Tag Archive: Bank Fraud

Mar 19 2019

Trump’s Financial Crimes Are Catching Up To Him

The news of the special councel’s office taking an interest in his dealings with Deutsche Bank may have been the reason for Trump’s weekend twitter tantrum: As President Trump delivered his inaugural address in 2017, a slight woman with feathered gray hair sat listening, bundled in a hooded white parka in a fenced-off V.I.P. section. …

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Mar 07 2019

The Russian Connection: Manafort Sentenced

Donald Trump’s former campaign manager Paul Manafort sentenced to 47 months in prison on five counts of tax fraud, one count of hiding his foreign bank accounts and two counts of bank fraud, far below the minimum sentencing guidelines of 19 to 24 years. “I think the sentencing range is excessive,” U.S. District Judge T.S. …

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Aug 22 2018

Tuesday’s Trifecta

Tuesday was quite day for the Trump administration and the Republican party. Trump’s personal lawyer and “fixer” Michael Cohen plead guilty in a New York federal court to eight criminal counts and implicated Donald Trump in a plea deal with prosecutors of the Southern District of New York. The counts against Cohen included tax fraud, …

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May 14 2018

Bad Lawyers: Trump’s Fixer

By now it is well known that Donald Trump’s personal lawyer and fixer, Michael Cohen, doesn’t really practice law. As a graduate of one of the worst law schools in the US, Cohen functions mostly as a bagman for Trump and his business, that has been under the watchful eye of federal investigators for years …

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May 03 2018

Guiliani Spills the Beans

Wednesday night Donald Trump’s lawyer, former US Attorney and NYC Mayor, Rudolph Guiliani appeared with Fox News’ Sean Hannity spilling the beans on the $130,000 payment to porn star Stormy Daniels creating even greater legal headaches for Trump. In the typical long winded interview, Guiliani revealed that Trump repaid his private lawyer Michael Cohen after …

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Feb 03 2017

The Resistance: Hold On To Your Wallets, One More Time

The Dodd-Frank financial regulatory bill may not be perfect but it is better than nothing. Donald Trump is now planning to gut it because, as he so bluntly put it, his friends can’t get loans “We have some of the bankers here. There’s nobody better to tell me about Dodd-Frank than Jamie, so you’re going …

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Apr 11 2016

Nobody Goes To Jail

Once again the Obama Department of Justice has reached a settlement with a To Big To Fail Bank for pennies on the dollar and let the perpetrators walk away without criminal sanctions or penalties. Goldman Sachs will pay $5.06bn for its role in the 2008 financial crisis, the US Department of Justice said on Monday. …

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May 27 2015

DOJ Soccer Corruption Arrests. Why Not the Bankers?

On Wednesday in the early morning hours in Zurich, Switzerland, at a five star hotel, there were six phone calls made by the concierge to six rooms telling the occupants: “Sir,” the concierge said in English, “I’m just calling you to say that we’re going to need you to come to your door and open it for us or we’re going to have to kick it in.” How polite.

The hotel, which overlooks Lake Zurich, provided an unlikely setting for the apprehension of six global soccer executives who were arrested on corruption charges and now face extradition to the United States. The operation took less than two hours and was strikingly peaceful – no handcuffs, no guns drawn. It also involved an unusual use of a bedsheet.

Raids in the United States are typically led by armed SWAT team members wearing bulletproof vests and helmets, but the Swiss took a more subtle approach. Rather than storming into the executives’ rooms and hauling them out in their pajamas, the officers waited for the men to come to the door and then gave them a chance to get dressed and pack their bags.

The officers appeared to lead the officials out one by one, through several exits, including a side door, the hotel’s garage and, in one case, the main entrance.

Thus started the arrests of six global soccer executives on corruption charges. The indictments were brought by the US Justice Department stemming from an FBI and IRS investigation into the business practices of FIFA, the world governing body of the world’s most popular sport. soccer.

The Justice Department, F.B.I. and I.R.S. described soccer’s governing body in terms normally reserved for Mafia families and drug cartels, saying that top officials treated FIFA business decisions as chits to be traded for personal wealth. One soccer official took in more than $10 million in bribes, Attorney General Loretta E. Lynch said.

The schemes involving the fraud included the selection of South Africa as the host of the 2010 World Cup; the 2011 FIFA presidential elections; and several sports-marketing deals. [..]

The Department of Justice indictment names 14 people on charges including racketeering, wire fraud and money laundering conspiracy. In addition to senior soccer officials, the indictment also named sports-marketing executives from the United States and South America who are accused of paying more than $150 million in bribes and kickbacks in exchange for media deals associated with major soccer tournaments. [..]

