EncroChat messages reveal at least ten cases of ‘bent coppers’ leaking info

DutchNews, September 17, 2020 

The investigation into millions of messages between criminals via encrypted service provider EncroChat has also yielded proof of police corruption and a special team has been tasked with the prosecution of the officers involved, police havesaid. 

Officials have not yet said how many police officers are involved and at what level, but at least two have been arrested following the EncroChat operation. 

Sources cited by the Telegraaf  say 10 serious cases involving the leak of information to criminals are currently being investigated. The search also yielded information about a network of lawyers, real estate brokers and notaries whose services helped criminals launder money, they said. 

Police did confirm information had been leaked to criminals but would not say more for operational reasons.  The sheer volume of messages – over 20 million – that have to be followed up must be dealt with meticulously to avoid false claims of corruption, police said. 

However, the first signs are serious enough to warrant a special team, police chief Henk van Essen said. ‘We have started a number of prosecutions and more will follow. The information on drug deals and money laundering as well as the corruption in the force have been given the highest priority.’ 

Van Essen said that there have always been ‘bent coppers’ but the fact that their number is increasing is worrying. 

‘A policeman can become corrupt through blackmail but can also simply be bought,’ Van Essen said. ‘Information is a goldmine for criminals. It can be anything from information on current investigations and people to addresses and cars. They are always on the lookout for people with access to this type of information, not only in the force but in companies as well.’ 

Software to flag up suspicious search behaviour by officers will be introduced next year, Van Essen said. ‘But we don’t want to check each and every email or app. We want a system built on trust but we must be realistic. There is corruption and we want to stamp it out. And an operation like EncroChat shows that no one is beyond the reach of the law.’

Realted Article

Dutch detectives unravel 3.6 million encrypted emailssent by criminals

Indian extradited to US from Singapore in call center fraud

Yahoo – AFP, April 20, 2019

Workers in a call center in India: in 2016 US authorities charged five such call centers
with operating fraud schemes targetting South Asians living in the United States
(AFP Photo/AFP)

Washington (AFP) - Singapore has extradited an Indian national to the United States to face charges in a call center fraud that scammed millions of dollars from victims in the United States, the Justice Department announced Friday.

Hitesh Madhubhai Patel, 42, of Ahmedabad, India, was scheduled to be arraigned Friday in a Houston, Texas federal court for his role in a case that was first announced in 2016, charging 60 people with wire fraud and money laundering conspiracy.

Patel ran the HGlobal call center, one of five India-based operations which allegedly worked together in an operation which targeted mostly South Asians living in the United States.

Callers pretending to be US tax or immigration officials threatened them with arrest and deportation if they did not remit money to the government.

The victims were then directed to people working with the call centers in the United States to collect the "fines" through prepaid debit cards or wire transfers, and the money was quickly laundered out of the country.

"This extradition once again demonstrates the Department's unwavering commitment to disrupt and dismantle the India-based call center scam industry and to work with our foreign partners to hold accountable those who perpetrate schemes that defraud our citizens," said Assistant Attorney General Brian Benczkowski in a statement.

Justice officials said that in the past six years more than 15,000 people have been cheated of over $75 million in scams in which callers pose as agents of the Internal Revenue Service, the federal tax agency.

So far, in the Indian call center case, 24 domestic US defendants have been convicted and sentenced to up to 20 years in prison, the Justice Department said.

"The remaining India-based defendants have yet to be arraigned in this case," they said.

Related Article:

US charges dozens in India-based call center fraud racket

Internet con men ripped off Pathe NL for €19m in sophisticated fraud

DutchNews, November 12, 2018

Photo: Depositphotos.com

The Dutch operation of the Pathé cinema group was ripped off by internet con men to the tune of over €19m, court documents published on Friday show. 

The con cost both the chief executive and financial director of the Dutch operation their jobs, and it is unclear if any of the money has been recovered. 

The court documents, which cover the unfair dismissal case brought by sacked finance chief Edwin Slutter, show in detail how the thieves went about scamming Pathé Nederland earlier this year. 

The first email arrived on March 8, and was apparently sent by the chief executive of the French cinema group to the Dutch chief Dertje Meijer. 

The message asked if KPMG had contacted Meijer that morning. After discussing the issue with financial director Edwin Slutter, Meijer replied to the email: ‘We did not receive anything or a call from him. If you want me to contact him, do you have contact details?’ 

The respondent said the company was involved in a takeover in Dubai and needed her to make a confidential payment of €826,521. The money would be repaid on the 26th of the same month. 

