Crime is now an international affair and no one government in the near future may have the ability to investigate let alone prosecute, the new world order of criminals. The following is an excerpt from the Department of Justice website:
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, June 9, 2011
Foreign National Pleads Guilty for Role in International Money Laundering Scheme Involving $1.4 Million in Losses to Victims
WASHINGTON – A Romanian national pleaded guilty today in U.S. District Court in the District of Columbia for leading a money laundering network for a transnational criminal group based in Eastern Europe, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. According to court documents, in less than one year, the criminal conspiracy netted approximately $1.4 million from U.S. victims.
Roman Teodor, 36, a resident of Romania, pleaded guilty before U.S. District Court Judge Paul L. Friedman to conspiracy to commit money laundering. Teodor voluntarily surrendered to U.S. authorities on April 10, 2011. At sentencing, scheduled for Aug. 29, 2011, Teodor faces a maximum of 20 years in prison.
According to court documents, Teodor participated in a scheme that operated from July 2005 through November 2006, and involved the posting of fraudulent advertisements on eBay and other websites offering expensive vehicles and boats for sale that the conspirators did not possess. When the U.S. victims expressed interest in the merchandise, they were contacted directly by an email from a purported seller. According to court documents, the victims were then instructed to wire transfer payments through “eBay Secure Traders” — an entity which has no actual affiliation to eBay, but was used as a ruse to persuade the victims that they were sending money into a secure escrow account pending delivery and inspection of their purchases. Instead, the victims’ funds were wired directly into bank accounts in Hungary, Slovakia, the Czech Republic and Poland that were controlled by Teodor’s co-conspirators.
Teodor was originally charged on Jan. 9, 2008, along with five additional defendants: Georgi Vasilev Pletnyov, Ivaylo Vasilev Pletnyov, Nikolay Georgiev Minchev, Georgi Boychev Georgiev and Antoaneta Angelova Getova. On Dec. 2, 2009, Ivaylo Vasilev Pletnyov and Nikolay Georgiev Minchev were sentenced to 48 months and 30 months in prison, respectively, for their roles in the money laundering conspiracy. On Oct. 8, 2010, Georgi Boychev Georgiev was sentenced to 15 months in prison for his role in this scheme. On April 11, 2011, Georgi Vasilev Pletnyov pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. His sentencing is scheduled for Aug. 22, 2011. The United States continues to work with foreign counterparts in Bulgaria regarding Antoaneta Angelova Getova.
This investigation was conducted by the FBI – Hungarian National Bureau of Investigation Organized Crime Task Force located in Budapest, Hungary (Budapest Task Force). The Budapest Task Force was established by the FBI in April 2000 to address the increasing threat of Eurasian organized crime groups to the United States.
The case is being prosecuted by Trial Attorney Lisa Page of the Criminal Division’s Organized Crime and Gang Section. The Criminal Division’s Office of International Affairs provided significant assistance on this case.
This is a photo of the National Register of Historic Places listing with reference number 7000063
Saturday, June 11, 2011
SEC GETS EMERGENCY ASSET FREEZE AGAINST THE ASSOCIATION FOR BETTERMENT THROUGH EDUCATION AND LOVE INC.
Unauthorized securities is something that the SEC frowns on a great deal. In the following case a charity like entity ran a fowl of the SEC by allegedly selling unregistered securities. The following is an excerpt from the SEC web site:
“The Securities and Exchange Commission announced today that it charged Association for Betterment through Education and Love, Inc. (“ABEL”) and its principal, Anthony O. DeGregorio, Sr., age 81 and resident of New Jersey, with offering and selling securities in unregistered transactions and obtained an emergency court order to halt the offerings and preserve assets for investors. The Complaint also names Margherita DeGregorio as a relief defendant.
