Amber Gold affair is one of the biggest financial scandals to hit Poland since the fall of communism in 1989.

It was pretty much all the money Bozena Oracz had after a working life as an accountant: the equivalent of $15,000. She placed it in a fund investing in gold, with the hope of paying for her daughter's studies and getting treatment for a bad knee.

Those dreams were dashed when she discovered she had fallen victim to an elaborate fraud scheme that has left thousands of Poles, many of them elderly, facing financial ruin.

The so-called Amber Gold affair is one of the biggest financial scandals to hit Poland since the fall of communism in 1989. The extent of wrongdoing is still murky, but it seems to have some elements of a pyramid scheme, meaning the financial institutionused funds from new clients to pay off older clients rather than investing them.

Consumed with anger and desperation, 58-year-old Oracz traveled last week from a small town near Warsaw to a law firm in the capital to consider whether, after losing 50,000 zlotys, she should risk another 3,000 zlotys ($920; €730) on the fee to join a class-action lawsuit seeking to recover some of the losses.

"This was a lot of money to me — it was my savings," Oracz said, fighting back tears. Now retired and living on a small pension, she sees no way of building another nest egg. "My pension barely covers my needs," she said.

The affair has raised questions about the effectiveness of Poland's justice system and government because authorities failed to act against the scheme despite red flags from regulators and the criminal record of its young owner. Scrutiny has also focused on the prime minister due to business dealings his son had with those running the scheme. The scandal has even touched democracy icon Lech Walesa, who fears it could tarnish his good name.

Prosecutors say investors lost about 163 million zlotys ($50 million; €40 million), a number that has been mounting as more and more victims come forward. Any law suits could take care years to go through the courts, with no guarantee of their outcome.

"People are desperate," said Pawel Borowski, a lawyer preparing the class-action suit that Oracz is considering joining. "In most cases the clients lost life savings or sold family properties to make investments."

The financial institution, Amber Gold, promised guaranteed returns of 10 to 14 percent a year for what it claimed were investments in gold. Many of its clients were older Poles who grew up under communism and lacked the savvy to question how a financial firm could guarantee such a high return on a commodity whose value fluctuates on the international market. The promised returns compared well to the 3 to 5 percent interest offered by banks on savings accounts — earnings essentially wiped out by the country's 4 percent inflation rate.

"These were people with a low level of financial education," said Piotr Bujak, the chief economist for Poland at Nordea Markets. "They think it's still like in the old times, where everything was guaranteed by the state. They underestimated the risk."

Amber Gold launched in 2009, opening branches in city centers alongside respected banks, with white leather sofas and other sleek touches that conveyed sophistication and respectability. It bombarded Poles with convincing advertisements. Some early investors got out with their expected gains, adding to the fund's credibility.

The company, based in Gdansk, capitalized on gold's allure while playing on people's anxieties in unpredictable financial times. "We are dealing with a loss of confidence in the entire financial system and an urgent need for safe investments," one ad said. "The environment for gold is perfect."

Amber Gold drew in 50,000 investors over its three years of operation, though the company's founder, Marcin Plichta, said there were only about 7,000 at the time of liquidation.

Soon after Amber Gold began operations, the Polish Financial Supervision Authority put it on a "black list" of institutions that operate like banks without authorization. There are 17 other such black-listed institutions in operation, but the regulators lack the authority to shut them down. This has sparked a debate in the government and news media about whether courts should be more aggressive in intervening.

According to prosecutors, the company did use some of its money to invest in at least one legitimate business: It was the main investor in budget airline OLT Express. It was this investment that brought Amber Gold down — when the airline filed for bankruptcy, Amber Gold entered liquidation and its scheme of investments unraveled. Its bank accounts were blocked and it was unable to return the money of thousands of its customers.

Plichta was charged this month with six counts of criminal misconduct.

Prime Minister Donald Tusk's center-right government went into damage-control mode when it emerged that the leader's son, Michal Tusk, had done PR work for the airline. Tusk said he had warned his son against doing business with Plichta but that ultimately he son makes his own decisions.

Leszek Miller, the head of the opposition Democratic Left Alliance, asked how Tusk could warn his son against involvement in the airline but not warn the thousands of Poles who invested in the fund. Miller has called for a parliamentary inquiry into the scandal.

Public discontent is also centering on the justice system because Plichta, 28, has past convictions for fraud, and many Poles are asking why authorities — aware of his criminal record — didn't stop him sooner. Born Marcin Stefanski, he took his wife's last name to distance himself from his past crimes.