Confidential 

‘The transaction must remain strictly confidential. No one else must be made aware of it for now in order to give us an advantage over our competitors,’ the email said. ‘I and I alone will notify the affected parties in due time.’ 

After more to-ing and fro-ing, Meijer sent the correspondence on to Slutter with the comment ‘strange don’t you think?’ 

On March 9 she received a new mail, confirming the takeover and sending an invoice for the money, which was the first 10% of the acquisition price. The money was to be paid into the bank account operated by Towering Stars General Trading LLC in Dubai. 

On March 13, a second payment of €2,479,563 was made to the same account, followed by a third and fourth payments. By March 27, Pathé Nederland had paid over a total of €19,244,304. 

Questions 

On March 28, Meijer received a final email from the fake company boss, pledging to repay the cash. But that same day questions then began coming in from Pathé headquarters in Paris. 

It was immediately clear that Meijer and Slutter had been victims of fraud. Both Meijer and Slutter were suspended. Their sacking was made public at the end of the month with Pathé ‘s owners stating they no longer had any confidence in them. 

Meijer, who used to run the Amsterdam port authority, had been in the job for less than a year. Slutter, who had years of experience as a KPMG accountant, decided to fight his sacking in court, hence the detailed examination of the fraud in legal documents. 

Outside investigators brought in by Pathé said they had no evidence that both Meijer and Slutter were involved in the fraud or that they had any knowledge of it.

‘Pathe had been the target of a professional group of con men, who had used refined communication techniques to win the trust of several Pathé employees,’ the report is quoted as saying in the court documents. 

Sophisticated 

The court decided that Slutter had been lured in by the con men in a sophisticated trap and that he should not have been sacked in the spot, even though he ignored several red flags.

Nevertheless, there is no question he can return to the company, the court ruled. 

The court went on to state that the employment contract between Slutter and Pathé should be formally dissolved on December 1, but that the former finance chief should be paid his monthly salary of over €13,500 from March until then. 

DutchNews.nl has asked Pathé ‘s head office in Paris to comment on the case. Neither Meijer or Slutter were named in the court documents but both Dutch and French media have identified them as such.

US agent pleads guilty to Bitcoin thefts from Silk Road online drug bazaar

A former US Secret Service agent is the latest to admit to stealing hundreds of thousands of dollars worth of the digital currency Bitcoin. Thefts were from the now defunct Silk Road online drug bazaar.

Deutsche Welle, 1 Sep 2015

Former US agent Shaun Bridges, 33, pleaded guilty Monday to money laundering and obstruction of justice charges in a federal courtroom in San Francisco.

While an agent for the US Secret Service, Bridges admitted to diverting about $820,000 (730,500 euro) in funds to his personal account during a multi-agent investigation into the Silk Road online bazaar.

The black market trading site Silk Road was shut down in October 2013 after generating more than $200 million in sales. In May, Silk Road's founder Ross Ulbricht, was sentenced to life in prison for charges that included distributing drugs on the internet.

Bridges had belonged to a Baltimore-based federal task force that investigated Silk Road. Another member of that unit, former U.S. Drug Enforcement Administration agent Carl Force, 46, admitted to charges of extortion, money laundering and obstruction of justice in July. He faces 20 years in prison for attempting to steal more than $700,000 in Bitcoin.

US District Court Judge Richard Seeborg said he would impose a curfew and electronic monitoring on Bridges after prosecutors said the former agent had tried to change his name.

An attorney for Ulbricht says the charges of US agents connected to the Silk Road investigation show clear evidence that the criminal case had been tainted by corruption. Ulbricht is currently serving his sentence in a US prison.

jar/jm (AP, Reuters)

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Matthew message (Channelled by Suzanne Ward, July 19, 2015)

Matthew Ward - July 19, 2015

Matthew Ward

With loving greetings from all souls at this station, this is Matthew. Many of your analysts think that the Greek people’s resounding “No” on the recent referendum put their country on the road to irreversible economic ruin. The country will manage. “No” put the Illuminati on the road to irreversible economic ruin.

Going back a long, long ways, bartering worked splendidly in communities, but the expanding borders of commerce required a different means of exchange; and with the introduction of coinage, money became the axis on which your world turned. The forerunners of the Illuminati and later that group itself controlled the turning by devising taxation, banking and lending systems; and, as centuries passed, “numbered” bank accounts, stock markets, Federal Reserve System, International Monetary Fund, regulating agencies and credit cards with usurious interest rates. Everything they established was specifically designed to add to their fortunes, tighten their economic control over the peoples, and increase their influence within national governments.

