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Barclays Accused of Criminal fraud for Golden Key in Geneva

EB's picture




 

Submitted by Teri Buhl

 

A criminal complaint has been filed against Barclays in Geneva, Switzerland this week for its role in a $1.4 billion structured investment vehicle (SIV) called Golden Key. The Barclays arranged and structured SIV blew up in spectacular fashion in 2007 and a French asset management firm, Oddo, tried to sue the British bank for fraud in a New York court but got the motion tossed, in 2009, on a technicality. So now one independent investor from Geneva has foregone the US court system and filed his own criminal complaint against the bank and the collateral manager they hand picked — Avendis Capital a Swiss asset management company.

Golden Key was considered a SIV-lite, meaning it would raise an amount of capital, borrow money in the short-term commercial paper debt market, and then invest all of this money in higher interest rate bearing instruments such as, mortgage-backed securities, in its strategy for high returns. Investors in Golden Key originally sued, in 2008, because they believed BarCap was sitting on a bucket of rmbs they needed to off-load and the bank arranged for the SIV-Lites to expand their size by increasing their borrowings and use these borrowing to take the toxic securities off Barclays’ hands. The idea was collateral managers like, Avendis, were buddy-buddy with BarCap executives who were in charge of selling and creating the SIV, and would basically let BarCap pick the collateral for the SIV.

This is a method we’ve seen before in CDO fraud cases brought against Goldman and Merrill Lynch. But in the Barclays suit they didn’t have any hard evidence like emails from Avendis and Barclays’ executive, Kelsey Burr, detailing their cozy relationship or plan to screw investors in the name of saving Barclays’ balance sheet. Well now they do.

The Geneva investor, Philippe Rebourg of Coficap, just happen to get a hold of some damaging internal Barclays comunication, which are now evidence in his criminal complaint. You see in some European countries citizens can file their own criminal complaints when the local D.A. or prosecutor doesn’t do it first. Then a judge will decide if the criminal complaint goes forward. While the complaint is filed if any of these BarCap executives named in the claim show up in town they can be arrested. Rebourg told me he expects it will take two to three weeks for the judge to rule and the suit is currently sealed. Luckily there is also a changing of the guards in the Geneva A.G. office and incoming Attorney General Michael Lauber has told local papers he is gun hoe to file claims against the banks for financial crimes.

I’ve seen emails between Barclays and Rebourg for months now and he’s warned them he is going to file a criminal complaint and expose the damaging emails if they don’t settle with him. Well he clearly got sick of their cat and mouse litigation game and apparently called their bluff by filing the criminal complaint. The veteran Barclay’s executive who worked out of the Chicago office for years, Kelsey Burr, suddenly resigned or took a buyout package this summer. BarCap’s Chicago office confirmed for me in August he was no longer with the firm and Burr has not responded to emails for a request for comment.

Another alleged bad actor from BarCap was John Parker. I’ve seen an email chain from April 2007 between Parker and Avendis executive Katy Huang explaining that Avendis as the collateral manager was worried about owning the riskiest shares (capital notes) in Golden Key and their plan was to sell off the risky capital notes to investors (high yield chasers) Parker and team had lined up. Avendis also had a hedge fund that bought a ton of Golden Key notes but there were restrictions in the fund’s offering memorandum regarding how much they could buy. BarCap allegedly solved that little problem for them by simply ...

Read the rest of the article here.

 

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Sat, 12/31/2011 - 17:17 | 2023941 jm
jm's picture

You are my favorite contributor.  Great work.

Sat, 12/31/2011 - 10:37 | 2023500 Chinese Busboy
Chinese Busboy's picture

Attorney General Michael Lauber has told local papers he is gun hoe to file claims against the banks for financial crimes

 

I don't know many AG's who are "gun hoe's", most are A-holes, a few might even be gung-ho A-holes.

Sat, 12/31/2011 - 11:20 | 2023540 El Hosel
El Hosel's picture

Yeah,  "Bankstas" at Barclays and others like Blankfein Corzine Dimon  will be held for criminal fraud right after Congress stops being allowed to trade on the legislation in front of them. 

