Classic Financial and Corporate Scandals

Continued in Part 2

The Credit Crunch

Brian Hunter and Amaranth Advisors

John Rusnak and Allied Irish Banks

How to lose a billion

The John Rusnak case is reviewed in detail and compared with those of other infamous rogue traders such as Nick Leeson, Peter Young and Toshihide Iguchi. William Leith, the Guardian, October 26, 2002.

 

"Rogue" AIB trader pleads guilty to fraud

The Former currency trader pleaded guilty to one count of bank fraud and agreed to a reduced sentence in return for helping the investigation into whether other people were involved in the scandal. BBC, 24 October, 2002.

 

AIB sells Allfirst to M&T in $3.1 billion deal

Chief executive Michael Buckley denied that the sale had anything to do with the John Rusnak affair. 26 September 2002.

 

News on the AIB Rogue Trader

The latest developments and recent articles from Ananova.

 

Rogue trader missing after $750m fraud

Allied Irish Banks (AIB) has named John Rusnak, a US citizen in his 40s, as the trader at the centre of a suspected $750m (£529m) fraud at its US subsidiary.

 

Allfirst rogue trader accused of costing AIB $750m

News about the scandal from Radio Telefís Éireann, the Irish National Public Service Broadcasting Organisation.

 

Jerome Kerviel and Société Générale

Banco Ambrosiano and the Vatican Bank

Although this series of scandals first came to light in the early 1980s the controversy is not over yet.

Five are cleared in 'God's banker' case

The death of Roberto Calvi, an Italian banker found hanging from Blackfriars Bridge in London 25 years ago remains shrouded in mystery after a court in Rome cleared five people accused of luring him to his death. Daily Telegraph, 7 June 2007.

 

Four charged over Calvi killing

Four people have been charged with murder over the 1982 London death of Italian banker Roberto Calvi. BBC, 18 April 2005.

 

Mafia squad probe Calvi bag theft

Italy's anti-Mafia police are looking into the theft of files from the UK coroner, Paul Matthews, who is re-examining the death of Roberto Calvi. BBC, 4 May 2004.

 

Four go on trial for murder of God's banker

More than 20 years after the death of the banker Roberto Calvi was dismissed as suicide, four people, including a jailed Mafia boss, have gone on trial in Rome, charged with his murder. Guardian, March 17 2004.

 

Police investigating murder of God's Banker

Detectives investigating the murder of "God's banker" Roberto Calvi, have discovered more than $70 million hidden in a Bahamian bank. The money is believed to be connected to the collapse of the Banco Ambrosiano and is thought to be the proceeds of Mafia drugs deals. The Scotsman, 18 February 2004.

 

Calvi bank's $70m traced

Investigators probing the death of Roberto Calvi are close to seizing $70 million missing from the collapse of Banco Ambrosiano. The Observer, December 14, 2003.

 

Key witness held on Calvi

Police have arrested Odette Morris, the woman who provided an alibi for Flavio Carboni who has been charged with Calvi's murder. Evening Standard, 10 December 2003.

 

A son's quest for truth

Carlo Calvi has spent over two decades trying to get justice for his murdered father. Evening Standard, 7 October 2003.

 

'God's banker' death case reopened

Italian prosecutors have concluded the Mafia murdered the Italian banker, Roberto Calvi, who was found dead more than 20 years ago, and have named four people suspected of carrying out the killing. BBC, 24 July 2003.

 

New clue turns up in 'God's banker' death

Italian investigators have discovered a safety deposit box belonging to Roberto Calvi some 20 years after "God's banker" was found hanging from scaffolding under Blackfriars Bridge in London. The Guardian, October 14, 2002.

 

New tests 'say Calvi was murdered'

Long-awaited forensic tests into the death of Vatican banker Roberto Calvi - found hanging from a bridge in London in 1982 - are reported to show he was murdered. BBC, 19 April 2002.

