Articles Tagged with Bank Fraud

IMG_0094-300x225PrivatBank, a Ukrainian based institution, is suing one of its original founders in U.S. court in an effort to gain control of the bank and prevent future fraud. The lawsuit was filed on May 21st in the state of Delaware against Ihor Kolomoyskiy and Hennadiy Boholyubov. However, executives of PrivatBank worry that Kolomoyskiy’s wealth and political connections may decrease their chances of a positive outcome in the lawsuit.

Kolomoyskiy founded PrivatBank in 1992, but has been living in exile for over two years. With connections to the newly appointed president, Volodymyr Zelenskiy, Kolomoyskiy has returned from exile and now seeks to regain control of PrivatBank. However, according to the lawsuit, Kolomoyskiy is responsible for numerous fraudulent acts using the bank’s funds.

Along with Boholyubov, Kolomoyskiy is accused of using PrivatBank to lend money to the various companies and entities that they controlled. These funds were then laundered through Delaware, which is known for its corporate-friendly laws, and used to acquire numerous properties in the United States.

F9944B73-7006-4DA2-91E8-1D1BAF75A50E-1-300x200The chief financial officer (CFO) and deputy chairwoman of the Chinese-based tech giant Huawei, Meng Wanzhou, has faced extradition from Canada to the United States after appearing in a Canadian court. This case involves allegations that charge Meng with 13 counts related bank and wire fraud. The company is still standing by Meng in this case, and have stated their support for her as well as their willingness to fight the extradition.

The start of these charges is linked to an alleged long-running scheme that involved Meng and other Huawei officials deceiving banks on a global scale, as well as the U.S. government, in order to go against American sanctions and do business with Iran.

While there are many other reports about the past details of Meng’s case, the main topic at this time is the continued effort by Huawei to support Meng as they fight against these charges.

Eileen Foster, Former executive vice president in charge of fraud investigations at mortgage lender Countrywide Financial says that mortgage fraud was a common occurence at Countrywide. She also says she faced illegal retaliation when she refused to lie to federal regulators on Countrywide’s behalf. She said on 60 Minutes recently that mortgage documents were forged and that no effort was made to determine whether any individuals were able to support many of the mortgages. She reported the fraud internally but nothing was done by the company. Last week Attorney General Martha Coakley of Massachusetts announced that she was filing a lawsuit against five major mortgage lenders including Bank of America.