Canadian billionaire at centre of fraud accusations involving Caribbean casinos

Sunday, January 25, 2015 | 1:19 PM    

HAMILTON (CMC) – One of Canada’s richest men is locked in an international battle over Caribbean casinos with links to one of Canada’s most feared mafia clans.

MichaelG DeGroote, 81, a philanthropist and an officer of the Order of Canada, reportedly lent millions of dollars to three men to create a chain of gaming facilities in Jamaica and the Dominican Republic.

According to reports stemming from a yearlong investigation carried out by the Canadian Broadcasting Corporation (CBC) and the Globe and Mail, there is no evidence that at the time DeGroote knew of the men’s “underworld connections”.

It’s reported that  2010, DeGroote, 81, who built Hamilton-based Laidlaw Transport into one of North America’s biggest waste-haulage firms before selling his stake in 1988, ran into an old friend, a businessman named Andrew Pajak.

CBC News said Pajak told DeGroote that H\he was working with two brothers, Antonio and Francesco Carbone of Vaughan, Ontario, on a company manufacturing electronic slot machines and they had plans to install them at a nightclub casino in Jamaica.

DeGroote initially agreed to put up US$5 million in December 2010 and by May 2012, the billionaire’s total underwriting of the Caribbean operations stood at US$111.9 million.

The Dream Group was making good on its loans, but in May 2012, the payments to DeGroote stopped.

In October of that year, DeGroote sued to get access to the company’s books alleging the Carbones and Pajak had misappropriated portions of the funds.

A Canadian judge in November 2013 that DeGroote had established “a strong case” for fraud.

While DeGroote’s legal battles with the Carbones progressed in the first half of 2013, “other characters with a dubious past entered the fray”, CBC News said.

In May of that year, it said DeGroote was visited by two men at his family’s luxury condo in downtown Toronto.

One of them was Peter Shoniker, an outgoing former Crown attorney “who had been convicted of money laundering in 2006”.

It said the other was a “large, broad-chinned man” introduced as Alexander Visser.

“Unbeknownst to DeGroote, Visser had a long criminal history, amounting to more than 40 convictions in Canada for fraud, uttering threats and assault,” the report said.

At the meeting, CBC News said Visser made a “stunning offer”,  saying he could get Dream employees in the Dominican Republic to sign affidavits claiming the Carbones had massively defrauded DeGroote, but for a price.

Initially, DeGroote objected, but eventually, he began negotiating over the asking price,”  and told Visser he would send him US$150,000 with “no strings attached” for possible future help.

DeGroote declined to be interviewed by CBC and the Globe and Mail, but through his lawyers, he said the secret recordings were manipulation, created by “individuals with a long history of practicing deceit.”

In his only on-the-record statement about the Dream fiasco, issued through his lawyers, DeGroote said: “Frankly, I sincerely regret that I ever agreed to invest in this venture. Indeed, I am embarrassed by it.”

His lawyers later added: “Mr DeGroote is someone who has been wronged, rather than a wrongdoer.”

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Canadian billionaire at centre of fraud accusations involving Caribbean casinos

Scotia moves to further reduce credit/debit card fraud

BY KARENA BENNETT Business reporter bennettk@jamaicaobserver,com SCOTIABANK Jamaica will be implementing a security system to further minimise credit and debit card fraud within another 12 months.

Wednesday, December 17, 2014    

SCOTIABANK Jamaica will be implementing a security system to further minimise credit and debit card fraud within another 12 months.

The CHIP/EMV card processing system will require customers to insert their cards into point-of-sale terminals instead of swiping, to authenticate transactions. This should allow for faster processing at checkout points in addition to enhanced security, according to Monique Todd, Scotiabank Jamaica’s vice-president of marketing, public and corporate affairs.

“Plans are already well on the way for Scotiabank to switch over to the CHIP/EMV card processing system by the end of 2015,” Todd told the Jamaica Observer in an e-mailed response. “Once fully implemented, customers will no longer need to sign transaction receipts and verify their signature.”