 

Ban looms over Vatican bank movie

The film God's Bankers (I Banchieri Di Dio) based on the death of financier Roberto Calvi, could be pulled from cinemas over claims it slanders Flavio Carbonim an Italian businessman. BBC, 27 March 2002.

 

I Banchieri di Dio

Information about the film from the Internet Movie Database.

 

Who Killed Calvi?

An essay by Edward Jay Epstein.

 

Operation Gladio

by David Guyatt. Claims that there were links between the Calvi affair and Operation Gladio, a joint project of the US and British secret services to set up a Europe-wide network of anti-communist guerrillas who would fight behind the lines in the event of a Soviet invasion.

 

Exhumation of Italian banker's body

The remains of the prominent Italian banker, Roberto Calvi, were exhumed on 16 December 1998, 16 years after his death, to try and determine whether or not he had been murdered. BBC, 16 December 1998.

 

DNA May Solve Banker's Murder

The latest investigation into the death of Roberto Calvi has produced evidence that could prove the Italian banker was murdered, and possibly even identify his assassin. The Guardian, December 30, 1998.

 

Gelli Arrest is Another Chapter in Sordid Vatican Bank Scandal

Licio Gelli, the fugitive financier dubbed the Puppet Master who played a key role in one of Italy's biggest postwar scandals was arrested in Cannes in September 1998.

 

Vatican Bank Claims

Allegations concerning the Role of the Vatican Bank in WWII. Among the allegations is the claim that the Vatican, through its banking system, laundered loot valued at hundreds of millions of dollars taken from Serb, Jewish, Ukrainian, and other victims of the Nazis and their Croatian supporters.

 

Nazi-Era Victims Demand Army, CIA Release Documents on Vatican

This is in connection with the class action lawsuit against the Vatican Bank and the monastic Franciscan Order. CNS, September 04, 2000.

 

Bank of Credit and Commerce International (BCCI)

Bank to launch massive costs claim against BCCI liquidators

The Bank of England will begin one of the biggest claims for costs in English legal history when it demands up to £80m from liquidators of the Bank of Credit and Commerce International. Jill Treanor, the Guardian, January 30, 2006.

 

BCCI liquidators drop £1bn case

Liquidators for BCCI have dropped their £1bn ($1.76bn) damages case against the Bank of England. BBC, 2 November 2005.

 

Bank of England accused over BCCI

Bank of England officials "shut their eyes and turned away" instead of clamping down on fraudulent activity at BCCI, the High Court has been told. BBC, 13 January 2004.

 

BCCI settlement costs top $1.2bn

Creditors of Bank of Credit and Commerce International are to receive another $1bn (£600m). The cost of the 11-year liquidation has topped $1.2bn. The Guardian, May 15, 2003.

 

Treasury in the dock over BCCI

Treasury officials are bracing themselves ahead of a High Court decision which could force them to release secret papers about the Government's role in the collapse of BCCI. The Observer, May 12, 2002. (According to a report in the Mail on Sunday, 5 May, that is not available on the web, the authorities turned a blind eye to fraud at the BCCI for political and intelligence gathering reasons).

 

Bank faces £1bn law suit

The Bank of England is to be sued for up to £1bn by the liquidators of the collapsed Bank of Credit and Commerce International (BCCI). The BBC, 23 March, 2001.

 

The Sandstorm Report

This is the report of an official investigation into the BCCI affair that the British government refused to publish. Along with other material on BCCI, the Sandstone Report is made available on the web site of AABA, the Association for Accountancy & Business Affairs.

 

BCCI Liquidators Sue Sheikh for £289m

Liquidators are suing the Sheikh of Sharjah for a debt they claim he owes the failed bank. The Guardian Wednesday August 11, 1999.

 

Key Player in BCCI Fraud Loses Appeal

History's biggest convicted commercial fraudster, Abbas Gokal, lost his appeal against his April 1997 conviction on charges involving £750 million. Friday March 12, 1999.

