RINA IRIANI SRI RATNANINGSIH, INDONESIAN POLITICIAN, UNDER INVESTIGATION FOR MONEY LAUNDERING + GRAFT

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RINA IRIANI SRI RATNANINGSIH 

http://www.thejakartapost.com/news/2014/08/20/former-karanganyar-regent-tried-graft-money-laundering.html

Former Karanganyar regent Rina Iriani Sri Ratnaningsih underwent her first hearing at the Semarang Corruption Court on Tuesday regarding her alleged involvement in a graft and money-laundering case.

In a hearing presided over by judge Dwiarso Budi Santiarto, prosecutors indicted Rina, a politician from the Indonesian Democratic Party of Struggle (PDI-P), along with her former husband Tony Iwan 
Haryono, for misappropriating funds intended for a housing development.

Prosecutor Sugeng Riyanto said that the Public Housing Ministry had disbursed RP 35.7 billion (US$3.1 million) for the development of the Griya Lawu Asri (GLA) housing complex in Dukuh Jeruksawit, Gondanglegi, Karanganyar, as well for the renovation of modest homes in the regency. 

The funds were channeled through the Sejahtera Multi-Purpose Cooperative (KSU Sejahtera).

“It appears that some of the subsidized funds were used for the defendants’ personal interests,” Sugeng remarked. 

Sugeng said that Rina was believed to have embezzled Rp 18.8 billion, which was used for her household needs, her campaign to become regent in 2008 and to pay car installments.

Sugeng added that Rina was believed to have recommended the cooperative in the subsidy proposal to the Public Housing Ministry. The recommendation did not get verification or approval from the local cooperatives office, in which Tony served as chairman of the cooperative’s supervisory board.

Sugeng added that despite being appointed to disburse the funds, KSU Sejahtera did not meet the requirements as a financial institution. 

When the funds were disbursed in 2007, Rina was listed in the State Official Assets Report (LHKN) as the richest official in Central Java with assets reaching Rp 60.3 billion.

Despite being named a suspect in Nov.ember 2012, Rina, who is defended by noted lawyer O.C. Kaligis, has yet to be detained. 

The GLA housing project has been postponed due to the fraud allegations. Three other persons have been convicted, including Tony.

The KSU Sejahtera head in 2007, Fransisca Riana Sari, was convicted to two years, the KSU Sejahtera head in 2008, Handoko Mulyono, was sentenced to four years, while Tony was sentenced to five years and 10 months.

Rina’s lawyer Muhammad Taufiq raised objections against the indictment, saying the charges were weak. 

The graft case involving the Karanganyar regent, who served for two terms between 2003 and 2013, has aroused considerable public interest. 

The Corruption Eradication Commission (KPK) has recorded all the court processes involving the former state administrator, confirmed KPK spokesman Johan Budi Prasetyo.

FINRA ALLEGES AML LAPSES AT LA BASED WEDBUSH SECURITIES, INC.

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http://blogs.wsj.com/riskandcompliance/2014/08/18/finra-alleges-anti-money-laundering-lapses-at-wedbush/

The Financial Industry Regulatory Authority said Monday that it has filed a complaint against Los Angeles-based Wedbush Securities Inc. for systemic supervisory and anti-money-laundering violations.

The move comes as anti-money laundering enforcement continues to expand outside of its traditional domain of banks. Finra has made the area of enforcement a priorityand issued its largest fine ever over inadequate anti-money laundering controls this year.

Wedbush was not immediately available for comment. The complaint initiates a formal proceeding by the regulator and can eventually result in a fine or other penalties.

Finra said Wedbush, one of the largest independent brokerage firms, failed to put together written anti-money laundering procedures tailored to its market-access business. In practice, the firm’s anti-money laundering compliance procedures in this area were “almost non-existent,” the complaint said.

Wedbush also did not have a “meaningful process for investigating suspicious activity” in its market-access business and filing appropriate suspicious activity reports. In addition, the firm had financial incentives for compliance staff based on market-access customers’ trading volume, Finra said.

