Report

1. Report White Collar Crimes/ Frauds

2. Types of White Collar Crimes • üPublic Corruption • üMoney Laundering and Conspiracy • to commit those crimes. • üBank fraud • üSecurities fraud • üMail Fraud • ü Wire fraud

3. Public Corruption Rs.100 Billion Corruption in Pakistan Each year: UN Report

4. The Report Said The report blamed South Asia's poverty largely on natural disasters, but also on efforts to expand nuclear capabilities and the global economic slow-down. India and Pakistan carried out tit-for-tat nuclear tests in May last year, prompting international economic sanctions that were partially lifted in December. • There are increasing corruption and criminalisation in public life. • Election Expenditures & Accounts of major parties are not open to public study.

5. 3. Women & minorities are typically poorly represented in the overall state structure ” 4. While they make up half of the electorate, women hold just 7% of the seats in South Asia's parliaments," 5. "Internal disputes are seldom settled kindly. At the same time, there are signs of institutional weaknesses in many parts of the region. Lower courts have too many cases and too few judges."

6. "Poverty of Opportunities – Defined as lack of access to Education, Health, Employment, Sanitation and Productive Resource - is increasing in all Countries Except," it said. Elaborating on the deprivation of the poor, the report said "The richest of South Asia's people earn almost 40 per cent of its income while the poorest one-fifth earn less than 10 per cent."More than a sixth of the region's population, almost million people, are not expected to survive to age 40.   India One-Fifth 200

7. "Each day as many as 100,000 children in South Asia sell their bodies simply to earn enough to survive."

8. Case for Money Laundering • WASHINGTON DC, USA, 3 February 2003 - U.S. Federal Bureau of Investigation (FBI) and police have charged 33 people with various crimes, executed 25 complaints and arrest warrants on Wednesday, January 29, 2003, and recently arrested 13 Pakistanis

9. Mohammad Aslam, Mohammad Sajid, Sadiqa Sajid, Irfan A. Ahmad, Mohammad Pervez Akhtar, Ahtsham Altaf, Imran Altaf, Mohammed Iqbal, Arif Khan, Kamran Malik, Mubeen Malik, Ali Sher and Tipu Sultan -- for Credit-card, Social Security, Immigration, Bank, OR Finance frauds

10. Shah Nawaz, the suspected credit-card fraud RingLeader of this criminal gang, who is now most wanted by the FBI and Fairfax County Police, has fled to Pakistan, as have several other members of the group. Abdul Hameed and 7 others who also played a major role in the infamous credit-card cheat that investigators believe netted $5 million, have either been convicted and sentenced

11. In addition to credit card fraud, many of the individuals involved in the fraud ring have obtained identity documents (such as driver licenses) using fake names and social security numbers. They have used the fake identities to commit not only their credit card bust-out scheme, but also immigration fraud and Finance fraud.

12. 1. Pakistan continues to be a haven for 'dirty money', mainly because of its slack or loose white collar Criminal Laws. Reasons 2. That is perhaps why the phenomenon of money-laundering in this country has continued to go on unabated despite all kinds of the so-called financial and banking sector reforms introduced in Pakistan over the last 10 years on the advice of the World Bank and the IMF.

13. Bank Frauds • Like other forms of white collar fraud, the objective of bank fraud is to accomplish a desired result by deception, trickery, concealment, and/or dishonesty •With bank fraud, however, the intent or scheme is to defraud a financial institution • Most fraud losses are never recovered

14. Bank Frauds (continued) • Industry statistics on bank fraud are not available and most banks are reluctant to reveal figures. • In most cases the embezzlement of funds had taken place with the collusion of the banks' top officials and, since there is no hope of their recovery

15. Frauds not only cause financial lossesbut can also... • Do huge damage to reputation, which is the main asset in business • Cause the loss of existing clients • Lead to a change in staff • Cause disruption to your business and hence reduce the activities of bank over a significant period

16. Bank Fraud Cases •Dawn 23 Apr 2001 The big fish eat up the banks 1.The Mehran Bank was the first to be defrauded in this manner soon after its birth, assisted by top political names and when it collapsed and became known as Mehrangate, even a former President of Pakistan was mentioned as one of its illegal or immoral beneficiaries.

17. Bank Fraud Cases 2. The bank which is the victim of the large fraudulent transactions of its president and senior vice-presidents, is the Allied Bank whose two Presidents had to be sacked and detained after its sale

18. Banks Can Help Fight Against Seniors • Seniors being defrauded by people they trust "is a hidden • problem that is growing rapidly as the nation's population • ages," said Jan Walsh, a Certified Financial Planner. When victims don't report a crime, it can be hard to detect. In many cases of fraud against the elderly, banks are in a unique position to spot the problem. For that reason, in some states, banks are enlisting in the fight to protect older customers against fraud or theft.

19. Mail Fraud Mail Fraud is the oldest form of fraud statutorily regulated and prosecuted by the federal government. Like other forms of white-collar fraud, the objective of mail fraud is to accomplish a desired result by deception, trickery, concealment, and/or dishonesty, albeit through the use of the United States Mail Service or other private/commercial interstate carriers. Statutorily regulated since 1872, the United States Supreme Court has repeatedly upheld the authority of Congress to pass the statute. 

20. Interpretation of today's revised mail fraud statutes finds generally that four elements must be met for an individual or organization to be convicted of mail fraud. An Assistant United States Attorney (AUSA) must present evidence that when submitted to a jury or judge would prove beyond a reasonable doubt:

21. Wire Fraud  The elements of wire fraud directly parallel those of the mail fraud statute, but require the use of an interstate telephone call or electronic communication made in furtherance of the scheme. Like other forms of white-collar fraud, the objective of wire fraud is to accomplish a desired result by deception, trickery, concealment, and/or dishonesty. The key element placing this form of fraud into the purview of "wire fraud" is the use of interstate wire communications or other forms of Facilitating communications, such as television, radio, microwaves, or the Internet.

22. Interpretation of today's wire fraud statute finds generally that four essential elements must be met for an individual .  1. That the defendant knowingly committed a scheme to defraud; 2. that the defendant acted with specific intent to defraud; 3. that the defendant used interstate wire communications facilities or caused another person to use interstate wire communications facilities for the purpose of carrying out the scheme; and 4. that the scheme to defraud employed false material representations.

23. Security Fraud  Business or corporate fraud is a financial crime and has been statutorily regulated since May 27, 1933. Violations of federal law under today's applicable statutes include such acts as:

24. 1) Insider trading, • 2) Buying or selling securities not registered with the Securities and Exchange Commission (SEC), • 3) Willfully making false statements or omissions of fact in documents filed with the SEC, and/or • 4) Engaging in interstate communications with prospective purchasers of securities, where such communications employ any device, scheme, or artifice to defraud, or contain false statements or omissions of fact calculated to mislead.