The Illuminati began as a cohesive group of like-minded individuals whose objective was world domination. As time went by, egos grew and tempers flared, and eventually two competitive factions with that same goal emerged. Later, the Rothschilds and their adherents, who operate out of London and the Vatican, came up with a plan to solidify their control throughout Europe—the European Union, European Central Bank and euro currency. Let us borrow your expression, “How’s that working for you?” There is no bandage large enough to patch the crack the Greek vote made in the Rothschild network. The crack will spread like a spider web around the world and into it will fall the Rockefeller faction headquartered in Washington, DC, and on Wall Street.

As if that isn’t enough for both factions to deal with—and Pope Francis’ goodness and wisdom keeps upsetting their apple cart—now there’s the agreement between negotiators from several major nations and Iran’s leaders that their country will not pursue development of a nuclear weapon. It is no surprise that Israeli Prime Minister Netanyahu, a top-ranking Illuminati, denounced the agreement or that Illuminati in the United States Congress and members whose election campaigns were funded by that group are opposing President Obama’s efforts to get congressional approval. They want to invade Iran and, along with taking over that country’s oil, reap the riches that come from producing the machinery of war.

The vibrations of intensifying light that led to those reversals for the Illuminati will keep increasing as the planet continues on its ascension course. If we could tell you when their total undoing will be, we would do so joyously; but activity in Earth’s energy field of potential indicates that their inevitable demise will come in stages, not one fell swoop. They still have some power, dwindling though it is, in their “black ops” branch of the CIA; other intelligence sources, including Mossad; high-ranking personnel in some military forces; leverage within mainstream media and some governments; and huge caches of monies to initiate or exacerbate uprisings, fund the Islam State, and pay their minions to hack computer systems, oversee the street drug trade, fill your skies with chemtrails, deny pollution’s contribution to climate change, or disseminate false information on the Internet.

While a few within the higher ranks of both Illuminati factions are talking with principals in reform movements, the hardliners are talking about joining forces; some have abandoned their fast-sinking ship, died of natural causes or by their own hand, or been arrested. You would recognize some names, most you would not, and it is unlikely that any of the Illuminati will be identified as such in mainstream news reports.

Upheavals will keep popping up as the ages-old light vs dark battle for Earth’s civilization at last is nearing its end. You have waited a long time to see the light triumph as predestined, and you can welcome the bumpy ride through the last phases. However, most of the populace don’t know about that long conflict or that everything transpiring and what is ahead is about planetary and personal ascension out of millennia of dark bondage.

Many people are fearful or angry, and with each new bump, others will have the same reactions. Your calmness, yet excitement, and explaining to the extent individuals are receptive can encourage them to have an optimistic outlook. But please do not be disheartened if family and friends don’t respond positively—they will waken in their own times of readiness.

And, we ask that you keep foremost in your thoughts that every person in your world is a part of God, by whatever name the Supreme Being in this universe is called. Every person is inextricably connected at soul level with all others, and God’s love for each and every one is unconditional. Seeing “offenders” through God’s eyes doesn’t mean wanting them to forego justice by your world’s standards—already this has come to some and shall befall others. What it does mean is, you will uplift yourselves and your world by envisioning those individuals within the light rather than focusing on their punishment. The impartial, nonjudgmental and unavoidable laws of the universe will serve them justice in a spirit world according to their lifetime deeds.

This is an appropriate place to answer a reader’s questions: “What will happen to Nirvana after Earth reaches 5th density? Can there still be reunions with our loved ones?” Nirvana will accompany Earth to her destination in fifth density and continue to be her spirit realm, but with grand differences. The tiny dense orb that houses the basest individuals and is the only part of the realm separate from the rest will be transported to some third density civilization and incorporated into their spirit world, or it will be dematerialized after its inhabitants are moved to a spirit world of equal density. Nirvana’s lower layers—learning centers for people who want to outgrow their negative tendencies such as bigotry, anger, apathy, envy, miserliness, bitterness, disloyalty, dishonesty, manipulativeness, closed minds and desire to control others—also will disappear. Those traits served well when they were aspects of karmic lessons souls chose to attain balanced experiencing, but your society will have advanced consciously and spiritually and no longer need to experience negative characteristics.

Indeed, reunions of loved ones can take place in Nirvana when that realm and Earth are in fifth density, but then just as now, meetings can be in any placement in this universe where energies are compatible. Actually, these visits have been happening all along during your sleep time, but your bodies’ density can’t retain memories of those visits—when you waken and have fragments of memories of being with a loved one, you attribute them to dreams. As your consciousness expands with light absorption, you will start to clearly remember your joyful reunions.

