Bookkeeper Convicted of Embezzlement

Woman convicted of embezzlement gave cash gift to DA’s wife
By Associated Press Wednesday, October 31, 2007
BOSTON - A woman headed to prison for four years for embezzlement told federal investigators she gave a $6,000 gift to the wife of Bristol District Attorney Samuel Sutter.
According to court documents, Grace Oliver of Acushnet gave expensive cars to boyfriends and cash gifts to friends, including Sutter’s wife, Dottie.
Oliver pleaded guilty in August to embezzling $1.1 million from Superior Drywall, a New Bedford company she worked for as a bookkeeper.
A spokesman for Sutter disputes the amount of the gift, saying Oliver gave the district attorney’s wife $4,000 and paid him $1,500 in legal fees.
He says Oliver gave the gifts because she was grateful for counseling she and her family received from Dottie Sutter’s mother.
The DA says he’s working with federal officials to return the money.

Mortgage Fraud

Posted on Mon, Oct. 22, 2007

Shields trial opens, and defense team blames ‘scam artists’

By MARK MORRIS
The Kansas City Star

Raymond Zwego, a con man now cooperating with prosecutors, drew repeated fire Monday from defense lawyers at the federal mortgage fraud trial of former Jackson County Executive Katheryn Shields.

It was Zwego who drew his unwitting clients into a scheme to defraud a mortgage lender of $1.2 million in the sale of their home, said attorney Curtis Woods, who represents Shields and her husband, Philip Cardarella.

“This case is not about Katheryn Shields or her husband, Philip Cardarella,” Woods said in his opening statement. “It’s about Raymond Zwego and a band of scam artists who cut a swath through Kansas City. The last people they tried to use were Katheryn Shields and Phil Cardarella.

“They’re not conspirators in this case. They were used by Raymond Zwego.”

Zwego pleaded guilty Friday to masterminding the fraud scheme that ensnared Shields and Cardarella. He also has prior convictions for federal wire and bank fraud and making false statements and figures to be an important witness in the government’s case against the couple.

A prosecutor did not try to sugarcoat Zwego’s unsavory business dealings.

“He is a skilled and practiced perpetrator of fraud,” said assistant U.S. attorney Gene Porter.

The opening statements marked the latest act in a drama that began with the indictment of Shields, Cardarella and nine others in January. Thus far, seven defendants have pleaded guilty.

Porter said evidence would show that Shields, her husband and two other remaining defendants were as much a part of the conspiracy as those who already had pleaded guilty.

“The evidence in this case will convince you that each one of these defendants made false representations to a lender for their own financial benefit,” Porter said.

Porter also revealed that the investigation began in October 2006 when a real estate appraiser called an FBI agent to say that an appraisal he had been asked perform raised red flags. At that time, the sales contract was for $1.47 million, while the home was listed for sale at $699,000, the appraiser said.

The agent, Julia Jensen, recognized the names of the buyers — Larry Barshaw and Linda Thompson-Barshaw — as having ties to Zwego, who already was under FBI scrutiny. Jensen then enlisted the appraiser to help with the investigation.

Also Monday, attorneys representing the lesser-known figures in the case defended their clients as well.

Jeff Morris, a lawyer representing Monty Kinman, a loan officer at an Overland Park firm, said his client did nothing illegal.

“For Monty Kinman, this case is about a home loan, a con man and doing his job,” Morris said. “The evidence will demonstrate that the government has missed the mark.”

An attorney representing Rick Peterson, the closing agent on the deal, pointed out that his client was to receive only about $200 for closing the sale of Shields’ property. Peterson merely was following instructions sent to him by the lender, Fieldstone Mortgage in Overland Park.

“Every penny was shown to Fieldstone before the loan was approved,” said defense lawyer Robin Fowler.

The trial resumes this morning with the prosecution’s first witness.

To reach Mark Morris, call 816-234-4310 or send e-mail to mmorris@kcstar.com.

Fraud Bust in Canada

October 25, 2007
High-tech crooks bustedBy ROB NAY, SUN MEDIA
Sgt. Larry Levasseur with evidence in high-tech fraud case. (ROB NAY/ SUN MEDIA)
High-tech criminals hit a road bump last weekend when police halted a crew of alleged bank card fraudsters.
Four suspects were arrested Saturday in Winnipeg with about 140 white plastic cards containing stolen bank information, said police.
"All of these cards represent real people," said Sgt. Larry Levasseur, of the Winnipeg police commercial crime unit.
Late last Friday, Winnipeg police received a tip from the Quebec provincial police service that suspects under investigation in Montreal were travelling to Winnipeg.
Police contacted banks in Winnipeg and worked with them to apprehend the suspects in action on Saturday, said Levasseur.
Using white plastic cards with stolen bank card information, along with stolen PIN numbers, the suspects only had time to make use of about 12 cards at bank ATMs before cops caught them in the act, said Levasseur.
In total, more that $11,000 was taken from people's accounts. Levasseur said the amount could have climbed above $100,000 if police hadn't stepped in.
It's believed the suspects may have travelled throughout Canada, possibly committing a similar scheme in Edmonton, said Levasseur.
Many of the suspects, who have been living in Montreal, hail from Eastern Europe, he said.
They are believed to have come to Winnipeg in March to set up skimming devices and small cameras to capture people's bank card information and PIN numbers, which they then stored.
The suspects targeted mainly Royal Banks, said Levasseur.
Liz Redston, a spokeswoman for Royal Bank, said it now has in place "anti-skimming fraud detection devices" on all its ATMs.
"All banks are working diligently on these (fraud) issues," said Redston. Facing charges of fraud and other offences are Gheorgh Capra, 46, Paun Chisar, 46, Christian Iacob, 23, and Tatiana Nicosina, 28, all of Montreal.