Category: Corruption, Fraud, Politics


An analysis and discussion has been going on in a Yahoo group, Whistleblower 411, moderated by Dr. William Corcoran.  I thought I would share it here and invite anyone who is interested in joining in on this or other discussions go to Yahoo Groups, Whistleblower 411 and join. 

This link will take you to the Yahoo page:
http://groups.yahoo.com/?ch=web&pub=fp-us&t=fp&sec=link&slk=defaultrough

Dr. Corcoran posted the following article and asked if this case should be a required case study for Employee Concerns Program and Safety Conscious Work environment Professionals?  The conversation rapidly took off from there.  A side conversation had to take place about focusing on the analysis of what was taking place regarding decisions made about the whistle blowing aspect, rather than on the specifics of the pedophilia or religious focus.  The comparison was made with the Boeing whistleblower, Gerald Eastman, case.
-GFS

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Here is the article:
April 3, 2009
Early Alarm for Church on Abusers in the Clergy

Link to Original:   http://www.nytimes.com/2009/04/03/us/03church.html?th&emc=th)

By LAURIE GOODSTEIN
The founder of a Roman Catholic religious order that ran retreat centers for troubled priests warned American bishops in forceful letters dating back to 1952 that pedophiles should be removed from the priesthood because they could not be cured.
The Rev. Gerald M. C. Fitzgerald, founder of the order, Servants of the Paraclete, delivered the same advice in person to Vatican officials in Rome in 1962 and to Pope Paul VI a year later, according to the letters, which were unsealed by a judge in the course of litigation against the church.
The documents contradict the most consistent defense given by bishops about the sexual abuse scandal: that they were unaware until recently that offenders could not be rehabilitated and returned to the ministry.
Father Fitzgerald, who died in 1969, even made a $5,000 down payment on a Caribbean island where he planned to build an isolated retreat to sequester priests who were sexual predators. His letters show he was driven by a desire to save the church from scandal, and to save laypeople from being victimized. He wrote to dozens of bishops, saying that he had learned through experience that most of the abusers were unrepentant, manipulative and dangerous. He called them “vipers.”
“We are amazed,” Father Fitzgerald wrote to a bishop in 1957, “to find how often a man who would be behind bars if he were not a priest is entrusted with the cura animarum,” meaning, the care of souls.
His collected letters and his story were reported this week by The National Catholic Reporter, an independent weekly. Father Fitzgerald’s papers were unsealed by a judge in New Mexico in 2007 and are now becoming public in litigation, although some letters were public before now, said Helen Zukin, a lawyer with Kiesel, Boucher & Larson, a firm in Los Angeles. The letters were authenticated in depositions with Father Fitzgerald’s successors.
The scandals, which began in the 1980’s and reached a peak in 2002, revealed that for decades bishops had taken priests with histories of sexual abuse and reassigned them to parishes and schools where they abused new victims.
It was not until 2002 that the American bishops, meeting in Dallas, wrote a charter requiring bishops to remove from ministry priests with credible accusations against them.
Asked why Father Fitzgerald’s advice went largely unheeded for 50 years, Bishop Blase J. Cupich of Rapid City, S.D., chairman of the United States Bishops Committee for the Protection of Children and Young People, said in a telephone interview that in the first case, cases of sexually abusive priests were considered to be rare.
Second, Bishop Cupich said of Father Fitzgerald, “His views, by and large, were considered bizarre with regard to not treating people medically, but only spiritually, and also segregating a whole population with sexual problems on a deserted island.”
And finally, he said, “There was mounting evidence in the world of psychology that indicated that when medical treatment is given, these people can, in fact, go back to ministry.” This is a view, he said, that the bishops came to regret.
A Vatican spokesman, the Rev. Federico Lombardi, said he could not comment because he did not have enough information.
Responding to Bishop Cupich’s comment about Father Fitzgerald, Ms. Zukin, who represents abuse victims, said: “If the bishops thought he was such a bizarre crackpot, they would have shut him down. In fact, they referred their priests to him and sent him financial contributions.”
She also said the psychiatrists who worked at the Servants of the Paraclete’s centers said in legal depositions that they had rarely recommended returning sexually abusive priests to ministry, and only if the priests were under strict supervision in settings where they were not working with children.
From the 1940’s through the 1960’s, bishops and superiors of religious orders sent their problem priests to Father Fitzgerald to be healed. He founded the Servants of the Paraclete in 1947 (“paraclete” means “Holy Spirit”), and set up a retreat house in Jemez Springs, N.M.
He took in priests who were struggling with alcoholism, drug abuse or pedophilia, or who had broken their vows of celibacy, whether with men or women. He called them “guests.” His prescription was prayer and spiritual devotion to the sacraments, which experts say was the church’s prevailing approach at that time.
At one point, he resolved not to accept pedophiles at his center, saying in a letter to the archbishop of New Mexico in 1957, “These men, Your Excellency, are devils, and the wrath of God is upon them, and if I were a bishop I would tremble when I failed to report them to Rome for involuntary layization.”
Laicization — or removing a priest from the priesthood — was what Father Fitzgerald recommended for many abusive priests to bishops and Pope Paul VI.
But that step was rarely taken, said the Rev. Thomas Doyle, a whistle-blower who often serves as an expert witness in cases against the church, “because the priesthood was considered to be so sacred that taking it away from a man was something you simply did not do.”
The Paracletes did not return calls for an interview.
After Father Fitzgerald died, his order grew and established retreat centers around the country and overseas, which became regular way stations for priests with sexual disorders.
His successors added psychiatry and medical treatment to the prayer regimen. They sent priests back into ministry, at the request of bishops. The Paracletes later became the target of lawsuits, and had to close most of their centers. 