The Commission's complaint, filed in the District of New Jersey, alleges that ABEL and DeGregorio have raised more than $1.3 million through unregistered securities offerings since ABEL’s inception in 1989, obtaining more than $1 million in the last four years through offering purported “CDs.” According to the Complaint, ABEL’s purported purpose was to invest funds raised in securities offerings and use investment profits to pay a “guaranteed” return to investors, and donate a portion to charity. The Complaint alleges that ABEL and DeGregorio offered securities in the form of charitable gift annuities, without complying with state registration requirements, and offered purported CDs that carried above-market interest rates. The Complaint also charges that, at times, ABEL used the proceeds from new offerings of securities to make promised interest payments to earlier investors.
The Complaint charges ABEL and DeGregorio with violating Sections 5(a) and (c) of the Securities Act of 1933.
Judge Freda L. Wolfson of the United States District Court for the District of New Jersey issued a temporary restraining order, which prohibits ABEL and DeGregorio from committing further violations of the federal securities laws and places a freeze on their assets and the assets of Margherita DeGregorio. In its enforcement action, the Commission is seeking additional relief, including orders enjoining ABEL and DeGregorio, preliminarily and permanently, from committing future violations of the foregoing federal securities laws, and a final judgment ordering ABEL and DeGregorio to disgorge their ill-gotten gains plus prejudgment interest, and assessing civil penalties against them.”
“The Securities and Exchange Commission announced today that it charged Association for Betterment through Education and Love, Inc. (“ABEL”) and its principal, Anthony O. DeGregorio, Sr., age 81 and resident of New Jersey, with offering and selling securities in unregistered transactions and obtained an emergency court order to halt the offerings and preserve assets for investors. The Complaint also names Margherita DeGregorio as a relief defendant.
The Commission's complaint, filed in the District of New Jersey, alleges that ABEL and DeGregorio have raised more than $1.3 million through unregistered securities offerings since ABEL’s inception in 1989, obtaining more than $1 million in the last four years through offering purported “CDs.” According to the Complaint, ABEL’s purported purpose was to invest funds raised in securities offerings and use investment profits to pay a “guaranteed” return to investors, and donate a portion to charity. The Complaint alleges that ABEL and DeGregorio offered securities in the form of charitable gift annuities, without complying with state registration requirements, and offered purported CDs that carried above-market interest rates. The Complaint also charges that, at times, ABEL used the proceeds from new offerings of securities to make promised interest payments to earlier investors.
The Complaint charges ABEL and DeGregorio with violating Sections 5(a) and (c) of the Securities Act of 1933.
Judge Freda L. Wolfson of the United States District Court for the District of New Jersey issued a temporary restraining order, which prohibits ABEL and DeGregorio from committing further violations of the federal securities laws and places a freeze on their assets and the assets of Margherita DeGregorio. In its enforcement action, the Commission is seeking additional relief, including orders enjoining ABEL and DeGregorio, preliminarily and permanently, from committing future violations of the foregoing federal securities laws, and a final judgment ordering ABEL and DeGregorio to disgorge their ill-gotten gains plus prejudgment interest, and assessing civil penalties against them.”
Friday, June 10, 2011
SEC ON REVERSE MERGERS
The following is an excerpt from the SEC web site:
SEC Issues Bulletin on Risks of Investing in Reverse Merger Companies
FOR IMMEDIATE RELEASE
Washington, D.C., June 9, 2011 – The Securities and Exchange Commission today issued an Investor Bulletin about investing in companies that enter U.S. markets through so-called “reverse mergers.”
“Given the potential risks, investors should be especially careful when considering investing in the stock of reverse merger companies,” said Lori J. Schock, Director of the SEC’s Office of Investor Education and Advocacy. “As with any investment, investors should thoroughly research the company – including ensuring there is accurate and up-to-date information – before making a decision to invest.”
Reverse mergers permit private companies, including those located outside the U.S., to access U.S. investors and markets by merging with an existing public shell company. The SEC and U.S. exchanges recently suspended trading in a more than a dozen reverse merger companies, citing a lack of current, accurate information about these firms and their finances.