With reference to our stating that “everything in your world is purposeful,” a reader asked, “What purpose is served by rats, roaches, fleas, mosquitoes, etc.” It started eons past in linear time, when the darkness manipulated the DNA of some weaker civilizations and programmed their bodies for aging and disease. A civilization at third density conscious and spiritual level, which Earth’s peoples and other life forms have been for many millennia, has bodies that are susceptible to the diseases that some insects and rats can cause or spread; and, given the flexibility in soul contracts, physical death by that means can satisfy contracts’ cause and longevity provisions.

Insects also serve the purpose of souls whose lifetime energy consigned them to the basest part of third density spirit realms. When they are willing to receive sufficient light to embody, they do so in a short-lived form without cellular memory patterning that could influence behavior as they start back up the ladder of evolution. You will welcome knowing that insects cannot survive in the higher vibratory levels where Earth is heading, and their place in the food chain no longer will be needed.

Rats are intelligent, emotional rodents, and those that are well-treated pets respond in kind; the hordes that run wild simply are trying to survive in a world where they are detested. As a civilization grows in consciousness, so do all other life forms in that world. With that advancement comes humankind’s respect for all animal life, and “wild” rats, like other species now considered obnoxious, will be elevated in behavior and popular acceptance. Have no concerns that your world may be overrun with rats or rabbits or any other animals that produce litters quickly! They will reproduce less often and in smaller numbers as long as they decide to embody on the planet—these species, like all others, evolve and at some point incarnate as higher-order beings.

Citing numerous ways that Earth’s animals are being treated inhumanely, a reader asked, “Can the galactics not help with ending this horrendous treatment of animals?” Your universal family is helping by beaming light in abundance to Earth, but they cannot interfere with the free will of individuals who cause suffering and merciless death to your animals. It is up to your society to stop abhorrent practices, and thanks to the dedicated efforts of many souls, this is happening. Countries are setting standards for treatment of animals and repercussions for violators; there are boycotts of food, other products and entertainment derived from animal exploitation; poachers of wild animals are being taught other livelihoods; education is expanding about the importance of preserving wildlife and their habitats on land and in the seas; the numbers of wildlife reserves and no-kill shelters of pet species continue growing and so do the numbers of homeless pets who are adopted.

Participating in or financially supporting these encouraging activities is vital, to be sure, but an invaluable contribution that everyone can make to improve animal life is to not agonize about their plight, but instead send love-light to all of Earth. The law of attraction brings back the very same energy sent forth in thoughts and feelings, thus agonizing about any situation brings back still more circumstances to evoke that feeling.

A reader in New Zealand asked why teen suicides in her country and elsewhere are becoming more frequent. Perhaps because of religious teachings, dying by one’s own hand at such a young age—at any age—is viewed as more tragic than death by disease or fatal injury. So first we say, there is no judgment or penalty and no such place as limbo or hell for people who end their lives.

Their reasons differ just as the individuals themselves do; however, according to our colleagues in Nirvana, most teenagers who commit suicide are gay or lesbian or they know that their body and gender are mismatched, and they enter spirit life with tormented psyches that need customized care for healing. They were emotionally drained from struggling to conform to familial expectations, societal standards and religious orientation, or they had been cast out after declaring their true selves—either way, they saw death as the only escape from hopelessness and despair. As your society continues growing consciously and spiritually, honoring the divinity and genuineness of all soul-selves will replace discrimination and rejection.

“I have noticed a lot of fear-based information on the Internet surrounding ingesting monatomic gold. Can you please elaborate on how it actually works within our bodies?” The intention of that information—and it is a good example of DISinformation on the Internet—is to steer you away from one of the most valuable substances you can ingest. In addition to fortifying immune systems, monatomic gold contributes to health by rapidly regenerating cells; raising bodies’ frequencies; improving organs’ functioning;accelerating the transformation of carbon-based cells into crystalline; and helping to increase DNA strands. All of those physical benefits enhance brain power and that leads to expanded consciousness, spiritual clarity and overall balance. Individuals who are influenced by darkness don’t want you to have any of those advantages so they disseminate blatantly false, fear-based information about monatomic gold.

To readers who asked if signing petitions really does any good: Yes. You may or may not see prompt effects in the specific areas the petitions cover, but the energy you put forth to support endeavors you deem worthy contributes to the overall light on the planet.