EMV, or Europay, MasterCard and Visa card, has already been implemented in a number of countries, including the United States. A study conducted in that country estimates that close to 1.1 billion EMV cards will be issued by the end of 2015, costing banks US$3.85 billion ($435 billion) to issue the cards and another US$6.5 trillion ($734.5 trillion) for the upgrading of point-of-sale systems to become EMV-compliant.

Traditionally, electronic cards use a magnetic strip which stores data, allowing anyone who accesses the data to gain sensitive information. However, the new card will feature a small magnetic square that will increase protection against fraud, by creating a unique transaction code each time the card is inserted for payment.

For the first few months, the EMV cards should be equipped to use both chip and magnetic-strip functions to avoid disruptions and allow time for merchants to adjust. While the new system will not prevent data breaches from occurring, Scotia believes it will make it much harder for hackers to conduct fraudulent transactions.

Over the last five years, commercial banks have seen a significant increase in the number of transactions carried out by credit and debit cards. A report by the Bank of Jamaica indicated that the banks recorded a 52 per cent increase in credit card receivables, moving from $11.6 million at the end of June 2009 to $24.3 million for the comparative period this year.

Still, credit card fraud has amounted to more than US$58,000 and J$34 million during the first five months of this year, and is now classified as the most productive means of swindling local currency from bank customers.

Scotia has been strengthening its online banking security system after recording a $150-million loss over a nine-month period to debit and credit card fraud transactions in 2010. Since then, the bank has managed to reduce the number of credit and debit card liabilities by 57 per cent.

The EMV, or Europay, MasterCard and Visa card, has already been implemented in a number of countries, including the United States

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Scotia moves to further reduce credit/debit card fraud

PNP national executive member on fraud charge returns to court

Monday, September 29, 2014 | 9:48 AM    

KINGSTON, Jamaica – People’s National Party (PNP) member Donovan Bisasor and a co-accused arrested in August for fraud will again appear in the Corporate Area Resident Magistrate’s Court today.

The 58-year-old Bisasor and his 31-year-old co-accused Jesse Gosse were both offered $1.5-million bail on their first appearance in court, on August 19.

Bisasor, who sits on the ruling party’s National Executive Council, is accused of trying to defraud the State-owned National Water Commission of $5 million.

Bisasor, an engineer who hails from Cherry Gardens in Kingston, and quantity surveyor Gosse, of Richmond Park are charged with attempting to obtain money by false documents, forgery, uttering forged documents, conspiracy to defraud, and demanding property on forged documents.

It is alleged that in January 2011 the National Environment and Planning Agency (NEPA) served an enforcement notice on the NWC in respect to Barnes Gully, resulting in the company having to carry out an emergency procedure. As a result, a contract was allegedly awarded to XYZ Construction Company for $27.4 million with $2.3 million for security.

However, on completion of the project Bisasor allegedly told NWC that the money for security was insufficient and was instructed to provide documents to substantiate his claim.

It is further alleged that on August 15, 2011 Goss submitted a claim for $7.3 million for services provided by Secure Security Limited. However, checks made with the security company allegedly revealed that it was never contracted to work on the project.

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PNP national executive member on fraud charge returns to court

UPDATE: Statements still outstanding in PNP exec fraud case

Monday, September 29, 2014 | 12:12 PM    

KINGSTON, Jamaica — People’s National Party (PNP) member Donovan Bisasor and a co-accused are to return to the Corporate Area Resident Magistrate’s Court on October 5.

The October date was set this morning after the court was told that witness statements were still outstanding.

The 58-year-old Bisasor and his 31-year-old co-accused Jesse Gosse were both offered $1.5-million bail on their first appearance in court, on August 19.

Bisasor, who sits on the ruling party’s National Executive Council, is accused of trying to defraud the State-owned National Water Commission of $5 million.

Bisasor, an engineer who hails from Cherry Gardens in Kingston, and quantity surveyor Gosse, of Richmond Park are charged with attempting to obtain money by false documents, forgery, uttering forged documents, conspiracy to defraud, and demanding property on forged documents.

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UPDATE: Statements still outstanding in PNP exec fraud case

Former NWA director among five nabbed on fraud charges

Former Director of  Special Projects at the National Works Agency (NWA) George Knight, is among five men charged by the Major Organised and Anti-Corruption Task Force, MOCA, with fraud.