 

Accountants in BCCI Net

The role of accountants Price Waterhouse in auditing for four years the books of scandal-hit Bank of Credit and Commerce International is under investigation.

 

Bank of Crooks and Criminals International

An outline of the main allegations that led to the bank being closed down.

 

Congressional Report on the BCCI Affair

A Report to the Committee on Foreign Relations, United States Senate by Senator John Kerry and Senator Hank Brown, December 1992.

 

Crooked Banks

Allegations of CIA involvement with BCCI and other banks.

 

Nick Leeson and Barings Bank

The collapse of Barings Bank was probably the most discussed financial scandal of the 1990s. The bank was subsequently taken over by the Dutch-based ING Bank.

Bank of England

Conclusion of the Bank of England Report on the Collapse of Barings

 

Executive Summary of the Report of the Inspectors of Barings Futures

The full report is only available in print. The reference is -

Lim, Michael Choo San Barings Futures (Singapore) Pte Ltd : investigation pursuant to section 231 of the Companies Act (Chapter 50) : the report of the Inspectors appointed by the Minister for Finance / Michael Lim Choo San, Nicky Tan Ng Kuang. Singapore : Singapore Ministry of Finance, 1995. - xi, 183p.

The review by Maximilian Hall may also be of interest.

Hall, Maximilian Review of the Singapore Inspectors' Report on Baring Futures (Singapore) Pte Ltd. Loughborough University Banking Centre, Jan 96. - 30cm.i,17... - (Loughborough University Banking Centre Research Paper S.,No.92/96). ISBN - 1-899275-15-0.

Not Just One Man - Barings

A detailed case study by the IFCI Risk Institute. It includes data on the positions taken by Nick Leeson, and a discussion of the lessons that can be drawn from the case.

 

Numa Financial Systems

The Collapse of Barings Bank

a collection of links to articles on the scandal maintained by Numa Financial Systems.

 

US Commodity Futures Trading Commission Response

Status Report on Regulatory and Self-Regulatory Responses to the Barings Bankruptcy

Article by Joseph B. Dial, Commissioner, Commodity Futures Trading Commission.

 

Other Articles on Barings

Deloitte & Touche negligent in Barings audit, rules judge

The high court has ruled that accountancy firm Deloitte & Touche was negligent in its auditing of Barings, the London merchant bank brought down by rogue trader Nick Leeson in 1995. Guardian, June 12, 2003.

 

Coopers fined in Barings disciplinary case

An appeal tribunal for the profession's senior watchdog today upheld its findings against Coopers & Lybrand for the firm's role as auditor in the collapse of Barings. Accountancy Age, 20 April 2002.

 

Barings: A Random Walk to Self-Destruction

This article argues that regulators and human nature do not always coincide in their objectives. In the old days, speculators were protected by the twin devils of fear and greed - the gambler's emotions. Computers do not know fear or greed, they do not have any common sense, either. Anyone trading off a screen soon loses touch with reality and common sense. The article appeared in Scandals in Justice which regularly publishes online articles attacking the British legal system.

 

Billion-Dollar Man

Rogue trader Nick Leeson astonished the world when his derivatives deals brought down Barings - and forced reforms on financial markets.

 

Leeson Scandal 'could happen again'

A report from the BBC following the premier of the film Rogue Trader.

 

Leeson paid £61,000 for speech

The former Barings trader was paid $100,000 (£61,000) to speak at a business conference in the Netherlands, BBC Friday 29 October 1999.

 

The central figure in the debacle has written a book about the Barings affair.
Rogue trader by Nick Leeson. London : Warner, 1997. ISBN 0-7515-1708-9. US edition published by Little Brown & Company, 1996 ISBN 0-316-51856-5.