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Here’s how I see it:

In the Church case, a whistleblower saw bad things were happening which were hurting some people, and could go on hurting a few more every year, if the perpetrators were not isolated or stopped.

And because of the environment those events occurred in, he tried to publically cover it up as he was expected to do, while privately sending warnings up his chain of command. He encountered apathy, and unwillingness to do anything about the problem all the way to the top. His conflict was whether to be loyal to his coworkers, all in special roles of trust and sacred affiliation, or to the children who may and probably would over the years be victims. The church
whistleblower then decided putting a down payment on an isolated island and then isolating all errant offenders to that island was a solution. He tried to come up with the resources to make that happen himself – unsuccessfully it appears – as the isolated retreat did not materialize, and the same perpetrators were allowed to go on and molest a growing number of victims. The priest does not appear to have anyone else in his chain of command to petition, other than the
good Lord himself. He could have stepped outside of his sacred chain of command and reported directly to the police or other appropriate legal authorities, but it appears, he chose not to.

I can only imagine how much of a taboo that would appear to be to a long time servant of the Lord in that environment. It is hard to second guess someone’s thinking, but it appears he may have felt that his loyalty should be applied to trying to hold the church and the social structure surrounding his faith together, over stopping possible victimization of more children. He did within what he saw possible for him to do, try to make a solution materialize, but it
was too little and too late, too big of a problem for one person to solve by himself. Later his group he started continued to try to “fix” the problem, but was unable to fix it by following the same path that had been set prior to this whistleblower’s death. This whistleblower died at a venerable age, and the scope of his efforts to try to get the problem addressed may not have been known to many until records were unsealed during lawsuit proceedings, as his upper
management layers appeared to keep mum about all of it, hoping it would go away.

In the Industry case, the whistleblower saw bad things happening which could endanger countless citizens, military, or public who flew on airplanes.

