10. AVIV MIZRAHI
A relatively wealthy electronics wholesaler, Aviv Mizrahi had
a purported net worth of a few million dollars, making him and his business a
prime candidate to secure loans from various banks. The problem was that
Mizrahi had in fact falsified much of his financial portfolio, exaggerating
some numbers and completely lying about others. By the time the banks that had
loaned him money got wise to him, Mizrahi had already defrauded them of $33
million. The FBI issued a warrant for Mizrahi’s arrest on charges of bank fraud
in 2012, but he is believed to have fled to Israel and remains at large from U.S.
authorities
9. JEROME KERVIEL
In three years, French banker Jerome Kerviel lost nearly $7
billion in investors’ money. During 2007, Kerviel traded in anticipation
of falling market prices, and then began concealing his trading by creating
losing trades on purpose in order to offset gains. Though the bank Kerviel
worked for, the Société Générale, claims they had no knowledge of the banker’s
activities, it has been reported that his trading made the bank an estimated
profit of nearly $2 billion. Add to the fact that Kerviel didn’t profit himself
from his deeds and those claiming he is merely a scapegoat for the bank may not
be far off the mark.
8. MARTIN
FRANKEL
When your investment banker uses astrology to inform his trading
decisions, you may have a problem on your hands. Though Martin Frankel had been
barred from stock trading numerous times and had to eventually change his name
to David Rosse and set up a Catholic foundation in an attempt to discredit the
accusations against him, these and the SEC’s suspicions didn’t stop Martin
Frankel from succeeding in defrauding and embezzling more than $200 million
from numerous state insurance companies. After fleeing the U.S. for a few
years, eventually Frankel was caught in Germany, and in 2002 plead guilty to 24
counts of financial crime.
7. JOHN RIGAS
Founded by World War II veteran John Rigas in 1951, at one
point Adelphia Communications was one of the largest cable companies in the
United States boasting 5.6 million customers in over 30 states. The problem
with Rigas’ Adelphia Communications was that the company was not reporting its
debts and falsified profits of nearly $2.3 billion. Furthermore, Rigas and his
sons also failed to report over $3 billion in investments they had received. It
was also discovered that Rigas and his sons used millions of dollars in
corporate funds for personal use. John Rigas was sentenced to 15 years in
prison in 2005.
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