Fraud News for Monday Reading
NakedShorts: Paulie, those sirens are for you: "NakedShorts Alternative thoughts on alternative investments...my adventures in the capital markets...and unsolicited opinions on anything else that comes to mind « Practices getting more sound | Main
From the Naked Shorts, a favourite of mine, news about the Philadelphia Asset Management, writes:
I know that Toronto is the centre of the world, but I don't think we have yet annexed the the GTA, let alone points west and east.
"Paulie, those sirens are for youMore than two years after the Commodity Futures Trading Commission shut down the Philadelphia Alternative Asset Management Co, federal prosecutors have charged founder Paul Eustace with commodities and wire fraud.
The 13-page two-count indictment was released yesterday by the US Attorney for the Eastern District of Philadelphia. It charged that Eustace’s fraud on investors in funds operated by PAAM, and Option Capital Fund, an earlier venture, cost over $200 million, between Spring 2001 and Jun. 2005."
But I don't think the denizens of Oakville will appreciate this description, "Eustace, 42, lives in Oakville, Ont., a suburb of Toronto. At pixel time, it could not be established when he will be formally charged; if he fights extradition, it is likely to be months rather than weeks before he appears in court."
At the British business opportunities site, there is a story on
Reuben Singh Bankrupt | Business Opportunities And Ideas
Reuben Singh was once was named by Guinness World Records as the world’s youngest self-made millionaire with an estimated personal fortune of £27.5M.In June 1999 Stephen Byers, then trade secretary appointed him to the Department of Trade and Industry’s Competitiveness Council – a sounding board for “Britain’s youngest, brightest entrepreneurs”. He was also given a place on the DTI’s Small Business Council in May 2000. He met with Tony Blair and was invited by him onto a DTI advisory panel on small business and competitiveness. Alongside Sir Alan Sugar and Sir Richard Branson he was appointed one of the five UK ambassadors for entrepreneurship.
According to his Ecademy Profile he’s won numerous more awards and appointments.
Last week it all came to and end however as he was declared bankrupt, owing over £11M. He was branded a liar by a judge after it emerged that he failed to repay a £900,000 loan to the Bank of Scotland (BoS). The bankruptcy order, granted by Manchester County Court, came after the bank rejected his offer to pay the money back over two years.
I am always fascinated with a) the variety of rogues among successful businessmen, and b) why nobody rats the faker out until it is far too late.
Finally, from the UK, we learn that
‘Boiler room’ inquiry by FSA brings two arrests - Times Online
Two men were arrested yesterday in connection with a criminal investigation into a £5 million “boiler room” scam. The Financial Services Authority said the arrests came as a result of its investigation into Universal Management Systems, a company suspected of helping overseas boiler rooms that use high-pressure techniques to sell worthless shares to investors. The men have not been charged.
