Legal / Fraud

Siemens First Capital Sued Over IPO Cancellation

Bloomberg reported that Siemens First Capital Commercial Finance was sued for breach of contract over the cancellation of an initial public offering for a security-alarm service business. read more

Postal Worker Charged in $4MM Truck Leasing Fraud

A postal worker faces felony charges for submitting fraudulent invoices totaling more than $4 million from his truck leasing company to the U.S. Postal Service, according to documents filed in the U.S. District Court in Oakland, CA. read more

Central Leasing Ex-CFO Sentenced to Two Years for Wire Fraud

U.S. District Judge R. David Proctor sentenced a former equipment leasing company executive to two years in prison for wire fraud in connection to a $1.2 million embezzlement scheme, announced U.S. Attorney Joyce White Vance. read more

BCI Aircraft Leasing CEO Convicted of $50MM Fraud

The chief executive of BCI Aircraft Leasing, Brian Hollnagel, was convicted of six counts of wire fraud and one count of obstruction of justice by a federal jury in a $50 million fraudulent financing scheme. read more

EFI Defendant to Change Plea in Loan Fraud Case

EFI defendant Harold W. Young is scheduled to change his plea on March 29, according to federal court documents. His trial in the loan fraud case had been scheduled for April 5. read more

Reuters: CIT Offers $75MM to End Fraud Lawsuit

Reuters reported that CIT asked a federal judge to approve a $75 million settlement proposal with former CIT shareholders in a class-action securities fraud lawsuit over actions preceding the large commercial lender's 2009 bankruptcy. read more

Donner Gets 18 Months for Role in Leasing Ponzi Scheme

Bruce Donner, owner of Donner Medical Marketing, was sentenced to 18 months in prison for his role in a $135 million medical equipment leasing Ponzi scheme that defrauded lenders out of least $80 million. read more

Former Olympus Chairman, Others Indicted in Cover Up

The Mainichi Daily News reported that Tokyo prosecutors have indicted former Olympus chairman and president Tsuyoshi Kikukawa, and five other individuals, on charges of falsifying financial statements to cover up massive investment losses. read more

CIT Raises Cost Estimates For Litigation

CIT notes in its recent 10-K filing it has raised its estimates for a range of potential losses as up to $360 million in excess of established reserves and insurance related to various legal matters including tax litigation with Tyco and lease agreements with defunct bottling company Le-Nature's. read more

Color-Web Sues People's Capital Alleging Fraud

Color-Web, a division of 1800Postcards.com, said it has sued People's Capital and Leasing, alleging fraud and breach of contract. The amount of the claim is $13.8 million. read more

Bloomberg: Normandy Settles Wachovia Suit Over Le-Nature's

Bloomberg reported that Wells Fargo's Wachovia Capital Markets settled investor claims that it failed to disclose signs of fraud at Le-Nature's as it arranged a $285 million loan before the drink maker's bankruptcy. read more

Bloomberg: Olympus Ex-Chairman and Six Others Arrested

Bloomberg reported that three former executives at Olympus, including its former chairman, and four others were arrested for suspected violation of the Financial Instruments and Exchange Act. read more

Jones Day: Recent Litigation Affecting Aircraft Financing

In a recent newsletter, law firm Jones Day said aircraft lessors would be well advised in today's economic climate to remain attuned to litigation outcomes that may affect the traditional rules for aircraft financing. read more

Krones Warns of Profit Drop Over Le-Nature's Fraud

German-based packaging machinery maker Krones AG said it is in mediation talks with a number of U.S.-based finance companies seeking compensation over the firm's alleged participation in a large-scale fraud by U.S.-based Le-Nature's. read more

Court Approves Ahern Rentals DIP Financing

Ahern Rentals announced that the U.S. Bankruptcy Court for the District of Nevada approved the final DIP financing with $66 million of availability, led by Bank of America, as administrative agent and decision agent, Wells Fargo, as collateral agent and decision agent and Merrill Lynch as lead arranger. read more

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Terry Mulreany
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