Crimes and Misdemeanors

Formula One Drivers and Staff Ambushed by Gunmen in Brazil

by Noah Joseph (RSS feed) — Nov 15th 2010 at 7:01PM

Formula One drivers are used to making quick getaways, but found themselves in harm's way last weekend in Brazil. While in Sao Paulo for the Brazilian Grand Prix, the car carrying the defending world champion Jenson Button was attacked by a gang of gunmen. The armored vehicle was driven by a police officer away from the scene of the ambush, delivering Button to safety. The famous McLaren driver praised his driver's abilities, which comes as quite the compliment coming from the world champion.

Button wasn't the only F1 figure attacked during the race weekend, however, as additional reports depicted an attack on a van full of the Sauber team's staff. In this case armed bandits stopped the van at gunpoint and made off with the staff members' bags. Fortunately no one was harmed in this incident either.

Despite the attacks, figures in F1 are not calling for removing the event from next year's calendar, crediting the government with doing all its best to improve socio-economic conditions in Brazil and reducing crime rates, while refusing to blame race organizers for what happens off the track.

Tags: brazil, brazilian grand prix, f1, formula 1, formula one, grand prix, jenson button, sao paulo, sauber

Alleged Swindler Scammed Out of $800,000 by New York City Limo Driver

by Carrie Coolidge (RSS feed) — Nov 15th 2010 at 12:31PM

Tony Chan Chun Chuen is allegedly swindled by New York Limo driver.

A New York City limo driver allegedly stole the credit card information belonging to a Hong Kong-based near billionaire and racked up nearly $800,000 in fraudulent charges, according to court documents filed in a Federal Court in Brooklyn.

Astonishingly, the victim is so wealthy, he wasn't even aware he had been defrauded of hundreds of thousands of dollars until it was brought to his attention by the company that had issued the charge card.

It all started when celebrity feng shui adviser, Chan Chun Chuen, also known as "Tony Chan" (seen above), traveled by private jet in July 2008 arriving at New Jersey's Teterboro Airport before being transported to Manhattan by Queens, N.Y.-based driver, Peter S. Rahhaoui. According to an indictment filed in U.S. District Court, Eastern District of New York, Rahhaoui later used Chan's American Express card to "receive payment and other things of value". The fraudulent activity allegedly occurred between August 2008 and November 2009 .

U.S. Secret Service Agent Kwame Davis testified that he had been contacted by a fraud investigator working on behalf of American Express who was investigating a pattern of fraudulent activity for a card issued to Chan Chun Chuen. According to Kwame's testimony, a large number of charges were posted on a monthly basis by A&S Limousine Service, for amounts ranging between $4,300 and $19,242. According to court documents, the total amount of these charges was $794,986.

But in a strange twist of events, the victim's own alleged misdoings are now being used as a defense by Rahhaouhi.

Tags: American Express, billionaire, Can Chun Chuen, court, feng shui, fraud, fraud investigation, Hong Kong, legal action, Nina Wang, Tony Chan

Continue reading “Alleged Swindler Scammed Out of $800,000 by New York City Limo Driver”

VIDEO: How NOT to Test Drive a $1.25 Million Bugatti

by Jared Paul Stern (RSS feed) — Oct 27th 2010 at 3:01PM

There's a right and a wrong way to test drive a Bugatti Veyron. The right way: crank it up past 200 mph on the Autobahn with a coked-out supermodel riding shotgun. The wrong way: back it into a Corolla two minutes after taking the wheel. Here we have a demonstration of the wrong way, courtesy of some hapless schmuck in Chicago with good credit but lousy driving skills. It seems the unfortunate fellow was test driving a $1.25 million 2008 black-and-white Veyron 16.4 with a brown leather interior at Chicago's Bentley Gold Coast when he clipped an idling Toyota for no apparent reason while backing out of the dealership. He then proceeded to scrape up the Veyron's front bumper on the pavement while pulling forward to extricate himself. All in all he caused an estimated $30,000 worth of damage, or enough for a couple of brand new Corollas. Adding insult to injury he didn't even buy the Bugatti.

[via JamesList]

Tags: Bugatti, Bugatti Veyron, car crash, Chicago, Veyron, video

More Madoff Items Up For Auction

by Deidre Woollard (RSS feed) — Oct 21st 2010 at 12:01AM

Just when I think we are done with Bernie Madoff's ill-gotten gains, more items are up for auction through the United States Marshals Service Southern District of New York. More than 400 pieces of personal property, jewelry, and antiques from the Ponzi schemer and his wife, Ruth, will be sold during a live and online auction in at the Sheraton New York Hotel & Towers in New York City on November 13, 2010.