“Please ask Matthew to speak about people suffering from depression. I am fearful I may not be following my soul contract and more so failing to do my part to promote positive loving thoughts to myself and others so as to assist Earth's transition.” Our understanding and compassion go out to this dear soul and to all others who are dealing with depression, an emotionally painful condition that has become almost commonplace in your world, and we hasten to say that none of you is failing self or others! You are not lacking light, but light-heartedness. Even if depression is a karmic choice for balance, it needn’t be long-lasting, and discovering and alleviating the cause is possible.

The cause may be physical. Consult a trusted healthcare practitioner about testing for hormonal imbalance, which is treatable without pharmaceutical drugs that don’t eliminate the cause and do lead to other maladies. We have mentioned the benefits of monatomic gold, and suggest as well that you eat nutritious food, drink a great deal of pure water, get sufficient sleep, listen to melodic music, and spend as much time as possible with Nature. Especially during these times when body, mind and spirits are adjusting to ever-heightening vibrations, those are wise suggestions for everyone.

In many cases, depression is circumstantial, due to one’s own or loved ones’ situation or perhaps the state of your world. When you start thinking about something sad or worrisome, change to a positive thought about that situation and visualize it dissolving into beams of light—here again the law of attraction plays a crucial role. Take one step at a time to overcome feeling depressed—this can be as simple as the satisfaction of completing a small task or as uplifting as knowing that you are contributing light to the world via compassion, forgiveness, gratitude, generosity and kindness.

Dear ones, apply those light-filled feelings to yourself, too, and ask for help! Angels, spirit guides, souls in Nirvana and other spirit worlds—all are God’s emissaries—are ever-ready and eager to help lift you out of depression’s heavy-heartedness.

Yes, planetary cleansing will continue a while longer because Earth needs to rid herself of negativity as it is produced. But we say to readers who asked about earthquakes that will devastate entire major cities, tsunamis of epic proportions, dramatic changes in land masses, and temperatures that will continue rising until they snuff out all life: Not only are those concerns needless, but they emit low vibrations that add to the negativity Earth has to deal with.

Many who requested our comments about the Trans Pacific Partnership feel this is an Illuminati-made bill that will benefit only the wealthiest. Several also questioned much the same as the reader who wrote: “If President Obama really is a light being, why is he pushing Congress to get this bill passed?” and others wrote that his efforts prove he is either Illuminati or their willing puppet or is being mind-controlled by them.

Indeed, TPP provisions have the potential to favor only the wealthy—whatever can be used beneficially also can be twisted into malevolent directions—and we shall tell you what we have been told about President Obama’s position. He is acting upon the advice of our “space” family members living among you to not make waves at this stage of behind-the-scenes talks with individuals in the Rockefeller faction. They are not defectors per se, they are pragmatists who know their aim of world control is doomed, and because their interests are better served by economic stability than global collapse, they are amenable to discussing reforms that will have far-reaching effects.

These individuals, whose cooperation can expedite the reforms, wield considerable influence in the corporate world; and their bargaining point is that by acting in good faith on TPP’s provisions, workers in the off-shore countries will reap benefits that currently are nonexistent and would not adversely affect workers in the United States. Our perspective is, as vibrations continue increasing, improvements will come in every aspect of life in your world, so with or without TPP, beneficial changes are ahead for people everywhere.

We honor you, our beloved family, for your perseverance as lightworkers. You are adding immeasurably to the light that is propelling ongoing and forthcoming changes throughout your world.

LOVE and PEACE

Suzanne Ward

Website: The Matthew Books

Email: suzy@matthewbooks.com

Israel's former defense minister says army blocked three planned attacks on Iran - New

"The Recalibration of Awareness – Apr 20/21, 2012 (Kryon channeled by Lee Carroll) (Subjects: Old Energy, Recalibration Lectures, God / Creator, Religions/Spiritual systems  (Catholic Church, Priests/Nun’s, Worship, John Paul Pope, Women in the Church otherwise church will go, Current Pope won’t do it),  Middle East, Jews, Governments will change (Internet, Media, Democracies, Dictators, North Korea, Nations voted at once), Integrity (Businesses, Tobacco Companies, Bankers/ Financial Institutes, Pharmaceutical company to collapse),  Illuminati (Started in Greece, with Shipping, Financial markets, Stock markets, Pharmaceutical money (fund to build Africa, to develop)), Shift of Human Consciousness, (Old) Souls, Women, Masters to/already come back, Global Unity.... etc.) - (Text version)

Social media encouraging corruption whistleblowing in China

Want China Times, Xinhua 2015-05-09

Smartphone users in Taiyuan, Shanxi province. (File photo/CNS)

China's use of social media to encourage public tip-offs about corrupt or unprofessional official practices is gaining steam.

