“I think it’s obviously obvious.”
~ Forensic accountant Mark Berenblut, responding in the affirmative that R. Allen Stanford knew he was “misrepresent[ing] the liquidity and soundness of the CDs.”
Related Posts
Judge, Possibly Fearing a TP’d House, Denies Bail for Madoff CFO
Poor Frank DiPascali. The man’s name will be forever connected to largest Ponzi schemer (with, allegedly, the smallest penis) in history and he feels terrible about that.
Looks like DiPascali, who was a “CFO” in Ponzi World but in reality was probably just the best liar, will remain eating his meals with a spork until the end of his days.
His attorneys were trying bust the guy out so he can help investigators find a new Madoff cohort to put front and center but a judge denied bail yesterday despite a boatload of conditions:
Mr. DiPascali’s failed bail attempt came despite a new proposal presented by defense lawyers and prosecutors that included a $10 million bond, co-signed by nine people, including members of the DiPascali family, and the pledge of about $2 million in personal property. The new proposal required Mr. DiPascali to wear an electronic device that would plot his location by satellite. It also barred him from leaving home without an escort from the Federal Bureau of Investigation, except in a medical emergency.
Maybe the judge isn’t big on satellite technology but with Halloween on Saturday, it could have been a decision made on a more personal level. Those Madoff victims are a touchy bunch.
Court Denies Madoff Aide’s Request for Bail [NYT]
The SEC Takes a Trip to India
The SEC sent a team to India in order to make sure that everything was hunky-dory re: Satyam. The three-member team met with Ashwani Kumar, the Central Bureau of Investigation (CBI) Director, and the Securities and Exchange Board of India (SEBI). The SEC also met with the KPMG team that is responsible for restating Satyam’s balance sheet.
No details were given on any of the meetings but we imagine that the SEC/KPMG meeting went something like this:
SEC Bureaucrat: Hello KPMG India.
KPMG Paper Pusher: Hello SEC America.
SEC: How are things progressing?
KPMG: Oh this is a blast. Restating balance sheets is a dream job. We were just talking about how we wish we could work in the States so we could do stuff like this all the time.
SEC: What do you mean?
KPMG: Well, there seems to be much more fraud and other problems in the United States than here in India so the need for forensic accountants would be extremely high.
SEC: Are you insinuating that the Commission is unable to detect fraud?
KPMG: Well there have been some signficant fraud over there lately that you guys pretty much ignored or missed. Either way, it makes for a high demand for forensic accountants. Plus, we hear that the guy who tried warning you about the Madoff fraud has issues but still won an award.
SEC: This meeting is over. Keep us informed.
Satyam scam: SEC team meets CBI, SEBI, KPMG officials [The Hindu Business Line]
White-Collar Crime Watch: Polygamists, Fixed Tennis Matches, An Unfunny Accountant
Recently, Kraft Macaroni & Cheese claimed that it switched the ingredients in our beloved cheese […]