SEC Issues Bulletin on Risks of Investing in Reverse Merger Companies
FOR IMMEDIATE RELEASE
Washington, D.C., June 9, 2011 – The Securities and Exchange Commission today issued an Investor Bulletin about investing in companies that enter U.S. markets through so-called “reverse mergers.”
“Given the potential risks, investors should be especially careful when considering investing in the stock of reverse merger companies,” said Lori J. Schock, Director of the SEC’s Office of Investor Education and Advocacy. “As with any investment, investors should thoroughly research the company – including ensuring there is accurate and up-to-date information – before making a decision to invest.”
Reverse mergers permit private companies, including those located outside the U.S., to access U.S. investors and markets by merging with an existing public shell company. The SEC and U.S. exchanges recently suspended trading in a more than a dozen reverse merger companies, citing a lack of current, accurate information about these firms and their finances.
A BAD GUY FINISHES LAST
THURSDAY, JUNE 9, 2011
OWNER OF ILLINOIS TECHNOLOGY COMPANY SENTENCED TO SERVE 12
MONTHS AND A DAY IN PRISON FOR ROLE IN CONSPIRACY TO DEFRAUD THE
FEDERAL E-RATE PROGRAM
WASHINGTON — An owner of an Illinois-based technology company was sentenced today to serve one year and a day in prison for his participation in a conspiracy to defraud the federal E-Rate program, the Department of Justice announced.
Barrett C. White was also sentenced by U.S. District Court Judge Eldon Fallon to pay a $4,000 criminal fine for conspiring to defraud the E-Rate program by providing bribes and kickbacks to school officials in multiple states. White was charged with the conspiracy in U.S. District Court in New Orleans on Nov. 18, 2010, and he pleaded guilty on March 3, 2011.
As a result of the Antitrust Division's investigation into fraud and anticompetitive conduct in the E-Rate program, including today's sentencing, a total of seven companies and 24 individuals have pleaded guilty, been convicted at trial or entered civil settlements. Those companies and individuals have been sentenced to pay criminal fines and restitution totaling more than $40 million. Sixteen individuals, including White, have been sentenced to serve prison time.
According to court documents, White participated in the conspiracy beginning on or about February 2004 through August 2005. The department said that White offered and delivered bribes and kickbacks to school officials responsible for the procurement of Internet access services. In return for those payments, E-Rate contracts were awarded to his co-conspirators' companies. White's co-conspirators, Gloria Harper and Tyrone Pipkin, have also pleaded guilty to the conspiracy in separate charges and await sentencing.
The E-Rate program was created by Congress in the Telecommunications Act of 1996 and is administered by the Universal Service Administrative Company, under the oversight of the Federal Communications Commission (FCC). The program provides subsidies to economically disadvantaged schools and libraries. Depending on the financial needs of the applicant schools, the program pays 20 to 90 percent of the cost for Internet access and telecommunications services, as well as internal computer and communications networks.
Today's sentencing resulted from an investigation by the Department of Justice Antitrust Division's Dallas Field Office, the FBI's Dallas Field Office and the FCC's Office of Inspector General, with assistance from the U.S. Attorney's Office for the Eastern District of Louisiana. Anyone with information concerning violations of the E-Rate program is urged to call the Antitrust Division's Dallas.”
OWNER OF ILLINOIS TECHNOLOGY COMPANY SENTENCED TO SERVE 12
MONTHS AND A DAY IN PRISON FOR ROLE IN CONSPIRACY TO DEFRAUD THE
FEDERAL E-RATE PROGRAM
WASHINGTON — An owner of an Illinois-based technology company was sentenced today to serve one year and a day in prison for his participation in a conspiracy to defraud the federal E-Rate program, the Department of Justice announced.