Locking the Stable Door After the Horse has Bolted

Whenever a scandal like the Barings debacle is uncovered there is a demand that legislators and regulators should ensure that nothing similar occurs again. All too often such action is merely a case of locking the stable door after the horse has bolted. Could frauds on a massive scale be foreseen? Regulators are hardly likely to answer yes because that would undermine their excuses for their failures.

However, immediately after the news of the Barings affair broke, Allan Fotheringham writing in the leading Canadian news and current affairs magazine Maclean's made the following points.

Author Linda Davies has proven a point made years ago by Marshall McLuhan, who said that artists can warn us of future disasters. Three years ago, Davies wrote the novel, Nest of Vipers, about a computer whiz-kid who decides to exploit the system and make tons of money while being employed as a mole by the Bank of England. She wrote what 28-year-old Nick Leeson accomplished in Singapore last week. Leeson has been able to upset world economies more than J. P. Morgan, the Vanderbilts, or the Rothschilds ever could.

Bre-X and Canadian Mining Scandals

The Archived Official BRE-X website

The official website of the company has been preserved by the Wayback Machine which archives a huge number of internet sites.

 

Books by Diane Francis

The page includes a description of the book BRE-X :The Inside Story.

 

On the Road to Busang with BRE-X

Brief notes from Business Week magazine on some of the big-name players that had close dealings with Bre-X Minerals.

 

Stranger than Fiction: The Bre-X Gold Scandal

Recordings of items about BRE-X in TV and radio programmes from the CBC archives.

 

Bre-X Survivor Clarifies Why He Invested

John Kutyn explains why he bought BRE-X shares and recommended them to others.

 

Gold mine scandal tales only scratch the surface

More reviews of books on the scandal.

 

Canadian Court Puts Bre-X in Bankruptcy

Bre-X Minerals Ltd. was put into bankruptcy by the Court of Queen's Bench of Alberta.New York Times, November 6, 1997.

 

Bre-X Class Action

Case Summary from Sutts Strosberg LLP acting on behalf of BRE-X shareholders who were residents of Canada.

 

The Deloitte & Touche Inc's Forensic Investigative Associate Inc. (FIA) Report

The full text of a report on how the mineral samples were tampered with.

 

Bre-X's Busang site full of red flags: expert

Graham Farquharson, president of Strathcona Mineral Services Ltd, the firm that produced a detailed report on the tampering process, claimed that questions should have been raised much earlier. May 30, 1998.

 

Mining Watch: More Precious than Gold.

The notorious Vancouver Stock Exchange (VSE), is synonymous with the financing of junior mining companies around the world. Since the late seventies, the VSE has been infamous as a high risk, scam-ridden institution that has been called "the Sodom and Gomorrah of modern day financial markets." That description, by Equity Magazine, is quoted in this article at the Mining Watch website.

For a treatment in fiction of the Vancouver Stock Exchange financing a diamond deal see Wilderness of Mirrors.

The Butcher Brothers and the United American Bank

Whirlwind

The website of Sandra Lea, the author of the authoritative book on the rise and fall of the multi-state banking empire, Whirlwind: the Butcher Banking Scandal. A story of unbridled lust, greed and insatiable passions, the book has been described as a cross between Dallas and The Godfather. Sandra Lea's website contains additional information about the Butcher brothers scandal, as well as information from the book and where to order it.

 

Schledwitz v. United States

This ruling from the Court of Appeals in 1999 has background information about the Butcher brothers and the collapse in 1983 of the United American Bank of Knoxville, the fourth-largest bank failure in U.S. history. After their banking empire collapsed Jake and C.H. Butcher were convicted of fraud.

 

Carousel Fraud.

Q&A: the fraud carousel

An explanation of how the fraud works. Simon Newark, Best Practice 20 July 2006.

 

Carousel fraud bill to reach £5bn

VAT carousel fraud will cost the cost the British government at least £5bn this year, according to a study by mid-tier firm Grant Thornton. Accountancy Age, 4 Dec 2006.

