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TOPIC: Jennie Paluka says "report McGarvie to IBAC"

Jennie Paluka says "report McGarvie to IBAC" 2 years 1 month ago #3288

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Nick Kudeweh's letter on Jeannie Pakula's files is here
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Jennie Paluka says "report McGarvie to IBAC" 2 years 1 month ago #3290

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Tina Stagliano, Clare McCubbin, Clare Marshall, Howard Bowles, Jeannie Pakula, Michael Mcgarvie and Jessica Phillips, Shirley Joseph and Parisi Baker-Jones probably imperilled the undercover agents and auditors of the scam litigation services firms they backed in 2014. Glenn Jones threatened to sue them for scapegoating him in a cover up of their role as "spies" for the underworld criminals in cases like this, and like the arrests of donors to Podesta's foundation, like Keila Ravelo and former Prime Minister Julia Gillard and Liberal Julie Bishop. What sort of 'legal ethics instrumentality' uses pretences to find out what its very own staff blew whistles about?

Alison Frankel
Ex-Willkie partner’s lawyer: Blame husband for false billing scheme
By Alison Frankel
August 26, 2015

(Reuters) – On Tuesday, the U.S. attorney in New Jersey announced a plea deal with Melvin Feliz, an accused drug trafficker and financial schemer from Englewood Cliffs. Feliz is the estranged husband of Keila Ravelo, a onetime antitrust partner at Willkie Farr & Gallagher and Hunton & Williams who was arrested alongside Feliz last December. He pleaded guilty to tax evasion and to conspiring with Ravelo to defraud her former law firms by submitting phony invoices for litigation support services. In all, according to the statement, the two skimmed at least $7.8 million from the firms between 2008 and 2014.

Ravelo has admitted no such thing. After Feliz’s deal was announced, her defense lawyer, Steven Sadow of Schulten Ward & Turner, issued a very unusual statement, asserting that whatever Ravelo did, it was to appease Feliz. “Ms. Ravelo acted as Feliz coercively demanded – not freely, voluntarily or with criminal intent,” the statement said. “As the government has now seen fit to use its tremendous power to intimidate Feliz rather than seek real justice, Ms. Ravelo and her children will continue to suffer for his sins of abuse and pay dearly for his deceit, self-destruction and the interpersonal trauma he has caused.”

Ravelo’s case, as you know, has had unimaginable repercussions. After the government filed its criminal complaint against her, Willkie conducted an internal investigation of her files. The investigation revealed that antitrust class action lawyer Gary Friedman – an old friend of Ravelo’s who worked with her decades ago when she defended Feliz as a pro bono client – shared confidential information with Ravelo as the two litigated on opposite sides of a giant case pitting merchants against MasterCard and Visa. (Ravelo represented MasterCard.) Earlier this month, U.S. District Judge Nicholas Garaufis of Brooklyn rejected the merchants’ $79 million settlement with American Express in a parallel case in which Friedman represented the class. A different Brooklyn judge is considering motions by dissenting merchants to reverse court approval of the $5.8 billion MasterCard and Visa settlement.

Ravelo’s side of this complicated story has not been told. Unlike Friedman, she filed no brief in the proceeding over the documents he shared with her and has not publicly addressed the criminal charges against her. So after I read Sadow’s statement last night, I reached out to see what more he could tell me about a woman whose downfall has been painfully public. A caveat: This is a one-sided account from the lawyer for a woman scrambling for a way out of terrible trouble. I called Feliz’s defense lawyer, Jason Orlando of Murphy Orlando, to ask about Sadow’s accusations against Ravelo’s estranged husband. Orlando declined to comment. And obviously, it is in Ravelo’s interest to pin responsibility for the $7.8 million fraud on Feliz.

That said, Sadow depicted Feliz as a bully who stole from Ravelo’s law firms in order to fund his secret life as a drug trafficker – and to support a secret second family. According to Sadow, Feliz established an apparently legitimate litigation support company years before the alleged criminal fraud. Ravelo, he said, was not involved with the finances of Feliz’s business. Nor was she permitted to handle the family finances, according to Sadow: “Her estranged husband controlled every aspect of the family, made every decision involving money.”

After Feliz and Ravelo were arrested, Ravelo was granted release. Feliz remained imprisoned. Ravelo returned to their New Jersey house and began going through his papers. Only then, according to Sadow, did she find out that Feliz had been involved for at least five years with another woman and was supporting her and their child. Sadow said Ravelo was further undone when Feliz pleaded guilty in February to a conspiracy to smuggle cocaine into New Jersey. Ravelo, according to her lawyer, had trusted Feliz’s assurances that those charges were false.