"A diamond ring, grand piano, and personalized items are just a few of the lots that will be put up on the auction block", said Joseph R. Guccione, U.S. Marshal for the Southern District of New York. "These pieces are the last of what once occupied the homes and lives of Bernard and Ruth Madoff‟s residences in New York City and Montauk, N.Y." The ring, shown above is a 10.54 carat diamond set in platinum with a GIA certificate stating that it is VS2 in clarity and F in color. Other items include a Steinway & Sons grand piano and a pair of monogrammed velvet slippers.

Proceeds from the auction will be deposited in the United States Department of Justice Asset Forfeiture Fund to compensate the victims of this multi-billion dollar fraud. Even though the government has sold three homes, yachts and other Madoff belongings the total proceeds of approximately $25 million haven't come close to chipping away at amount Madoff swindled from his investors.

Tags: bernard madoff, bernie madoff, Bernie Madoff Ponzi Scheme, Ponzi Scheme, ponzi schemer, ponzi schemes, us marshalls

$6,000 Sample of World's Oldest Whisky Goes Missing

by Noah Joseph (RSS feed) — Oct 17th 2010 at 7:01PM

Ordinarily, the idea of a 200 ml sample bottle of scotch disappearing would hardly be news-worthy. But this, as you might have surmised, is no ordinary scotch. What we're dealing with here is a 70-year old malt from the obscure Mortlach distillery in Dufftown, Scotland, presented by the independent bottlers at Gordon & MacPhail.

Naturally at that age – reportedly the oldest ever bottled – the rare single malt wasn't bottled in great quantities, and sold at a justifiably elevated price. The few 700 ml decanters offered sold at £10,000 apiece – on par with The Dalmore Sirius 58yo and the Highland Park 50yo – and a limited quantity of 200 ml bottles were sold at £2,500, promptly skyrocketing in value on the open market to around $6,000.

The Swedish importer Symposion International was allocated two of the former and three of the later. They were displayed at the recent Stockholm Beer & Whisky festival, where one of the smaller bottles went missing. The distributor has appealed to the press (that's us!) to help track down the rare bottle by publicizing the details of its disappearance: it went missing after the conclusion of the show, leading Symposion to surmise that whoever took it knew what s/he was looking for and had good knowledge of the exposition center where it was held. Although the presentation box was taken with the sample, the back of the case was left behind along with the packaging that went around it. Have any tips as to its whereabouts? Contact Symposion International.

Tags: generations, gordon and macphail, gordon macphail, mortlach, stockholm beer and whisky festival, symposion, symposion international

Hall of famer John Elway $15 million Poorer from Ponzi Scheme

by David Kiley (RSS feed) — Oct 15th 2010 at 11:01AM

Hall of Fame Denver Broncos quarterback John Elway is $15 million poorer.

Elway, who has diversified business holdings including a large Toyota auto dealership invested $15 million last March with Colorado hedge-fund manager Sean Mueller who was charged this week in an alleged Ponzi scheme.

Mueller, 42, turned himself in this week to authorities a day after being charged by prosecutors with racketeering, securities fraud and theft in a scheme said to have bilked tens of millions of dollars out of investors.

Elway and business partner Mitchell Pierce said in a motion filed Tuesday they met with Mueller in Denver on Feb. 22 to discuss an investment with his company, Mueller Capital Management. In March, the Hall of Famer and and Pierce transferred funds to Mueller to be held in escrow until they agreed on where to invest the money, the men said in the filing. On March 30, Mueller advised them he was still setting up managed accounts in their names, they said.

About 65 people invested roughly $71 million since 2000 with Mueller Capital Management, according to an affidavit filed by the Denver district attorney's office. Mueller had less than $9.5million in cash and investments in April and liabilities to investors of $45million, said Colorado Division of Securities investigator Richard Rogers in the affidavit.

In their filing, Elway and Pierce ask the court to put their claim ahead of the others so that they may recapture their investment first. They said Mueller agreed to put their money in a trust and not mingle it with other investors' funds. That, of course, did not happen.

Tags: John Elway, ponzi scheme, Sean Mueller, Toyota

Bernie Madoff's Palm Beach Home Finally Under Contract

by Deidre Woollard (RSS feed) — Oct 14th 2010 at 10:01PM

it took a while but Bernie Madoff's three homes have all finally found buyers. Last to go was Madoff's Palm Beach, Florida home which is now under contract.

In February of this year, the Ponzi schemer's New York City penthouse was sold to Al Kahn, the CEO of 4Kids Entertainment. That home had been most recently listed at $8.9 million, $1 million off the original price. Madoff's Montauk house sold for $9.41 million around a year ago, more than the $8.75 million for which it was listed.