This whistleblower went up his command chain step by step, finding greed, apathy or fear and the unwillingness to do anything about the problem each step of the way. With each step up the ladder he took his concerns, his own situation worsened, due to increasing numbers of annoyed and threatened perpetrators or enablers of the corruption. Upon reaching the top, he found that not only were the highest managers aware of the problems, but they were probably directing
those activities to be handled the way they were. (Seeing no other level to petition within his own company chain of command, and seeing no improvement in the circumstances causing the liability, he courageously went to those who have
oversight and legal responsibility to assure air safety in the manufacture, and in the operation of aircraft by U.S. companies, including his own. What he found was a co-opted and sullied FAA and a disorganized, intimidated, and possibly corrupted DOT as well. Finally unable to accept the very real possibility of many lives lost due to the unwillingness of anyone to address the corruption he witnessed, he did what appeared to be the only course of action
left. He contacted the press, hoping to force his company, and possibly the oversight agencies as well, to do the right and ethical thing.
Now the differences are significant between the two situations. The church whistleblower worked in a setting where faith and a sacred attitude of protection of the organization is a long-standing tradition, based on mostly personal spiritual matters. The struggle between good and evil may be an overwhelming responsibility in this setting. It is not that money has no impact in this world, in fact there is quite a lot of money or other wealth involved, absorbed over a prolonged period of time by the organization. It is just that
many of the worker bees here, are probably not thinking of the money as they do their daily spiritual work. They are not called on to think about the money. They serve in spiritual ways. Their actions are not based on purely monetary considerations as they perform their duties or work with their parishioners.  Rewards for good work are no doubt seen as heavenly rewards in the future.

The conflict and choice of how to deal the pedophiles is not entirely
surprising. It is of interesting note that going back many decades, those in the field of psychology working in our nations prisons and hospitals have known from their own data that pedophiles are a population for whom treatment does not seem to be effective. The pedophiles have been found to reoffend, given time, no matter what treatment has been given. The person who explained all of this
to me was an associate of mine who worked for many years at a state facility where the worst types of offenders (murders, pedophiles, sociopaths/psychopaths and worse with an average I.Q of 170) were long-term inmates. Within the mental health field and prison management, there was an ongoing war over whether to offer treatment or just warehouse the prisoners with as little expense as possible, even after the studies and data were obvious. It may still be going
on today.

The other is an industry setting in a company where workers are made constantly aware of the money. They compete for salaries and sometimes bonuses; they are pushed by managers who get bonuses for increased production (more work and productivity out of employees at same or less cost). They are essentially in a carrot and stick world, where Mr. Machiavelli still is alive and well, and the cafeteria fortune cookies no doubt have “The end justifies the means” and “Power
corrupts; absolute power corrupts absolutely” and “Ain’t it grand?” messages inside. It appears to me that nearly everything in this world is about money, after looking at countless examples of criminal cases involving this company and various money related frauds or crimes.

This is a company which has had numerous cases of different managers saying, “It was just a business decision,” when confronted or challenged about a decision made which may have had ethical questionability or which may have harmed an individual or group of people or even the general public. I heard one manager say these exact words myself in a public setting and have heard others relate
similar quotes that they have heard from managers of this same company.

In fact, I have heard some very observant people say that the only way to get companies (this one specifically in fact) to change is to “embarrass the hell out of them.” The decision to go public and embarrass management into doing what is right would most likely be the last resort of an ethical and “nice” person. Most people are loyal to their employers to some extent, in fact I would contend that most employees are much more loyal to their employers than their employers are to them. Think about the movie Office Space, where the
motto was “Is it good for the company?” That is not very far from the truth of what it is like working for large corporations, this specific one included.

The industrial whistleblower has not passed, thankfully, and is still here trying to find a way to get these problems resolved.

This is very complex. Maybe someone else can add pertinent observations?
-GFS

Here is another set of articles  from Truthout with links to the originals.

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Opinion

The Real AIG Scandal

by: Eliot Spitzer  |  Visit article original @ Slate Magazine


Former US Treasury Secretary Henry Paulson (pictured), then-New York Fed official Timothy Geithner, Goldman Sachs CEO Lloyd Blankfein and Fed Chairman Ben Bernanke made the initial decision to bail out AIG. (Photo: Elizabeth Dalziel / AP)

    It’s not the bonuses. It’s that AIG’s counterparties are getting paid back in full.