 

Sat, 12/31/2011 - 10:27 | 2023492 dcb
dcb's picture

So I went and read the source article fromt eh site mentioned, and it's really good. I think ZH should link he ror have a contributer. there is a great one about a new cannan trader hiring an escort for threesomes with his fiancee and then accusing her of stealing. her is her bio:

I’m a Wall Street investigative reporter who has written for the Greenwich Time, Hearst Newspapers, Forbes Magazine, Forbes.com, Fortune.com, The Atlantic.com, New York Magazine, New York Post, Trader Monthly, Housingwire, ML-Implode, The Business Insider, and Dealbreaker. Currently I break financial news for DealFlow Media’s publications.

link:

http://www.teribuhl.com/about/

Sat, 12/31/2011 - 09:29 | 2023468 indio007
indio007's picture

uhmmm.... in the US people can prosecute their own criminal complaint as well.

Private Prosecution: A Remedy for District Attorney's Unwarranted Inaction
Yale Law Journal

https://docs.google.com/open?id=0B1wtyXDQr0s-ZjRkYzNlZjMtN2M2ZS00ZDViLTk...

Are Cops Constitutional (see section 2. Private Prosecutors)

Seton Hall Constitutional L.J. 2001, 685

http://www.constitution.org/lrev/roots/cops.htm

 

I don't know why there is a collective ignorance about this.

You can also dissolve corporations for violating their charter.

Sat, 12/31/2011 - 07:56 | 2023433 JuicedGamma
JuicedGamma's picture

A criminal complaint has been filed against Barclays in Geneva, Switzerland this week for its role in a $1.4 billion structured investment vehicle (HiV) called Golden Shaft. The.....

Banksters!

Sat, 12/31/2011 - 00:45 | 2023228 AndrewCostello
AndrewCostello's picture

This is the action we should all be taking.  Collect as much evidence as possible and file civil charges against the fraudsters.

 

Read:

http://www.amazon.com/Simple-Wealth-Mr-Andrew-Costello/dp/1463523017/ref

Fri, 12/30/2011 - 20:49 | 2022945 Zero Govt
Zero Govt's picture

"..a New York court got the motion tossed, in 2009, on a technicality.."

the rats escape through the rat hole in the rats nest (NY 'justice' system)

Fri, 12/30/2011 - 18:57 | 2022742 perchprism
perchprism's picture

 

The writer of this article would do well to learn when and where to place a comma.  Then she should focus on penning a legible sentence.

Fri, 12/30/2011 - 18:17 | 2022675 TimmyM
TimmyM's picture

The wrong people got burned by this one, simple as that. I know some of them and it wasn't an OPM manager. Steal 100s of MM from a billionaire, and you better watch your back.

Fri, 12/30/2011 - 18:02 | 2022637 PrintingPress
PrintingPress's picture

I'm a trend setter

Fri, 12/30/2011 - 17:25 | 2022517 LawsofPhysics
LawsofPhysics's picture

The bankers will never be held accountable until everyone simply stops paying. Taxes, mortgages, fees, bogus payments of all kinds. Know the real value of your labor? You better.

Fri, 12/30/2011 - 20:43 | 2022938 Zero Govt
Zero Govt's picture

bankers = worthless

politicians = worth(even)less

Fri, 12/30/2011 - 23:24 | 2023136 Gromit
Gromit's picture

voters even less

Fri, 12/30/2011 - 17:25 | 2022516 LawsofPhysics
LawsofPhysics's picture

The bankers will never be held accountable until everyone simply stops paying. Taxes, mortgages, fees, bogus payments of all kinds. Know the real value of your labor? You better.

Fri, 12/30/2011 - 17:25 | 2022515 ebworthen
ebworthen's picture

Sounds bullish for hempen rope, scaffolding, and guillotine manufacturers.

Fri, 12/30/2011 - 22:39 | 2023118 PenGun
PenGun's picture

 I dunno an axe and a shaped piece of wood will do fine. Then we can drain em' for the fertilizer guy.

 I may have been playing a little too much Skyrim ... I dunno.