In Qinhangdao city of north China's Hebei province, more than 20,000 citizens have used an app launched in August which enables them to report officials' "undesirable work styles" such as bureaucracy and extravagance to the city's discipline watchdog.

Discipline staff have received more than 300 complaints via the app, said an official with the Qinhuangdao Municipal Discipline Inspction Commission of the Communist Party of China (CPC).

Authorities have handled over 200 of the cases, punishing 30 officials for offences ranging from driving government cars for personal affairs to organizing extravagant banquets for family weddings or funerals.

"A small mobile phone can help solve a big problem. Every mobile phone is a tool for inquiry and everyone is a supervisor," said Hao Zhanmin, secretary of the commission.

Since late 2012, the new Chinese leadership has launched campaigns against corruption and misconduct among officials. More than 100,000 officials have been punished.

With an increasing number of smartphone users, WeChat and Weibo, both instant messaging services popular in China, have made it easier for the public to expose violators to authorities.

The CPC Central Commission for Discipline Inspection launched its own mobile application in January.

Whistleblowing channels like apps and WeChat or Weibo platforms have also been adopted among discipline inspection bodies in Beijing as well as Shandong and Zhejiang provinces.

Beijing's discipline inspection watchdog recently opened a WeChat account, publicizing the contact details for six inspection teams.

Social media is not the only technology being used to ensure professionalism among officials. Some judicial bodies have adopted face recognition machines to monitor employees' attendance, in order to curb laziness at the workplace.

"After using the system for some time, the phenomena of arriving at work late and leaving early has been reduced a lot," said Wang Guorui, an official with the Changchun Intermediate People's Court in northeast China's Jilin Province.

The CPC is keeping pace with the times to explore new technological means to help fight corruption or bureaucracy, said Zhu Lijia, a professor with the Chinese Academy of Governance.

App of China's anti-graft watchdog welcomed by public

Want China Times, Xinhua 2015-01-04

The download page from the China's Central Commission for Discipline
Inspection website for the anti-graft app. (Internet photo)

The mobile application of China's disciplinary watchdog, which publishes the latest news on the country's anti-corruption campaign, has been well received by the public after its launch on Jan. 1.

In addition to news, it details how the Central Commission for Discipline Inspection (CCDI) handles reports and publishes pictures of letters submitted from across the country, offering interactive features.

"The app is like a fly swatter given to us to fight corruption," a user under the name "beibidewolpd" wrote on microblog Sina Weibo.

Another user, nicknamed "Gengshu023", wrote "it is a big step as the CCDI tries to involve more people to help supervise."

The CCDI website has also been updated with more detailed sections for the public to report corruption and track the progress.

Many netizens say that the CCDI website has become a timely and authoritative source of anti-corruption news during the ongoing campaign.

The application is available for Apple's iOS-based devices and Android phones.

Apple reseller in China allegedly flees abroad with US$16m

Want China Times, Staff Reporter 2014-12-25

An Apple store in Nanjing. (File photo/CNS)

The head of an authorized Apple product distributor at the Zhongguancun electronic shopping mall in Beijing has allegedly fled to France with 100 million yuan (US$16 million) in borrowed funds, several other Apple authorized distributors in the mall told the Chinese-language Economic Information Daily.

Dong Wei, owner of Beijing Guangda Century Science and Technology, which resells Apple products in Beijing, is reportedly on the run with money borrowed from several state-owned banks, a financial guarantee company and pre-paid fees from more than a dozen of lower-level Apple-authorized distributors in Zhongguancun and Henan and Hebei provinces as well.

Dong's company was a major Apple distributor in Beijing and supplied its latest products to more than a dozen smaller distributors in Beijing and in Hebei.

Smaller distributors need to pay large down payments-sometimes totaling millions of yuan-to bigger distributors to obtain the newest products, such as the iPhone 6 series, the report said.

Some smaller distributors had already placed iPhone orders with Guangda Century and had paid about 60 million yuan (US$9.7 million) in prepaid fees to obtain the newest products, another distributor said. In response, Apple said in a statement to the newspaper that Dong is not on its list of authorized distributors and that it is unknown whether Dong had authorized lower-level distributors for the resale of Apple products.

The incident has something to do with Apple's business model, an industry expert said. With its technology and branding advantage, a pyramid styled distribution structure has been formed by the company. Upper-level distributors have an absolute advantage in price bargaining and taking delivery for products over lower-level distributors, allowing them to get pre-paid fees instead of following the "cash on delivery" system, the industry expert added.

