Manafort Indicted in New York on State Charges

WASHINGTON (AP) — The Latest on the sentencing of former Trump campaign chairman Paul Manafort (all times local):

12:45 p.m.


Donald Trump’s former campaign chairman Paul Manafort has been indicted in New York on state charges, seen as a strategy for preventing a potential presidential pardon.

An indictment unsealed Wednesday in Manhattan accuses the 69-year-old Manafort of conducting a yearlong residential mortgage fraud scheme that netted millions of dollars.

The indictment filed March 7 was unsealed the same day Manafort was sentenced in Washington in the second of two federal cases against him.

He would serve more than seven years in prison in those cases. Trump has repeatedly defended him and floated the idea of granting a pardon, but would not be able to do so in a state case.

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12:15 p.m.

A federal judge has sentenced former Trump campaign chairman Paul Manafort to more than 3 1/2 additional years in prison.

That’s on top of the roughly four-year sentence he received in a separate case in Virginia last week.

The sentence followed a scathing assessment by the judge and a prosecutor of Manafort’s crimes.

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10:55 a.m.

Former Trump campaign chairman Paul Manafort is apologizing for his crimes.

Manafort, 69, betrayed no emotion as he read his statement in federal court Wednesday from his wheelchair.

The judge said she’d give Manafort credit for accepting responsibility for his crimes when she determines his sentence.

It’s the former Trump campaign chairman’s second sentencing in as many weeks, with a judge expected to tack on additional prison time beyond the roughly four-year punishment he has already received.

Special counsel Robert Mueller’s team has prosecuted Manafort in Washington and in Virginia related to his foreign consulting work on behalf of a pro-Russia Ukrainian political party. Manafort was convicted of bank and tax fraud in Virginia and pleaded guilty in Washington to two conspiracy counts, each punishable by up to five years in prison.

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10:33 a.m.

A prosecutor with special counsel Robert Mueller’s office says former Trump campaign chairman Paul Manafort “engaged in crime again and again” over more than a decade and undermined American ideals. 



Prosecutor Andrew Weissmann did not recommend a particular punishment for Manafort at his sentencing hearing on Wednesday.

But he delivered a scathing assessment of Manafort’s crimes, saying he concealed his foreign lobbying work, laundered millions of dollars and even coached other witnesses to lie.

Weissmann says Manafort’s crimes undermined the rule of law and committed crimes that “go to heart of the American criminal justice system.”

He says Manafort’s upbringing and education could have led him to an exemplary life, but that at each turn, “Mr. Manafort chose to take a different path.”

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10:05 a.m.

A judge says she’ll give former Trump campaign chairman Paul Manafort credit for accepting responsibility when she determines his sentence.

Defendants in federal court normally can get a shorter sentence by pleading guilty and taking blame for their conduct.

U.S. District Judge Amy Berman Jackson says she’ll give Manafort some credit for having pleaded guilty in September to two counts of conspiracy in his Washington case.

A prosecutor with special counsel Robert Mueller’s office says Manafort doesn’t deserve any credit because he repeatedly lied to investigators and to the grand jury after his guilty plea. 



But defense lawyer Thomas Zehnle says Manafort has “come forward” to take responsibility, and that the topics he’s accused of lying about are about different ones from the crimes he admitted to.

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9:40 a.m.

The sentencing hearing for former Trump campaign chairman Paul Manafort is underway in Washington.

Manafort is seated in a wheelchair at the defense table next to his lawyers.

U.S. District Judge Amy Berman Jackson says she’s received many letters in support of Manafort.

Manafort faces a maximum of 10 years in prison at his sentencing as part of special counsel Robert Mueller’s Russia investigation. Manafort has pleaded guilty in Washington to two conspiracy counts. He was sentenced in a separate case in Virginia last week to 47 months in prison.

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12:10 a.m.

Former Trump campaign chairman Paul Manafort is due back in court for his second sentencing hearing in as many weeks. 



Manafort faces up to 10 additional years in prison when he’s sentenced in Washington on Wednesday in special counsel Robert Mueller’s Russia investigation.

The hearing comes a week after a judge in Virginia sentenced Manafort to 47 months in prison, far below what government guidelines recommended.

The Mueller team has prosecuted Manafort in both jurisdictions for charges related to his foreign consulting work. He was convicted at trial in the Virginia case and pleaded guilty in Washington to two conspiracy counts, each punishable by up to five years in prison.

A judge will decide Wednesday whether the sentences in the two cases should run consecutively or at the same time.

source: usa.inquirer.net

Looking for romance online? Beware of ‘love scams’

With Valentine’s Day just around the corner, the Bureau of Customs (BOC) on Friday warned the public anew against so-called online “love scams.”

According to the bureau, it continues to receive reports about the modus operandi of “love scammers” who target single men and women searching for love online.

The scam begins with the suspects befriending the victims online using social networking sites like Facebook, internet chat rooms or other dating sites. Most of the e-mail senders supposedly come from Australia, the United Kingdom and the United States.