In the period between January 2008 and late August 2013, Wedbush executed for market-access customers more than 100,000 instances of potential layering, so-called spoofing and auto-execution manipulation, Finra said.

Spoofing involves a trading pattern in which multiple limit orders are entered with the intention of triggering a market movement and then are cancelled and an order is entered on the opposite side of the market. Auto-execution manipulation is another tactic involving the entry of orders with no intention of execution, according to Finra.

Securities and futures firms, which include broker-dealers, filed fewer than 2,000 suspicious activity reports per month between April 2013, when a new online reporting form became mandatory, and December 2013, according to the Treasury Department. Banks and other so-called depository institutions tended to file about 70,000 of these reports each month during this period.

PORTIA “PANKIE” SIZANI, WIFE OF ANC CHIEF WHIP IN SA, CHARGED WITH 15 COUNTS OF MONEY LAUNDERING + 16 COUNTS OF FRAUD

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PORTIA “PANKIE” SIZANI


http://www.citypress.co.za/politics/stone-sizanis-wife-faces-r1-2m-fraud-money-laundering-charges/

ANC chief whip Stone Sizani’s wife Portia “Pankie” Sizani has appeared in court on fraud and money laundering charges.

She is alleged to have defrauded the department of education of more than R1.2 million between 2009 and 2010 when she worked as the Port Elizabeth district education coordinator of the early childhood development unit.

She is facing 16 counts of fraud and 15 of money laundering.

Her husband was MEC for education in the Eastern Cape from 1999 until 2002. He was appointed to the position of parliamentary chief whip last year.

Sizani, who is out on a warning and was appearing in court for the third time, looked at the floor while listening to proceedings today and often leant back with her arms folded.

Several principals and school owners of early childhood development centres around the city yesterday testified before magistrate Mputumi Mpofu.

They told the court that they did not know the “teachers” referred to their schools by the accused.

Some claimed that when teachers were sent to their schools they were there as volunteers or they would be paid directly by the department.

The state is expected to call some of the “teachers” to testify against Sizani.

The state is alleging that Sizani organised work for “ghost” teachers, who didn’t exist, and had people sign assumption of duty forms, which were also signed by school principals on her insistence.

She would allegedly pocket the salaries of these teachers every month.

One of the people she allegedly used as a bogus teacher was her niece, Amanda Noluntshungu, for whom a warrant of arrest was issued by the same court on Monday. Noluntshungu was supposed to testify on Monday but didn’t arrive.

Sizani has pleaded not guilty to all 31 charges against her.

She was arrested in December 2012 and the trial was delayed for more than a year due to alleged ill health.

The ANC chief whip has not been in court to support his wife since the beginning of the trial on Monday.

Sizani’s lawyers, advocate Johan Wessels and attorney Roland Meyer, did not cross-examine many of the state’s witnesses – school principals who gave evidence about how assumption of duty forms were fraudulently signed to reflect names of bogus teachers they knew nothing about.

One of the principals, Vuyelwa Manase, confirmed that she had dealt with Sizani and pointed her out from the dock when state prosecutor Ronelle Brink asked her to.

“Yes my Lord I know the lady I was dealing with at the department of education. It is Mrs Sizani who is here before court as an accused,” said Manase, after she pointed at the accused.

She said she did not know a Yolanda Mahote who was said to have been a teacher in her school.

“There were only two Grade R teachers in my school … me and a lady called Veliswa Masantsana. There was no Yolanda Mahote there,” she said.

The trial continues tomorrow, with the state expected to call more witnesses.

AEGIS CAPITAL CORPORATION ACCUSED BY FINRA OF AML DEFICIENCIES

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http://www.investmentnews.com/article/20140818/FREE/140819927/finra-accuses-indie-b-d-of-money-laundering-violations

A Wall Street broker-dealer is in hot water for alleged violations with respect to the sale of unregistered securities after helping customers illegally offload almost 4 billion shares of unregistered microcap stocks, according to a complaint from the Financial Industry Regulatory Authority Inc.’s enforcement unit.