The country's top prosecutor, Andrzej Seremet, admitted Monday that prosecutors were negligent in failing to heed multiple warnings since 2009 about Amber Gold from the financial supervisory body. He announced personnel changes in the office he blamed for mistakes.

The affair also has an unlikely connection to the Solidarity leader and former president, Lech Walesa, because an Oscar-winning director, Andrzej Wajda, was relying on money from Amber Gold to produce a film about Walesa's struggle in the 1980s.

Walesa came out publicly to make clear he is not involved in any way, saying he doesn't want his name "dirtied."

Many of the unlucky investors are not only furious but wracked by shame and guilt.

Engineer Andrzej Malinowski, 61, put three months of salary — 25,000 zlotys ($7,660; €6,100) — into Amber Gold. He made the investment without consulting with his wife, sensing that there was some risk and that she would not have agreed.

Now he is so shaken and embarrassed that he doesn't want to talk about it, leaving his wife, Danuta Malinowska, to help unravel the mess.

"He saw that gold was going higher and higher so he believed that maybe it would be a good deal," Malinowska said. "Now he has so much guilt that I am trying to help — contacting the lawyer, filling in the forms, writing to the prosecutors. But the justice system is very ineffective. I don't believe we will be getting any of this money back."

Miguel Angel Trevino Morales new leader is emerging at the head of one of Mexico's most feared drug cartels.

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  This undated image taken from the Mexican Attorney General's Office rewards program website on Aug. 23, 2012, shows the alleged leader of Zetas drug cartel, Miguel Angel Trevino Morales, alias âZ-40.â (AP Photo/Mexican Attorney General's Office website)

Mexico's Violent Zetas Cartel Sees New Leader Miguel Angel Trevino Morales A split in the leadership of Mexico's violent Zetas cartel has led to the rise of Miguel Angel Trevino Morales, a man so feared that one rival has called for a grand alliance to confront a gang chief blamed for a new round of bloodshed in the country's once relatively tranquil central states.

Trevino, a former cartel enforcer who apparently has seized leadership of the gang from Zetas founder Heriberto Lazcano Lazcano, is described by lawmen and competing drug capos as a brutal assassin who favors getting rid of foes by stuffing them into oil drums, dousing them with gasoline and setting them on fire, a practice known as a "guiso," or "cook-out".

Law enforcement officials confirm that Trevino appears to have taken effective control of the Zetas, the hemisphere's most violent criminal organization, which has been blamed for a large share of the tens of thousands of deaths in Mexico's war on drugs, though other gangs too have repeatedly committed mass slayings.

"There was a lot of talk that he was pushing really hard on Lazcano Lazcano and was basically taking over the Zetas, because he had the personality, he was the guy who was out there basically fighting in the streets with the troops," said Jere Miles, a Zetas expert and U.S. Immigration and Customs Enforcement special agent who was posted in Mexico until last year.

"Lazcano Lazcano, at the beginning he was kind of happy just to sit back and let Trevino do this, but I don't think he understood how that works in the criminal underworld," Miles said. "When you allow someone to take that much power, and get out in front like that, pretty soon the people start paying loyalty to him and they quit paying to Lazcano."

The rise has so alarmed at least one gang chieftain that he has called for gangs, drug cartels, civic groups and even the government to form a united front to fight Trevino Morales, known as "Z-40," whom he blamed for most of Mexico's violence.

"Let's unite and form a common front against the Zetas, and particularly against Z-40, Miguel Angel Trevino Morales, because this person with his unbridled ambition has caused so much terror and confusion in our country," said a man identified as Servando Gomez, leader of the Knights Templar cartel, in a viedo posted Tuesday on the internet.

A Mexican law enforcement official who wasn't authorized to speak on the record said the video appeared to be genuine,

"He is the main cause of everything that is happening in Mexico, the robberies, kidnappings, extortion," Gomez is heard saying on the tape. "We are inviting all the groups ... everyone to form a common front to attack Z-40 and put an end to him."

Trevino Morales has a fearsome reputation. "If you get called to a meeting with him, you're not going to come out of that meeting," said a U.S. law-enforcement official in Mexico City, who spoke on condition of anonymity because of the sensitivity of the topic.

In two years since Zetas split with their former allies in the Gulf cartel — a split in which Trevino reported played a central role — the gang has become one of Mexico's two main cartels, and is battling the rival Sinaloa cartel.

