A Loan Broker was ultimately indicted by the Queens district attorney on grand larceny charges that he defrauded more than 23 car buyers with refinancing schemes.
By Jessica Silver-Greenberg and Michael Corkery
July 19, 2014 12:36 pm
Relatively few used-car dealers are charged with fraud. Yet the extreme example of Mr. Estrada comes as some used-car dealers — a business that has long had a reputation for aggressive pitches — are pushing sales tactics too far, according to state prosecutors and federal regulators.
And these are among the thousands of used-car dealers who are working hand-in-hand with Wall Street to sell cars. Court records show that Capital One and Santander Consumer USA all bought loans arranged by Mr. Estrada, who pleaded guilty last year. Since then, Mr. Estrada was indicted on separate fraud charges in March by Richard A. Brown, the Queens district attorney. That case is still pending.
To guard against fraud, the banks say, they vet their dealer partners and routinely investigate complaints. Capital One has “rigorous controls in place to identify any potential issues,” said Tatiana Stead, a bank spokeswoman, adding that last year “we terminated our relationship with the dealership” where Mr. Estrada worked. Dawn Martin Harp, head of Wells Fargo Dealer Services, said that “it’s important to note that not all claims of dealer fraud turn out to be fraud.”
This one goes down in the category of “its good to be a Receiver or Trustee if there is a lot of money left to go after once the fraud is found out and stopped.” The fees, paid by the industry-backed Securities Investor Protection Corp., or SIPC, which is managing the case, have financed a team of lawyers who this week surpassed $10 billion in recoveries for victims, or almost 60 percent of the principal that vanished after Madoff’s arrest in December 2008.
“No one would have anticipated this recovery six years ago, and not a nickel of the fees has come out of the customer fund,” Stephen Harbeck, SIPC’s president, said today in a phone interview. “It’s a remarkable achievement.”
It’s a great rationale for a $1 billion in fees!!
Six years after Bernard Madoff’s fraud collapsed, the cost of liquidating his defunct investment advisory firm to repay thousands of victims has topped $1 billion, though the con man’s former customers aren’t footing the bill.
Read more at Bloomberg.com
Karma is a b—h. This criminal was lucky to walk away, but he must have been hurt.
Luckily his victim was fine.
Another case of instant karma when this thief gets what he’s got coming.
Watch video at BizPacReview.com
Mr. Martins is not in great shape as his bail is rejected while on appeal. This is a harsh part of our judicial system as the judge can arbitrarily decide who lives, outside, and who gets stuck in prison, awaiting appeal. If he wins the appeal he gets to enjoy years of therapy for the pleasure of learning the joys of prison.
The bail ruling is not a verdict on the merits of his appeal. But given the court’s fast decision, it does not bode well for Mr. Martoma, a married father of three. He was convicted in February of carrying out one of the largest insider trading schemes ever while working for SAC, Steven A. Cohen’s former hedge fund.
Read more at NYTIMES.com
So the Swiss are piggybacking on the U.S. Justice department and its equivalent in Britain, so they don’t look like they didn’t care. The notoriously passive Swiss must have been hard pressed to jump on this bandwagon. The United States Justice Departmentand the Serious Fraud Office of Britain are both conducting criminal inquiries, and the Justice Department is expected to have meetings with several banks in the coming weeks. On Wednesday, regulators in Britain, the United States and Switzerland fined a group of the world’s largest banks a combined $4.25 billion to settle civil inquiries accusing them of conspiring to manipulate the currency markets. No bankers were charged with wrongdoing as part of the $4.25 billion settlement that regulators reached this week with JPMorgan Chase, Citigroup, UBS, HSBC and the Royal Bank of Scotland. But the Justice Department’s criminal investigation is moving ahead. Amazing no one was charged!
LONDON – Switzerland’s attorney general has opened a criminal investigation of several individuals in relation to potential manipulation of the foreign currency markets, a spokeswoman confirmed on Thursday.
Read more at NYTIMES.com
Looks like Putin’s friends are under attack by the United States. Its hard to hide fraud and money laundering in this sophisticated world we live in and here is another example of the US using its expertise to uncover such illegalities.
U.S. prosecutors have launched a money-laundering investigation of a member of Vladimir Putin’s inner circle, several people familiar with the efforts said, in a politically sensitive escalation of pressure on the Russian president’s cadre of billionaire supporters.
Read more at ComliancEX.com
He obviously has a great legal team. Can you imagine the bill recognizing how much he already has paid out in settlements.
New York (HedgeCo.Net) – The billionaire hedge fund manager of SAC Capital won’t face any charges as the prosecution has decided that there isn’t enough evidence against him, WSJ reports.
It seems that Steven Cohen has beat the statute of limitations for prosecution from the allegedly massive insider-trading scheme run by one of his portfolio managers, Mathew Martoma. Last week Cohen pleaded the 5th, declining to testify before a grand jury in the recent slate of insider trading allegations against traders at his firm.
Read more at Hedgeco.net
The Justice Department seems to go after the honest and low handing fruit. The hardened criminals and scam artists know how to beat the system and don’t mind the threats and harassment to pay. They ignore the calls and legal letters. The honest people who have made a mistake, probably being conned by one of these scam artists, end up paying their fines as they are not accustomed to live a life in hiding.
On a plane earlier this week, I watched The Wolf of Wall Street. The film’s outsized antics—public masturbation, the tossing of little people, lots and lots of Quaaludes—seemed too big for a seatback screen, or, for that matter, reality. As despicable as some of Jordan Belfort’s behavior was, I was able to occasionally laugh at Leonardo DiCaprio’s version of him knowing that, by now, more than 10 years after his real-life sentencing, Belfort has been sufficiently punished.
Read more at CompliancEX.com
Its amazing what Goldman Sachs have been able to buy themselves out of since they started the firm. They have ducted indictments and SEC charges with a checkbook. The small player could not get away with a fraction of what they have accomplished. I guess it helps that the Secretary of the Treasury is usually an ex Goldman Sach employee like Rubin, Paulson and many others. Maybe these guys are friend with the bandits who have been milking millions from Capital Bank as officers!
When we first covered the Carmen Segarra lawsuit alleging the capture of the NY Fed by Goldman Sachs back in October 2013, we didn’t have much hope for justice to get done. We said that “while her allegations may be non-definitive, and her wrongful termination suit is ultimately dropped, there is hope this opens up an inquiry into the close relationship between Goldman and the NY Fed.
Read more at WallStreetJobReport.com
A large number of big foreign banks including HSBC, Royal Bank of Scotland, Barclays, Credit Suisse, BNP Paribas, Standard Chartered Bank, Commerzbank AG, UniCredit SpA, Credit Agricole SA, Societe Generale, and Deutsche Bank AG have been targeted by US regulators and law enforcement for money laundering, sanctions violations and other matters. ‘
There has been an incredible public backlash against regulators for being afraid to hold banks accountable for their actions.
Milton Barbarosh wants to know when a guilty bank will actually be closed?