 

Treasury sees a rise in VAT fraud

The UK Treasury has said it lost between £2bn and £3bn in 2005-06 because of carousel fraud. BBC, 6 December 2006.

 

Cendant Corp.

Massive Financial Fraud at CUC and Cendant Corp.

The Securities and Exchange Commission brought civil and administrative fraud and other charges against seven former officials of CUC International Inc. (CUC) and Cendant Corporation for their involvement in a massive financial fraud that caused billions of dollars in losses for investors. June 14, 2000.

 

Cendant pays $3.2 billion to clear fraud settlement

Cendant Corp., the marketing and franchising company battered by accounting problems in 1998, has agreed to pay $3.2 billion to settle a shareholder lawsuit accusing it of fraud. May 28, 2002.

 

Credit Lyonnais

Credit Lyonnais' Tangled Tale

A timeline of the developments involving Credit Lyonnais and Executive Life. Business Week, July 30, 2001.

 

Credit Lyonnais probe widens

The US financial authorities are considering prosecuting French bank Credit Lyonnais for conspiracy and money laundering, BBC, 6 September 2001.

 

A California Law Suit Makes Paris Tremble

An article from Salon magazine about the legal problems of Credit Lyonnais. February 22, 2000.

 

Trichet trial could halt ECB handover

A magistrate in Paris has ruled that Jean-Claude Trichet, governor of the Bank of France and heir-apparent to European Central Bank president Wim Duisenberg, must face the courts over events at the then state-controlled Credit Lyonnais in the early 1990s. The Guardian, 17 July 2002.

 

How an Italian Thug Looted MGM, Brought Credit Lyonnais to its Knees, and made the Pope Cry

An article about Giancarlo Parretti.

 

The Bank Scandal That Keeps Growing

An article from Business 2.0 magazine, July 1997, by David McClintick.

 

Financiers flamboyants, contribuables brules

par Ibrahim Warde, Le Monde Diplomatique, Juillet 1994. Article in French about how deregulation has led to scandals in various countries, e.g. Credit Lyonnais in France and Banesto in Spain.

 

Toshihide Iguchi and Daiwa Bank

Toshihide Iguchi - Epilogue to My Billion Dollar Education

No English language edition of Toshihide Iguchi's book My Billion Dollar Education has been published. This epilogue to it is published her with his permission.

 

Bank Bosses Pay $775m Fraud Charge

A group of senior executives at Daiwa have been ordered to pay more than $750m (£535m) in compensation for losses incurred during fraudulent trading. BBC, 20 September, 2000.

 

Criminal Complaint & Indictment Against Daiwa Bank

The official account of the prosecution's case against Daiwa Bank in the Toshihide Iguchi affair.

 

I Didn't Set Out to Rob a Bank

Toshihide Iguchi's interview with Time Magazine.

 

Japan's Billion Dollar Scam

On September 26, 1995, Japan's 12th-largest institution, Daiwa Bank, admitted that lax regulatory controls at a branch in New York had led to a loss of more than $1 billion over an 11-year period. Trader Iguchi Toshihide was blamed for doing a Nick Leeson. Daiwa and Japanese bureaucrats have been accused of a cover-up.

 

Daiwa Bond Trading Scandal Figure Book From Jail

Details of claims made by Toshihide Iguchi in a book he wrote - from Viking Phoenix Web's Japan Incorporated site.

 

The Dot-Com Bubble and Investment Banks

Swiss banks reach deal with US regulators

Leading Wall Street brokerages, including the investment arms of Switzerland’s two biggest banks, have reached a settlement with US regulators over charges of issuing biased stock research.

 

Deal clears path for Quattrone to reconstruct banking career

Frank Quattrone has won a deal from prosecutors in a New York that means an end to his legal troubles, clearing the way for him to return to the investment-banking career that had made him one of Wall Street's most powerful technology bankers. Seattle Times, August 23, 2006.