Now the Zetas' internal disputes have added to the violence of the conflict between gangs. Internal feuds spilled out into pitched battles in the normally quiet north-central state of San Luis Potosi in mid-August, when police found a van stuffed with 14 executed bodies.

San Luis Potosi state Attorney General Miguel Angel Garcia Covarrubias told local media that a 15th man who apparently survived the massacre told investigators that both the killers and the victims were Zetas. "It was a rivalry with the same organized crime group," Garcia Covarrubias said.

The leadership dispute also may have opened the door to lesser regional figures in the Zetas gang to step forward and rebel, analysts and officials said.

Analysts say that a local Zetas leader in the neighboring state of Zacatecas, Ivan Velazquez Caballero, "The Taliban," was apparently trying to challenge Trevino Morales' leadership grab, and that the 14 bullet-ridden bodies left in the van were The Taliban's men, left there as a visible warning by Trevino Morales' underlings.

The Taliban's territory, Zacatecas, appears to have been a hot spot in Trevino's dispute with Lazcano. It was in Zacatecas that a professionally printed banner was hung in a city park, accusing Lazcano of betraying fellow Zetas and turning them in to the police.

Trevino began his career as a teenage gofer for the Los Tejas gang, which controlled most crime in his hometown of Nuevo Laredo, across the border from the city of Laredo, Texas, officials say.

Around 2005, Trevino Morales was promoted to boss of the Nuevo Laredo territory, or "plaza" and given responsibility for fighting off the Sinaloa cartel's attempt to seize control of its drug-smuggling routes. He orchestrated a series of killings on the U.S. side of the border, several by a group of young U.S. citizens who gunned down their victims on the streets of the American city. American officials believe the hit men also carried out an unknown number of killings on the Mexican side of the border, the U.S. official said.

Trevino Morales is on Mexico's most-wanted list, with a reward of 30 million pesos ($2.28 million) offered for information leading to his capture.

Raul Benitez, a security expert at Mexico's National Autonomous University, said that the Zetas are inherently an unstable cartel with an already huge capacity for violence, and the possibility of more if they begin fighting internal disputes. "I think the Zetas are having problems, and there is no central command," he said.

The Zetas have been steadily expanding their influence and reaching into Central America in recent years, constructing a route for trafficking drugs that offloads Colombian cocaine in Honduras, ships it overland along Mexico's Gulf Coast and runs into over the border through Trevino Morales' old stomping grounds.

Samuel Logan, managing director of the security analysis firm Southern Pulse, notes that "personality-wise they (Trevino Morales and Lazcano) couldn't be more different," and believes the two may want to take the cartel in different directions. The stakes in who wins the dispute could be large for Mexico; Lazcano is believed to be more steady, more of a survivor who might have an interest in preserving the cartel as a stable organization.

"Lazcano may be someone who would take the Zetas in a direction where they'd become less of a thorn in the side for the new political administration," Logan said in reference to Enrique Pena Nieto, who is expected to take office as president on Dec. 1. "In contrast, Trevino is someone who wants to fight the fight."

Referring to Ignacio "Nacho" Coronel, a member of the rival Sinaloa Cartel who died in a shootout with soldiers in July 2010, Logan noted, "Trevino is someone who is going to want to go out, like Nacho Coronel went out, with his guns blazing."

Laurence Kilby, 40, of Cheltenham, who built and raced cars, was arrested after police seized cocaine with a street value of £1m.

 

Laurence Kilby, 40, of Cheltenham, who built and raced cars, was arrested after police seized cocaine with a street value of £1m.

A "privileged" racing driver has been jailed with 11 other drug smugglers. Crown Court heard he was head of a gang moving drugs from Eastern Europe along the M4 corridor to London, western England and south Wales.

Kilby was heavily in debt and turned to crime to maintain his lifestyle of fast cars and high living.

Raids on properties

Kilby was jailed in June but his conviction, and those of the rest of the gang, can now be reported following the conclusion of another trial.

In an undercover operation between Gloucestershire and Avon and Somerset Police, officers seized 3kg of cocaine as it was being ferried between London and Cheltenham in October 2010.

Another 1kg of the drug was intercepted in Cheltenham in February 2011 and 2.5kg was discovered in raids on properties in Cheltenham, Staverton, Bristol and London in July 2011.