The government has portrayed the phony invoice scheme as a way for Feliz and Ravelo to spend money on themselves and their investments. When the Bergen Record reported on the case in December, it cited Ravelo’s supposed fondness for expensive jewelry and handbags. Sadow rejected that account. “Keila’s conduct was not motivated in any way by money or greed,” he said. “She was making a substantial living working for the law firms.” It was Feliz, not Ravelo, who needed to gin up fake profits, according to Sadow.

I asked Sadow about Ravelo’s exchanges with Friedman, the class action lawyer on the other side of the MasterCard litigation. The emails recovered from Friedman and Ravelo’s files, as depicted in the ruling rejecting the Amex settlement, show Ravelo receiving information from Friedman, not passing MasterCard confidences to him. Sadow told me Ravelo always believed she was acting in the best interests of her client, MasterCard.

He also hinted that Ravelo’s criminal case may continue to impact the $5.8 billion class action settlement with Visa and MasterCard. A footnote in Judge Garaufis’ decision rejecting the Amex settlement refers to a 2012 report prepared for MasterCard by a litigation support vendor that had access to confidential Amex documents. The judge said that the evidence is not clear, but the report may indicate MasterCard benefited from documents Friedman improperly shared. According to Ravelo counsel Sadow, the litigation support business mentioned in Judge Garaufis’ footnote is Feliz’s company. (Government documents in the Feliz case do not name his businesses and I could not independently verify his connection to the company Garaufis named.)

Sadow said Ravelo has not seen Feliz, aside from court appearances, since their arrest. Her mainstay these days is their two teenaged sons. According to Sadow, the evidence will eventually show Feliz mistreated the entire family.

“Those facts will be made clear as time goes on,” he said.

(This story has been corrected. A previous version reported that Feliz had a 10-year relationship with another woman. Ravelo’s defense lawyer now says that relationship dates back at least five years.)
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Jennie Paluka says "report McGarvie to IBAC" 2 years 1 month ago #3295

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Lawyer Tied to Ex-Willkie Partner's NJ Fraud Case Speaks Out

Christine Simmons, New York Law Journal

November 30, 2016 | 1 Comments
Gary Friedman
Gary Friedman

After court documents pointed to New York attorney Gary B. Friedman as a "possible co-conspirator" with Keila Ravelo, a former law firm partner charged in a fraud scheme, Friedman is speaking out, stating he is not a suspect in any crime and he expects to testify at Ravelo's upcoming criminal trial.

"I certainly feel like I got thrown in the middle of this whole shit-pot of criminal activity … not having bargained for it," he said in an interview Wednesday. "It's a real betrayal, I was used in a terrible way."

In response, Ravelo's attorney, Steven Sadow, special counsel at the Atlanta-based firm Schulten Ward Turner & Weiss, said Friedman is making "self-serving statements" and he looks forward to the opportunity to examine Friedman in court.

Friedman was head of his own firm, Friedman Law Group, made up of about six attorneys. He was plaintiffs counsel in two massive antitrust cases, one against American Express, In re American Express Anti-Steering Rules Antitrust Litigation, 11-MD-2221, and another against Visa and MasterCard and various banks, In re Payment Card Interchange Fee And Merchant Discount Antitrust Litigation, 05-MD-01720.

While she was a partner at Willkie Farr & Gallagher, Ravelo was among the defense counsel for MasterCard in Interchange.
Keila RaveloKeila Ravelo

In December 2014, the U.S. Attorney's Office in New Jersey charged Ravelo and her husband, Melvin Feliz. The government alleges she engaged in a scheme that used phony litigation support vendors to fraudulently obtain $7.8 million from two law firms where she was a partner—Willkie and Hunton & Williams—and from her client, MasterCard.

According to federal prosecutors, from 2008 through July 2014, Ravelo and Feliz had two companies that purported to offer litigation support for Hunton and Willkie but provided no actual services. Ravelo, as a partner at both firms, approved payments to the vendors, prosecutors said.

She has pleaded not guilty.

When the U.S. Attorney's Office subpoenaed Willkie for documents and the firm conducted an internal review, the law firm found communications between Ravelo and Friedman regarding the antitrust cases and notified the parties. After the communications were revealed, they led to Eastern District Judge Nicholas Garaufis rejecting a far-reaching settlement in the American Express case, citing "egregious conduct" by Friedman, according to an August 2015 opinion in that case.