Barrett C. White was also sentenced by U.S. District Court Judge Eldon Fallon to pay a $4,000 criminal fine for conspiring to defraud the E-Rate program by providing bribes and kickbacks to school officials in multiple states. White was charged with the conspiracy in U.S. District Court in New Orleans on Nov. 18, 2010, and he pleaded guilty on March 3, 2011.
As a result of the Antitrust Division's investigation into fraud and anticompetitive conduct in the E-Rate program, including today's sentencing, a total of seven companies and 24 individuals have pleaded guilty, been convicted at trial or entered civil settlements. Those companies and individuals have been sentenced to pay criminal fines and restitution totaling more than $40 million. Sixteen individuals, including White, have been sentenced to serve prison time.
According to court documents, White participated in the conspiracy beginning on or about February 2004 through August 2005. The department said that White offered and delivered bribes and kickbacks to school officials responsible for the procurement of Internet access services. In return for those payments, E-Rate contracts were awarded to his co-conspirators' companies. White's co-conspirators, Gloria Harper and Tyrone Pipkin, have also pleaded guilty to the conspiracy in separate charges and await sentencing.
The E-Rate program was created by Congress in the Telecommunications Act of 1996 and is administered by the Universal Service Administrative Company, under the oversight of the Federal Communications Commission (FCC). The program provides subsidies to economically disadvantaged schools and libraries. Depending on the financial needs of the applicant schools, the program pays 20 to 90 percent of the cost for Internet access and telecommunications services, as well as internal computer and communications networks.
Today's sentencing resulted from an investigation by the Department of Justice Antitrust Division's Dallas Field Office, the FBI's Dallas Field Office and the FCC's Office of Inspector General, with assistance from the U.S. Attorney's Office for the Eastern District of Louisiana. Anyone with information concerning violations of the E-Rate program is urged to call the Antitrust Division's Dallas.”
DODD-FRANK: MORE CONFUSION THAN CORRUPTION FIGHTING
Although Dodd-Frank legistaltion has some good parts in it much of it is replete with stupid ideas that show that the congressmen and their congressional aids that wrote the bill have no idea of how th real world of fiance works. The following is an announcement by the SEC that clarification of some Dodd-Frank legilation is comming to a financial instutuion near you. Please read the following excerpt from the SEC web site and leave a comment about this bill if you like:
"Washington, D.C., June 10, 2011 – The Securities and Exchange Commission today said it is taking a series of actions in the coming weeks to clarify the requirements that will apply to security-based swap transactions as of July 16 – the effective date of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act – and to provide appropriate temporary relief.
Title VII is the portion of the Dodd-Frank Act that establishes a comprehensive framework for regulating over-the-counter derivatives. In particular, it authorizes the SEC to regulate “security-based swaps” while also authorizing the CFTC to regulate other swaps. The portion of Title VII referred to as Subsection B, which deals with the new regulatory regime for security-based swaps, will take effect on July 16 (360 days after the date of the Dodd-Frank Act’s enactment).
The Commission will:
Provide guidance regarding which provisions of Subtitle B of Title VII will become operable as of July 16, and, where appropriate, provide temporary relief from several of these provisions.
Provide guidance regarding – and where appropriate, temporary relief from – the various pre-Dodd-Frank provisions of the Exchange Act that would otherwise apply to security-based swaps on July 16. Under Dodd-Frank, security-based swaps would be included in the definition of “security” under the Exchange Act. While such swaps will be subject to provisions addressing fraud and manipulation, the Commission intends to provide temporary relief from certain other provisions of the Exchange Act so that the industry will have time to seek, and the Commission can consider, what if any further guidance or action is required.
Take other actions such as extending existing temporary rules under the Securities Act, the Exchange Act, and the Trust Indenture Act, and extending existing temporary relief from exchange registration under the Exchange Act. This will help to continue facilitating the clearing of certain credit default swaps by clearing agencies functioning as central counterparties.