    Everybody is rushing to condemn AIG’s bonuses, but this simple scandal is obscuring the real disgrace at the insurance giant: Why are AIG’s counterparties getting paid back in full, to the tune of tens of billions of taxpayer dollars?

    For the answer to this question, we need to go back to the very first decision to bail out AIG, made, we are told, by then-Treasury Secretary Henry Paulson, then-New York Fed official Timothy Geithner, Goldman Sachs CEO Lloyd Blankfein, and Fed Chairman Ben Bernanke last fall. Post-Lehman’s collapse, they feared a systemic failure could be triggered by AIG’s inability to pay the counterparties to all the sophisticated instruments AIG had sold. And who were AIG’s trading partners? No shock here: Goldman, Bank of America, Merrill Lynch, UBS, JPMorgan Chase, Morgan Stanley, Deutsche Bank, Barclays, and on it goes. So now we know for sure what we already surmised: The AIG bailout has been a way to hide an enormous second round of cash to the same group that had received TARP money already.

Also see below:     
Hedge Funds May Be Getting a Bailout via AIG’s Payments    •

    It all appears, once again, to be the same insiders protecting themselves against sharing the pain and risk of their own bad adventure. The payments to AIG’s counterparties are justified with an appeal to the sanctity of contract. If AIG’s contracts turned out to be shaky, the theory goes, then the whole edifice of the financial system would collapse.

    But wait a moment, aren’t we in the midst of reopening contracts all over the place to share the burden of this crisis? From raising taxes – income taxes to sales taxes – to properly reopening labor contracts, we are all being asked to pitch in and carry our share of the burden. Workers around the country are being asked to take pay cuts and accept shorter work weeks so that colleagues won’t be laid off. Why can’t Wall Street royalty shoulder some of the burden? Why did Goldman have to get back 100 cents on the dollar? Didn’t we already give Goldman a $25 billion capital infusion, and aren’t they sitting on more than $100 billion in cash? Haven’t we been told recently that they are beginning to come back to fiscal stability? If that is so, couldn’t they have accepted a discount, and couldn’t they have agreed to certain conditions before the AIG dollars – that is, our dollars – flowed?

    The appearance that this was all an inside job is overwhelming. AIG was nothing more than a conduit for huge capital flows to the same old suspects, with no reason or explanation.

    So here are several questions that should be answered, in public, under oath, to clear the air:

·  What was the precise conversation among Bernanke, Geithner, Paulson, and Blankfein that preceded the initial $80 billion grant?

·  Was it already known who the counterparties were and what the exposure was for each of the counterparties?

·  What did Goldman, and all the other counterparties, know about AIG’s financial condition at the time they executed the swaps or other contracts? Had they done adequate due diligence to see whether they were buying real protection? And why shouldn’t they bear a percentage of the risk of failure of their own counterparty?

·  What is the deeper relationship between Goldman and AIG? Didn’t they almost merge a few years ago but did not because Goldman couldn’t get its arms around the black box that is AIG? If that is true, why should Goldman get bailed out? After all, they should have known as well as anybody that a big part of AIG’s business model was not to pay on insurance it had issued.

·  Why weren’t the counterparties immediately and fully disclosed?

    Failure to answer these questions will feed the populist rage that is metastasizing very quickly. And it will raise basic questions about the competence of those who are supposedly guiding this economic policy.

    ——–

    Eliot Spitzer is the former governor of the state of New York.

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Hedge Funds May Be Getting a Bailout via AIG’s Payments

by: Dow Jones  |  Visit article original @ Dow Jones

    New York – The fact that some payments made by American International Group Inc. (AIG) to hedge funds are coming from government bailout money raises a question: Are hedge funds receiving a de facto bailout?

