LONDON: Jagmeet Channa, a British Indian bank clerk, has been sent to prison for nine years for trying to defraud HSBC of about 70 million pounds ($140 million).
Channa used to plunder accounts using identities of colleagues at the bank's headquarters in Canary Wharf in London, where he was employed.
Channa admitted to fraud and a charge of money laundering. He was caught early May within minutes of sending about 70 million pounds to two accounts. The stolen money has since been returned.
The fraud was detected by HSBC staff in Malaysia after he left one of the two accounts with a zero balance. Channa had used the passwords of two of his colleagues who were later questioned by the police and released after they were found innocent.
After Channa's sentencing Monday, Detective Sergeant Martin Peters told BBC: "This crime is believed to be one of the largest frauds of its kind and it is thanks to the prompt response of the police and the banks that the money was recovered."
Showing posts with label banking frauds. Show all posts
Showing posts with label banking frauds. Show all posts
Saturday, July 12, 2008
Sunday, July 6, 2008
French bank fined $6m over fraud - kerelanext.com - 05 Jul 2008
PARIS: France's banking regulator yesterday fined Societe Generale four million euros ($6.3m) over "grave deficiencies" in its internal controls that enabled a massive rogue trade scandal at the bank.
The banking commission said it had also issued a formal warning to Societe Generale for failing to prevent the staggering losses of 4.9 billion euros, which it has blamed on 31-year-old trader Jerome Kerviel.
After interviewing representatives of the bank on June 20, the commission said it detected "grave deficiencies in the internal control system" that "made possible the development of the fraud and its serious financial consequences."
"The weaknesses brought to light, in particular the deficiencies in hierarchical controls, carried on over a long period, throughout 2007, without being detected or rectified by the internal control systems," it said.
One of France's big three banks, Societe Generale shocked the financial world in January by announcing the losses, incurred as it was forced to unwind more than 50bn euros of unauthorised deals Kerviel is said to have made.
Kerviel turned himself in to police on January 26, two days after the bank revealed the losses, and on January 28 was charged with breach of trust, fabricating documents and illegally accessing computers.
The trader is the only person charged over the biggest rogue trade scandal in banking history.
The banking commission said it had also issued a formal warning to Societe Generale for failing to prevent the staggering losses of 4.9 billion euros, which it has blamed on 31-year-old trader Jerome Kerviel.
After interviewing representatives of the bank on June 20, the commission said it detected "grave deficiencies in the internal control system" that "made possible the development of the fraud and its serious financial consequences."
"The weaknesses brought to light, in particular the deficiencies in hierarchical controls, carried on over a long period, throughout 2007, without being detected or rectified by the internal control systems," it said.
One of France's big three banks, Societe Generale shocked the financial world in January by announcing the losses, incurred as it was forced to unwind more than 50bn euros of unauthorised deals Kerviel is said to have made.
Kerviel turned himself in to police on January 26, two days after the bank revealed the losses, and on January 28 was charged with breach of trust, fabricating documents and illegally accessing computers.
The trader is the only person charged over the biggest rogue trade scandal in banking history.
French bank fined $6m over fraud - kerelanext.com - 05 Jul 2008
PARIS: France's banking regulator yesterday fined Societe Generale four million euros ($6.3m) over "grave deficiencies" in its internal controls that enabled a massive rogue trade scandal at the bank.
The banking commission said it had also issued a formal warning to Societe Generale for failing to prevent the staggering losses of 4.9 billion euros, which it has blamed on 31-year-old trader Jerome Kerviel.
After interviewing representatives of the bank on June 20, the commission said it detected "grave deficiencies in the internal control system" that "made possible the development of the fraud and its serious financial consequences."
"The weaknesses brought to light, in particular the deficiencies in hierarchical controls, carried on over a long period, throughout 2007, without being detected or rectified by the internal control systems," it said.
One of France's big three banks, Societe Generale shocked the financial world in January by announcing the losses, incurred as it was forced to unwind more than 50bn euros of unauthorised deals Kerviel is said to have made.
Kerviel turned himself in to police on January 26, two days after the bank revealed the losses, and on January 28 was charged with breach of trust, fabricating documents and illegally accessing computers.
The trader is the only person charged over the biggest rogue trade scandal in banking history.
The banking commission said it had also issued a formal warning to Societe Generale for failing to prevent the staggering losses of 4.9 billion euros, which it has blamed on 31-year-old trader Jerome Kerviel.
After interviewing representatives of the bank on June 20, the commission said it detected "grave deficiencies in the internal control system" that "made possible the development of the fraud and its serious financial consequences."