Mr Knight, the CEO and President of  Cenitech Limited, and founder of the company, 62 year old Clava Mantock Snr, have been charged with forgery, uttering forged documents and conspiracy to deceive.

The others who were charged last night are Mr Mantock’s son, 32 year old Analyst Clava Mantock Jnr; 40 year old Melville Edwards, a Director of  Cenitech and 48 year old Police Inspector, Andrew Bobb, sub-officer in charge of  the Manchioneal Police Station.

The men were arrested on Friday during operations conducted by MOCA and the Anti-Corruption Branch, ACB. The cops raided several locations including the offices of  Cenitech off Eastwood Park Road. MOCA said the arrests stemmed from a two-year investigation which also involved the Financial Investigation Division. 

The police have not disclosed the nature of  the allegations against the men, but it’s understood that the cops are investigating major fraud involving government contracts.        

The five are booked to appear before the Half-Way-Tree Criminal Court tomorrow.  

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Former NWA director among five nabbed on fraud charges

Gage camp claims...Alkaline is a fraud, copycat

CURTIS CAMPBELL, STAR Writer

Gage, Alkaline – File

The camp of upcoming dancehall artiste Gage has responded to a recent interview done by deejay Alkaline by describing him as a copycat and fraud.

Alkaline in a recent television interview had said that he did not know who Gage was and he (Alkaline) is the only relevant dancehall artiste, except Mavado and I Octane.

However, Gage’s manager, Neil Daley, who spoke on his behalf, had some strong words for Alkaline when contacted by THE WEEKEND STAR recently.

“Time will tell, he will know who Gage is. He stole Gage’s song called Queng Dem and he stole Vybz Kartel’s songs and style. Alkaline is nothing but a copycat, he walks and bite Vybz Kartel, you are the youngest and the foolest,” Daley said.

want a clash

He continued; “Who are you? You not even reach Tommy Lee level yet and yu a try style him in interview. If you want a clash to prove your worth then step up, bring it on.”

The manager in bashing Alkaline’s recent performance at Sumfest, described it as a flop.

“Him nuh get nuh forward at Sumfest. But mi like how him stand up and pretend that he was getting forward. Him contacts nearly drop out of him eyes when him a kill out himself onstage and the people dem nah respond,” Davis said while poking fun at Alkaline’s record Touch You which speaks about anal stimulation in sex.

When THE WEEKEND STAR contacted Alkaline’s publicist, Kymona Bartley, for a comment, she said she was not prepared to speak on the situation and that Alkaline is still googling ‘what is a Gage’.

Alkaline is presently promoting his singles How It Feel, Queng Dem and Never End, while Gage has released new singles Thief Di Queng, Levels To This and Jah Jah.

Curtis.campbell@gleanerjm.com

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Gage camp claims...Alkaline is a fraud, copycat

Disc jockey on fraud rap remanded

A 35-year-old disc jockey was hauled before the Corporate Area Resident Magistrate’s Court on Wednesday, after he allegedly pretended that he could obtain jobs for the complainants overseas.

Charged with obtaining money by means of false pretences is Mark Penaydo of a St Elizabeth address.

The Crown alleges that the accused pretended that he could secure overseas employment for the complainants at hotels in the United States, which resulted in them lodging $J31, 500 to his bank account.

In court, Senior Resident Magistrate (RM) Judith Pusey demanded to know how Penaydo managed to convince the complainants to deposit the amount in his account.

However, he did not give an answer the RM found satisfactory.

It was revealed that the accused previously had 18 charges of a similar nature in St Elizabeth. He was therefore remanded until August 20.

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Disc jockey on fraud rap remanded

No bail for man who pleaded guilty to fraud

A man who pleaded guilty to fraud, but told the court that he is not a thief, was remanded in the Corporate Area Resident Magistrate’s Court yesterday.

Errol Robinson is to return to court on July 22, for sentencing.

It is alleged that the accused was entrusted with a 1992 motor truck to sell for a male complainant, however, he failed to turn over the money after the vehicle was sold.

“I am not a menace to society, I am not a thief. I am just a victim of circumstances. This situation makes me look like a thief, but I am not,” Robinson said in court when he was questioned about the complainant’s funds.

