ZAMBIA’S ANTI-CORRUPTION COMMISSION UNEARTHS FRAUD

Reports have surfaced that the Anti-Corruption Commission in Zambia has unearthed a number of plots to defraud government agencies out of funds. In one of the cases a construction company contracted to conduct road maintenance received more than K450 million to carry out work that remains incomplete. In addition the contractor is alleged to have claimed for a further K900 million against a certificate of completion. It is reported that the claims of completion were false and that documentation had been falsified. Suspects have been questioned and according to authorities the individuals reported to be involved will be charged. In another case authorities have seized motor vehicles and placed restrictions on property which is believed to have been purchased in a K3 billion fraud involving a former official from the Ministry of Health. Our research analysts are monitoring events and will update the relevant profiles accordingly.

LAWYER PLEADS GUILTY IN US$400 MILLION FRAUD CASE

A New York lawyer has pleaded guilty to defrauding hedge funds out of more than US$400 million by using false and fake documentation. He is reported to have pleaded guilty to securities, wire fraud and money laundering. Marc Dreier (UID 989439) was first arrested in Canada in December 2008. He was released on bail but returned to New York and was arrested at the airport. His scam is said to have run over four years from 2004 until 2008. Reports state that US$100 million in assets has been identified and there is probability that this money will be pursued to compensate the victims of his fraud. In addition his alleged co-conspirator has been charged and appeared in court this month.

BILLIONAIRE'S INVESTMENT OFFICER INDICTED

The chief investment officer of a US billionaire's companies has been indicted by the Houston federal grand jury. The charges revolve around a federal investigation into a massive Ponzi scheme. The individual was charged with one count of obstructing a Securities and Exchange Commission investigation into a financial company. It is reported that the federal grand jury will be seeking additional indictments against other executives from the same company.

BROKER COMMITS US$12 MILLION MORTGAGE FRAUD

Clarence Lewis III (UID 974034) who was the proprietor of Mowtown Mortgage Group and Lewis and Associates Realtors operating out of the Houston area in Texas has been convicted of fraud. Lewis reportedly obtained fraudulent loans over a six-year period from 2002 until early 2008. He was convicted of conspiracy to commit mail and wire fraud and four counts of wire fraud. He will be sentenced at a later date.

EX-COO GUILTY OF SHARE OPTIONS FRAUD

The former Chief Operating Officer of an online recruiting company James Treacy (UID 856095), has been found guilty of securities fraud. Treacy and other members of the company's management team were accused of backdating option grants to employees between 1997 until 2003, to falsely inflate the company's profits. The company's former General Counsel assisted the government's case against Treacy.

SUSPECTED HUMAN TRAFFICKING KINGPIN ACCUSES AUTHORITIES OF TAKING BRIBES

An Iraqi-Iranian who was arrested in Indonesia during 2008 has reportedly made claims that the authorities there are accepting bribes to allow smugglers to operate with impunity. The individual is reported to be the head of one operation which is involved in the illegal transportation of asylum seekers to Australia. The authorities in Canberra are currently seeking his extradition.

MEXICO ANNOUNCES ARREST OF HIGH RANKING NARCO-TRAFFICKER

Mexican authorities have arrested one of the high-ranking leaders of the Gulf cartel (UID 471627). He was reported to have been in charge of leading the organisation in Tamaulipas, the main strategic point for narcotics operations to the US. Reported as seventh in the DEA ranking of most wanted members of 'Los Zetas' (UID 931139). Los Zetas' is the criminal organization which is linked to the Gulf cartel. In March 2009 the Mexican Prosecutor-General's Office (PGR) offered a US$2,1m reward for information leading to his capture. Authorities have qualified this as a major blow against narcotics trafficking. World-Check profiled this individual in December 2005.

The defeat of the LTTE Tamil Tiger military on the battlefield in Sri Lanka this week has another, lesser known result: There is certainly isolated LTTE cash out there. Taken by extortion from the Tamil Diaspora, or through other financial crimes, this dirty money was obtained too late to purchase weapons and material for the LTTE. Who will liberate it now, and will compliance officers be able to identify and interdict it, or will their banks suffer fines and penalties when they fail? …read more

The US has designated the Greek dissident group Revolutionary Struggle (UID 29751) as a foreign terrorist organisation. The group claimed resonsibility for the January 2009 attack in Athens and also allegedly was responsible for a rocket attack on the US Embassy building in Athens. You can read the entire US Department of State press release by clicking here.

According to reports in the Egyptian media, a group which allegedly has strong ties with Hizballan and is led by a Lebanese national was planning to attack tourists in the Sinai region and in addition had plans to attack ships crossing through the Suez Canal.

SWEDISH NATIONAL CONVICTED IN NEW YORK

Oussama Abdullah Kassir (UID 80490) has been convicted in New York of trying to set up Al-Qaida training camps in the US. He is reported to have operated a number of websites that contained terrorist propaganda and also instructions on how to make explosive devices. Kassir will be sentenced at a later date.

LEGISLATION NEWS

In March the Cape Verde islands introduced the Anti-Money Laundering legislation. This includes the provision for an Institute for Confiscation of Assets and an end to bank confidentiality according to the islands Attorney General Júlio Martins. The new law is due to come into force at the end of this month.

REGISTRATION DEADLINE LOOMS IN BERMUDA

The Bermuda Monetary Authority has tightened up the laws concerning the regulation of funds. There is a requirement for Bermuda's exempt companies and hedge funds to register under the Supervision and Enforcement Act. A senior legal spokesperson for the BMA said "The significance of the AML registration requirement at this time is that all businesses that are not currently licensed with the BMA but are within scope of the regulations need to ensure they are not contravening the regulations after the June 30, 2009 registration deadline."

GUYANA PASSES AML BILL

Almost two years since it was first tabled, the National Assembly in Guyana has passed the Anti Money Laundering and Countering the Financing of Terrorism Bill. The Financial Intelligence Unit will be established as an independent body that answers only to the President. "This Bill goes beyond the traditional pool of licensed financial institutions such as banks and provides for reporting entities to cover not only traditional licensed financial institutions but also insurance companies, money transfer agencies, cambios and credit unions among others" said the Guyana Finance Minister.

EVENTS

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