State-owned banks are also happy to lend lots of money to the large distributor, even though they do not receive any tangible form of guarantee, the report said, citing the expert.

Banks also believe they are sure to get their money back, along with a good profit, because Apple products sell well, the report said.

The case was reported to the police in Beijing's Haidian district, a distributor stated.

The police confirmed they are investigating the case and trying to locate Dong, according to the report.

Public prosecutor, consumer authority both investigate IT fraud

DutchNews.nl, Wednesday 22 October 2014

(NOS/ANP)

The Dutch consumers authority ACM has written to 50 of the country’s biggest IT companies asking them for information about price agreements and other illegal activities, the NRC said on Wednesday.

The cartel body is particularly interested in information about government contracts in the wake of revelations made by television programme Zembla earlier this month, the paper said.

The programme claimed that IT company Ordina had committed fraud several times in order to win government contracts.

The NRC also says the public prosecution department has begun its own investigation into the claims to determine if there is enough evidence to merit a criminal prosecution.

Related Articles:

Damning report says goverment wastes up to €5bn on IT failures

IT services group Ordina at centre of corruption scandal: Zembla

IT services group Ordina at centre of corruption scandal: Zembla

DutchNews.nl, Thursday 02 October 2014

HQ of Ordina (NOS/ANP)

Civil servants have given IT company Ordina confidential documents which gave it an unfair advantage in winning government contracts, according to television current affairs show Zembla.

Zembla bases its claims on a whistleblower and a USB stick full of company information, addresses and emails. Most of the items date from 2005 and 2010 and show how business was being done.

For example, a Rotterdam civil servant gave Ordina information about a tendering process for a software project worth tens of millions of euros in 2009. Rotterdam has begun an investigation into the case and suspended one civil servant, Zembla says.

IND

Another project involved a contract for the immigration service. Justice minister Ivo Opstelten has asked the consumer authority ACM to investigate this.

A third case involves a tendering process in Rotterdam which Logica CMG, CapGemini and Ordina divided up the market in agreement with city officials.

The Zembla programme will be broadcast on Thursday night. Professor Chris Jansen told the show there are similiarities between this and the construction sector fraud of 2001.

‘Companies operating in the same sector have made agreements, with or without the knowledge of the government, to divide up contracts between themselves,’ he said.

That scandal also came to light following a whistleblower’s revelations.

Whistleblower phone app seeks to outsmart corruption

Yahoo – AFP, Amy Fallon, 28 Sep 2014

Gerald Businge, the project co-ordinator of Action for Transparency (A4T),

 demonstrating how his anti-corruption app works, in Kampala, Uganda, September 19,

2014 (AFP Photo/Isaac Kasamani)

Kampala (AFP) - Douglas Buule, a teacher at Kiwenda primary, a government school outside Uganda's capital Kampala, has a recurring problem.

"The money used to access the chalk comes late, even towards the end of term," explains Buule. "It is a big burden to keep on writing on a chalk board. So sometimes the head teacher buys chalk on credit or even uses her own money."

Funds arriving late or going missing altogether also mean the school's 529 students usually only take exams twice a term instead of monthly, said the teacher.

Gerald Businge, the project co-ordinator of 

Action for Transparency, demonstrating how

 his anti-corruption app works, September 19, 

2014 (AFP Photo/Isaac Kasamani)

"There is lack of transparency in many government institutions on the funds that are supplied and used," said Buule, complaining of the country's endemic corruption. "That lack of transparency is affecting day-to-day learning."

But now, a new project is shifting the balance of power.

Through the Action for Transparency (A4T) Smartphone app, being piloted in three Ugandan districts, communities are being armed with information allowing them to report anonymously when budget allocations for health centres and schools fail to match public expenditure.

Using the GPS-enabled A4T app, a user can receive the location of a school or health centre, the number of staff allocated to them by both the government and the institution, and the amount of money approved and dispersed.

If they suspect money is being misused -- for example if the government provides funds for an ambulance which then is nowhere to be seen -- the user can simply click on the app's whistle icon to send an instant report to the A4T website and their Facebook page.

"If it is a police case we'll report it to the police," said Moses Karatunga, the programme officer for Transparency International (TI) Uganda. "If it's an advocacy issue we can take it up with the ministry."

Keeping tabs on the cash flow

In the past year, Uganda's corruption rating has deteriorated, according to TI. They are introducing the app along with the Fojo Media Institute, part of Linnaeus University in Sweden, the Uganda Media Development Foundation (UMDF) and the African Center for Media Excellence (ACME).