The accused is also to be sentenced in a similar matter where it is alleged that he sold a Mercedes Benz for a female complainant and failed to pay over the woman’s money.

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No bail for man who pleaded guilty to fraud

Teen among three to be sentenced for fraud

Launtia Cuff, STAR Writer

A 16-year-old boy and two other persons who pleaded guilty to breaches of the Law Reform (Fraudulent Transactions)(Special Provisions) Act, will be sentenced in the St Elizabeth Circuit Court today after pleading guilty on Friday.

The teen, who is from St Elizabeth, pleaded guilty to knowingly possessing identity information.

Along with the teen, his mother, 36-year old Denise Sutherland also pleaded guilty to four counts of aiding and abetting the commission of an offence contrary to the Law Reform (Fraudulent Transactions) (Special Provisions) Act.

The third person, 19-year-old Tafarie Haddad, pleaded guilty to three counts of aiding and abetting the commission of an offence contrary to the Law Reform (Fraudulent Transactions) (Special Provisions) Act.

On Friday, November 29, 2013 about 5 a.m., members of the St Elizabeth Proactive Investigations Unit, with search warrants, visited the house occupied by the three.

social security numbers

During a search, a book containing names, addresses, contact numbers as well as social security numbers of persons living in the United States, as well as Western Union and Moneygram receipts were discovered in the room occupied by Haddad.

In the room occupied by Sutherland, Western Union receipts were also discovered.

The three were subsequently arrested and charged. A statement which was collected from the victim who resides in the United States, says he was swindled of more than US$60,000.

The three were remanded for sentencing which was set for Monday July 7.

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Teen among three to be sentenced for fraud

TAJ employee on fraud rap denied bail

A bail application made for Christopher Moore, the Tax Administration Jamaica (TAJ) employee accused of causing the government to lose more than $1 billion, was turned down in the Corporate Area Resident Magistrate’s Court last Thursday.

Moore, a resident of Portmore in St Catherine, was remanded by Senior Resident Magistrate Judith Pusey and returns to court on July 21.

He is facing several charges, including fraud and breaches of the Cyber Crime Act.

Allegations are that over an unspecified period, Moore, an Information Technology (IT) expert employed to the East Street branch of the TAJ, manipulated the system and reduced tax assessments of companies and individuals.

It is alleged that after the TAJ assessed taxpayers, Moore would access the computer system, reduce the tax levied resulting in the Government losing more than $1 billion. The court also heard that he collected fees.

It is reported that the Revenue Protection Division in the Ministry of Finance, which led an operation on June 20, seized documents and computers at Moore’s house with the names of individuals and companies.

Moore is being represented by attorney-at-law Ramona Nelson.

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TAJ employee on fraud rap denied bail

Auditors digging deeper into TAJ fraud

Government auditors are now trying to determine the extent of  the massive fraud at Tax Administration Jamaica (TAJ).

A senior investigator told RJR News, that the figure could far exceed the J$1 billion uncovered so far by the Revenue Protection Division (RPD).

Christopher Moore, an employee of  the TAJ was charged on Monday with fraud and breaches of  the Cybercrime Act.

He faced the Corporate Area Criminal Court and was remanded until July 21.Other arrests are expected.

It’s alleged, that Moore, an Information Technology expert employed to the East Street branch of  the TAJ, manipulated the system and reduced tax assessments of  companies and individuals.

He reportedly collected fees for his services.

The RPD led an operation on June 20, and seized documents as well as computers at Moore’s house and with names of  individuals and companies.

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Auditors digging deeper into TAJ fraud

Peter Binose: Fraud against the IMF, Argyle Airport?

Peter Binose

KINGSTOWN, St Vincent, Sunday June 29, 2014 - For you all to consider that what I write is true to public records and political fact. Public records that are held in Grenada, and Micro Fiche copies in the US.

It worried me greatly when Ralph Gonsalves announced in Saint Vincent that he is here to finish the work of Maurice Bishop. I am still seeking an explanation of exactly what that statement means and what part of Bishops work Gonsalves wants to adopt?