 

Fri, 12/30/2011 - 17:53 | 2022603 Tijuana Donkey Show
Tijuana Donkey Show's picture

I like to go local, and be green when looking for recycling tools like these. Blood is great fertilizer, even if there is some blow in it

Fri, 12/30/2011 - 17:23 | 2022507 Urban Redneck
Urban Redneck's picture

The last time they threw a banker in Switzerland in prison, he was suicided in short order despite the complete lack of PMITA prisons in Switzerland.  Perhaps the Swiss should open a for-profit penal colony just for bankers and charge the convicting State a fixed 10bps of former AUM as an entrance fee to be renewed annually if the banker lives that long. 

Fri, 12/30/2011 - 18:33 | 2022704 Ratscam
Ratscam's picture

what about mr. hollenweger, he spent almost two years in prison for no wrong doing, hence loosing roughly 100 million personal chifs.
I generally agree on the idea not getting prosecuted as a bankester but only if you are an employee of UBS or CS etc. None of them ever got a prison sentence. This poor black guy in London is still in prison for loosing 2.3 bn chifs, whereas all his superiors left their jobs with a great recommendation letter and a superior severance payment, including mr. scum bag Mr. Gruebel.
Not ONE person can loose billions of chifs without their superiors knowing, a classic, this time in black, scape goat had to be found.

Fri, 12/30/2011 - 20:27 | 2022914 Urban Redneck
Urban Redneck's picture

The two tiered Swiss justice system really irks me, the banking blacklists here sort of irk me, but both are preferable to the blanket immunity that the banking sector enjoys in the US.  There are also the peculiar redemption cases like Philippe Jabre who actually managed the seemingly impossible feat of getting kicked out of the City, but then was able to set up shop in Genève.

 

I think my resolution for the New Year will be to improve my German beyond Ich ben Züricher, or in proper American tradition, Ich ben ein Züricher.  In the mean time, I have to deal with the arrogant Swiss double standards at the immigration department.  They have apparently been dutifully writing memos to their counterparts in US asking if I am wanted for any crimes there.  I told them last year that they probably weren't going to get any response, and they probably would have to settle for either my dated security paperwork or the fact that I legally own more guns in the US than the population of the local gemeinde does here, and now I have to dutifully write them a letter politely saying Ich habe dir gesagt... One of these years I'll get around to figuring the Swiss out, in the meantime-

 

Happy New Year's Eve!

Fri, 12/30/2011 - 20:36 | 2022926 Ghordius
Ghordius's picture

The book you are looking for is called "lend me your alphorn"

it tries to introduce you to the Swiss mindset with a bit of humour - which you might need in spades in Switzerland since they are not that good in this department...

by the way, the Swiss consider themselves to be all some sort of rednecks, even the urbanites... ;-)

Fri, 12/30/2011 - 20:56 | 2022964 Urban Redneck
Urban Redneck's picture

Thanks for the suggestion, I'll definitely pick up a copy.  Other than the lack space and the nosiness into others business in spite of the desire for personal privacy, Switzerland is strangely similar to the US once outside the huge clusters of US urban sprawl.  The Thai have probably the best expression for it "same, same, but different."

Fri, 12/30/2011 - 17:11 | 2022485 sgt_doom
sgt_doom's picture

With Barclays, if it's not money laundering, than it's something else, but ALWAYS, something else.

Of course, we all remember this:

http://grayson.salsalabs.com/dia/track.jsp?key=-1&url_num=3&url=http%3A%2F%2Fwww.gao.gov%2Fnew.items%2Fd11696.pdf

Page 131 – The total lending for the Fed’s “broad-based emergency programs” was $16,115,000,000,000. That’s right, over $16 trillion. The four largest recipients, Citigroup, Morgan Stanley, Merrill Lynch and Bank of America, received over a trillion dollars each. The 5th largest recipient was Barclays PLC. The 8th was the Royal Bank of Scotland Group, PLC. The 9th was Deutsche Bank AG. The 10th was UBS AG. These four institutions each got between a quarter of a trillion and a trillion dollars. None of them is an American bank.

