Three keys logo by Warja Honegger-Lavater. (Photo credit: Wikipedia)
Update on Kweko Adoboli (UBS Trader Trial) - As the trial of the 32 year-old trader begins in London, Adoboli's attorney is describing a culture at UBS that demanded big returns. One of the first on the stand for the government is Ron Greenridge, who was in charge of supervising Adoboli's trades. Under questioning from Adoboli's attorney, Charles Sherrard, he told Greenridge that UBS would have "turned a blind eye" to the trades if the young man had turned a profit. Greenridge replied that Adoboli would have been fired even if the trades were profitable. Have you ever heard of a bank restating earnings because a rogue trader made a HUGE profit? But let them have a few billion in losses and they ruin everyone's day.
Minnesota Lawyer Goes Lawsuit Happy After Getting Ripped Off in Ponzi Scheme - John Murrin, a lawyer in Minnesota, invested $600,000 into Avidigm Capital, a firm that was supposed to provide high returns on investments it made in forclosed properties. As it turned out, Avidigm was a Ponzi scheme and Murrin was one of the first to go to authorities about his suspensions. Unfortumately, that didn't get his money back so he started filing lawsuits and naming as many people as he could associated with Avidigm in an effort to extract money. However, a judge felt that he went too far and suspended the lawyer. What is it they say about a person who is their own lawyer? They have a fool for a client!
80% of Power Wheelchairs Paid For By Medicare Not Documented Properly - You ever see those commercials for SCOOTER Store? They seem to suggest that if you're on Medicare, these chairs (costing $1,500-$3,000) are free! Well Medicare wanted to start looking into the procedures for approving these chairs and they seemed lax, so they proposed new a new review process and began rejecting some claims. Enter small business who is crying foul in that the review is too cumbersome. With so much Medicare fraud, this seems like a good place to look as we're talking about half a BILLION annually in scotters!!!
25 Year Prison Sentence Upheld - Nicholas Cosmo was just exiting federal prison on fraud charges in 1999 when he had another idea for a bigger Ponzi scheme. Agape World, which was supposed to invest in short term loans for big returns, collapsed after collecting over $400 million from investors. In 2010, Cosmo plead guilty and hoped that his acceptance of responsibility would help him as much as it did on his first federal fraud charges years earlier that put him in prison for only 21 months. Instead, the judge gave Cosmo 25 years and yesterday an Appeals Court agreed that the sentence was appropriate. The dude gives felons a bad name!
LCD Light Panel Price Fixing Case Results in Jail and $500 Million Fine - Two executives at AU Optronics, based in Taiwan, were sentenced to 3 years each in prison for fixing prices on LCD lights panels. AU Optronics was also ordered to pay $500 million in fines .... that's a lot of lights
Madoff Investors Get Another Distribution - Irving Picard is sending out another check to Madoff victims in a distribution of $2.5 billion. This liquidation of a Ponzi scheme is starting to look like an investment.