The number of white-collar crime convictions varies each year, ranging between 8,000 and 11,000. Tactical Rabbit intelligence officers are here to protect you, your business, and your family. Do you know who you’re dealing with? If you don’t, then contact us at www.TacticalRabbit.com to launch an investigation.
10. Dennis Kozlowski
Kozlowski was CEO of Tyco International during the 1990s. He grew the company rapidly into a true mega-conglomerate. He also misappropriated major amounts of company funds in the form of $81 million in unauthorized bonuses to himself, $14.725 million spent on art, and a $20 million investment banking fee paid to a former Tyco director. He was eventually convicted in 2005 of stealing more than $150 million from Tyco and spent nearly nine years in prison before his conditional release on January 17, 2014.
9. Jordan Belfort
Belfort started a stock brokerage company called Stratton Oakmont which he used to defraud investors, costing them $200 million in various stock scams. His company was shut down in 1998 and he was charged with both money laundering and fraud, spending nearly two years in federal prison for his crimes. After his release he published his memoir, which became the basis for Martin Scorsese’s film The Wolf of Wall Street, in which Leonardo DiCaprio played the role of Belfort.
8. Barry Minkow
Minkow’s first major white-collar crime came in the form of an extensive Ponzi scheme in the late 1980s that defrauded investors of $100 million. A Ponzi scheme is a fraudulent investment operation in which the operator pays off some investors with capital from new investors rather than actually making any profits through operations. Minkow became a born-again Christian just before going to prison in 1988. When he was released in 1995 he went to work as a pastor, and even helped bring down other Ponzi schemes, leading the courts to end his probation in 2002. He was not, as it turned out, fully reformed. He was actually using some of his crusades to engage in insider trading, which resulted in him being sent back to prison in 2011.
7. Martin Frankel
Frankel was acquiring insurance companies and looting them of lots of cash while claiming to be investing their assets. What he really used the more-than-$200 million for were expensive cars, houses, and women. As his scheme was close to being uncovered, he converted much of the money into diamonds and fled to Germany. He was arrested there and was eventually extradited back to the U.S. in 2004. He was charged and convicted, and sentenced to 16 years in prison.
6. John Rusnak
Rusnak was hired by Allfirst Bank in 1993 to turn around the company’s foreign exchange operations. He made a very heavy bet on the Japanese Yen. He was so confident that he didn’t even attempt to hedge all his forward contracts. Policy changes in Asia resulted in a long decline of the Yen’s value. Facing huge losses, he fabricated options to make it look as if his positions were hedged when they weren’t. His failed scheming finally revealed a huge loss of $691 million. As a result, he spent seven-and-a-half years in prison.
5. Toshihide Iguchi
Iguchi started covering his own trading losses by selling off bonds and then falsifying account statements to hide his selling-off of securities. This resulted in the need to continue selling off more and more securities, and continuing to falsify records to cover it up. After falsifying more than 30,000 documents, he confessed to having secretly sold off more than $1.1 billion of investment security brokerage firm Daiwa’s securities. He was sentenced to four years in prison for these crimes, even though not a single customer of the firm ever lost their money.
4. Nick Leeson
In 1992, Leeson started using one of Barings Bank’s error accounts to hide his losses after an initially successful series of unauthorized speculative trades. His fraudulent activities came to light when he made a huge bet on the Japanese Yen that didn’t pan out because of the Kobe earthquake in 1995. He tried to cover his losses with increasingly risky trades, but they all failed spectacularly. His losses amounted to $1.4 billion, which caused the total collapse of Barings, which was declared insolvent on February 26, 1995. Leeson was rewarded with six-and-a-half years in prison.
3. Jérôme Kerviel
Kerviel was a junior futures trader at Société Générale, and French bank, and appeared to be making quite profitable trades based on anticipating declining markets. What he was really doing was engaging in all kinds of unauthorized trades worth billions of dollars, totaling far more than the company’s entire market capitalization. He used all kinds of tricks to hide these unauthorized trades, from fake emails to making trades using colleagues’ log-in credentials. It was the fake email trail that finally did him in. Having to close out his accounts as markets declined resulted in losses of $4.9 billion. In 2010 he was sentenced to five years in prison, with two of those being suspended, but the appeals process has meant that he has not yet served any time.
2. Allen Stanford
Stanford’s company, Stanford International Bank, defrauded its customers of $8 billion through “certificates of deposit” promising high returns that never happened. Nearly $1 billion of those funds were channeled into personal loans to Stanford himself. The fraud was uncovered when a small-time amateur investor asked a Venezuelan financial analyst to look into the company before investing. This revealed huge irregularities in the firm’s financial statements. He was essentially running a gigantic Ponzi scheme, and as a result he could spend up to 20 years in prison.
1. Bernard Madoff
Without a doubt, Madoff is the orchestrator of the biggest Ponzi scheme in history. He sweet-talked large injections of capital from wealthy individuals and companies all over the globe into his firm. His ability to do so was in large part due to the fact that he was the well-respected former chairman of the NASDAQ stock exchange. People practically begged him to take their money. In the end, Madoff defrauded investors of more than $65 billion, for which he was sentenced to 150 years in prison.
It takes vigilance and a will to ask tough questions to uncover these kinds of white-collar crime sprees. The irreparable harm caused by these 10 individuals is truly mind-boggling.
Tactical Rabbit Inc. always protects the names of its contractors, clients, and sources regardless of circumstances. All activities will be planned and carried out in strict adherence to Intelligence Community Directive 304 (ICD 304), International Trafficking Arms Regulations (ITAR), the Foreign Corrupt Practices Act (FCPA), and all applicable U.S. laws and regulations, including but not limited to all SEC rules and regulations. Tactical Rabbit Inc. is a private intelligence company. Tactical Rabbit is not an investment advisor, accounting firm, law firm, or consumer reporting agency, and does not provide any investment, financial, accounting, legal, or credit advice. Tactical Rabbit Inc. intelligence may NOT be used to make decisions about consumer credit, employers, insurance, tenant screening, or any other purposes that would require FCRA compliance. Tactical Rabbit Inc. does not have any formal affiliation with or connection to the Central Intelligence Agency or the Federal Bureau of Investigation although it may at times contract with former employees of federal agencies. In some cases, Tactical Rabbit Inc. will attempt to facilitate a federal investigation through channels similar to those to which any private citizen has access. Tactical Rabbit Inc. uses the utmost diligence to guard and protect confidential information and trade secrets. In the event that a client signs with Tactical Rabbit Inc., client information will be kept confidential and not divulged, communicated, or used except to the extent deemed necessary by Tactical Rabbit Inc. in providing services to the client.