Legal / Fraud

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

Two More Le-Nature's Defendants Get Jail Time

The Pittsburgh Post-Gazette reported that Jonathan E. Podlucky, former COO of Le-Nature's, and Donald K. Pollinger, a businessman who aided in the juice company's financial fraud, were each sentenced to five years in prison. read more

U.S. Files $150MM Suit Against Medical Imaging Company

The complaint alleges that Universal Imaging was required to be organized as a non-profit, but it continued to operate as a for-profit corporation by transferring its equipment to a for-profit entity, MRI Leasing, with the same owners. read more

Le-Nature's President Gets Fifteen-Year Sentence for Fraud

The Pittsburgh Post-Gazette reported that former Le-Nature's president Robert B. Lynn was sentenced to 15 years in prison for his role in the company's financial fraud. Tammy Andreycak, the accounting director whose cooperation with federal agents was key for the prosecution, was sentenced to five years in prison. read more

Former CEO of GDC Acquisitions Found Guilty of Fraud

A federal jury returned guilty verdicts against Courtney Dupree, the former CEO of GDC Acquisitions. Dupree was found guilty of bank fraud against Amalgamated Bank, GDC's asset-based lender, of $21 million in fraudulent loans. read more

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Terry Mulreany
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