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Will the real Carlos Hill please stand up?
Friday, November 09, 2007
Case 42 F.3d page 914 reads: "United States of America (Plaintiff-Appellee vs Carlos Hill, (Defendant-Appellant).
United States Court of Appeals, Fifth Circuit, January 9, 1995 (Page 915)".
Indicted on 14 counts, Hill pleaded guilty to the first: conspiracy to commit wire fraud, in violation of 18 USC Sections 371 and 1343.
The factual basis for the plea may be briefly summarised as follows: Between May and December 1990, co-defendant David Arthur Lloyd represented to Hill that a person (fictitious) owned Government National Mortgage Association (GNMA) securities, and had executed a trust agreement, assigning the securities to Lloyd or his company, as trustee. Lloyd obtained valid GNMA pool numbers and used them to create the necessary documents, such as negotiable promissory notes and pledge agreements.
Hill, who became aware of the fraudulent nature of the scheme, agreed with Lloyd to 'rent' the GNMA securities to individuals or companies who needed assets for use as collateral, or to enhance their balance sheets. In December 1993, the district court sentenced Hill to 57 months' imprisonment with the sentence to run consecutively to a prior undischarged sentence of imprisonment imposed by a federal court in New Jersey for an unrelated offence.
In short, what this Carlos Hill did was to use dubious assets to make balance sheets look better than they really were, in other words he created an illusion which constituted a deception. No reputable auditor would ever put his or her name over the accounts of an entity that has a dodgy reputation - not a PriceWaterhouseCoopers, not an Ernst&Young, not a Deloitte. The quality and reputation of an auditor's signature over the accounts is always a telling story.
This story (with no byline... typical unprofessional Observer style) appeared with another (also critical of Cash Plus and reporting bank's reluctance to process their cheques) in todays Observer.
I can see the crisis of confidence gathering steam which will lead to the dissolution of this House of Cards.... in maybe a week or four.
Bank run anyone?
Friday, November 09, 2007
Case 42 F.3d page 914 reads: "United States of America (Plaintiff-Appellee vs Carlos Hill, (Defendant-Appellant).
United States Court of Appeals, Fifth Circuit, January 9, 1995 (Page 915)".
Indicted on 14 counts, Hill pleaded guilty to the first: conspiracy to commit wire fraud, in violation of 18 USC Sections 371 and 1343.
The factual basis for the plea may be briefly summarised as follows: Between May and December 1990, co-defendant David Arthur Lloyd represented to Hill that a person (fictitious) owned Government National Mortgage Association (GNMA) securities, and had executed a trust agreement, assigning the securities to Lloyd or his company, as trustee. Lloyd obtained valid GNMA pool numbers and used them to create the necessary documents, such as negotiable promissory notes and pledge agreements.
Hill, who became aware of the fraudulent nature of the scheme, agreed with Lloyd to 'rent' the GNMA securities to individuals or companies who needed assets for use as collateral, or to enhance their balance sheets. In December 1993, the district court sentenced Hill to 57 months' imprisonment with the sentence to run consecutively to a prior undischarged sentence of imprisonment imposed by a federal court in New Jersey for an unrelated offence.
In short, what this Carlos Hill did was to use dubious assets to make balance sheets look better than they really were, in other words he created an illusion which constituted a deception. No reputable auditor would ever put his or her name over the accounts of an entity that has a dodgy reputation - not a PriceWaterhouseCoopers, not an Ernst&Young, not a Deloitte. The quality and reputation of an auditor's signature over the accounts is always a telling story.
This story (with no byline... typical unprofessional Observer style) appeared with another (also critical of Cash Plus and reporting bank's reluctance to process their cheques) in todays Observer.
I can see the crisis of confidence gathering steam which will lead to the dissolution of this House of Cards.... in maybe a week or four.
Bank run anyone?
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