Now, this is another sweet Barclays deal, a commodity trigger swap, utilizing an SPV in Ireland:

http://www.ise.ie/debt_documents/Belo_%20.%20.%20.%20_16.01.07_5652.pdf

In practice, in September 12, 2005, a 5-year CDCO was issued by Barclays Bank.Barclays enters into a series of 90 CDS and 10 CTS selling protection on 100 entities and buying protection through a full capital structure deal or via bespoke tranche creation. Through historical analysis and in agreement with S&P, Barclays Capital selected 10 commodities and set price triggers so far below spot prices that the probability of spot existing below such levels in 5 years is equal to that of ‘AAA’ bonds defaulting over the same period. Because there is often no active commodity futures market that extends out to 5 years, Barclays uses a short averaging period immediately prior to maturity to determine the final commodity level and hence the determination of a CTE.

(I'm sure the Irish appreciated it .....) 

Fri, 12/30/2011 - 19:59 | 2022864 PMakoi
PMakoi's picture

Fascinating!  And, again, the Internet supplies the real reporters of information to the People.  Great stuff, thanks.

Here's a new story from GATA,  http://www.gata.org/node/10839

Don't you begin to think this unwinding business is just going to turn into a huge coil exploding??  The whole clockworks flies apart!

Fri, 12/30/2011 - 18:48 | 2022740 SAT 800
SAT 800's picture

Wow. That's the craziest thing I ever saw. It seems like something invented by someone in a mental home. And people wonder whether maybe we should have more bank regulation? Yeah, I guess so. And right away too.

Fri, 12/30/2011 - 16:51 | 2022444 falun bong
falun bong's picture

what a surprise, banksters with their hand in the till

Fri, 12/30/2011 - 16:47 | 2022432 PulauHantu29
PulauHantu29's picture

Who would of thought.......

Fri, 12/30/2011 - 16:45 | 2022425 chunga
chunga's picture

Why do we have to go all the way to Sweden to find criminal prosecution?

DOER ALERT: Wells Fargo Bank… How could you do this to a mother of four?

Doug and Holly built their home in Raleigh, North Carolina back in 1994. It’s the only home their four children… ages 12, 13, 15 and 18… have ever known. For something like 18 years, they never missed a mortgage payment. I spoke with Holly for a couple hours last night… she’s simply as nice a person as I can imagine exists.

In 2009, the recession hit Doug’s business pretty hard… but no surprise there right? He certainly was far from alone. And I would think that Wells Fargo should at least somewhat understand that situation. After all, the federal government’s taxpayer funded bailout that year sent $38.6 billion Wells Fargo’s way, isn’t that right Mr. Stumpf? No matter.

Holly wrote to me yesterday… her message began by saying:

“Time is of the essence. I am writing to you today for your help.”

Here’s how her message ended:

“We really need to be out of our house today but Freddie mac put it out in the public that we have until January 3, 2011. I asked Wells Fargo and their attorney to put that in writing but they wouldn’t. They just agreed to it. However, I am afraid that they will send the sheriff out today to lock us out of our home. We have not moved yet as we are still under review. Can you help us by pointing us in the right direction? We are so desperate.”

Doug submitted and Wells Fargo confirmed receipt of all required documents by October 19th, three days before the deadline of October 22nd. (Holly has the fax receipts showing the date.)

So, the bank immediately started doing what Katerina Williams said the bank would do… they began reviewing Doug and Holly’s file for a loan modification? No, I’m afraid they didn’t do that.

What Wells Fargo did do was sell their home at a Sheriff’s Sale on October 21, 2011… a day BEFORE THE DEADLINE FOR SUBMISSION OF THE REQUIRED DOCUMENTS.

It's all in Martin's article and it makes me sick. (linked above)

If you want to be a DOER here are the email addresses for the jerks at Wells Fargo. Be a DOER and email them regarding these people.

Doug & Holly Niemic Raleigh, NC Loan Number: 0157248618

James.M.Strother@wellsfargo.com

Richard.D.Levy@wellsfargo.com

David.A.Hoyt@wellsfargo.com

David.M.Carroll@wellsfargo.com

patricia.r.callahan@wellsfargo.com

kevin.a.rhein@wellsfargo.com

Carrie.L.Tolstedt@wellsfargo.com

AVID.MODJTABAI@wellsfargo.com

BoardCommunications@wellsfargo.com

Naturally, a few of them have got their "out of office" messages set to "Happy Holidays".

