Legal / Fraud

Warren Capital Attorneys Bill $577,000 in Expenses

Attorneys in the Warren Capital case, involving deceased owner Warren Clayton Stephens’ alleged Ponzi scheme in which he purportedly secured corporate promissory notes with interest rates averaging about 9% to investors in Warren Equipment Finance, recently billed nearly $577,000 for fees according to North Bay Business Journal. read more

Man Posing as Exec Indicted in $2.3MM Fraud

According to the U.S. Attorney’s office in FL, a man posing as an executive of a number of companies has been indicted and charged with fraud against Wells Fargo, CIT Group and Key Bank. read more

January Commercial Chapter 11 Bankruptcy Filings Up 33%

Total commercial Chapter 11 filings were up 33% as January 2015’s commercial Chapter 11 filings increased to 518 from 391 filings in January 2014, according to data provided by Epiq Systems. read more

SEC Charges S&P for Fraudulent CMBS Ratings Misconduct

The SEC announced a series of federal securities law violations by S&P involving fraudulent misconduct in its ratings of certain commercial mortgage-backed securities. read more

Trucking Company CEO Pleads Guilty in GE Capital Fraud

According to court records, Sergio F. Lagos, former CEO of USA Dry Van Logistics was found guilty of committing $26 million in wire fraud in a case involving a $38 million financing agreement with GE Capital. read more

S&P Said to be Near $1B RMBS/CDO Settlement with U.S.

Bloomberg reported that S&P is close to a settlement of about $1 billion with the U.S. for allegedly misleading investors about its ratings of mortgage-backed securities. read more

Ambac Sues Bank of America Over Countrywide MBS

Reuters reported that Ambac Assurance sued Bank of America to recoup losses from insuring nearly $1.7 billion of securities backed in part by risky mortgages from the bank’s Country Wide Loans unit. read more

Bloomberg: Bank Leumi to Pay $400MM in U.S. Tax Probes

Bloomberg reported Bank Leumi Le-Israel agreed to pay $400 million and admit it helped American clients evade taxes for a decade. read more

Credit Suisse Said to Face $10B Mortgage Fraud Suit

Bloomberg reported that Credit Suisse was ordered to face a $10 billion lawsuit by New York’s attorney general accusing the Swiss bank of fraud in the sales of mortgage-backed securities before the financial crisis. read more

Two Men Charged with $100MM ATM Sale/Leaseback Fraud

The Justice Department said two men were charged with running a 15-year-long Ponzi scheme in a case involving the sale/leaseback of ATMs that caused well over $100 million in losses to nearly 2,000 investors. read more

NC Physician Accused of Identity Theft to Obtain Equipment Financing

According to a post by the Asheboro Courier-Tribune, a NC physician pleaded guilty of to one count of misuse of a Social Security number to secure medical equipment financing from GE Capital Healthcare Financial Services. read more

Commercial Chapter 11 Bankruptcy Filings Down 39%

Total commercial chapter 11 filings for November 2014 were 296, representing a 39% decrease from the 487 filings reported during the same period in 2013, according to data provided by Epiq Systems. read more

Bloomberg: Madoff Fraud Recovery Tops $10 Billion

Bloomberg reported the trustee unwinding Bernard Madoff’s defunct investment firm surpassed $10 billion in recoveries for victims after reaching a deal with two offshore funds that funneled money to the fraud. read more

BofA Swings to Q3 Loss on Litigation Expense

Bank of America said its Q3/14 financial results will be adjusted to include a $400 million litigation expense related to its foreign exchange business that will result in a net loss of $232 million. read more

Two Indicted for Container Leasing Fraud

Two men were indicted and will face charges in connection with the sale of shipping containers for Intermodal Wealth and World Container. The Ponzi scheme involved the purchase and subsequent leasing of shipping containers. read more

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