The Dodd-Frank Act contains more than 90 provisions overall that require SEC rulemaking, as well as dozens of additional provisions that give the SEC discretionary rulemaking authority. Of the mandatory rulemaking provisions, the SEC already has proposed or adopted rules for about two-thirds of them. In addition to writing individual rules, the Commission has been focusing more generally on how Title VII and the rules thereunder will be implemented. The SEC and CFTC staffs held a joint public roundtable in April, and Commissioners and staff have had extensive discussions with market participants on the appropriate sequence for implementing the security-based swap regulations.
After proposing all of the key rules under Title VII, the SEC intends to consider publishing a detailed implementation plan in order to enable the Commission to move forward expeditiously with the roll-out of the new securities-based swap requirements in the most efficient manner, while minimizing unnecessary disruption and costs to the markets.
The SEC also announced today proposed rules that would exempt transactions by clearing agencies in security-based swaps that they issue from all provisions of the Securities Act, other than the Section 17(a) anti-fraud provisions, as well as exempt these security-based swaps from Exchange Act registration requirements and from the provisions of the Trust Indenture Act, provided certain conditions are met."
"Washington, D.C., June 10, 2011 – The Securities and Exchange Commission today said it is taking a series of actions in the coming weeks to clarify the requirements that will apply to security-based swap transactions as of July 16 – the effective date of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act – and to provide appropriate temporary relief.
Title VII is the portion of the Dodd-Frank Act that establishes a comprehensive framework for regulating over-the-counter derivatives. In particular, it authorizes the SEC to regulate “security-based swaps” while also authorizing the CFTC to regulate other swaps. The portion of Title VII referred to as Subsection B, which deals with the new regulatory regime for security-based swaps, will take effect on July 16 (360 days after the date of the Dodd-Frank Act’s enactment).
The Commission will:
Provide guidance regarding which provisions of Subtitle B of Title VII will become operable as of July 16, and, where appropriate, provide temporary relief from several of these provisions.
Provide guidance regarding – and where appropriate, temporary relief from – the various pre-Dodd-Frank provisions of the Exchange Act that would otherwise apply to security-based swaps on July 16. Under Dodd-Frank, security-based swaps would be included in the definition of “security” under the Exchange Act. While such swaps will be subject to provisions addressing fraud and manipulation, the Commission intends to provide temporary relief from certain other provisions of the Exchange Act so that the industry will have time to seek, and the Commission can consider, what if any further guidance or action is required.
Take other actions such as extending existing temporary rules under the Securities Act, the Exchange Act, and the Trust Indenture Act, and extending existing temporary relief from exchange registration under the Exchange Act. This will help to continue facilitating the clearing of certain credit default swaps by clearing agencies functioning as central counterparties.
The Dodd-Frank Act contains more than 90 provisions overall that require SEC rulemaking, as well as dozens of additional provisions that give the SEC discretionary rulemaking authority. Of the mandatory rulemaking provisions, the SEC already has proposed or adopted rules for about two-thirds of them. In addition to writing individual rules, the Commission has been focusing more generally on how Title VII and the rules thereunder will be implemented. The SEC and CFTC staffs held a joint public roundtable in April, and Commissioners and staff have had extensive discussions with market participants on the appropriate sequence for implementing the security-based swap regulations.
After proposing all of the key rules under Title VII, the SEC intends to consider publishing a detailed implementation plan in order to enable the Commission to move forward expeditiously with the roll-out of the new securities-based swap requirements in the most efficient manner, while minimizing unnecessary disruption and costs to the markets.
The SEC also announced today proposed rules that would exempt transactions by clearing agencies in security-based swaps that they issue from all provisions of the Securities Act, other than the Section 17(a) anti-fraud provisions, as well as exempt these security-based swaps from Exchange Act registration requirements and from the provisions of the Trust Indenture Act, provided certain conditions are met."