We must remember that Gonsalves was very close to Bishop, shortly after the Marxist Grenada revolution, travelling with Bishop in his car and writing political speech’s for him. [its all a matter of public record, and a written record by Gonsalves himself] We know that Bishop was capable of writing his own speech’s but these were busy times and he needed help, help by like minded Caribbean people.

So when Gonsalves announced he is here to finish the work of dead Marxist, Maurice Bishop, I previously asked the question on several sites such as this, “what part or parts of Bishops work does he intend completing”. Is it some, is it a selection, or is it all?

Bishop did a lot of dreadful things, one of the things that Bishop did was undertake to obtain money fraudulently from the IMF and other lending institutes.

I am sure that Maurice Bishop was not the first and will not be the last MARXIST even non Marxist Caribbean leader or ruler to deceive the IMF.

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Some present day governments today may well be using the same method. Falsifying finance figures, also tourism, agriculture, fishing, large project figures, even crime records, and other statistics. Whether CUBA still offers advice on how to do this is another consideration, even a question we should verociously ask. Ask in the expectation that we are given an answer, if not by our own government, perhaps by some other entity. Is it still a service offered to its associates, its Caribbean political admirers and followers.

On the advice of Russia and Cuba Maurice Bishop of Grenada had suggested to his party Central Committee how to overcome the IMF and World Bank requirements, by keeping two sets of books and records, so as to defraud the IMF.

When the Americans invaded Grenada, they found, confiscated and shipped to the US 6 tons of paper records. The best kept records of a Communist revolution ever to be found anywhere. There were thousands of records some as government central committee records, some even written in the hand of Bishop.

They found all sorts of records, including the diaries of Maurice Bishop, and all the secret official agreements between Bishops regime and Cuba, East Germany, Russian USSR, Vietnam, North Korea, and dozens of other communist bloc countries, most of whom had required that such contracts and agreements be kept secret. Kept secret because they included contractual intentions, also numbers and details of arms and military supplies, made or proposed.

The records were copied in the US by the microfiche method, and then returned to Grenada. Returned to Grenada where they were made fully available for the public to scrutinise.

With regards to the fraud against the IMF, here are the US record office and Grenadian record locations and references.

US PUBLIC RECORDS OFFICE MARYLAND

www.dod.gov/pubs/foi/reading_room/153.pdf

Micro Fiche, page 9
Grenada Revolution, Deception on Economic Matters
Minutes of Central Committee:
At a meeting in Grenada on August 3, 1983, the political/Economic Bureau of the NJM noted that International Monetary Fund requirements for badly needed assistance would be difficult to meet -
“Comrade Maurice Bishop suggested that we use the Suriname and Cuban experience in keeping two sets of records in the banks for this purpose”
Later in the same meeting -
“Comrades again highlighted the urgent importance of training Comrades to adjust the banking figures. Someone should be sent to Cuba or the Soviet Union”
And again -
“The comrades from Nicaragua and Cuba must visit Grenada to train Comrades in the re-adjustment of the books.”
Extracted from documents found by the U.S. forces when they invaded Grenada in 1983, stored on Micro Fiche in Maryland, USA. available to the public. Originals returned to Grenada Public Records Office.

ORIGINAL DOCUMENTS HELD AT THE GRENADA PUBLIC RECORDS OFFICE:
Box 1 Folder 72
Minutes of Meetings – August 1983
Date: 3 Aug 1983: Description: Minutes of Central Committee, Political Bureau, Economic Bureau and other Meetings refer to the economy, fraudulently readjusting the books for IMF.

This opinion is not meant to infer or imply that Ralph E. Gonsalves is involved in the altering of any records whatsoever in Saint Vincent and the Grenadines, or of committing or planning any illegal act.

But as the Minister of Finance and the Prime Minister who makes statements about the dead criminal Marxist, Maurice Bishop, we really do require some answers to his statements. Exactly what work of Maurice Bishop does PM Gonsalves intend emulating or completing?

Its a simple question. Because without the answer people may rightly or wrongly assume that Gonsalves intends to adopt all the work of Bishop.

That may well lay them open to being sued by Gonsalves, so for the sake of Justice, please PM Gonsalves, lets have the low down of your intentions.