Gerald Businge, the A4T project coordinator, said Ugandans feared blowing the whistle on corruption.

"They think they could get sacked, they could get victimised," he said. "There is also that worry 'I report and nothing is done.' So we're saying 'take this to the public court'."

President of Uganda Yoweri Museveni address

 the United Nations General Assembly on

 September 24, 2014 in New York. An app is

 helping to tackle corruption in Uganda (AFP

Photo/Andrew Burton)

But it's hoped that through A4T, which has been funded by SIDA, the Swedish International Development Agency, mismanagement of money can be prevented.

"When people know they're being monitored they're less likely to squander or misuse money," said Businge.

Community monitors such as Twahah Musoke visit schools and health facilities in their area a minimum of two times in a quarter. The institutions and facilities can also access the app from the TI representatives.

Already Musoke has been to five schools, including Kiwenda primary, and three health centres in the Busukuma area, home to about 16,000 people, in Wakiso district.

Challenges related to monitoring money include financial committees not knowing how much government money is being sent, and information and money staying with one person, for instance a school headmistress, instead of a team, he said.

"We need to empower people to realise it's their responsibility to access this information," said Musoke.

"If they go and seek the information the administrators of these facilities will be in a position to account for and utilise (the money) the way it's meant to be utilised."

Businge said phones were chosen for the project as "very many Ugandans have mobile phones and at least every family has a mobile phone".

"We're telling people that phones can do much more than what you're already doing," he said.

US judge fines HP $59 mn for bribing Russian officials

Yahoo – AFP, 12 Sep 2014

According to a negotiated plea bargain, executives in an HP Russia subsidiary

 created a multi-million-dollar slush fund, from which money was used to bribe Russian

officials who awarded the company a $45 million contract (AFP Photo/Brendan Smialowski)

San Francisco (AFP) - A judge on Thursday ordered US computer giant Hewlett-Packard to pay $58.8 million for bribing Moscow government officials to win a big-money contract with Russia's prosecutor general's office.

Northern California US District Judge Lowell Jensen hit HP with the fine after the company pleaded guilty to violating anti-bribery and accounting provisions of the Foreign Corrupt Practices Act, the US Department of Justice said in a release.

According to a negotiated plea bargain, executives in an HP Russia subsidiary created a multi-million-dollar slush fund, from which money was used to bribe Russian officials who awarded the company a $45 million (35 million euro) contract with the Office of the Prosecutor General of Russia.

A judge orders US computer giant Hewlett-

Packard to pay $58.8 million for bribing

Russian government officials to win a big-

money contract with the prosecutor

general's office in that nation (AFP Photo/

Hector Mata)

"Hewlett Packard's Russia subsidiary used millions of dollars in bribes from a secret slush fund to secure a lucrative government contract," principal deputy assistant attorney general Marshall Miller of the Justice Department's Criminal Division said in a release.

"Even more troubling was that the government contract up for sale was with Russia's top prosecutor's office," he said.

Bribes in Russia, Poland, Mexico

The plea deal came as part of an agreement by HP in April to pay a total of $108 million to settle investigations that it paid bribes to win public contracts in Russia, Poland and Mexico.

The settlement covers criminal and civil investigations under the Foreign Corrupt Practices Act, according to a statement from the US Securities and Exchange Commission.

According to authorities, the California company's subsidiary in Russia paid more than $2 million in bribes through agents and various shell companies, using two sets of books and secret spreadsheets to keep track of affairs.

"For more than a decade HP Russia business executives participated in an elaborate scheme that involved paying bribes to government officials in exchange for large contracts," FBI Washington field office assistant director-in-charge Andrew McCabe said in a release.

In Poland, gifts and cash bribes worth more than $600,000 were paid to a Polish government official to obtain contracts with the national police agency.

And in Mexico, HP paid more than $1 million in commissions to a consultant to win a software sale to Mexico's state-owned petroleum company Pemex, and some of that money was funneled to a company official.

SEC investigators in April said HP lacked internal controls and allowed the bribes to be recorded "as legitimate commissions and expenses."

According to US officials, the bribes in Mexico were paid from 2008 to 2009, in Poland from 2006 to 2010 and in Russia from 2000 to 2007.

HP acknowledged the settlement in a separate statement in April and noted that it calls for "certain compliance, reporting and cooperation obligations."

"The misconduct described in the settlement was limited to a small number of people who are no longer employed by the company," said John Schultz, executive vice president and general counsel for the company.