"The weaknesses brought to light, in particular the deficiencies in hierarchical controls, carried on over a long period, throughout 2007, without being detected or rectified by the internal control systems," it said.
One of France's big three banks, Societe Generale shocked the financial world in January by announcing the losses, incurred as it was forced to unwind more than 50bn euros of unauthorised deals Kerviel is said to have made.
Kerviel turned himself in to police on January 26, two days after the bank revealed the losses, and on January 28 was charged with breach of trust, fabricating documents and illegally accessing computers.
The trader is the only person charged over the biggest rogue trade scandal in banking history.
Man arrested for withdrawig Rs 2m on stolen CNIC - dailytimes.com.pk - 03 Jul 2008
LAHORE: The Federal Investigation Agency (FIA)’s Cyber Crime Wing claimed to have arrested a man for withdrawing Rs 2 million from various banks on a stolen computerised national identity card (CNIC) of a rickshaw driver.
The FIA officials said Imtiaz Ahmed, a rickshaw driver and resident of Mozang, complained FIA that the officials of various banks were contacting him for the return of Rs 2 million.
Cyber Crime Wing Assistant Director Ziaul Islam said during investigation they had come to know that Nasir Din, a resident of Faisalabad, had stolen Imtiaz’s CNIC. Islam said the accused had used fake signatures of Imtiaz to get the loan.
He said they were tipped off about Nasir’s residence in Faisalabad. He said they raided the place and arrested Nasir. He said Nasir had confessed to the crime.
The FIA officials said Imtiaz Ahmed, a rickshaw driver and resident of Mozang, complained FIA that the officials of various banks were contacting him for the return of Rs 2 million.
Cyber Crime Wing Assistant Director Ziaul Islam said during investigation they had come to know that Nasir Din, a resident of Faisalabad, had stolen Imtiaz’s CNIC. Islam said the accused had used fake signatures of Imtiaz to get the loan.
He said they were tipped off about Nasir’s residence in Faisalabad. He said they raided the place and arrested Nasir. He said Nasir had confessed to the crime.
Monday, May 26, 2008
Police seek details in Rs 8.5 lakh fraud - The Navhind Times - 26 May 2008
PANJI, The police today sent letters to the HDFC bank office asking for details about the bank accounts of the people involved in the defrauding of the State Bank of India to the tune of Rs 8,50,000.
A complaint had been filed by the assistant general manager of the SBI alleging that three people had defrauded the bank. The police say that the accused went to the HDFC branches in Margao, Mapusa and Caranzalem and deposited SBI mutual fund payment warrants. After the bank cleared and honoured the warrants the accused allegedly withdrew the money through ATMs and absconded with the same.
The HDFC bank then sent the warrants to the local SBI branch, in turn forwarded the warrants in question to the Mumbai SBI, which informed the banks that the warrants were fake.
According to the town police inspector, Mr Francis Corte, the accused, namely Prakash Chatoi, Bhavesh Jain and Bappi Nayak, carried out 17 transactions in all from April 2 to April 16.
A complaint had been filed by the assistant general manager of the SBI alleging that three people had defrauded the bank. The police say that the accused went to the HDFC branches in Margao, Mapusa and Caranzalem and deposited SBI mutual fund payment warrants. After the bank cleared and honoured the warrants the accused allegedly withdrew the money through ATMs and absconded with the same.
The HDFC bank then sent the warrants to the local SBI branch, in turn forwarded the warrants in question to the Mumbai SBI, which informed the banks that the warrants were fake.
According to the town police inspector, Mr Francis Corte, the accused, namely Prakash Chatoi, Bhavesh Jain and Bappi Nayak, carried out 17 transactions in all from April 2 to April 16.
Wednesday, May 21, 2008
NAB arrests two more directors of QFI - The Internatioanl News - Karachi 20 May 2008
The staff of the National Accountability Bureau (NAB) Sindh arrested two directors of Quice Food Industries (QFI) for their involvement in a case of default on bank loan. According to NAB, earlier on May 14 the NAB from Karachi arrested a director of the same company, Mohammed Afaq Shamsi, under the same charges. Two more directors, Mohammed Ahmed and Mohammed Farooq Shamsi, were arrested Monday because they were among the nine people who only paid back Rs27 million out of a total of Rs80 million loaned from the Allied Bank Limited (ABL). The nine people associated with the QFI had wilfully defaulted on the loan.Earlier, the State Bank of Pakistan (SBP) governor, Dr Shamshad Akhtar, had written a letter to NAB Sindh to take action against the accused under Section 9/10 of the NAB Ordinance of 1999. The three brothers associated with the QFI will be produced before an Administrative Judge of Accountability on Tuesday (today) for securing their remand.
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