The gang of 12 drug dealers from Gloucestershire, Bristol and London received sentences of between 18 years and four years seven months.

It can now be reported Kilby, who was jailed in June, and Vladan Vujovic, 43, of Grange Road, London were found guilty of conspiracy to supply Class A drugs. Both were jailed for 18 years.

Kilby built and raced cars with the company he owned, Ajec Racing

Richard Jones, 42, of Bradley Stoke, Bristol, was sentenced to 15 years for the same offence, and Mark Poole, 47, from Portishead, was sentenced to nine years seven months after pleading guilty to conspiracy to supply Class A drugs.

Police said Kilby sourced the drug in London from an East European criminal gang, which included Vujovic.

Vujovic ran a baggage handling company at Heathrow Airport and was said to receive the cocaine before it was distributed around the South West and Wales.

Kilby is the former husband of Flora Vestey, daughter of Lord Vestey, and was owner of motor racing firm Ajec Racing which was based in Staverton.

He was heavily in debt and turned to crime to maintain his lifestyle of fast cars and high living.

'Well-connected socialite'

In a separate charge, Kilby also pleaded guilty to stealing money from the charity Help for Heroes and was sentenced to 10 months, to run concurrently with his 18-year sentence.

He organised a charity race day at Gloucestershire Airport in July 2010, but failed to pass on between £3,500 and £4,000 in proceeds to the charity Help for Heroes.

Det Insp Steve Bean, from Gloucestershire Police, said Kilby was the main man.

"He portrayed himself as a well-connected socialite and businessman, whilst indulging his ambition as a minor league racing driver.

Police seized 6.5kg of drugs during the operation

"Despite a privileged background, the reality was that his lifestyle was funded by the ill-gotten gains of drug dealing.

"He continually lied and blamed others in an attempt to distance himself from the conspiracy.

"He displayed an air of arrogance and thought he could get away with it because he didn't get his hands dirty."

The majority of the gang were jailed in June, but reporting restrictions meant it could not be reported until now, after the sentencing of the remaining gang members.

Others members of the gang to be sentenced were:

• David Chapman, 29, from Bourton-on-the-Water, Gloucestershire, pleaded guilty to possession with intent to supply and was sentenced to nine years.
• William Garnier, 31, from Cheltenham, pleaded guilty to supplying Class A drugs and was sentenced six years and eight months.
• Garry Burrell, 46, from Easton, Bristol, and John Tomlin, 28, from Newtown, Gloucestershire both pleaded guilty to possession of cocaine and were sentenced to six years and six months and four years and six months respectively.
• Timothy Taylor, 40, from Bristol was found guilty of supplying Class A drugs and was sentenced to four years and seven months.
• Brian Barrett, 48, from Keynsham was found guilty of conspiracy to supply Class A drugs and was sentenced to 10 years.
• Scott Everest, 39, from Clevedon was found guilty of conspiracy to supply Class A drugs and was jailed for seven years.

Jonathan Tanner, 45, from Warminster was sentenced to 18 months for possession with intent to supply of cannabis, but was cleared of conspiracy to supply Class A drugs.

Darren Weetch, 38, from Bristol, pleaded guilty to possession of cocaine with intent to supply. He was sentenced to 16 months.

Officers also worked with Thames Valley Police and the Metropolitan Police during the operation.

Bikie gang suspects in brawl arrests at Penrith shopping centre

FOUR men with alleged links to outlaw motorcycle gangs were arrested last week after a brawl at a Penrith shopping centre. Police officers from the gangs squad and Penrith local area command had been investigating the brawl, which forced shoppers to flee for their safety about 2.45pm last Monday. Police will allege a man was leaving the shopping centre when he was confronted by a group of nine men and fighting began. A number of people tried to intervene, including an unknown male who was assaulted. All involved in the brawl then left the scene. At 7am last Thursday, police simultaneously raided four homes at St Marys, Emu Plains, South Windsor and Freemans Reach. Three men with alleged links to the Rebels were arrested at St Marys and Emu Plains, while an alleged senior Nomads member was arrested at Freemans Reach. During the search warrants, police seized distinctive gang clothing, quantities of anabolic steroids and prescription drugs and a set of knuckledusters. A man, 29, of Emu Plains, was charged with affray, participate in a criminal group and two counts of possess prescribed restricted substance. A man, 44, of Freemans Reach, was charged with affray, possess prohibited weapon, and two counts of possess prescribed restricted substance. A man, 25, of St Marys, and a 23-year-old New Zealand man were each charged with affray and participate in a criminal group. Penrith crime manager Detective Inspector Grant Healey said further arrests were anticipated.

