Fraud

Jailed fraudster told to hand over £40,000

By Lynda Roughley, April 29, 2009

A Salford businessman involved in a huge international “advance fee” fraud has been ordered to hand over more than £40,000 cash.

A Liverpool Crown Court judge ruled that Michael Rashman had benefited by £1,542,312 but found that his realisable assets were only £42,5000.

Rashman, 55, who is currently serving a sentence of four years and nine months, was ordered by Judge Gerald Clifton to hand over the cash by September next year or he will have to serve an extra three and a half years in prison.

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Rabbi is jailed for £5m fraud

By Tom Tugend, April 7, 2009

A Brooklyn rabbi has been jailed for two years after pleading guilty to a tax fraud and money laundering scheme.

Rabbi Moshe Zigelman was key to a conspiracy which used five charities of the ultra-Orthodox Spinka group as fronts. Contributors received receipts for large sums which they wrote off on their tax returns. Then they were secretly repaid most of the cash.

In 2006 alone, Zigelman helped solicit more than $8.5 million (£5.3m), of which just $750,000 (£500,000) was kept by charities.

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Lieberman to be charged with fraud

By Anshel Pfeffer, April 7, 2009

Israeli Foreign Minister Avigdor Lieberman is to be charged with money laundering and fraud, according to Justice Ministry sources.

“We have enough proof to indict him on multiple charges of money laundering through a string of shell companies,” said a lawyer from the Justice Ministry, who is close to the investigation.

In the next few weeks, the police’s National Fraud Squad is expected to recommend an indictment against Mr Lieberman. Then Attorney-General Menahem Mazuz must decide whether to press charges, pending a hearing.

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Gigolo ‘sought revenge on BMW’

By Marcus Dysch, March 19, 2009

A conman who defrauded Germany’s richest woman is claimed to have targeted his victim because of her family’s Nazi past.

Helg Sgarbi, dubbed the Swiss Gigolo, was last week jailed for six years for defrauding and attempting to blackmail Susanne Klatten with a videotape of the couple having sex in a hotel.

Ms Klatten, the 68th wealthiest person in the world, is an heir to the BMW fortune and is thought to be worth almost $10 billion.

Her great-grandfather, Gunther Quandt, founded BMW and his first wife, Magda, later married Joseph Goebbels.

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'Mini-Madoffs' facing fraud charges in LA

By Tom Tugend, March 19, 2009

Two Jewish business executives in Los Angeles are facing federal fraud charges, further unsettling a Jewish community affected by the fallout from Bernard Madoff’s $50 billion Ponzi scheme.

Both were prominent donors to Jewish and other charities.

Bruce Karatz, until recently one of the highest paid executives in the country, was indicted by a federal grand jury on 20 counts of mail, wire and securities fraud, and making false statements.

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Madoff admits fraud charges

By Marcus Dysch, March 12, 2009

Disgraced financier Bernard Madoff has pleaded guilty to all 11 charges in connection with a multi-billion dollar investment fraud.

He arrived at a New York courthouse this morning wearing a bullef-proof vest and is expected to be sentenced to a 150-year jail term on June 16.

Madoff, 70, was charged with four counts of fraud, three counts of money laundering, making false statements, perjury, making a false filing to the US financial watchdog, and theft from an employee benefit plan.

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Dead rabbi used by internet scammers

By Marcus Dysch, February 5, 2009

Internet scammers are attempting to embezzle money using the names of late philanthropist Benzion Dunner and a Scottish law professor.

An email, sent from Hong Kong and written in broken English, asks recipients to provide legal documents in order to share funds left in the will of Rabbi Dunner, who died in a car crash last March.

The email states: “I do not wish to bore you with much stories [sic], my intention of writing you this mail is to solicit for your partnership in a rewarding venture with funds left by my deceased client by name: Benzion Dunner.”

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Fraud-charge Chasid faces extradition

By Marcus Dysch, January 22, 2009

A court has recommended the extradition of a member of the US-based strictly Orthodox Skverer community who fled to Britain to avoid multi-million dollar fraud charges.

On Tuesday, City of Westminster Magistrates’ Court cleared the way for Avrum David Friesel, 56, to stand trial in the US.

Home Secretary Jacqui Smith (who is due to be guest speaker at the Community Security Trust’s annual dinner in March) must now decide whether to rubber-stamp his extradition.

But Mr Friesel’s barrister, Jonathan Goldberg QC, said it could take up to a year to arrive at a final decision.

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ATM scam warning

January 15, 2009

Barnet Jews have been warned to be on their guard when using ATM machines in Hendon and Golders Green after a spate of card fraud incidents over the weekend.

Fraudsters fitted devices to a number of cash machines to trap cards and record PIN numbers which were then used to withdraw large amounts of cash.

Police have contacted synagogue groups as part of an awareness drive to urge residents to exercise particular care and, where possible, to use familiar cash machines so that any attached devices are more visibly obvious.

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Fraudsters ordered to hand over assets

By Lynda Roughley, December 23, 2008

A Manchester man jailed for six years for involvement in a large-scale “advance fee” business fraud has been ordered to hand over £425,000.

Following a two-day confiscation hearing at Liverpool Crown Court, it was agreed that Carl Montlake had benefited by £1.5 million from the scam.

It was also agreed that he has realiseable assets of £425,000 and Judge Gerald Clifton ordered that, if this sum is not paid over under the Proceeds of Crime Act, by January 31 next year, he will face an extra 42 months in prison.

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