Madoff's Palm Beach home was built in 1973 and has five bedrooms and seven bathrooms. The property has a private dock on the shore of Lake Worth. The Corcoran listing says that the home was purchased and renovated by developer Michael Burrows in the early 90s and features many of his signature classic features. The upstairs master suite has 17' ceilings, separate dressing rooms and bathrooms with a balcony running the width of the house overlooking the great Banyan tree. Outside there is a pool facing the intracoastal. This home was first listed in 2009 for $8.49 million but the price was most recently $6.5 million. It was bought in 1994 for $3.8 million under the name of Madoff's wife, Ruth. The sale price has not been disclosed.

As with Madoff's other homes and his yachts, sale proceeds will go toward the victims of his Ponzi scheme. He is currently serving a 150-year sentence at a federal prison in North Carolina.

Gallery: Bernie Madoff in Palm Beach

Tags: bernard madoff, bernie madoff, Bernie Madoff Ponzi Scheme, ponzi scheme, ponzi schemer

$2 Million Bugatti & Three Other Supercars Smashed in Wild Autobahn Weekend

by Jared Paul Stern (RSS feed) — Oct 13th 2010 at 8:02PM

A recent weekend in Germany saw the wanton destruction of a small fortune in supercars in a series of unbelievable smashups on the Autobahns. In the space of a mere 48 hours a Bugatti, two Lamborghinis and an Audi R8 were all totaled while traveling at eye-popping speeds. The first two casualties were a rare $2 million Bugatti Veyron Grand Sport (above) and a Lamborghini Murciélago Roadster, involved in separate incidents mere hours apart. The Lamborghini was driven by a 32-year-old who lost control of the car in Vaterstetten in lower Franconia but miraculously walked away unharmed. The driver of the Grand Sport lost control while passing another car at 125 mph, causing some $560,000 worth of damage. Then a black Lamborghini LP670-4SV driven by a couple of mechanics who'd just performed an oil change on the vehicle spun out and got pretty badly banged up. And finally a limited edition $200,000 Audi R8 GT, one of only 333 built, burned to cinders after crashing near Denkendorf on the A9.

Tags: Audi R8, Audi R8 GT, Autobahn, Bugatti, Bugatti Veyron Grand Sport, car crash, Germany, Lamborghini, supercar

World's Seventh Largest Yacht Could Be Seized in Sex Sting

by Jared Paul Stern (RSS feed) — Oct 4th 2010 at 7:01AM

Turkish officials are moving to seize the 446-ft. Savarona (above), the world's seventh largest yacht, in the wake of the dramatic prostitution raid on the ship off the Turkish coast which we first reported on Friday. Authorities charged that the megayacht, which is owned by the Republic of Turkey, was being run as a floating brothel by the unnamed businessman who had been renting it for $40,000 per day. Clients paid $3,000 to $10,000 per night to have sex with one or more Russian and Ukrainian fashion models, some of whom were underage and are being deported, according to reports.

A sometime business associate of Donald Trump, real estate mogul Tevfik Arif, was among those taken into custody when armed police arrived in helicopters to find an orgy in full swing. Built by Blohm + Voss in 1931 for an American heiress, the lavishly refurbished yacht features accommodations for 34 guests with 260 tons of polished marble, a swimming pool, turkish bath, 282-foot gold-trimmed grand staircase, movie theater, library and helipad. Celebrities who have stayed aboard her include Prince Charles, the Sultan of Brunei, Nicole Kidman, Sharon Stone, Hugh Grant and Tom Cruise, though so far there is no evidence any of them did so while the brothel was in operation.

UPDATE at 6:00pm ET on May 16, 2012: Tevfik Arif was acquitted of all charges in April 2011, according to The Guardian.

Gallery: The Superyacht 'Savarona'

Tags: Blohm + Voss, crime, Donald Trump, megayacht, Savarona, sex, superyacht, Tevfik Arif, Turkey, wealth, yacht

World's Seventh Largest Yacht Raided in Prostitution Bust, Trump Associate Arrested

by Jared Paul Stern (RSS feed) — Oct 1st 2010 at 7:01PM

The incredible 446-ft. Savarona (above), the seventh largest yacht in the world, was the site of a dramatic helicopter raid by police off the Mediterranean coast of southwestern Turkey the other day. New York-based property developer Tevfik Arif, a sometime business partner of Donald Trump, is being questioned by Turkish police as a suspected organizer of an international ring of high-priced prostitutes that operated on the yacht, Bloomberg reports. Built by Blohm + Voss in 1931 for an American heiress, the superyacht is owned by the Republic of Turkey and was available for charter at $50,000 per day. The lavishly refurbished yacht features accommodations for 34 guests with 260 tons of polished marble, a swimming pool, turkish bath, 282-foot gold-trimmed grand staircase, movie theater, library and helipad. Celebrities who have stayed aboard her include Prince Charles, the Sultan of Brunei, Nicole Kidman, Sharon Stone, Hugh Grant and Tom Cruise.

