pirated software on them. The full NYtimes.com article can be read here.

Marc Dreier

December 9th, 2008

Dreier, Marc 2
Marc Dreier (pictured left and below),founder of Dreier LLP, is accused of defrauding investors of around $100M by selling them phony financial instruments. In a fleece that ends up with him impersonating an Ontario Teachers Pension Plan attorney in Canada, Marc Dreier leaves us with a good read. The full article can be read at WSJ.com. And more here.
 Dreier, Marc

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