Friedman was forced to withdraw from both cases, and he said his law firm dissolved.

The extent of Friedman's role in Ravelo's criminal case was not extensively known until New Jersey U.S. District Judge Kevin McNulty's decision Tuesday that outlined testimony by federal agents.

In his ruling denying Ravelo's request to suppress evidence recovered from her cellphone, McNulty outlines testimony from a federal agent who had identified Friedman as a "possible co-conspirator" of Ravelo.

According to McNults ruling outlining her testimony, IRS special agent Cheryl Matejicka was aware that fabricated documents submitted by Ravelo in support of fraudulent invoices originated with Friedman's law firm.

The agent was also aware that at least two payments had "flowed from Ms. Ravelo's companies"—the vendors—to Friedman, McNulty said in the opinion.
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Jennie Paluka says "report McGarvie to IBAC" 1 year 5 months ago #3406

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Scott Murdoch

Commonwealth Bank held urgent talks with global regulators and central banks on the day it was served by Austrac, in a bid to calm concerns that money-laundering allegations could hurt the bank’s reputation and future fundraising prospects.

The bank, which is Australia’s largest home lender, refused to confirm which authorities were briefed by its top executives on August 3, when the Austrac claims were made. CBA is accused of allowing more than 53,000 suspect transactions to pass through its intelligent deposit machines, which could have funded crime gangs or terror.

CBA is under investigation by the Hong Kong Monetary Authority because most of the suspect cash washed through the machines is thought to have been sent to the territory. However, sources have told The Australian that CBA sought out regulators and played down potential terror-funding fears.

It is understood the briefings were likely to have been held with the US Federal Reserve, Department of Justice — because CBA is a signatory to the Patriots Act, which was created to crack down on terror funding sources following the September 11 attack — and the Office of the Comptroller of the Currency, which supervises foreign banks in the US.

The bank’s reputation in the US is of huge importance because of the number of debt-funding sources located there. The bank has raised more than $3 billion in US senior debt over the past few months, and money-laundering is considered the worst financial crime in the US.

CBA is believed to have also spoken to the Reserve Bank of New Zealand, Singapore Monetary Authority and Britain’s Financial Conduct Authority, which acts as a prudential regulator. CBA refused to reveal which agencies it spoke to and said it was in regular contact with regulators.

It comes amid growing expectation chief executive Ian Narev could soon be called to give account before parliament.

Anticipation of further pain to executive remuneration has also been building ahead of the release of the bank’s annual report today.

“Full details of the remuneration outcomes and the board’s full consideration will be disclosed next week in the annual report,” chairwoman Catherine Livingstone said last Tuesday.

The bank was last week asked by analysts whether the CBA culture was a problem after it emerged the bank ignored a number of staff warnings that the IDMs were being misused.

Citi analyst Craig Williams said the Austrac allegations showed banks had to be “accountable” organisations that maintained the trust of customers.

“CBA would acknowledge mistakes have been made in most cases,” Mr Williams said.

“Action and accountability must be more dramatic if the industry is to stave off this threat.

“This has become one of the key questions for the investment case of CBA and its peers looking forward.” Mr Williams said the bank’s future returns could be lower because of the increased gov­ernment and regulatory focus on the sector as a result of major incidents over the past decade.

“This bank and its peers have had a litany of conduct and compliance issues over the last decade,” he said.

“It is increasingly apparent that senior management has not yet done enough to build a culture which listens to customers, staff and regulators when problems are raised.

“This raises the real risk of bank sector returns being damaged over time by a response from authorities.”

Investor reaction to the Austrac scandal has been mixed, with the share price enduring a volatile ride over the past seven trading sessions since the allegations emerged.

Mr Narev is due to meet fund managers in Sydney tomorrow and is expected to face calls for assurances in the wake of the Austrac claims, which are the latest in a series of scandals to break on Mr Narev’s watch.

Regal Funds Management analyst Omkar Joshi said Commonwealth Bank was already the worst-performing of the big four banks on total return last year, and there were concerns that the money laundering case would drag on performance, even after a record profit announced last week.

“Yes the result is OK, the numbers are OK, but this creates a lot of uncertainty,” Mr Joshi said.

“You don’t know how this situation is going to play out. There are a lot of scenarios here and none of them are really positive.”