 

Quattrone gets 18 months in prison

Frank Quattrone, who rose to investment banking stardom during the dot.com boom, has been sentenced to 18 months in a federal prison and two years probation for obstructing justice and witness tampering. CNN Money, September 8, 2004.

 

Star US banker faces jail after guilty verdict

Frank Quattrone, one of the most high-flying investment bankers on Wall Street during the dotcom boom, came crashing to earth when he was found guilty of obstruction of justice. Guardian, May 4, 2004.

 

The Frank Quattrone Archives

Chris Nolan's blog maintained a detailed, running commentary on the case.

 

Inside Frank Quattrone's Money Machine

The rise and fall of the high-tech investment banker who was an architect of Silicon Valley's financial culture. Business Week, October 13, 2003.

 

Star of dotcom boom is arrested

The first criminal charges were brought yesterday against a Wall Street banker for actions during the stock market bubble when Frank Quattrone, formerly of Credit Suisse First Boston, was arrested for obstruction of justice. Guardian, April 24, 2003.

 

Merrill Lynch investment scandal

The role of investment banks in recommending that investors bought shares in companies which, allegedly, the analysts were privately describing as junk.

 

Schadenfreude for Eliot Spitzer, fallen crusader

The "sheriff of Wall Street" admits involvement in a call-girl scandal. Daily Telegraph, 11 March 2008.

 

Wall Street's Top Cop

Time Magazine chose Eliot Spitzer, the New York attorney general, as its Crusader of the Year 2002.

 

Enron Corp. and Arthur Andersen

Enron - the Musical

This two act play tells the story of Enron from the perspective of a former employee.

 

Skilling Sentence Shows Enron Changed Everything

An article by Ann Woolner for Bloomberg about the significance of the 24 year sentence handed down to Jeffrey Skilling.

 

The Fall of Enron

A chron.com special reports with an extensive archive of article on the company and the main characters involved in the scandal.

 

Enron Email Dataset

The corpus contains a total of about 0.5M messages, mostly from senior management at Enron. This data was originally made public, and posted to the web, by the Federal Energy Regulatory Commission during its investigation.

 

Rough justice in Land of the Free

Faced with up to 35 years in jail, the British bankers' guilty pleas are a bid to shorten their ordeal. Daily Telegraph, 30 November 2007.

 

British bankers to face Enron charges

Three British bankers will be sent to the United States to stand trial in connection with the collapse of Enron even though the offense of which they are accused was committed in the UK and the United States has prevented people wanted in connection with IRA terrorist offences from being extradited to Britain. Guardian, June 27, 2006.

 

Three win Enron trial extradition reprieve

Three Natwest bankers facing extradition to the United States for alleged involvement in the Enron scandal haveb been given permission by the High Court to challenge their treatment by the Serious Fraud Office. Scotsman, 8 April 2005.

 

UK bankers face extradition in Enron case

Three former NatWest bankers, Gary Mulgrew, Giles Darby and David Bermingham, should be extradited to the US to face trial over Enron-related fraud charges, a judge has ruled. Guardian, October 15, 2004.

 

My life with the Enron high-rollers

Robert Kelsey, author of the novel The Pursuit of Happiness: Overpaid, Oversexed and Over There, included thinly-disguised portraits of the three former Greenwich Nat West bankers charged with siphoning off £4.8m from their employer. Evening Standard, 12 July 2002.

 

No business as usual after "perfect storm" of Enron scandal

A wide-ranging review in the aftermath of Kenneth Lay's indictment. Seattle Times, July 11, 2004.

 

Guardian Special Reports: Enron

A directory of articles from the Guardian on Enron.

 

Fraud-charge trio fight extradition

Three London-based former NatWest investment bankers should be extradited to the US after taking part in a $20m (£11m) Enron-related scam to defraud their former employer, a court was told. Evening Standard, 21 June 2004.

