Briefings
Mishcon Fraud Watch
Banking & Finance
Fraud: Claimant
Fraud: Defendant
Insolvency and Recoveries
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| June 2008 |
Welcome to the June edition of Mishcon Fraud Watch, prepared by the Fraud & Insolvency Group at Mishcon de Reya. Its aim is to provide businesses and their advisors with a snapshot of what has been happening in the world of fraud in the last month.
We make no judgment whatsoever as to the morality, legality or appropriateness of the conduct which forms the subject matter of this bulletin. We simply aim to bring these matters to the attention of those involved in the prevention, detection and investigation of fraud.
United Kingdom
Banking and Finance
The City of London Police have charged Jagmeet Channa, a back office clerk at HSBC, with conspiracy to defraud, money laundering and abusing a position of trust. The alleged fraud is thought to be worth £70m.
Daily Mail, 2 May 2008
Media and Communications
A fraud prevention website, fraudtracking.com has reported that it recorded £500,000 fraudulent transactions per day on eBay over a three month period.
The Sunday Times, 18 May 2008
Retail
Jewson, the building materials supplier, has asked police to investigate an alleged £1m fraud following the arrest of its sales director.
The Daily Telegraph, 13 May 2008
Serious Fraud Office (SFO)
Peter Bradley and Peter Scott, two former directors of Alta Gas plc, have been jailed for four and two years’ respectively for their part in an accounting fraud, which lead to the collapse of the company.
SFO press release, 16 May 2008
North America
Banking and Finance
James Gansman, a former partner with Ernst & Young, has been charged with conspiracy and securities fraud by US prosecutors in connection with alleged insider trading. Mr Gansman denies any wrongdoing.
Financial Times, 30 May 2008
The Commodity Futures Trading Commission has filed a civil lawsuit against Sentinel Management Group, a money management company, and two of its senior executives. The regulator accuses Sentinel of fraud in the handling of $562m of customers' money. They all deny any wrongdoing.
Financial Times, 2 May 2008
Recruitment
James Treacy, the former president and Chief Operating Officer of Monster Worldwide, an online recruitment company, has pleaded not guilty to charges of securities fraud and conspiracy in connection with stock options backdating.
Financial Times, 1 May 2008
Mishcon de Reya
Mishcon's Fraud Watch is published by the Fraud & Insolvency Group of Mishcon de Reya Solicitors. Widely recognised as the leader in the field of fraud investigations, the Group has pioneered the use of financial fraud techniques in numerous fields, including the rapidly growing areas of theft of confidential information and counterfeiting. The Group founded and run both the Asset Protection & Recovery Network, made up of international legal fraud specialists and the Financial Fraud Group, for risk and compliance officers.