Philip Bates who operated from offices in Bedford was found guilty of fabricating business to maximise his commissions and was jailed by HHJ Ainley at Croydon Crown Court for five years and disqualified from acting as a company director for seven years. Confiscation proceedings have been postponed to a later date.
The fraud involved Mr Bates' running of his businesses Anderson Owen Ltd and Transtone Consulting Ltd (trading as Hammond Direct) in 2004. It concerned the "sham sale" by Mr Bates of the financial products of 17 insurance companies to over 100 customers.
Many of Bates' customers were unaware that financial products had been taken out in their names. Others were embroiled in a scheme whereby products were purchased not because they were needed or required but because Bates wanted the up front commission.
The two businesses subsequently went into liquidation and Anderson Owen ceased to be authorised by the Financial Services Authority. Shortly before the frauds came to light Bates left the country.
Arrangements between insurance companies and IFA's provide that if a policy is cancelled before a certain number of premiums have been paid the insurance companies are entitled to a pro rata "clawback" of commissions paid. However, when the insurance companies tried to clawback monies paid over the company accounts were empty. In fact, as the commissions had come in they had been swiftly transferred by Bates to his personal bank accounts first in Jersey, then in Guernsey, finally ending up in an account in Monaco in the name of Acorn Commercial Ventures Ltd for which he had power of attorney.
During the early phase of the investigation Bates' assets were traced and a restraint order was issued freezing the Monaco account in early 2006.
The victims were the product providers who paid out undeserved commission on policies which were not wanted or genuinely required. Customers who bought the policies were also victims in that policies were taken out without their knowledge and consent causing them financial loss.
Labels: 419 scam, email scam, lottery scam, Nigerian Scam, scam, spam
Posted on Sunday, December 21, 2008
A South African and his Nigerian friend have been jailed for 15 years for a 419 scam. Jabu Nkabinde, 33, and Olusegun Justus Davies, 35, opened a bank account using a dead man's identity and then cheated four people. They told their victims that they had won about £30.5-million in a UK lottery and for receiving the prize amount they have to pay "administration fees" into a fake account. Nkabinde and Davies were found guilty on six charges of fraud by the Pretoria Specialized Commercial Crimes Court.
In 2005, they opened a bank account at Absa in the name of Mthandazile Bhudane, and sent out emails to the victims informing them they had won a "6 Ball Lotto Game" contest in the UK and a administration charge of 4,550 pound was required to process the prize amount. They told the victims that M Bhudane is the "region agent" of the "6 Ball Lotto Game" in South Africa and wanted them to deposit money in his bank account.
So many people thought that they actually got the prize and when they asked for proof, these two men sent them certificates and faxes to "confirm" their winnings. They all deposited between R52 097 and R53 872, depending on the exchange rate.
But they never received their millions. In addition, the two men used their account to obtain a bond of R320 000 for a house from another bank. Nkabinde went into the bank in August 2005 to withdraw money from the account. The teller got some suspect and informed the police. Some days later Davies got arrested in the house.
In 2005, they opened a bank account at Absa in the name of Mthandazile Bhudane, and sent out emails to the victims informing them they had won a "6 Ball Lotto Game" contest in the UK and a administration charge of 4,550 pound was required to process the prize amount. They told the victims that M Bhudane is the "region agent" of the "6 Ball Lotto Game" in South Africa and wanted them to deposit money in his bank account.
So many people thought that they actually got the prize and when they asked for proof, these two men sent them certificates and faxes to "confirm" their winnings. They all deposited between R52 097 and R53 872, depending on the exchange rate.
But they never received their millions. In addition, the two men used their account to obtain a bond of R320 000 for a house from another bank. Nkabinde went into the bank in August 2005 to withdraw money from the account. The teller got some suspect and informed the police. Some days later Davies got arrested in the house.
Labels: 419 scam, email scam, email spam, scam, spam, spam news
Posted on Monday, August 11, 2008
In the United States the Fair Credit Reporting Act (FCRA) gives those who are, or believe that they have been, the victim of identity theft specific legal rights. These rights are designed to help people recover from identity theft.
- One has the right to ask that the major credit reporting agencies place 'fraud alerts' in his or her file to let warn creditors and others know that he or she may be a victim of identity theft.
- One has the right to free copies of the information in his or her file (called their 'file disclosure'). - One has have the right to obtain documents relating to fraudulent transactions made or accounts opened using his or her personal information.
- One has the right to obtain information from a debt collector.
- If one believes information in his or her file results from identity theft, he or she has the right to ask that a consumer reporting agency block that information from his or her file.
- One may prevent businesses from reporting information about him or her to consumer reporting agencies if he or she believes the information is a result of identity theft.
- One has the right to ask that the major credit reporting agencies place 'fraud alerts' in his or her file to let warn creditors and others know that he or she may be a victim of identity theft.
- One has the right to free copies of the information in his or her file (called their 'file disclosure'). - One has have the right to obtain documents relating to fraudulent transactions made or accounts opened using his or her personal information.
- One has the right to obtain information from a debt collector.
- If one believes information in his or her file results from identity theft, he or she has the right to ask that a consumer reporting agency block that information from his or her file.
- One may prevent businesses from reporting information about him or her to consumer reporting agencies if he or she believes the information is a result of identity theft.
Posted on Wednesday, August 6, 2008
SEC Suspends Trading in Three Companies Promoted Through Spam and Internet Videos
The Commission issued an Order finding that each of the companies subject to today's trading suspension — NeoTactix Corporation (NTCX), Graystone Park Enterprises, Inc. (GPKE), and Younger America, Inc. (YNGR) — has inadequately disclosed its assets, business operations, and current financial condition.
The SEC's Anti-Spam Initiative, launched in March 2007, has been credited with a significant reduction in financial spam, and spam-related complaints to the SEC's Online Complaint Center have decreased by more than two-thirds in the past year.
"The SEC's anti-spam efforts have been remarkably successful to date, but we will not be complacent in our pursuit of unscrupulous stock promoters," said Linda Chatman Thomsen, Director of the SEC's Division of Enforcement. "The SEC will continue to take aggressive action against stock promoters and spammers, including those who are exploiting investors through YouTube."
Through its Anti-Spam Initiative, the SEC has suspended trading in the securities of 50 companies and has brought several enforcement actions against spammers, promoters, and insiders. These latest three suspensions are the result of a coordinated effort between the SEC's New York, Denver, and Washington D.C. offices. The SEC's Anti-Spam Initiative is now part of the microcap fraud working group recently formed within the Division of Enforcement.
Labels: 419 scam, ATM Scam, email scam, email spam, http://www.blogger.com/img/blank.gif, lottery, Nigerian Scam, scam, spam, spam news
Posted on Tuesday, December 16, 2008