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ITMG Insider Threat Cases – April 18, 2022

Former Bank Employee Pleads Guilty to Manipulating U.S. Treasury Securities Prices

According to court documents, Tyler Forbes, 27, of Manlius, New York, was employed as a trader on the U.S. Treasuries desk of a global financial institution. From approximately January to June 2019, Forbes engaged in an unlawful “spoofing” scheme to manipulate the price of certain U.S. Treasury securities traded in the secondary (or “cash”) market — predominantly two and three-year U.S. Treasury notes, as well as 10-year U.S. Treasury notes. Forbes’s spoofing strategy involved electronically placing large, non-bona fide “spoof orders” that he intended to cancel prior to execution on one side of the market, while simultaneously entering smaller, genuine orders that he intended to execute on the opposite side of the market. Many of Forbes’s genuine orders were “iceberg” orders, meaning that only a portion of the order’s full size was visible to other market participants at any given time, whereas all of Forbes’s spoof orders were fully displayed. The purpose of Forbes’s “spoof orders” was to create a false appearance of market depth and activity in order to mislead other traders, and to artificially raise or depress the prevailing market price so that Forbes could execute his genuine orders more easily or more profitably.

Former UBS Financial Advisor Pleads Guilty to Defrauding over $5 Million Dollars from His UBS Clients

From about May 2014 to February 2020, Nino made a total of 62 unauthorized transfers from three UBS accounts belonging to the victims, which totaled $5,833,218.59.  To accomplish the wire fraud scheme, Nino made materially false and fraudulent statements to his victims and concealed and omitted material facts including misrepresenting the true performance, balance, and rate of return of the accounts he managed; forging the signature of his clients on documents purporting to authorize transfers out of the accounts; preparing a fraudulent land purchase contract and forging a victim’s signature on the land purchase contract to make it appear that the victim was purchasing land in Colombia by using money from the victim’s account; removing one of the victim’s email from the victim’s UBS email account profile so that the victim would not receive email notifications from UBS about unauthorized transfers; and preparing fraudulent UBS account statements and client review statements, which falsely inflated the balance and value of the victims’ accounts.

Meriden Woman Who Embezzled More Than $400K is Sentenced

According to court documents and statements made in court, Klatt was employed as an office manager by a property management company located in Hamden.  Clients of the property management company would allow the company access to their bank accounts in order to allow the management company to make payments on behalf of the respective client.  Klatt had access to the client’s bank accounts as part of her job responsibilities.  Between approximately December 2014 and January 2021, Klatt diverted $446,859.82 from the bank accounts of at least 14 clients to pay her personal credit card charges.

Former Hotel Senior Analyst Admits Role in Embezzlement Scheme

As senior analyst for strategic sourcing for a national hotel chain, Alvarez was responsible for administering the company’s corporate credit card program. He was authorized to approve applications for credit cards and to access account information for such credit cards. From April 2014 through January 2020, Alvarez embezzled funds from the hotel through the unauthorized use of the hotel’s corporate credit cards to purchase goods and services. Alvarez admitted that he knowingly opened and used corporate credit cards to make $317,582 in unauthorized personal purchases and attempted to conceal them by transferring credits owed to the hotel to these credit cards to offset the unauthorized charges made.

Tech Company CEO Charged with Defrauding His Former Employer of Over $9 Million

Between 2011 and 2019, SUNI MUNSHANI, a self-described technology entrepreneur, was the CEO of the Victim Company, which provided data security services to its clients.  Within six months of his appointment as CEO, MUNSHANI began an approximately seven-year scheme to defraud the Victim Company through fraudulent agreements with a purported third-party contractor (“Individual-1”) and a company purportedly controlled by that third-party (the “Individual-1 Company”).  In fact, MUNSHANI and his brother, SURESH MUNSHANI controlled the Individual-1 Company.  To facilitate the scheme, SUNI MUNSHANI, among other things, created an email account purportedly controlled by Individual-1 but in fact controlled by him.  He then used that email account to correspond with the Victim Company concerning services purportedly rendered to the Victim Company by Individual-1 and by the Individual-1 Company.  In fact, Individual-1 and the Individual-1 Company did not provide these services to the Victim Company.  Nevertheless, MUNSHANI caused the Victim Company to pay at least approximately $3 million dollars to Individual-1 and the Individual-1 Company, which funds enriched SUNI MUNSHANI and SURESH MUNSHANI.  In furtherance of the scheme, SUNI MUNSHANI also caused the Victim Company to issue a check for an additional approximately $3.5 million, which MUNSHANI claimed related to a tax liability of the Victim Company.  In fact, no such tax liability existed and MUNSHANI, again with the assistance of SURESH MUNSHANI, also stole this money from the Victim Company.

Ocean View Bookkeeper Pleads Guilty to Defrauding Former Employer of More Than $1 Million

According to court documents and statements made in open court, Donald worked as a bookkeeper for Dovetail, a high-end interior design company based in Bethany Beach. For more than 7 years, Donald perpetrated a long con against Dovetail and its owner, an elderly woman with ailing health, by using Dovetail’s funds to pay Donald’s personal credit card bills. When confronted with the fraud, Donald confessed that she had been embezzling money from Dovetail for years. A full forensic accounting conducted by the FBI revealed that Donald had stolen over $1 million.

This entry was posted on Monday, April 18th, 2022 at 11:42 am. Both comments and pings are currently closed.