    If the answer is yes, it would signify the first taxpayer money yet to reach hedge funds since the financial crisis began back in late 2007. Hedge funds – investment pools made up primarily of high net worth individuals, pension funds and university endowments – have suffered like most during the crisis, but have pointed out with pride that as of yet their industry hasn’t requested any government handouts.

    Officially, of course, any payments made by AIG to hedge funds wouldn’t change that fact. It was AIG that requested the bailout, not the hedge funds. The insurance giant is now simply meeting its contractual obligations.

    In some cases, AIG has already paid out fairly hefty amounts to hedge funds with U.S. taxpayer funds. AIG said in a press release Sunday that it paid $200 million each in “public aid” to Citadel Investment Group and Paloma Securities. These payments were made to settle short-term trades last year in which the hedge funds loaned AIG cash in exchange for bonds.

    Also, as reported Wednesday in The Wall Street Journal, AIG reportedly may be paying out many different hedge funds for bets in which the hedge funds waged that the housing market would crater against AIG’s bets that it would remain robust.

    It isn’t clear how much in total that hedge funds stand to gain through the AIG payments, but the payments call into question the government’s decision, whether out of haste or for any other reason, to allow the AIG bailout money to be dispersed to any counterparties, including hedge funds.

    “Taxpayer money is being paid to hedge funds by a Treasury that could have limited the payments to domestic banks but decided not to risk letting anyone big fail,” said John Coffee, a professor of securities law at Columbia University. “In short, everyone of importance is being protected.”

    Not all observers see a problem.

    While Edward Altman, a professor of finance at New York University’s Stern School of Business, questions the use of taxpayer funds to pay huge bonuses to AIG executives (another controversy surrounding the AIG bailout), he doesn’t see a problem with the hedge-fund payments.

    “The ‘bailout’ funds are doing exactly what they were intended to…pay off [ AIG’s] bills on a timely basis so as not to cause any further harm to the system,” he said. “Otherwise, what’s the purpose of the bailout? It should have been clear that this involves [payments to] hedge funds.”

    ——–

    By Dan Molinski, Dow Jones Newswires; 201-938-2245.

 

 

Joe Brewer wrote an article for Truthout, “How to Destroy the Government in Three Easy Steps” which  was quite interesting.  Here is an excerpt:

 

  “ In eight short years, conservatives have effectively bankrupted many state governments and left the fed in shambles. And now citizens have to “make tough decisions” and share the suffering equally across the land (unless of course, you’re part of that lucky 1 percent who co-opted the functions of government to serve their own ends … they’ll be cozy with their offshore bank accounts, golden parachutes and permanent tax holidays).

    Are you a teacher who educates our future citizens? Too bad. You’ve got to tighten your belt and let that job go. Manual laborer? Sorry, but that job can earn more money for our shareholders if it’s done in Micronesia. Need a college degree? Prepare for indentured servitude because you’ll be working to pay us off for most of your adult life. Health care? Ha! That’s just a Ponzi scheme dreamed up by a bunch of socialists.

    Ever wonder how conservatives did all this?

    Well, here’s your very own how-to manual for getting Big Government out of the way so you and your buddies can horde all the wealth to yourselves and build your empire.”

 

To read the rest of this article, go here:   http://www.truthout.org/031909J

 

 

If you like what you see on Truthout.org, please support them with a contribution.  They are independent and continue to publish with reader contributions.  Thanks.  -GFS

The Center for Public Integrity posted a new article by Nick Schwellenbach this month.  Schwellenbach reports that the number of Fraud Cases taken on by oversight officials fell at a time where Pentagon contracts were increasing at a rapid rate.  He notes that the past eight years the number of  defense contracting fraud and corruption cases sent by government investigators to prosecutors dropped markedly, while DOD referrals to the Justice Department for contract fraud and corruption decreased dramatically as well.  To read the rest of this well written article, go here:

 

Fraud Cases Fell While Pentagon Contracts Surged

Procurement Experts Say More Investigators Are Required

By Nick Schwellenbach | April 01, 2009

 

http://mail.google.com/mail/?shva=1#inbox/120627bdfdd1b7c7

 

 

Someone sent me this ABC News article recently.  I thank everyone who passes along articles or other information to me.  I truly do appreciate it! 