There have recently been another opinions, one by ‘Simon Rouse’ quoting the International Airport that was being built by the Cubans in Grenada, being built for the use as a military airport. An opinion that asks if St. Vincent’s Argyle airport project is a military project.

I first raised the above questions about Maurice Bishops fraud, on several occasions since 2011. To date no answer, no explanation, no rendition to the Vincentian people who are owed an explanation, nothing except silence.

Some say silence is golden but in this matter its not, it hangs like a lead weight around the neck of those decent non-Marxist members of Vincentian society. Those people who are coming to feel tricked and deceived by their leaders, those people who want to know the truth and want an answer from the Gonsalves family leadership.

I say Gonsalves family leadership because PM Gonsalves is an elected member, his son is an unelected member, selected by him as a senator and minister, his cousin Julian Francis has stood for election on several occasion, always to be rejected by the people, an unelectable and unelected member of parliament, except by Gonsalves choice of him as a senator and minister. Between them the trio hold all the important post’s and ministries, between them the trio control parliament and every ministerial meeting. Between them the trio are effectively the government of SVG., the central committee. Between them, by some, the trio may well be described as a family dictatorship.

Wake up people and smell the sulphur. Wake up Diaspora and seeketh the way of the Lord, reject those that claim to only work Obeah for the Lord.

“If I work Obeah, I only work Obeah for the Lord“, Dr. Ralph E. Gonsalves.

The opinions expressed in this commentary are solely those of Peter Binose. Peter Binose,self appointed keeper of the bugle, thrown the whistle away.

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Peter Binose: Fraud against the IMF, Argyle Airport?

Nurse charged for fraud

Latest News

Thursday, August 29, 2013 | 8:33 AM

ST CATHERINE, Jamaica — A St Catherine nurse was arrested and charged with forgery and uttering forged documents on Wednesday.She has been identified as 35-year-old Joan Christian.According to the police on Friday, August 23, Christian allegedly submitted a visa application to the German Embassy in Kingston, along with an employment letter and a bank statement from a financial institution, stating she had close to J$1 million in her personal account.During routine checks by officials at the embassy, the information submitted by Christian was found to be false. The Fraud Squad was contacted and a subsequent investigation launched.She is to appear in the Half Way Tree Resident Magistrate’s Court on Friday, August 30.Like our Facebook page https://www.facebook.com/jamaicaobserverFollow us on Twitter https://twitter.com/JamaicaObserver

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Nurse charged for fraud

2 charged in $1.7m Puerto Rico Medicare fraud case

News

Friday, August 23, 2013 | 2:51

SAN JUAN, Puerto Rico (AP) — Two men who ran medical supply companies in Puerto Rico have been charged with conspiracy to commit health care fraud in a US$1.7 million federal case.US Attorney Rosa Emilia Rodriguez said Friday that the suspects submitted at least 710 false claims to Medicare from 2008 to 2012 totaling more than US$2.5 million. She said the suspects would alter medical equipment such as cutting up and repackaging wound dressings and would then give them to patients before filing the claims. She said Medicare officials disbursed a total of $1.7 million that the government is seeking to recuperate.

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2 charged in $1.7m Puerto Rico Medicare fraud case

Trader liable in $1bn Goldman fraud

1 August 2013 Last updated at 17:10 ET Fabrice Tourre worked for Goldman Sachs in the run-up to the global financial crisis A New York jury has found former Goldman Sachs trader Fabrice Tourre liable for fraud in a complex mortgage deal that cost investors $1bn (£661m).

Jurors concluded that the trader, who nicknamed himself “Fabulous Fab”, had misled investors in the run up to the global financial crisis in 2008.

Complex mortgage investments played a significant role in the crisis.

Mr Tourre was found liable in six of the seven fraud claims brought by US financial regulators.

He was accused by the Securities and Exchange Commission (SEC) of misleading investors about investments linked to subprime mortgages that he knew would fail.

Because the case is civil rather than criminal, he faces possible fines and a ban from the financial services industry.

‘Surreal and dream-like’

The exact punishment will be determined at a later hearing.

In his closing arguments, SEC lawyer Matthew Martens described Mr Tourre’s testimony as “surreal, imaginary, unreal, dream-like”.

He was also described by the regulator as the “face of Wall Street greed”.