In addition to Arif, businessmen from Russia and high-level government officials were taken into custody aboard the Savarona by Turkish military police following a seven-month investigation into an international prostitution ring, Bloomberg reports. The men paid $3,000 to $10,000 per night to have sex at sea with Russian and Ukrainian fashion models, some of whom were underage. 10 Russian and Ukrainian women suspected of prostitution were also detained in the operation. When police arrived at the yacht around midday they found everyone in bed. Arif's lawyer Engin Agyuzlu stated that his client is the victim of a "smear campaign" and will "vigorously defend himself in any court of law." Arif is chairman of Bayrock Group LLC, a property group that partnered with the Trump Organization to build the SoHo Hotel Condominium and a Trump Tower in Florida.

UPDATE at 6:00pm ET on May 16, 2012: Tevfik Arif was acquitted of all charges in April 2011, according to The Guardian.

Gallery: The Superyacht 'Savarona'

Tags: Blohm + Voss, crime, Donald Trump, Mediterranean, models, New York, prostitution, real estate, Russia, Savarona, sex, superyacht, Tevfik Arif, Turkey, wealth, yacht

Aspen Contractor Says Abramovich Stiffed Him

by Jared Paul Stern (RSS feed) — Sep 27th 2010 at 8:01AM

A contractor in Aspen, Colorado has filed a lien against Roman Abramovich, claiming the Russian billionaire stiffed him on work performed on Wildcat Ridge (above), the oligarch's $36 million ranch perched above Snowmass Village. The modern 11-bedroom mansion has a dramatic folded plate roof and a large moss rock wall dividing the east and west wings of the building, and uses geothermal wells to heat the interiors and indoor pool. Vogelman West Associates, a masonry and stone contractor, filed the lien in Pitkin County against Abramovich Roman Trailhead Property Management Inc. after trying to collect on an outstanding $5,000 invoice, the Aspen Daily News reports. Given the relatively paltry amount of the debt, we assume one of Abramovich's minions simply forgot to take care of it; then again, he didn't get rich by writing a lot of checks.

Tags: Aspen, Colorado, ranch, Roman Abramovich, Russian billionaires, wealth, Wildcat Ridge

More Lehman Corporate Heads To Auction

by Deidre Woollard (RSS feed) — Sep 20th 2010 at 2:01AM

It's been two years since Lehman Brothers filed for bankruptcy (check out our sister blog Daily Finance's coverage of the event). Since then, gradually we've seen much of the company's corporate art go up for sale. On September 25, Sotheby's New York will sell the $10 million art collection of Lehman Brothers and of the money manager it bought in 2003, Neuberger Berman. As the NY Observer puts it the Sotheby's sale offers a glimpse into Wall Street's glory days. What's intriguing is that the art advisors bought with both their hearts and their wallets, buying works from "name" artists that had failed to sell at auction in the hopes that the pieces would be worth more later. It looks like we'll soon find out.

The most expensive piece in the auction is Damien Hirst's We've Got Style (The Vessel Collection-Blue), which should bring in around $1 million (nearly a bargain by Hirst standards). Other pieces include Takashi Murakami's 1998 Chaos and Untitled I by Julie Mehretu which is estimated by Sotheby's at $600,000 to $800,000.

The Observer article also addresses the issue of provenance. Will the idea of picking over the remains of Lehman Brothers tempt or turn off potential buyers? The sale was once called the Lehman auction, then it was the Neuberger Berman & Lehman Brothers auction but now it's just the Neuberger Berman auction on the Sotheby's website. Check out the Observer article for more info on some of the price pieces being auctioned off including the Richard Prince painting shown at right.

Tags: art, corporate art, lehman brothers, neuberger berman

Jayson Williams Puts South Carolina Home Up For Sale

by Deidre Woollard (RSS feed) — Sep 7th 2010 at 6:01AM

Saying it's a been a rough few years for Jayson Williams is a bit of an understatement. Williams, once a top NBA basketball player with the New Jersey Nets, has been serving a five-year term for accidentally shooting and killing a limo driver and just a couple of weeks ago he was in court on drunk driving charges. He admitted that he was drunk when he crashed his SUV into a tree in January, a week after he pleaded guilty in New Jersey to aggravated assault in the death of limo driver Costas Christofi. He was given a one year sentence on top of the five-year sentence he is already serving.