 

In any case, the director of the FBI,  Robert Mueller told lawmakers that he expects economic crimes to skyrocket.  He mentioned various types of fraud including mortgage fraud, and that in order to deal  with the workload, the FBI has had to move some of their personnel from working on national security cases to whitecollar and mortgage fraud cases.  To read this article, go here:

 

 

 

Mueller: Economic Crimes to ‘Skyrocket’

FBI Director Expects ‘Inevitable Increase’ in Economic Crime, Public Corruption Cases

http://abcnews.go.com/TheLaw/FedCrimes/story?id=7170081&page=1

Truthout.org featured this article by Barbara Koeppel, discussing the problem of labor and immigration laws that allow indentured servant status that in practice is closer to slavery.  I’ve been thinking about this problem, since hearing about the type of immigration visa Microsoft’s Bill Gates had negotiated with the government in order to bring foreign nationals into the United States to work for Microsoft.

 

Some of the conditions were:

 

  1. The visa will be good only for a certain period of time, something like seven or eight years.
  2. The foreign national will not be allowed to change employers and must continue to work for Microsoft and do their bidding.
  3. The foreign national will be paid as Microsoft chooses; I hear it is a lower wage than American Citizens with those skills will work for here.
  4. The foreign national is not allowed to start or finish the naturalization process to be come a citizen.
  5. At the end of the time of bonded servitude, the foreign national will be deported back to their own country, (for many India).

It does sound more like Indentured Slavitude.

 

-GFS

 

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To read the Truthout posting and find the link to the original source, go here:

 

From Truthout.org:  http://www.truthout.org/032109Y

Indentured Servants, Circa 2009

by: Barbara Koeppel  |  Visit article original @ ConsortiumNews.com

 

This is interesting. Julian Barnes of the Los Angeles Times reported that Secretary of Defense, Robert Gates will be making a public announcement of “plans for a sweeping overhaul of the defense budget” on Monday, April 6. He further reports that Gates stated “too many programs try to do too much leading to cost overruns and delays.” I expect we’ll hear the details on Monday. -GFS To see the article as seen on Truthout.org and a link to the original Los Angeles Times article go here: Defense Secretary Gates to Unveil Pentagon Budget Monday Saturday 04 April 2009 by: Julian E. Barnes | Visit article original @ The Los Angeles Times Link to original: http://www.truthout.org/040409E

 

Boeing Bombs On ID Fraud Prevention

John Stith
Staff Writer
2005-11-21

 

 


Every time you turn around, you hear another story on ID fraud. There’s another one today. Aircraft manufacturer Boeing happened to lose a laptop computer. A number of questions come up about why all those names would be on a laptop but then another question comes up. Doesn’t Boeing have some kind of government contract?

There are two issues here to consider. First is the obvious ID fraud problem. The laptop computer had 161,000 names of current and former employees stored on it, including social security numbers, birth dates, banking information and other useful data. Apparently, someone had taken the unsuspecting laptop off of Boeing’s property and elected not to pay enough attention to it.

Boeing did issue a statement on Friday discussing the incident. In the statement, they suggested someone was probably just after the laptop maybe to get $50 or so out of it.

While they maintain there was no “classified, supplier, customer, engineering or material financial information” on the disc, the point is companies like Boeing must be more careful and secure in not just protecting the data but also in allowing the data to be taken.

This problem has happened at multiple companies and none of them seem willing to take precautions to protect the data in-house. Multiple protection methods for the user don’t work if someone swipes a company computer with all the information needed to start a major phishing scam with access to all the information. The companies say it hasn’t really happened yet but they don’t have to tell you if it does in most states.