Analysts have said for CBA the debt market reaction is more important than share price moves.

In a worrying sign for CBA, its credit default swap has started to rise, which indicates investors think the company’s risk is starting to increase.

The CDS — which for investors acts as the insurance policy for owning CBA debt — has ticked up slightly and sits higher for the first time in years compared to the other big three banks.

NAB’s CDS moved higher during the 2004 foreign exchange trading scandal, while ANZ’s shifted when the Chinese economy was thought to be on the brink of collapse.

CBA’s current scandal is expected to prompt a small increase in the cost when the bank next raises money in the offshore market. Mr Narev and chief financial officer Rob Jesudason leave shortly for briefings with major overseas investors, and the bank is expected to start marketing a European debt deal in the next six weeks.

Meanwhile, there is increasing speculation that the Royal Bank of Scotland’s chief executive, Ross McEwan, could return to CBA shortly.

Mr McEwan was formerly head of CBA retail banking services, but was passed over as CEO in 2011.

Additional reporting: ANDREW WHITE
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Jennie Paluka says "report McGarvie to IBAC" 1 year 4 months ago #3428

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September 29 2017
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Former Commonwealth Bank IT manager Jon Waldron indicted in US over bribery allegations
Sarah Danckert

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The US has issued arrest warrants for former Commonwealth Bank IT executive Jon Waldron and a former contractor to the bank over their alleged involvement in a bribery scheme.

A US grand jury indicted Sydney-based Mr Waldron and California technology executive Eric Pulier on Wednesday.

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Former Commonwealth Bank executive Jon Waldron has been charged in the US with five counts of fraud and one count of ...
Former Commonwealth Bank executive Jon Waldron has been charged in the US with five counts of fraud and one count of conspiracy.

Both Mr Pulier and Mr Waldron have been charged with five counts of fraud and one count of conspiracy. Mr Pulier faces nine additional charges relating to the alleged bribes.

Mr Waldron is already facing charges in Australia over the alleged payments. He has pleaded not guilty to those charges.

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Keith Hunter, left, former head of IT delivery services at CBA, was in December 2016 sentenced to 3½ years in prison for ...
Keith Hunter, left, former head of IT delivery services at CBA, was in December 2016 sentenced to 3½ years in prison for his receipt of bribes. Photo: Dominic Lorrimer

New Zealand-born Mr Waldron is next due to appear in the NSW Local Court on October 9 in relation to the Australian charges.

Mr Pulier is accused of paying $2.5 million of bribes to two CBA executives, Mr Waldron and former CBA IT general manager Keith Hunter.

It is alleged Mr Waldron received $1.9 million in payments to a New Zealand shell company.
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The US Department of Justice alleges that in return for the bribes, Mr Waldron helped to approve a $10.5 million McAfee software contract for the bank.

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Eric Pulier, the founder and former chief executive of ServiceMesh, was accused of paying $US2.5 million ($3.19 million) ...
Eric Pulier, the founder and former chief executive of ServiceMesh, was accused of paying $US2.5 million ($3.19 million) of bribes to two technology executives at CBA.

ServiceMesh was sold to NASDAQ-listed tech giant Computer Sciences Corporation in 2013.

It is alleged the payments relating to CBA's McAfee contract helped ServiceMesh secure additional payments of $US98 million in the form of an earn-out bonus from CSC in the year after ServiceMesh was acquired. This was on top of the $US282 million CSC had already paid to acquire ServiceMesh.

US Prosecutors said Mr Pulier received about $30 million of the earn-out bonus.

Mr Pulier then allegedly funnelled more than $US2.5 million of that amount in kickbacks to Hunter and Mr Waldron through Mr Pulier's purported non-profit organisation, according to the Securities Exchange Commission's court filing.

It is alleged that when CBA Security questioned the payments, Hunter drafted a Statement of Works on his home computer describing management consulting work provided to Mr Pulier's non-profit organisation.

Hunter, an American who joined the bank in 2011, was sentenced to 3½ years in jail, with a non-parole period of two years and three months in December.

Hunter has also been charged in the US and is expected to be extradited to face those charges once released from prison in Australia.

Los Angeles-based Mr Pulier, 50, is expected to surrender "in the coming days", according to prosecutors.

Fairfax Media has been unable to contact Mr Waldron.

A spokesman for the Commonwealth Bank said the bank referred the matter to NSW Police in early 2015.

