Mafia does banking
Law enforcement arrested 20 people across the globe, but predominantly in Italy, in a plot to defraud banks as HSBC and (now broke) Lehman Bros. The mafia does not get involved if it is about change; at stake was $2.2 billion.
Among those arrested during yesterday’s international bust was Leonardo Badalamenti, son of famous Cosa Nostra boss Gaetano Badalamenti, who died in federal prison in 2004 while serving time for importing heroin to the US through pizzeria storefronts.
What was the scheme like? According to investigators, mobsters persuaded corrupt Venezuelan officials to issue them fake government bonds. Badalamenti and his crew planned to use the fake securities to obtain credit lines totaling as much as $2.2 billion from BofA, Lehman, HSBC and other reputable financial firms. Back in 2003 and 2004, the Mafia tried to use the bonds to obtain $500 million credit lines from various banks. At the time, UK authorities thwarted the scam before the banks were duped.
How (un)likely is the chance of success of such a setup? Victims in these ‘fake securities’ are usually gullible private investors who are approached by fraudsters to act as a middleman of some sort. They will be the ones presenting the fake documents to a bank for ‘verification’ and find out it is all fake. Although such a fraud being successful is not unheard of, perhaps the mob should focus on their key strengths… (what were they again; convincing people they should better cooperate with them I guess).
The gang planned to invest the money in a construction business that would fund high-end residences in Tuscany, Puglia and other Italian hot spots. During the raid, police also seized goods worth nearly $7 million, including several buildings and a Tuscan farmhouse. Without any procees from this plot, that would be a net loss for the mob in this operation..
http://www.nypost.com/seven/05232009/business/mafia_bank_scam_bust_170598.htm