Two years ago, the disclosure of emails from Mr Tourre sparked widespread debate about Wall Street’s role in the financial crisis.

In them he described himself as Fabulous Fab, saying of the financial markets that the “whole building is about to collapse anytime now”.

Goldman Sachs settled its case with the SEC in 2010

“Only potential survivor, the Fabulous Fab… standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstrosities!!!”

Subprime mortgages became increasingly popular in the US in the years before the financial crisis.

They were mortgages given to borrowers at higher risk of being unable to pay the money back.

These high-risk loans were repackaged by banks into more complex mortgage investments and sold on to other banks, causing chaos in the banking system when borrowers began to default.

Responding to the verdict, Andrew Ceresney, co-director of the SEC’s enforcement division, said: “We will continue to vigorously seek to hold accountable, and bring to trial when necessary, those who commit fraud on Wall Street.”

The SEC has faced criticism over its efforts to hold banks and their employees accountable for the financial crisis, which pushed the US and other global economies into recession.

According to its website, the commission has charged 157 firms and individuals so far, including 66 senior executives, and has secured $2.7bn in fines and penalties.

Goldman Sachs settled its case with the SEC in 2010, paying $550m without admitting or denying any wrongdoing.

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Trader liable in $1bn Goldman fraud

ATL pension fraud case: troubling ink, forged letters and a forensic expert

DMITRI SINGH, the Appliance Traders Ltd (ATL)/Sandals Group general counsel, yesterday opined that three former ATL executives had committed fraud regarding the distribution of surplus from the pension fund.

Singh gave the opinion and listed a few reasons for his view while responding to questions from Queen’s Counsel Frank Phipps under cross-examination.“I thought it was fraud,” Singh said as he explained how he reached the conclusion, in the tense and testy post-lunch session that saw a defence attorney, with voice raised, angrily address the presiding magistrate saying: “I’ll say it as politely as I can…”Singh — who is giving evidence in the ATL pension fraud case in the Corporate Area Resident Magistrate’s Court in Half-Way-Tree — based his opinion on the following:* the four reported forged letters purporting to give consent to the distribution of the surplus* that accused Patrick Lynch, the former chairman of the ATL group pension fund, had told ATL group Chairman Gordon ‘Butch’ Stewart, when confronted about the distribution of the surplus, on December 15, 2010, that he wasn’t aware that consent was needed, and* that the letters were presented the following day by Catherine Barber, the former general manager of the fund, when she was asked by Stewart about the matter of consent.Singh had testified during his examination-in-chief on Monday that the letters — which had the signature of Dr Jeffery Pyne, a former director of Gorstew Ltd, which is the holding company of Stewart’s companies — though dated as far back as 1998 appeared to be typed on new paper. He said the paper were not worn nor discoloured. Singh said that the letters were all signed with the same colour ink and typed in the same font.The prosecution is contending that the letters were created on December 15, 2010, the day Stewart confronted Lynch about the distribution. The prosecution believes that the letters were then backdated to 1998, 2002, 2005 and 2008. Importantly Pyne had left the company seven months before December 15.The prosecution is also contending that Pyne, the third accused in the case, Lynch and Barber conspired in the forging of the letters to deceive Gorstew that consent was given for the distribution of $1.7 billion in pension surplus.Earlier yesterday, Singh was cross-examined by Phipps (representing Lynch) about instructions he gave to forensic expert Erich Speckin when he (Singh) took the letters to Florida on December 17, 2010 for a determination to be made on whether they were created at or about the same time.Singh said he instructed Speckin to test the ink and toner in the letters to see of they were the same used on the letters. He said that the date the ink was created can be determined by the test done.Phipps had set out to show that Singh went to Speckin with instructions to prove that the letters were created in December 2010 but Singh stuck to his guns that this wasn’t his instructions.At one point, Phipps who appeared agitated, insisted that Senior Magistrate Lorna Shelly Williams had the power to punish Singh if he did not answer the question he (Phipps) was asking.Near the end of the session, Queen’s Counsel KD Knight, who is Pyne’s attorney, took over the cross-examination of Singh. It is to continue this morning.

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ATL pension fraud case: troubling ink, forged letters and a forensic expert