Fuck You Wells Fargo. You Suck!

Oh yeah...no news on this...aside from Wells Fargo's Executive Office bimbo Shari Ruber (515-324-6987) making threats to Senator Moura.

R.I. Senator Moura Complaint To The Department of Treasury RE: Wells Fargo

Nothing on this either...

URGENT FAX FROM RI SENATOR MOURA TO SENATOR JACK REED

Ass Holes. Fuck you. These people had the money and were trying to pay. But no.

“Integrity is not a commodity. It’s the most rare and precious of personal attributes. It is the core of a person’s — and a company’s — reputation.”

John Stumpf, Chairman and CEO, Wells Fargo Bank

 

Fri, 12/30/2011 - 21:43 | 2023038 FlyPaper
FlyPaper's picture

Hold on a second here...

What this does not tell us is when the couple missed their first mortgage payment.   All we know is in 2009 things got tough for the husband's business.

If they stopped paying their mortgage in 2009 - and its nigh 2012, then why in October of 2011 would they be seeking a refinance?   Or did they miss a payment in August 2011, and the bank threw one over on them?

Those bits of information would materially impact the assessment of the bank's action.  

No question here that bank screw-ups and fraud have been part of the housing debacle and this kind of stuff is happening and screwing people.

So CHUNGA:  Would you please provide enough information so we can *accurately* get the full picture?

Thanks.  Fly.

 

Fri, 12/30/2011 - 22:15 | 2023084 chunga
chunga's picture

Martin's article just came out today and is being updated almost hourly.

Have you read it?

To give Wells Fargo the benefit of the doubt is your prerogative but I personally doubt that Wells Fargo's actions benefit anyone in the long run.

What's the big rush to empty out another house?

Fri, 12/30/2011 - 18:01 | 2022628 chunga
chunga's picture
Update from Martin with phone numbers Ahem… Excuse me…Are there any DOERS in the house?

 

CALLING ALL DOERS!

 ~~~~

Doug & Holly Niemic Raleigh, NC Loan Number: 0157248618

 ~~~~

And look what I found… a whole list of Email addresses for Wells Fargo execs, but let’s start with letting Mr. John Stumpf know how littler we think of this situation his bank has created.  Let’s let him know we’re here and we’re paying attention… and that there are quite a few of us.

 

Chairman of the Board, President, CEO: John.G.Stumpf@wellsfargo.com

~~~~ 

John Stumpf (415) 396-7018
john.g.stumpf@wellsfargo.com
CEO: John G. Stumpf
420 Montgomery St.
San Francisco, CA 94163
1-866-878-5865

~~~

Sharon Cecil, Assistant to Both
WELLS FARGO HOME MORTGAGE
sharon.cecil@wellsfargo.com

~~~

Todd M. Boothroyd
Senior Counsel, Real Estate Division
Todd.M.Boothroyd@wellsfargo.com

~~~

**** Kovacevich (415) 396-4927
kovacedm@wellsfargo.com

~~~

John Stumpf (415) 396-7018
john.g.stumpf@wellsfargo.com
CEO: John G. Stumpf
420 Montgomery St.
San Francisco, CA 94163
1-866-878-5865

Mark Oman (515) 324-2035
mark.oman@wellsfargo.com

~~~

Cara Heiden (515) 213-4040
cara.heiden@wellsfargo.com
Executive number for members to use to escalate the mod process 1-800-853-8516.
Executive Communications
MAC X2302-02J 800 S. Jordan Creek Parkway
West Des Moines, IA 50266
515-324-3130
&
515-324-2872

~~~

Denise Erickson
Executive Mortgage Specialist, Office of the President, WF Home Mortgage
MAC X2302-019
1 Home Campus
Des Moines, IA 50328
denise.erickson@wellsfargo.com
1-515-324-2610 