27 charged in California-Mexico methamphetamine ring

 Local and federal authorities moved Thursday to break up an alleged drug trafficking ring connecting a major Mexican cartel and San Gabriel Valley street gangs, arresting 17 people in a pre-dawn sweep. A federal indictment unsealed Thursday charges 27 defendants with making, possessing and dealing methamphetamine imported by La Familia Michoacana, one of Mexico’s most violent cartels, to two Pomona gangs: Los Amables and Westside Pomona Malditos. Seven law enforcement agencies, including the Pasadena and Pomona police, the Los Angeles County Sheriff’s Department, the FBI and the Drug Enforcement Administration, were involved in the sweep. Thursday’s crackdown is the culmination of a probe called Operation Crystal Light, a 16-month investigation by the San Gabriel Valley Safe Streets Gang Task Force. The investigation was launched after a 2011 kidnapping among suspected gang members in Southern California. Officers said they seized nine weapons, an undisclosed amount of methamphetamine, other drugs, and paraphernalia in Thursday morning raids in Los Angeles, Riverside and San Bernardino counties. The probe involved about 200 law enforcement officers and several undercover purchases. “The goal of the federal task force is to disrupt the network so it’s disrupted permanently,” Timothy Delaney, special agent in charge of the FBI’s Criminal Division in Los Angeles, said. “Today’s arrests took some very serious players in the methamphetamine world off the streets.” The methamphetamine came into the country in liquid form via airplane, boats and cars, officials said. The drug was recrystallized at an Ontario home before local gangs would sell it and funnel money to the Mexican cartel. Most of the drugs were being sold in Pomona and Ontario, according to Assistant U.S. Atty. Shawn Nelson. Dealers were selling multiple pounds a day and making up to $9,000 per pound, Nelson said. He described the arrests as “a good dent” in the Mexican cartel’s local drug network. Three suspects were in custody before the raid and seven remain at large, federal authorities said. The indictment alleges that a La Familia Michoacana associate named Jose Juan Garcia Barron oversaw the transport of the meth between Mexico and Los Angeles County. Delaney said Garcia Barron is among the suspects who have not been apprehended. The 17 arrested Thursday were expected to make their first court appearance Thursday afternoon at U.S. District Court in downtown Los Angeles.

Police think Ogden drive-bys are tied to gang's power struggle

Police believe drive-by shootings at an Ogden home Tuesday night and Wednesday morning may be related to a violent power struggle within a street gang over control of leadership, drugs and money. Ogden Police Lt. Scott Conley declined to identify the gang, but said members are not affiliated with the Ogden Trece. On Monday, 2nd District Judge Ernie Jones issued a permanent injunction against Trece members, banning them from associating with each other in public and being in the presence of guns, drugs and alcohol. The injunction also places Treces under an 11 p.m. curfew. The drive-by shootings at a home in the 500 block of 28th Street are signs of in-fighting among members of a local gang who are attempting to resolve their differences through escalating violence, Conley said. “They are in the same gang and are arguing back and forth,” he said, noting police have gathered intelligence on the dispute. “We are taking enforcement action to eradicate the problem or get the individuals involved incarcerated.” Six to eight gang members are believed to be involved in the dispute.

During experiments on the axons of the Woods Hole squid (loligo pealei), we tested our cockroach leg stimulus protocol on the squid's chromatophores.

 

 The results were both interesting and beautiful. The video is a view through an 8x microscope zoomed in on the dorsal side of the caudal fin of the squid. We used a suction electrode to stimulate the fin nerve. Chromatophores are pigmeted cells that come in 3 colors: Brown, Red, and Yellow. Each chromatophore is lined with up to 16 muscles that contract to reveal their color.

Paloma T. Gonzalez-Bellido of Roger Hanlon's Lab in the Marine Resource Center of the Marine Biological Labs helped us with the preparation. You can read their latest paper at:http://rspb.royalsocietypublishing.org/content/early/2012/08/13/rspb.2012.1374

STAR WARS DETOURS™ Trailer

The nine people believed injured by stray police gunfire outside the Empire State Building were not the first to learn how dangerous a crowded street can be in a gunfight.