After several weeks or months the perpetrators would send a message that they have sent a box containing expensive gifts like designer bags, jewelries, gadgets like laptops and smartphones via international door-to-door parcel complete with tracking number and invoice for the supposed shipment.

The victims would then receive an email, a phone call, or a text allegedly from an officer or an employee of the BOC informing them that package was held in BOC and that it would be sent to them only after they pay customs duties and taxes to be deposited in a designated bank account or money transfer service.

After remitting the money to a bank, however, the package never arrives and their “significant other” never contacts them again.

In July last year, the BOC reported that at least 44 people in Manila reported that they fell for the scam. But this number did not include those residing in the provinces.

Customs Commissioner John Sevilla, in a statement, said they are continuously receiving reports not only here in Manila but also from their provincial collection districts.

However, he said they seldom receive official complaints.

“Just phone calls from the victims that they have been scammed. But they don’t leave information. Maybe they are not comfortable talking about their predicament due to its sensitive nature,” Sevilla said.

“Please be advised that with [regard] to packages, parcels or even balikbayan boxes, the Bureau of Customs deals with the consolidator, forwarder or courier in charge of your package directly so if ever there is a problem with your packages, the BOC will not call, text or email you but will communicate with your consolidator, forwarder or courier,” he said.

“BOC does not also give assessments and computations of duties and taxes by email or text. These are computed and written on official BOC document that are payable only to the Bureau and not through any bank or money transfer service,” he added as he urged the public to be more vigilant against these scams.

Prior to making any payment, recipients of emails purportedly sent by the bureau were advised to inquire first through its public assistance contact channels (+632) 9173201, or email ocompacd@gmail.com, and Twitter: @CustomsPH.

source: technology.inquirer.net

Feds hit Wells Fargo with mortgage-fraud suit

NEW YORK -- The U.S. attorney in Manhattan has accused Wells Fargo of defrauding a government-backed mortgage insurance program, in another major civil case brought in the wake of the housing bust and financial crisis.

The mortgage-fraud suit, filed by U.S. attorney Preet Bharara, seeks "hundreds of millions of dollars" in damages for claims the U.S. Department of Housing and Urban Development has paid for defaulted loans "wrongfully certified" by Wells Fargo.

The suit alleges the San Francisco banking giant falsely certified loans insured by the government's Federal Housing Administration.

“As the complaint alleges, yet another major bank has engaged in a longstanding and reckless trifecta of deficient training, deficient underwriting and deficient disclosure, all while relying on the convenient backstop of government insurance," Bharara said in a statement.

Adding "accelerant to a fire," Bharara said, was Wells Fargo's bonus system that rewarded employees based on the number of loans it approved.

The lawsuit alleges the bank failed to properly underwrite more than 100,000 loans it certified to be eligible for FHA insurance. When Wells Fargo discovered problems with the loans, it failed to notify HUD, which administers the FHA program, as required, the suit said. The action alleges more than 10 years of misconduct.

"The extremely poor quality of Wells Fargo's loans was a function of management’s nearly singular focus on increasing the volume of FHA originations -- and the bank’s profits -- rather than on the quality of the loans being originated," Bharara's office said in a statement.

Wells Fargo denied the lawsuit's allegations, saying it acted in good faith and in compliance with government regulations.

"Many of the issues in the lawsuit had been previously addressed with HUD," Wells Fargo said in an emailed statement. "Wells Fargo is the leading FHA lender and has acted as a prudent and responsible lender with FHA delinquency rates that have been as low as half the industry average. The Bank will present facts to vigorously defend itself against this action. Wells Fargo is proud of its long involvement in the FHA program, which has helped so many people obtain affordable mortgages and become homeowners."

The Wells Fargo case is the fifth such mortgage-fraud case against a major lender brought by Bharara's office.

Three of those cases settled this year: CitiMortgage Inc. for $158.3 million, Flagstar Bank F.S.B. for $132.8 million, and Deutsche Bank and MortgageIT for $202.3million. A lawsuit against Allied Home Mortgage Corp. is pending.

A separate mortgage-fraud task force led by the New York attorney general brought an unrelated lawsuit against JPMorgan Chase & Co. last week.

Wells Fargo stock fell on news of the lawsuit. The bank's share's lost 70 cents, or 2%, to $35.10 in Tuesday trading.

source: latimes.com

Scam watch: Credit card interest, real estate, time shares

Here is a roundup of alleged cons, frauds and schemes to watch out for.

Credit card interest – The Federal Trade Commission is sending refunds to more than 4,400 consumers who were defrauded by a telemarketing firm that promised to reduce their credit card interest rates in exchange for an upfront fee. The FTC sued Economic Relief Technologies and several related firms and individuals in 2010, accusing them of a massive telemarketing fraud. Victims were told the company would get banks to reduce their interest rates -- saving them thousands of dollars in interest -- if they paid fees ranging from $990 to $1,495, the FTC said. But after consumers paid the fees, the company did little to negotiate better interest rates and then refused to provide refunds to unhappy customers, the FTC said. The FTC obtained a settlement from the defendants, which will be used to pay refunds of between $31 and $1,300 to victims, based on how much they lost in the scam, the FTC said.

