Financial Services & Corporate Fraud

FINANCIAL SERVICES, BANKING & CORPORATE FRAUD AND ABUSE

 

Mr. Eisele represents clients who have lost money that they invested.

A short list of white-collar fraud includes bank fraud, investment fraud, insurance fraud, accountant fraud, control fraud, sending excessive or fraudulent billing statements to the government, and the concealment of substandard work on government contracts.

The most harmful frauds are resourceful. The victim knows he has lost money but usually does not know he has been played. 

The current economic crisis revealed a wave of fraud in America. It is big business. White-collar fraud costs Americans more in direct financial loss than street crime including burglary, theft, armed robbery and all other property crimes combined, and it frequently goes unpunished.

These are not hypothetical:

Accounting control frauds is the weapon of choice for financial institutions. Senior officers use accounting tricks to show large short-term profits to justify their very large executive salaries. They are able to do this because they are in charge of the company’s internal and external controls. They use their power to hire, promote, compensate, and terminate key employees, officers and outside professionals to suborn them. When short-term profits (“fictional income”) become long-term losses (“real losses”), the senior officers leave the company and walk away wealthy. The long-term losses fall on the company’s creditors and bondholders (usually banks and the FDIC). It also falls on employees who lose their jobs when the company fails.

Investment Bankers (stockbrokers) sell stock from their investment portfolio because based on their research they believe the stock will decline in value; meanwhile, to keep the stock’s selling price high in the open market while they sell it in increments, they urge their own clients to buy it.

Financial Advisors who urge their clients to purchase annuities that require the clients to pay severe early surrender fees knowing from the start the clients cannot afford to stay in the annuity.

We do not charge for the initial consultation.

 

NOTES

Worried about higher interest rates and devaluation of the dollars? The largest bond fund in America recently sold all its US Treasury bonds because it believes the low yield on these bonds does not justify the risk that the federal government will monetize the Debt.  June 2011

Is the US economy recovering? “About two-thirds of commercial real-estate loans maturing at banks from now to 2015 are under water, meaning the property is worth less than the amount owed.” Source: SEC Probes Banks’ Lending Practices by Robin Sidel and Jean Eaglesham (WSJ March 3, 2011)

Barclays Bank allowed payments on behalf of clients in Cuba and the Sudan that violate federal laws against money laundering. It got caught and Barclays agreed to pay the U.S. Treasury $298 million in civil penalties. Source: US Tells HSBC to Improve Oversight (WSJ October 8, 2010).

“The foreclosure rate in 2010 was more than three times what it was in 1933, at the height of the Great depression.” Source: The Mortgage Foreclosure Crisis’ Short-Term and Long-Term Effects by James C. Sturdevant (Verdict, July 2011)