The worst part about Boeing is that they’re also a major government contractor. While they say nothing significant was taken they guarantee that. This company works for NASA, the U.S. military, and other nations’ military. Can they guarantee employee information theft won’t happen again? Doubtful.

Until companies start taking this thing entirely more seriously, this problem will continue to grow. Besides, if the don’t care enough about their employees to protect their records vigorously, how can a company like Boeing be trusted with the development of rockets and passenger jets. I wonder if Airbus has this problem.

 

Link to original:  http://www.securitypronews.com/news/securitynews/spn-45-20051121BoeingBombsOnIDFraudPrevention.html

 

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This is a curious story about a a fellow who used Boeing as a cover to commit a fraud the sale of ficticious Boeing parts.  The judge convicted him of fraud.  -GFS

 

Barrister jailed over £17.5m Boeing fraud

Link to original:  http://www.thisislondon.co.uk/standard/article-23504486-details/Barrister+jailed+over+17.5m+Boeing+fraud/article.do

 

Paul Cheston
01.07.08

%3Cbody%3E%3Cdiv%20id%3D%22adDiv%22%3E%3CA%20HREF%3D%22http%3A//ads.anm.co.uk/ADCLICK/CID%3Dfffffffcfffffffcfffffffc/pos%3D2/AAMSZ%3D120x600/SITE%3DSTANDARD/AREA%3DEVENINGSTANDARD/SUBAREA%3DNEWS/ARTICLE%3DARTICLE%3D23504486/CONTENT%3D/acc_random%3D4506106570/pageid%3D/RS%3D%22%20target%3D%22_new%22%3E%3CIMG%20SRC%3D%22http%3A//iad.anm.co.uk/anmdefaultad.gif%22%20ALT%3D%22%22%20border%3D0%20style%3D%22margin-bottom%3A%200px%3B%22%3E%3C/A%3E%3C/div%3E

A barrister was jailed for five years today for attempting to con the taxman out of £17.5 million.

John Wilmot, 36, applied for a VAT refund on a £100million bogus deal for four imaginary Boeing 747 engines, which he claimed to have bought them from a Croydon firm and sold them to an Iraqi dealer he had met at a barrister’s garden party.

When questioned by Revenue and Customs investigators, he claimed to have shipped them out to the Middle East under the address “care of Basra airport”.

The ship he claimed to have carried his make-believe aircraft parts to Iraq was actually a grain carrier delivering beans to Egypt.

At that time, Wilmot was a visiting lecturer in law at the University of Westminster and attending training exercises in the Inner Temple.

He was convicted of fraud by a jury at Southwark Crown Court last month, for cheating the public revenue between October 2006 and March last year. He defended himself during the trial but today refused to appear in court.

Sentencing in his absence, Judge Deborah Taylor said: “This was an audacious attempt to obtain a very large sum of public money.

“The only thing that can be said on your behalf is that it was not complex, you acted alone, it was a single application and you did not succeed. That does not detract from the seriousness of your attempt.”

The court heard that doctors had found that Wilmot was not mentally ill and the judge concluded “you were entirely aware of what you were doing”.

Wilmot insisted throughout the trial that the engines had existed, his Iraqi company was real and the deal genuine.

But investigators found that the Croydon company he claimed to have bought the engines from had never heard of him, nor ever dealt in aircraft parts.

The judge also disqualified Wilmot, who had arrived in Britain from Nigeria in 1985 aged 12, from becoming a company director for eight years and recommended he be deported at the end of his sentence.

 

 

Review:  The U.S. Supreme Court heard a case, reported in September of 2008, involving Boeing to claify the rules governing lawsuits by Whistle-blowers who say they have evidence of fraud against the federal government. 

 

To read this full story, go here: 

Boeing appeal on fraud claim to be heard by high court”

Link to Original:  http://seattletimes.nwsource.com/cgi-bin/PrintStory.pl?document_id=2003277246&zsection_id=2002119995&slug=boeingcase27&date=20060927