From around 2009 to 2011, Aegis Capital Corp., which has around 430 brokers and 20 branch offices, allegedly failed to identify potentially fraudulent transactions that generated some $24.5 million in illicit profits from trades in unregistered penny stock securities, Finra said. The firm made $1.1 million in commissions from the transactions, according to Finra’s complaint, which also names the firm’s former chief compliance officers.

“Respondents failed to reasonably detect and investigate ‘red flags’ indicative of potentially suspicious transactions, namely: deposits of billions of unregistered shares of microcap stocks,” Finra said.

If found liable by a Finra hearing panel, the firm and the compliance officers could face fines and disgorgement of any profits, said Michael Ference, an attorney representing Aegis.

Aegis said that it planned to show that the identified transactions were exempt from registration and that its compliance department had acted responsibly, Mr. Ference said. The firm, which was founded in 1984, has been in good standing for 30 years and in three annual audits conducted from 2009 to 2011, Finra staff identified no exceptions or deficiencies in Aegis’ AML program, said Mr. Ference.

“At all times, Aegis had in place a comprehensive supervisory system to review and approve transactional activity in low priced securities, including, but not limited to, conducting a searching inquiry, as well as monitoring for potentially suspicious activity and ‘red flags,’” the firm wrote in a response submitted to Finra. “It is important to note that the staff has never alleged that Aegis failed to file a suspicious activity report where the filing of such [suspicious activity report] would have been appropriate.”

Finra said there were multiple signs of suspicious activity that went unreported or undetected by the compliance department. For instance, many of the shares were traded in accounts affiliated with “ML,” an unnamed investor who had a history of regulatory issues and was under a five-year ban by the SEC from participating in penny stock offerings. “ML” is not alleged to have ever been a client of Aegis.

The case against Aegis is timely because the Department of the Treasury’s Financial Crimes Enforcement Network two weeks ago introduced a proposal that would enhance due-diligence requirements for legal entities, in addition to existing Finra rules, according to Amy Lynch, who consults with firms on anti-money laundering through her firm Frontline Compliance.

“What many firms tend to lack in their AML programs is mainly in monitoring accounts at the transactional level,” she said. “In this case, however, they did the bare minimum.”

Aegis’ chief compliance officer at the time, Charles Smulevitz, who also served as the anti-money-laundering compliance officer, had only three and a half years of experience at the time of the alleged wrongdoing, Finra said.

Mr. Smulevitz, who was hired in 2009 at the age of 25, was referred to Aegis by the same lawyer who referred “ML” to the firm, according to the complaint.

“He was a younger person who had just gotten out of college at the time, so they could have been taking advantage of someone’s inexperience,” Ms. Lynch said.

Mr. Smulevitz voluntarily resigned in 2012, according to the Finra complaint. He then went on to spend just under a year at UBS Financial Services Inc., and is now at another broker-dealer firm, Laidlaw & Co. Ltd., according to Finra registration records. Mr. Smulevitz referred requests for comment to the attorney, Mr. Ference, who said the firm’s statement represented Mr. Smulevitz’ position on the case.

His successor, Kevin McKenna, who also was named in the complaint, is still registered with Aegis as a supervisor and operations professional, according to Finra’s complaint.

WANG DESHENG + COUNTERFEIT 2014 HSBC BANK DOCUMENTS

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IF YOU HAVE EVIDENCE REGARDING THE SOPHISTICATED, ORGANIZED, INTERNATIONAL MONEY LAUNDERING OPERATION CONCEALING ITS CRIMINAL ACTIVITIES AMONG THE INTERNATIONAL BROKER COMMUNITY WITH COUNTERFEIT BANK DOCUMENTS + TRANSACTIONS ON THE INTERBANK SCREEN THAT WE ARE INVESTIGATING + EXPOSING ON THIS WEBSITE, CONTACT US AT THE SKYPE NAMES ON TOP OF THIS PAGE.

IF YOU HAVE EVIDENCE OF PRIVATE BANKING CORRUPTION, TAX EVASION, MONEY LAUNDERING OR TERRORISM FINANCING, CONTACT US AT THE SKYPE NAMES ON TOP OF THIS PAGE.

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