 

Enron Traders Caught On Tape

When a forest fire shut down a major transmission line into California, cutting power supplies and raising prices, Enron energy traders celebrated. CBS June 1, 2004.

 

The Hijackers of Harvard - a name and address

An article about Herbert S. "Pug" Winokur, Chairman of the Enron Finance Committee who claims he was misled by Enron management.

 

Bankers charged over Enron

Four former Merrill Lynch bankers have been charged with taking part in the securities fraud at the energy giant. BBC, 18 March 2003.

 

Enron energy trader pleads guilty

The former head of Enron electricity trading has pleaded guilty to a charge of conspiracy to commit fraud for his part in manipulating California's energy market to drive up power prices. BBC, 17 October, 2002.

 

The curse of Enron

Enron is the most infamous and mind-boggling financial scandal ever seen. It has decimated the money markets more effectively than the best efforts of Osama bin Laden, Saddam Hussein or even Norman Lamont. The Independent, 25 August 2002.

 

A Review of FASB Actions Post-Enron and WorldCom

A report from the Committee on Energy and Commerce of the U.S. House of Representatives.

 

Financial Times Special Reports on Enron

An archive of FT articles on the downfall of Enron.

 

The End of Enron?

A CNN in-depth special investigation.

 

As Enron scandal spreads, US starts to question cash for influence culture

A report on the political implications of the Enron debacle. The Guardian, January 16, 2002.

 

The Enron Black Magic

The first of a number of articles from Skolnick's Report.

 

Enron Execs Reap $744 Million

Top Enron Corp. workers reaped $744 million in payments and stock in the year leading up to its bankruptcy filing, the company disclosed on June 17, 2002.

 

A final accounting

Articles from the Chicago Tribune on the problems afflicting Arthur Andersen since its involvement with Enron.

 

Durant's Big Scam : The Transcontinental Railroad and Enron

In this January 2003 essay, New Yorker financial columnist James Surowiecki investigates the Crédit Mobilier scandal behind the financing of the Union Pacific railroad, and compares it to the Enron scandal nearly a century and a half later.

 

The Flaming Ferraris

Because of the relatively small sums involved this is unlikely to go down in history as a classic financial scandal but it is one that in February and March 1999 received plenty of publicity following reports that a member of the team had been involved in illegal trades in the Swedish stock market.

Securities and Futures Authority Disciplinary Action

The report on three of the Flaming Ferraris.

 

Archer son lied to cover his tracks

The Securities and Futures Authority found that Mr Archer, along with Adrian Ezra and David Crisanti, lacked the integrity to work in the City. Guardian July 28, 2001

 

Flaming Ferraris sacked

James Archer, whizz-kid son of Lord Archer, the millionaire novelist, was sacked along with two of his colleagues by Credit-Suisse First Boston, the investment bank, for their role in an alleged attempt to manipulate share prices on the Swedish stock exchange. Guardian, March 6, 1999.

 

How 'Flaming Ferraris' burned their bridges

The five 'Flaming Ferraris', the world's most successful share traders, based their reputation on a simple publicity stunt. Observer, February 28, 1999.

 

Jardine Fleming

Whom to Trust? Investors are spooked by a scandal in Asia's No. 1 fund manager

An account of the Colin Armstrong affair and its effects on Jardine Fleming and on Hong Kong in general.

 

Martin Frankel

Martin Frankel sentenced to more than 16 years for insurance fraud

Former financier Martin Frankel, who became a fugitive after bilking seven insurance companies out of more than $200 million, has been sentenced to more than 16 years in prison. San Francisco Chronicle, 10 December 2004.

 

Guilty plea from $200m fraudster

Martin Frankel pleaded guilty to 24 federal charges including racketeering, securities fraud and conspiracy. BBC, 16 May, 2002.

