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Browse: Home / 2008 / November / 21 / US Attorney Charges Six With Stealing From Securities Class Action Settlement Funds

US Attorney Charges Six With Stealing From Securities Class Action Settlement Funds

By Securities Docket on November 21, 2008, 6:24 am

Acting US Attorney Laurie Magid

Six people were charged yesterday with an alleged scheme to use dummy corporations, fake brokerage accounts, and virtual offices to steal $41 million from securities class action settlement funds.

The Philadelphia Inquirer reports that Laurie Magid, Acting U.S. Attorney for the Eastern District of Pennsylvania, announced that “the ring, which also included a lawyer, went to great lengths to make the claims seem legitimate. Another member of the group, she said, even traveled to Singapore to mail documents to help make a fake company, KimCorp., appear real in its claim.”

Five people were indicted on charges of mail fraud, wire fraud and money laundering, and one was reportedly accused in a criminal information of the same charges, possibly a prelude to a guilty plea, the Philadelphia Inquirer reported.

The defendants were allegedly stealing from settlement funds set up to pay investors in three cases from the 1990s: the Nasdaq market-makers antitrust case; Cendant Corp.; and BankAmerica Corp.

Read the Philadelphia Inquirere article

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Posted in Criminal | Tagged Class Actions, Features, Indictments

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