It's no surprise then that his home in Bluffton, South Carolina is on the market. Williams is currently in the midst of a divorce and has two young daughters. This home is not the home where the shooting occurred. That home, a massive estate in New Jersey has since been sold, renovated and is back on the market for $13.5 million. The Bluffton home in the Berkeley Hall community has unfortunately not been free of controversy either. Earlier this year the NY Post reported that the estate had been robbed of more $150,000 in sports memorabilia, electronics and jewelry including a pair of autographed Tiger Woods golf shoes and handwritten lyrics by Tupac Shakur.

The seven-bedroom home is on the Okatie River and has a guest house over the garage. The double-height living room has river views and a massive fireplace. The homes opens onto foyer with twin sweeping staircases and a pool with views over the river. It is listed for $2.7 million.

[Thanks, Derrick!]

Gallery: Jayson Williams in South Carolina

Tags: berkeley hall, bluffton, bluffton sc, BlufftonSc, Jayson Williams, jayson williams sentence, south carolina real estate

Is Ferrari's New $265,000 Supercar an Accident-Prone Firetrap? [video]

by Jared Paul Stern (RSS feed) — Sep 1st 2010 at 9:04AM

Is there a curse on Ferrari's new $265,000 supercar, the stunning 458 Italia? In the mere 90 days that have elapsed since the first models were delivered to well-heeled customers, 458s the world over have been the victim of an inordinate amount of crashes, fires and other mishaps, the sheer number of which seem to indicate a mechanical flaw rather than mere idiotic driving. Their frequency and severity – such as the spontaneous combustion of one example on a Paris street (above) – has prompted Ferrari reps to declare that "We are taking it very seriously and investigating each incident" but they have declined to comment further or admit to any production flaw. Rumors abound however that faulty gas overflow tubes and vapor systems are to blame. Designed by famed styling house Pininfarina, the 458 has a 4.5-litre V8 engine boosting it from 0–62 mph in 3.4 seconds with a top speed of 202 mph. There have been 11 recorded wrecks in all, making for nearly $3 million in trashed exotics. Check out a timeline of the 458 Italia incidents and a video of the one that recently caught fire in China after the jump:

[via JamesList]

Tags: car crash, China, Ferrari, Ferrari 458 Italia, Paris, Pininfarina, supercar, Switzerland

Continue reading “Is Ferrari's New $265,000 Supercar an Accident-Prone Firetrap? [video]”

Former Money Manager Defrauds Investors of $800-$900 Million

by Lisa Palladino (RSS feed) — Aug 31st 2010 at 6:01AM

Former Money Manager Admits to Defrauding Investors of $800-900 Million

Former money manager Paul Greenwood, 62, pleaded guilty in late July to securities fraud, admitting that he cheated charities, schools, pension funds, and others out of $800-$900 million, even using some of those funds to buy collectible Steiff Teddy Bears and invest in horses. He faces up to 85 years in prison and hundreds of millions of dollars in fines. Sentencing is set for December 1, 2010, and an auction to sell the Teddy Bears and other "collectibles" is expected later this year.

Greenwood, a hedge fund manager and the general partner of WG Trading Co., pleaded guilty to six charges including conspiracy and securities fraud and is cooperating with the United States against co-defendant Steven Walsh, who pleaded not guilty. Greenwood and Walsh, his fellow manager of WG Trading and WG Investors, were indicted last July on charges that they conspired to defraud investors of $554 million. The U.S. said the scheme stretched from 1996 until their arrest in February 2009.

Greenwood said he entered into the conspiracy with Walsh and that the two claimed they had an "index arbitrage fund" that promised institutional investors high returns. He and Walsh took out money for their personal use, "in excess of $75 million," he said, spending the money on "a house, a horse farm [that previously was owned by Paul Newman and his wife, Joanne Woodward], and antiques."

According to the plea agreement, Greenwood will have to forfeit at least $331 million to the government, representing the money he and Walsh allegedly obtained as a result of their securities and wire fraud. Greenwood also agreed to pay the U.S. an $83.5 million judgment, the proceeds he "personally obtained" as a result of the fraud.

The case is U.S. v. Greenwood, 09-cr-722, U.S. District Court, Southern District of New York (Manhattan). Read the full story, as reported by Bloomberg, here.

Tags: crimes, fraud, Greenwood, indictments, Paul Greenwood, theft

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