 

The Pretender

Information based on the book by the Wall Street Journal reporter Ellen Joan Pollock on how Martin Frankel fooled the financial world and led the Feds on one of the most publicized manhunts in history. The book is also available from Amazon.com.

 

A Reversal of Fortune

Martin Frankel explains his downfall.

 

Does Frankel's journal provide map to missing millions?

An article from the Toledo Blade about the efforts to find the money taken by Martin Frankel. May 6, 2001.

 

Griffin Trading Company

Derivatives firms shut down

The UK's Securities and Futures Authority (SFA) forced two firms to close down after John Ho Park lost at least £6.2m, in the biggest trading scandal to hit the City of London since Nick Leeson broke Barings Bank.

 

Conrad Black and Hollinger International Inc.

Conrad Black

On July 13, 2007, former media mogul Conrad Black was found guilty on three counts of fraud and one count of obstruction of justice.

 

Black Hole

An editorial about the findings of the internal investigation into financial malpractice within Hollinger conducted by Richard Breeden, a former chairman of the US securities and exchange commission. There are links to many other Guardian articles on Conrad Black and Hollinger. Guardian, September 2, 2004.

 

Black fingered for looting

Conrad Black and other controlling shareholders of Hollinger International Inc. engaged in "self-righteous and aggressive looting" of more than $400 million from the newspaper publisher over seven years, a report claimed. Calgary Sun, September 2, 2004.

 

Walter Mitty life of media magnate turned robber baron

An article about the career of Conrad Black. The Scotsman, 2 September 2004.

 

Harshad Mehta

"Big Bull" Harshad Mehta dead

The man accused of India's biggest stock market scam died on 31 December 2001.

 

How Harshad Mehta did it again

An outline of the long-running Indian stock market scandal of the 1990s by Sucheta Dalal.

 

Sucheta Dalal's Website

Sucheta Dalal is the journalist who helped to expose the Harshad Mehta scandal and she is the author of The Scam, a book on it. Her article 10 years of financial scams puts that case in perspective.

 

Joseph Jett and Kidder, Peabody & Co.

Wall Street Lynching

The story of Joseph Jett, the man falsely accused of bringing down Kidder, Peabody & Co.

 

Jett and Kidder Peabody

A series of articles on the Jett-Kidder Peabody bond trading case by Steven Huddart, Smeal College of Business, Penn State University.

 

GE's Investment in Kidder Finally Pays Off

A Wall Street story that began in the 1980s concluded in December 2000 with the buyout of PaineWebber by the Swiss investment bank UBS.

 

Liu Qibing and copper futures

Mystery after China copper trader vanishes following heavy losses

Chinese authorities have rejected reports of any link with Liu Qibing who was said to have worked for Beijing but vanished after making wrong bets on copper futures contracts that could potentially cost hundreds of millions of dollars. Forbes, 15 November 2005.

 

Spotlight on Beijing as copper trader goes missing

Liu Qibing, a copper trader for a secretive, high-level Chinese government agency has gone missing. The Standard, November 16, 2005.

 

Bernard L. Madoff Investment Securities

Bernard Madoff gets 150 years in prison

Bernard Madoff was sentenced to the maximum term of 150 years in prison for the biggest swindle in the history of Wall Street. Times, June 29, 2009.

 

The 17th Floor, Where Wealth Went to Vanish

The epicenter of what may be the largest Ponzi scheme in history was the 17th floor of the Lipstick Building, rising 34 floors above Third Avenue in Midtown Manhattan. The New York Times, December 14, 2008.

 

British banks losing billions to ‘one big lie’ in biggest ever fraud

The eye-popping scale of what is being billed as the world’s largest swindle has become apparent as wealthy investors and banks around the world emerged as the victims of Bernard L. Madoff. The Times, December 16, 2008.

 

Madoff fall-out spreads worldwide

Banks around the world have revealed their exposure to Maddoff's firm. Financial Times, December 15, 2008.

 

 

Go to Part 2 of Classic Financial Scandals