Real estate investment – Acting at the request of the Securities and Exchange Commission, a federal judge has frozen the assets of a San Diego firm that operated a real estate investment pool. The SEC alleges that Louis V. Schooler failed to tell investors about the “exorbitant markup” he charged for shares of his investment pool. His company, Western Financial Planning Corp., said it would buy vacant land in Nevada, hold it and sell it for profit at a later date. “Schooler conned hundreds of people into investing with Western by leading them to believe that they were getting a good value for plots of vacant land,” said Michele Wein Layne, director of the SEC’s Los Angeles regional office. “What he didn’t tell them was that the land was worth only a small fraction of their investment and that he was profiting at their expense.” A receiver has temporarily been placed in charge of the fund’s assets.

Time-share ‘buyers’ – The Better Business Bureau is warning owners of time-share properties that they should not pay upfront fees to a telemarketing company that claims to have found buyers for their properties and wants an upfront “transfer fee.” The company, PHB Title, claims on its website that it is based at a Milwaukee address, but the BBB says there is no such company at that address. Callers, some with foreign accents, claim to be from a title company that will double owners' time-share investment after they pay the fee. “Our office has spoken with consumers from various states that have come close to falling for this, stopping short of wire transferring money,” said Ran Hoth, president of the Wisconsin BBB. “Thankfully, nobody has paid money, and that’s why we want to get the word out on this now.”

source: latimes.com

Mastermind of NV mortgage fraud scheme sentenced

A former Las Vegas businessman has been sentenced to nearly 22 years in federal prison for masterminding a mortgage fraud scheme that cost financial institutions more than $24 million.

The Las Vegas Review-Journal reports (http://bit.ly/KHJ3kV ) Senior U.S. District Judge Roger Hunt on Friday also ordered Brett Depue of Gilbert, Ariz., to pay $1.6 million in restitution.

Depue was accused of conspiring to recruit straw buyers with good credit to buy about 100 homes with mortgage applications containing false information, then renting the properties before selling them at a profit.

Prosecutors say he acknowledged making as much as $13 million off the scheme through investment companies he operated from 2005 to 2007.

The 38-year-old Depue was found guilty by a jury in March of multiple conspiracy and wire fraud charges.

source: lasvegassun.com

Court of Appeals freezes accounts of Brit's wife in £750-million scam

MANILA, Philippines - The Court of Appeals (CA) has frozen the bank accounts of the Filipino wife of a British national who is facing charges involving a 750-million-pound (around P50 billion) fraud scam in the United Kingdom.

In a resolution released last Monday, the fourth division of the appellate court ordered Philippine Savings Bank and Standard Chartered Bank to immediately freeze the accounts under the name of Ruth Ramos Ochavez for 20 days.

Associate Justices Juan Enriquez Jr. and Manuel Barrios concurred with the ruling penned by Associate Justice Apolinario Bruselas Jr.

The CA issued the freeze order to avoid the possibility of funds being withdrawn, removed, transferred, concealed, and placed beyond the reach of Philippine law enforcers.

The order was sought in an ex-parte petition filed by the Philippines’ anti-money laundering agency.

On Aug. 11, 2011, the Department of Justice coordinated with the Anti-Money Laundering Council after it received a request of assistance from the Serious Fraud Office (SFO) of the government of the UK, coursed through the UK Judicial Cooperation Unit.

The request was made on the basis of the good international relations between the Philippines and the UK, and their common interest against criminality.

The British government had conducted an investigation on Achilleas Kallakis, a.k.a. Stefanos Kollakis, Alexander Lewis, a.k.a. Martin Lewis and Michael Karl Helmut and Mauritius Becker for violations of British criminal laws, “by conspiring amongst themselves to submit false and/or forged documents and/or statements to defraud Allied Irish Bank (AIB), an Irish company with branch registration in England and a UK subsidiary, AIB Group (UK) PLC, of money in the amount of around 700 million pounds, as well as alleged violations of British anti-money laundering laws.”

Records show that the crimes were allegedly committed between 2003 and 2007.

The SFO believes that Williams, alias Martin Lewis, violated UK money laundering laws by transferring illegally obtained funds of AIB to a network of accounts overseas and concealed the proceeds he obtained from the fraud by passing them to his wife, Ochavez, through her bank accounts in the Philippines.

The SFO added that Ochavez received cash deposits in a UK bank account during the period of the fraud even if she had not declared any income from employment in the UK since April 2005.

The SFO identified the subject bank accounts in the Philippines, both in the name of Ochavez, where proceeds of the alleged unlawful activities were transferred.

source: philstar.com