The feds are after First Brands Executives

[cptbarkey]

Never trust someone with two first names. Also with his checkered history I'm certain he has disappeared internationally.

https://www.justice.gov/usao-sdny/pr/first-brands-executives-charged-multibillion-dollar-fraud

https://thefinancialwire.com/the-ma...llion-missing-and-its-ceo-indicted-for-fraud/

 

[Pablo]

Never trust someone with two first names. Also with his checkered history I'm certain he has disappeared internationally.

https://www.justice.gov/usao-sdny/pr/first-brands-executives-charged-multibillion-dollar-fraud

https://thefinancialwire.com/the-ma...llion-missing-and-its-ceo-indicted-for-fraud/

We saw this coming!

I had been saying to those who were basically saying "This is just business" - NO it's not. This clown committed theft and other crimes.

 

[Astro14]

Tweaked the title - hope that’s OK - we already have a First Brands thread, this is about the executives.

 

[Sam_Julier]

Folks, no politics please or the thread will be locked. Thanks.

 

[Pew]

I am happy to see someone charged.

But the big banks and hedge funds do the same stuff all the time. Just depends on who you are.

Sort of like the Martha Stewart conviction - show trial for the masses only.

Unfortunately this is probably going to turn out like the Enron scandal with nothing learned in the end.

 

[SC Maintenance]

Folks, no politics please or the thread will be locked. Thanks.

Its your forum and your rules - but please explain to me how triple pledging collateral, rehypothecation, off balance sheet SPV's for losses and circular round trip financing are political?

If you don't want me to mention those things I will not, but I don't know how my post could be perceived as political? I need to understand the rules to follow them.

 

[Pablo]

Its your forum and you rules - but please explain to me how triple pledging collateral, rehypothecation, off balance sheet SVB's for losses and circular round trip financing are political?

If you don't want me to mention those things I will not, but I don't know how my post could be perceived as political? I need to understand the rules to follow them.

Banks and funds don't do what he did all the time. That's just NOT true.

 

[SC Maintenance]

Banks and funds don't do what he did all the time. That's just NOT true.

They absolutely do, there just better at it.

Multi pledge of collateral is how hedge funds actually work. Banks don't even reserve on treasuries anymore (sanctioned by the fed themselves)

SPV's are common amongst banks and hedge funds to manage losses - there just better at managing them.

NVDA is the poster child for proven circular financing?

 

[Pablo]

They absolutely do, there just better at it.

Multi pledge of collateral is how hedge funds actually work. Banks don't even reserve on treasuries anymore (sanctioned by the fed themselves)

SPV's are common amongst banks and hedge funds to manage losses - there just better at managing them.

NVDA is the poster child for proven circular financing?

The executives of the funds just make off with the money? No.

 

[SC Maintenance]

The executives of the funds just make off with the money? No.

Did you read the charges? They were not charged with theft although I am sure that is what they did.

“These executives allegedly inflated invoices, double- and triple- pledged collateral, and falsified financial statements to unlawfully trick lenders into giving them billions of dollars,”

Everything there charged with happens all the time.

I am not saying these clowns were not crooks. But they can't prove it, so there charging them with things that the Wall Street white shoe boys do all the time.

What Corzine did was far worse and he was never charged?

 

[spackard]

Looked to me they turned someone on the inside (Brumbergs). Gave him the deal (but still has to plead guilty to something) in order to get the brothers.

The Executives Charged


The DOJ’s multi-count indictment focuses on three key former executives:


Patrick James (Former CEO and Founder): Charged with multiple counts of wire fraud, bank fraud, conspiracy, money laundering, and—significantly—operating a Continuing Financial Crimes Enterprise (CFCE). The CFCE charge, often referred to as the "financial kingpin" statute, is a rare, severe charge that carries a mandatory minimum of 10 years to life in prison.


Edward James (Former Senior Vice President): Patrick's brother, facing a parallel 18-count indictment including conspiracy, bank fraud, wire fraud, and money laundering. Both brothers pleaded not guilty and were released on massive bonds ($50 million for Patrick, $25 million for Edward) under strict home confinement and electronic monitoring.


Peter Andrew Brumbergs (Former VP of Finance): Separately entered a guilty plea to eight federal counts, including wire fraud and bank fraud, and is currently cooperating with the federal government's ongoing prosecution.

 

[zzyzzx]

I'm certain he has disappeared internationally.

From the article:
PATRICK JAMES and EDWARD JAMES were arrested in Ohio this morning and are expected to be presented later today in the Northern District of Ohio.

 

[Hall]

Folks, no politics please or the thread will be locked. Thanks.

I know some folks here are a special bunch, but this topic would be a stretch to turn "political". I do hope no one confuses "politics" with "government" too.

 

[Pablo]

Did you read the charges? They were not charged with theft although I am sure that is what they did.

“These executives allegedly inflated invoices, double- and triple- pledged collateral, and falsified financial statements to unlawfully trick lenders into giving them billions of dollars,”

Everything there charged with happens all the time.

I am not saying these clowns were not crooks. But they can't prove it, so there charging them with things that the Wall Street white shoe boys do all the time.

What Corzine did was far worse and he was never charged?

They are charged with fraud. No - illegal fraud doe not happen ALL THE TIME. Funds and banks do NOT commit illegal fraud 24/7. These clowns crossed way way over the fat white line - period. Repeatedly. Let's just leave this here. I'm generally agreeing with you on most things financial so there is that.

 

[4wd]

They are charged with fraud. No - illegal fraud doe not happen ALL THE TIME. Funds and banks do NOT commit illegal fraud 24/7. These clowns crossed way way over the fat white line - period. Repeatedly. Let's just leave this here. I'm generally agreeing with you on most things financial so there is that.

Put up a home in The Hamptons as bond. You haven’t?

 

[Pablo]

Put up a home in The Hamptons as bond. You haven’t?

I wish!

 

[K2K2]

This is a prime example of what should happen with ALL CEOs that run a capital company that purchase then run multiple companies into the ground. Justice should be swift, merciless and heavy. They should lose all their personal assets and receive long sentences.

(Yes I feel strongly about these crooks)

 

[Pablo]

This is a prime example of what should happen with ALL CEOs that run a capital company that purchase then run multiple companies into the ground. Justice should be swift, merciless and heavy. They should lose all their personal assets and receive long sentences.

(Yes I feel strongly about these crooks)

The ruining of companies PURPOSELY for PERSONAL GAIN gets me too.

Yeah I know.

 

[johnnydc]

What grinds my gears is that these guys were already rich, But no that wasn't enough.

 

[tcp71]

Billions in investor fraud and released on a 50 or 25 million bond. Chump change to them.