 Civilians occasionally find themselves in harm's way when officers use deadly force, though usually only a handful of times annually. When that happens, a rigid process of investigation is set in motion — and the police department can reasonably expect a lawsuit. The latest episode came when police say a man disgruntled over losing his job a year ago shot a former colleague to death and pointed his weapon at two police officers in the shadow of a major tourist attraction. He apparently wasn't able to fire before police killed him, one firing off seven rounds and the other nine. Bystanders suffered graze wounds, and some were struck by concrete gouged from buildings by the bullets, authorities said. At least one person said he was actually hit by a bullet. Robert Asika, a 23-year-old tour guide who was hit in the right arm, said he was "100 percent positive" he was shot by a police officer. A witness told police that laid-off clothing designer Jeffrey Johnson fired at officers, but ballistics evidence so far contradicts that, authorities said.

Tracking a Rare Tattoo-Related Infection

A Trail of Ink: Tracking a Rare Tattoo-Related Infection

An uncommon skin infection led to a doctor's investigation into tainted tattoo ink. (Monroe County Health Department)

The reddish-purple rash, seemingly woven into the tattoo on a 20-year-old New Yorker's forearm, was strange enough to have doctors scratching their heads.

This trail began when the man received a tattoo in Rochester, N.Y. in October 2011. A short while later, he noticed the raised, bumpy rash. He called his primary care physician.

Doctors initially treated the man's arm with topical steroids, thinking that the rash was allergic-contact dermatitis. But that only made the problem worse.

By the time dermatologist Dr. Mark Goldgeier saw the patient, it was clear that this was no simple allergy.

He performed a skin biopsy so he could take a closer look at the rash under a microscope. What he saw was startling: the sample was riddled with a wormlike bacterium related to tuberculosis.

"I explained [to the patient] that he had TB, and he had a look of horror on his face," Goldgeier said.

For the patient, the finding meant a trip to an infectious disease specialist to start up to a full year of treatment.

Goldgeier, meanwhile, called the Monroe County Health Department.

"As soon as biopsy came back," he said, "I knew something in the process of tattooing was involved -- the ink, the water used for dilution, the syringes, the dressings."

And so began a nationwide medical mystery.

An article published Wednesday in the New England Journal of Medicine describes how this one dermatologist helped connect the dots in an outbreak of tattoo-related atypical skin infections.

Dr. Byron Kennedy, public health specialist at Monroe County Department of Public Health, took over the case from Goldgeier. Kennedy first confirmed the results by repeating a skin biopsy on the patient. Once again, tendrils of mycobacterium chelonae, a type of tuberculosis-related skin bacteria, showed up in the sample.

Mycobacterium chelonae is a rapidly growing bug found in soil, dust, water, animals, hospitals, and contaminated pharmaceuticals. This family of bacteria does not commonly affect healthy individuals, but in patients with suppressed immune systems -- like those with HIV or on chemotherapy -- these bacteria can cause serious disease, often resulting in death.

The finding sent Kennedy and his associates to the tattoo parlor where the patient had been inked. Everything in the clinic was sterile, which made it unlikely that the infection had arisen there. But the tattoo artist, they learned, had been using a new gray premixed ink purchased in Arizona in April 2011; he used the ink between May and December 2011.

The ingredients of the ink -- pigment, witch hazel, glycerin, and distilled water -- seemed innocuous enough. But further examination revealed that the distilled water in the pigment was the likely culprit of the contamination.

The finding raised a number of questions -- not the least of which was how the bottles of premixed ink passed U.S. Food and Drug Administration regulations.

The U.S. Centers for Disease Control and Prevention acknowledged this gap in regulations Wednesday in its Morbidity and Mortality Weekly report.

"Under the Federal Food, Drug, and Cosmetic Act, tattoo inks are considered to be cosmetics, and the pigments used in the inks are color additives requiring premarket approval," the report says.

Armed gang fight breaks out in Venezuelan prison

Twenty-five people were killed and 43 others hurt in a prison battle in Venezuela as two armed gangs vied for control of a penitentiary near Caracas, authorities said on Monday.

