WHISTLEBLOWER NEWS QUOTE OF THE DAY:

“He targeted the people who trusted him and liked him the most”

— Prosecutor Andrew J. DeFilippis on Steven Rawlins' $10 million fraud

DAILY WHISTLEBLOWER HEADLINES:

2 Ex-Deutsche Bank Employees Indicted For Libor Fraud

Two former traders at Deutsche Bank have been hit with federal criminal charges in New York for allegedly working to manipulate the London Interbank Offered Rate, the U.S. Department of Justice said Thursday.

Matthew Connolly of New Jersey and Gavin Campbell Black of London were charged with wire fraud and conspiracy to commit wire fraud and bank fraud, the DOJ said. Both men allegedly tried to manipulate the U.S. dollar Libor rate to benefit themselves or Deutsche Bank AG.

"Healthy financial markets are crucial to a successful economy," Deputy Assistant Attorney General Brent Snyder of the DOJ's Antitrust Division said in a statement. "By corrupting this important benchmark rate, the defendants undermined the integrity of financial markets here and around the world. The department is committed to holding individuals accountable for the roles they play in committing complex financial crimes."

According to the indictment filed in New York federal court, Connolly was the director of Deutsche Bank's pool trading desk in New York from roughly January 2005 to March 2008. Black worked on Deutsche Bank's money market derivatives and pool trading desks in London from about February 1997 to early 2015, the indictment said. read more » 

Ex-Health CFO Gets 9 Years For 'Unrelenting Lies' Over Fraud

Manhattan U.S. District Judge Alison J. Nathan sentenced former health care services executive Steven Rawlins to nine years in prison Thursday for a $10 million fraud that targeted his two former employers, Prime Health Services and Core Choice, departing downward from sentencing guidelines despite his obstruction and lack of remorse.

Judge Nathan also hit the 60-year-old former CFO, convicted of wire fraud by a jury in November, with $10.1 million in forfeiture and three years of supervised release for his five-year campaign of “unrelenting lies” including under oath.

“He did so, as far as I can tell, out of pure and simple greed,” the judge said.

But she shaved off at least two years from guidelines that called for a sentence of between 135 and 168 months, apparently crediting Rawlins' lack of a violent criminal history after a hearing that stretched more than three hours and featured extended arguments about what the guidelines should have been.

The judge also handed out a relatively light sentence despite an appearance from Core Choice CEO Steven Gass, who said the crimes were of a "sociopathic nature." read more »