SEC ANNOUNCES EXEMPTIONS FROM REGISTRATION OF SECURITIES
The following is an excerpt from the SEC website:
“Washington, D.C., June 10, 2011 – The Securities and Exchange Commission today proposed rules that would provide certain clearing agencies with exemptions from the registration requirements of the Securities Act of 1933 and the Securities Exchange Act of 1934 for security-based swaps that they issue.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, which established a comprehensive framework for regulating the over-the-counter swaps markets, envisioned that certain security-based swaps would be cleared through a clearing agency. The proposed exemptions would facilitate the clearing of such security-based swaps.
A clearing agency generally acts as a middleman between the parties to a transaction, and when providing central counterparty services, assumes the risk should there be a default. When structured and operated appropriately, such a clearing agency can provide benefits such as improving the management of counterparty risk and reducing outstanding exposures through multilateral netting of trades.
The proposed rules would exempt transactions by clearing agencies in these security-based swaps from all provisions of the Securities Act, other than the Section 17(a) anti-fraud provisions, as well as exempt these security-based swaps from Exchange Act registration requirements and from the provisions of the Trust Indenture Act, provided certain conditions are met. Public comments on the proposed rules should be received by July 25, 2011.
On several previous occasions, the Commission has acted to facilitate clearing of certain credit default swaps by clearing agencies functioning as central counterparties. Among other things, the Commission previously adopted temporary rules that would exempt credit default swaps from these same registration and qualification requirements. The new proposed rules would create permanent exemptions that would cover these credit default swaps and the security-based swaps brought in through the Dodd-Frank Act and, as a result, supplant the temporary rules.
Because the current termination date for the temporary rules – July 16, 2011 – is expected to pass before the proposed exemptions are adopted, the Commission intends to extend the temporary rules in order to continue facilitating the clearing of certain credit default swaps by clearing agencies functioning as central counterparties.
The extension of these temporary rules is one part of a multi-step Commission effort to clarify the requirements that will apply to security-based swap transactions as of July 16 - the effective date of Title VII of the Dodd-Frank Act - and to provide appropriate temporary relief.”
“Washington, D.C., June 10, 2011 – The Securities and Exchange Commission today proposed rules that would provide certain clearing agencies with exemptions from the registration requirements of the Securities Act of 1933 and the Securities Exchange Act of 1934 for security-based swaps that they issue.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, which established a comprehensive framework for regulating the over-the-counter swaps markets, envisioned that certain security-based swaps would be cleared through a clearing agency. The proposed exemptions would facilitate the clearing of such security-based swaps.
A clearing agency generally acts as a middleman between the parties to a transaction, and when providing central counterparty services, assumes the risk should there be a default. When structured and operated appropriately, such a clearing agency can provide benefits such as improving the management of counterparty risk and reducing outstanding exposures through multilateral netting of trades.
The proposed rules would exempt transactions by clearing agencies in these security-based swaps from all provisions of the Securities Act, other than the Section 17(a) anti-fraud provisions, as well as exempt these security-based swaps from Exchange Act registration requirements and from the provisions of the Trust Indenture Act, provided certain conditions are met. Public comments on the proposed rules should be received by July 25, 2011.
On several previous occasions, the Commission has acted to facilitate clearing of certain credit default swaps by clearing agencies functioning as central counterparties. Among other things, the Commission previously adopted temporary rules that would exempt credit default swaps from these same registration and qualification requirements. The new proposed rules would create permanent exemptions that would cover these credit default swaps and the security-based swaps brought in through the Dodd-Frank Act and, as a result, supplant the temporary rules.
Because the current termination date for the temporary rules – July 16, 2011 – is expected to pass before the proposed exemptions are adopted, the Commission intends to extend the temporary rules in order to continue facilitating the clearing of certain credit default swaps by clearing agencies functioning as central counterparties.
The extension of these temporary rules is one part of a multi-step Commission effort to clarify the requirements that will apply to security-based swap transactions as of July 16 - the effective date of Title VII of the Dodd-Frank Act - and to provide appropriate temporary relief.”
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