Jessica Harper admits £2.4m Lloyds Bank fraud

A former Lloyds Bank worker in charge of online security has admitted carrying out a fraud worth more than £2.4m. Jessica Harper, 50, had been accused of submitting false invoices to claim payments between 2007 and 2011. At the time she was working as head of fraud and security for digital banking and made false claims totalling £2,463,750. Harper, of South Croydon, south London, will be sentenced on 21 September. At Southwark Crown Court, Harper admitted a single charge of fraud by abuse of position by submitting false invoices to claim payments. 'A very simple fraud' She also admitted a single charge of transferring criminal property, the money, which she had defrauded from her employers. Harper was arrested on 21 December before being charged in May. Continue reading the main story “ Start Quote Jessica Harper has today been convicted of the type of crime the bank employed her to combat” Sue Patten Crown Prosecution Service Antony Swift, prosecuting, did not open the facts of the case but said it was a "a very simple fraud". He added Harper had already repaid £300,000 and was in the process of selling her house for about £700,000. "That will be some £1m out of £2.5m that's gone missing," he told the judge. Carol Hawley, defending, said: "She appreciates the seriousness and has made full admissions in interview. "She understands perfectly well on the next occasion she will be facing imprisonment of some length." Breach of trust Judge Nicholas Loraine-Smith granted Harper bail on the condition she stays at her current address, obeys a 21:00 to 07:00 curfew and hands in her passport. Sue Patten, head of the Crown Prosecution Service, Central Fraud Division, said: "Jessica Harper has today been convicted of the type of crime the bank employed her to combat. "The evidence in the case was clear and left Harper with little choice but to plead guilty. "In doing so, she has admitted to a huge breach of trust against her former employer." Lloyds is now 39.7% state-owned after being bailed out by the government during the financial crisis.

Shares in Standard Chartered dive after Iran allegations

Shares in Standard Chartered PLC dropped sharply today as investors reacted to US charges that the bank was involved in laundering money for Iran. The charges against Standard Chartered were a shock for a bank which proudly described itself recently as “boring.” Shares were down nearly 20 percent at 1,187 pence at one point in early trading Tuesday on the London Stock Exchange. In Hong Kong, they were down 16.6 percent near the end of the session. New York State Department of Financial Services alleged on Monday that Standard Chartered schemed with the Iranian government to launder $250 billion from 2001 to 2007, leaving the United States' financial system “vulnerable to terrorists.” Standard Chartered said it “strongly rejects” the allegations. In a statement, the bank said “well over 99.9 percent” of the questioned transactions with Iran complied with all regulations, and the exceptions amounted to $14 million. The New York regulator ordered Standard Chartered representatives to appear in New York City on Aug. 15 “to explain these apparent violations of law” and to demonstrate why its license to operate in the State of New York “should not be revoked.” Gary Greenwood, analyst at Shore Capital in London, said the possible revocation of the New York license was of far greater concern than any potential fine, which could run into hundreds of millions of dollars. Standard Chartered's US operation facilitates trade for customers that have operations in both the United States and emerging markets. “Indeed, this is an area of the business that has been highlighted by management for growth,” Greenwood said. “A loss of its US banking license would not only jeopardize part of this profit stream, but the associated reputational damage could also have a severely damaging impact to its operations within emerging markets.” The New York agency alleged that Standard Chartered conspired with Iranian clients to route nearly 60,000 different US dollar payments through Standard Chartered's New York branch “after first stripping information from wire transfer messages used to identify sanctioned countries, individuals and entities.” The New York regulators called the bank a rogue institution and quoted one of its executives as saying: “You (expletive) Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians.” The order also identifies an October 2006 “panicked message” from a London group executive director who worried the transactions could lead to “very serious or even catastrophic reputational damage to the group.” If proven, the scheme would violate state money-laundering laws. The order also accuses the bank of falsifying business records, obstructing governmental administration, failing to report misconduct to the state quickly, evading federal sanctions and other illegal acts. Between 2004 and 2007, about half the period covered by the order, the department claims Standard Chartered hid from and lied about its Iranian transactions to the Federal Reserve Bank of New York. Before 2008, banks were allowed to transact some business with Iran, but only with full reporting and disclosure, the order states. In 2008, the US Treasury Department stopped those transactions because it suspected they helped pay for Iran to develop nuclear weapons and finance terrorist groups including Hamas and Hezbollah. The order states the bank has to provide information and answer questions to determine if any of the funding aided the groups or Iran's nuclear program. Last week, Standard Chartered' chief executive, Peter Sands, boasted that the bank has racked up a 10-year string of record first-half profits “amidst all the turbulence in the global economy and the apparently never-ending turmoil in the world of banking.” “It may seem boring in contrast to what is going on elsewhere, but we see some virtue in being boring,” Sands added.