Signet Bank, Richmond, VA
Financial Institution Loan Fraud Tracing the proceeds in the ‘Bank Caper of the Century’ “BANK CAPER OF THE CENTURY” is how Virginia Business magazine described the way former Signet Bank in Richmond, Va., was victimized by John Reiners, a former Philip Morris executive who obtained more than $300 million in bogus loans through Nelco, a local computer leasing company and a New York computer firm owned by Ruffo. Briefly, the two men invented a fictitious secret project for which the tobacco company supposedly needed millions of dollars worth of computers. Two Richmond banks and six other international lending institutions relied...
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Continental Bank – Grain Commodity as Collateral
Financial Institution Loan Fraud Grain Commodity as Collateral A bank was stung by the realization that the collateral placed by a commodity broker had little substance. After preliminary inquiries, it became evident that trading records in the possession of one of the brokers were essential to the matter. However, they were not forthcoming and thereafter an application was made for an Anton-Pillar order. I had been retained by Counsel and the idea of being a part of the invitation to search (via the Anton-Pillar order) was attractive, particularly given the level of case knowledge that I had already accumulated. But...
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Regina vs. Waddilove & Steele
Financial Institution Loan Fraud An Acquittal of the Banker and the Bankee In May 1976, this fraud trial was held in Toronto, a trial that involved the largest allegation of bank fraud in Canadian history: $3 million. I spent 7 days in the witness box, in a jury trial using graphs and schedules to explain the circular flow of funds in a significant kiting scheme. Several interesting points arose from this case: The jury returned with an acquittal and a lesson was learned that there is no need to prove all the transactions in a case as it becomes too...
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Regina vs. Grant Clark, and others
Financial Institution Loan Fraud $16 Million = $900 Thousand This was an extensive check-kiting scheme whereby the accused defrauded two banks and one credit union for about $900,000. However, over a period of seven months, $16,000,000 of bank deposits were generated, mostly involving checks issued to or from the controlled accounts operating within the kite. Removal of these checks issued within the circle of controlled accounts reduced total deposits to less than $800,000 of money actually received from outside sources. In preparation for trial in September 1980, a unique accounting schedule was designed to show the jury the chronology of...
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