"We considered that the suspicious activity of these individuals was serious, that's why we took the step of reporting their activity to the NSW Police," the spokesman said.

"We will continue to cooperate with the police and authorities as the judicial processes continue."

The bribery allegations come amid a torrid time for CBA, which is facing an inquiry by the banking regulator, the Australian Prudential Regulation Authority, following scandals in its financial advice and life insurance arm.
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Jennie Paluka says "report McGarvie to IBAC" 1 year 4 months ago #3432

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The Charges include conspiracy.

In the last week, there have been three reported matters which demonstrate the material consequences that Australian companies and individuals may face as a result of involvement in corrupt conduct. These include:

the first reported sentences for conspiracy to bribe a foreign public official;
the World Bank banning subsidiaries of an Australian company due to evidence of inappropriate payments; and
US indictments of a Sydney-based individual for alleged payments to secure IT contracts in Australia.

A brief overview of each matter is provided below. These matters provide a timely reminder for companies to ensure that their policies and procedures are adequate to prevent and detect corrupt conduct within the organisation.
First reported sentences for conspiracy to bribe a foreign public official

R v Jousif; R v I Elomar; R v M Elomar [2017] NSWSC 1299

On 27 September 2017, three individuals were each sentenced to 4 year terms of imprisonment for conspiring to bribe a foreign public official pursuant to the Criminal Code 1995 (Cth). Two of those individuals (the Elomars) also received a fine of AUD 250,000.

The Elomars were directors and equal shareholders of Lifese Pty Ltd, an Australian company involved in engineering, infrastructure and construction projects in Australia and overseas. The third defendant, John Jousif, was an Australian resident and Iraqi citizen. He was a relevant intermediary “with expertise in introducing companies to government and statutory authorities in Iraq and the protocols associated with obtaining contracts with such bodies.” He and his colleagues approached Australian companies to do business in Iraq.

Between 2013 and 2014, the Elomars paid USD 1 million in cash to Jousif who then remitted the money to Baghdad for the purpose of paying a bribe. Lifese was never awarded any contract in Iraq and there was no evidence that the USD 1 million remitted to Iraq was actually paid to any Iraqi official.

The Elomars and Jousif pleaded guilty to the offence of conspiring to bribe a foreign public official. In sentencing, Justice Adamson rejected the submission that bribery was necessary to do business in Iraq and imposed a custodial sentence on the Elomars and Jousif due to the seriousness of the criminal conduct and the need to deter others from engaging in bribery. Her Honour also imposed a fine on the Elomars as an additional deterrent in the commercial context.
World Bank bans Australian company’s subsidiaries for “inappropriate payments”

On 28 September 2017, the World Bank announced a Negotiated Resolution Agreement (NRA) that debarred 5 subsidiaries of Australian-based engineering firm, SMEC Holdings Pty Ltd, after evidence of “inappropriate payments” was revealed in a World Bank investigation.

The subsidiaries were debarred for misconduct in the South Asia region for a period ranging between 6 months to 30 months. The inappropriate payments were made in relation to projects in Sri Lanka and Bangladesh financed by the World Bank.

Under the NRA, the parent company has committed to make “any necessary enhancements to its group-wide corporate integrity compliance program” to ensure consistency with the World Bank’s Integrity Compliance Guidelines.

Entities debarred for more than 12 months may qualify for cross-debarment by other Multilateral Development Banks pursuant to the 2010 Agreement for Mutual Enforcement of Debarment Decisions.
US indictments in connection with alleged private bribery for Australian contracts

Sydney-based, former Commonwealth Bank executive, Jon Waldron, and US-based former contractor to the bank, Eric Pulier, have been charged in the US with fraud and conspiracy, and Pulier faces additional charges for alleged bribes. The charges relate to payments allegedly made to secure IT contracts for the bank.

Pulier, the founder and former CEO of ServiceMesh, allegedly paid AUD 2.5 million of bribes to Waldron and another Sydney-based bank executive, Keith Hunter, in order to secure a AUD 10.5 million software contract for the bank.

Hunter has already been sentenced to 3.5 years imprisonment in Australia for breaches of section 249B of the Crimes Act 1900 (NSW). After being released in Australia, Hunter is expected to be extradited to the US to face charges for conspiracy to commit securities fraud and wire fraud.

Waldron is also facing charges in Australia under section 249B of the NSW Crimes Act over the alleged payments and has pleaded not guilty.
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