The promise that the investigation would continue raised the specter of more arrests, but officials would not comment on whether they were investigating Sepp Blatter, the FIFA president and the man widely regarded as the most powerful person in sports. One federal law enforcement official said Mr. Blatter’s fate would “depend on where the investigation goes from here.” [..]

United States law gives the Justice Department wide authority to bring cases against foreign nationals living abroad, an authority that prosecutors have used repeatedly in international terrorism cases. Those cases can hinge on the slightest connection to the United States, like the use of an American bank or Internet service provider.

Switzerland’s treaty with the United States is unusual in that it gives Swiss authorities the power to refuse extradition for tax crimes, but on matters of general criminal law, the Swiss have agreed to turn people over for prosecution in American courts.

What Esquire’s Charlie Pierce said:

Here and overseas, the entire corporate universe is shot through with metastatic corruption and crime. It is an essential part of the business model almost everywhere, from Wall Street offices to the pitch at Wembley. FIFA’s corruption is more than an endemic phenomenon. FIFA was simply one corrupt enterprise working with and through hundreds of other corrupt enterprises. There are governments, and there are communications empires, and there are all manner of companies advertising their wares — the “corporate partners” of a claque of brigands. If you did business with the crooks of FIFA, you’re a crook, too. There’s no way to avoid it. All of them are guilty. All of them are responsible. All of them are complicit in the corruption in the spotlight today, and in the death of anonymous workers in Qatar whose names they don’t even know. The whole goddamn corporate universe is begging for a gigantice RICO indictment.

It seems the Justice Department is capable of investigating and obtaining indictments against officials of an organization whose business practices have been described as “byzantine and impenetrable,” why can’t the DOJ do the same for the bankers of JPMorgan Chase, HSBC, Citibank, Bank of America, et al? It apparently is not that hard, Loretta.

Nov 12 2014

The Nightmare on Wall Street

Attorney General Eric Holder claimed that the banks were too big and too hard to prosecute for the “massive criminal securities fraud” behind the high risk mortgage securities that led up to the 2008 financial collapse. Instead the Justice Department opted for civil settlements with large fines with no admission of any wrong doing.

Actually, it wasn’t. It appears that the Obama administration’s chief law enforcement officer chose not to prosecute despite all the evidence at his disposal. In his return to Rolling Stones, investigative journalist Matt Taibbi introduces Alayne Fleischmann, JPMorgan Chase’s $9 billion nightmare:

She tried to stay quiet, she really did. But after eight years of keeping a heavy secret, the day came when Alayne Fleischmann couldn’t take it anymore.

“It was like watching an old lady get mugged on the street,” she says. “I thought, ‘I can’t sit by any longer.'” [..]

Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion (not $13 billion as regularly reported – more on that later) to keep the public from hearing.

Back in 2006, as a deal manager at the gigantic bank, Fleischmann first witnessed, then tried to stop, what she describes as “massive criminal securities fraud” in the bank’s mortgage operations.

Thanks to a confidentiality agreement, she’s kept her mouth shut since then. “My closest family and friends don’t know what I’ve been living with,” she says. “Even my brother will only find out for the first time when he sees this interview.”

Six years after the crisis that cratered the global economy, it’s not exactly news that the country’s biggest banks stole on a grand scale. That’s why the more important part of Fleischmann’s story is in the pains Chase and the Justice Department took to silence her.

She was blocked at every turn: by asleep-on-the-job regulators like the Securities and Exchange Commission, by a court system that allowed Chase to use its billions to bury her evidence, and, finally, by officials like outgoing Attorney General Eric Holder, the chief architect of the crazily elaborate government policy of surrender, secrecy and cover-up. “Every time I had a chance to talk, something always got in the way,” Fleischmann says.

This past year she watched as Holder’s Justice Department struck a series of historic settlement deals with Chase, Citigroup and Bank of America. The root bargain in these deals was cash for secrecy. The banks paid big fines, without trials or even judges – only secret negotiations that typically ended with the public shown nothing but vague, quasi-official papers called “statements of facts,” which were conveniently devoid of anything like actual facts.

Matt and Ms. Fleischmann joined Democracy Now‘s hosts Amy Goodman and Juan González to discuss ow JPMorgan wrecked the economy and avoided prosecution.

The full transcript can be read here

Mar 13 2014

The Best Way to Rob a Bank is to Own One

The Best Way to Rob a Bank is to Own One

William Black is an associate professor of economics and law at UMKC. He has held many prestigious positions, including executive director for Fraud Prevention. He recently helped the World Bank develop anti-corruption initiatives and served as an expert for OFHEO in its enforcement action against Fannie Mae’s former senior management. He is a criminologist and former financial regulator.

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