~~~

Cara K. Heiden, CEO
WELLS FARGO HOME MORTGAGE
cara.k.heiden@wellsfargo.com

~~~

Mary Coffin, Vice President
WELLS FARGO HOME MORTGAGE
mary.coffin@wellsfargo.com

Sat, 12/31/2011 - 02:58 | 2023336 sherryw
sherryw's picture

I emailed Mr Stumpf for you....from Australia.

Sat, 12/31/2011 - 09:54 | 2023482 chunga
chunga's picture

Thanks Sherry.

I don't know the family but I'm sure they thank you too.

Happy New Year.

Fri, 12/30/2011 - 18:14 | 2022669 gangland
gangland's picture

every single time i go to one of these shit houses and they ask me to open an account, whether manager or teller, as loudly as i possibly can i tell them to their pig hustler faces they are bankrupt and complicit in a criminal enterprise.  my contempt for them on an indivudual and institutional basis absolutely shocks them. 

Fri, 12/30/2011 - 18:29 | 2022699 chunga
chunga's picture

fuck 'em

Fri, 12/30/2011 - 16:44 | 2022424 11b40
11b40's picture

I have been waiting for this to happen, and wondering why we have not had more civil cases brought against these financial institutions who were selling gift-wrapped crap all over the world.  What about all the pensiopn funds that have been burned by these pin-stripped theives?  Why aren't our courts flooded with civil cases of financial fraud?

Sat, 12/31/2011 - 09:36 | 2023470 Al Gorerhythm
Al Gorerhythm's picture

Because from where Barry's lookinf, from AF One at 40,000 feet, he can see nothing illegal. Nothing to see down here Barry. Move along now Bro. Please.

Sat, 12/31/2011 - 12:17 | 2023592 Vendetta
Vendetta's picture

All barry did was tell the nation that in the US, fraud and corruption is perfectly legal.

Sat, 12/31/2011 - 00:28 | 2023215 jballz
jballz's picture

there's surely a few. But if you have the rather fucking awesome position of taking workers retirement funds and handing them off to the masters of the universe to do whatever they want, and you get a piece no matter what happens...

what is your incentive to go pointing fingers?

It's a really short trip from making a fraud accusation to being accused of malfeasance for letting yourself/clients be defrauded.

much easier to shrug your shoulders and wait for the next infloe. The contributors know nothing anyways.

Fri, 12/30/2011 - 19:24 | 2022809 Things that go bump
Things that go bump's picture

Unless I read this wrong, this appears to be an actual criminal case rather than a civil lawsuit.  Perp walk bitchez!

Fri, 12/30/2011 - 18:40 | 2022723 rocker
rocker's picture

In Europe Barflays is one notch under GS for Scumbag Fraud Banksters United.

Fri, 12/30/2011 - 16:48 | 2022438 PulauHantu29
PulauHantu29's picture

the AAA+ ribbon cannot conceal the poop smell.

Fri, 12/30/2011 - 16:43 | 2022418 MethodMan
MethodMan's picture

Gung-ho

oh, and

Interpol Arrest Warrant, bitches.

 

Fri, 12/30/2011 - 16:34 | 2022390 tony bonn
tony bonn's picture

"tried to sue the British bank for fraud in a New York court but got the motion tossed, in 2009, on a technicality"

justice in america is very rare indeed....it is a kleptocracy managed by frat boys and owned by the rockefeller-mic-yale-cia den of jackals....

Fri, 12/30/2011 - 21:27 | 2023015 FlyPaper
FlyPaper's picture

Don't ever file a suit against a financial firm in Deleware, NJ or Chicago...  many in the judiciary know who their masters are, and it isn't the rank-and-file who get defrauded...

 

Fri, 12/30/2011 - 18:41 | 2022727 Reese Bobby
Reese Bobby's picture

We have many lovely lakes.

Fri, 12/30/2011 - 16:28 | 2022373 willien1derland
willien1derland's picture

Ok I will ask the question - KNOWING FULL WELL THAT THE SEC would NEVER file suit against any TBTF bank - Was there an SEC investigation? and if there was an SEC investigation did they ever file against Barclays?

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