CHENNAI: The CBI on Thursday arrested eight Indian Overseas Bank employees holding key positions in a staff union for malpractice in the recruitment of sweepers and messengers at the bank's headquarters in Chennai.
Investigators said the accused forged SSLC certificates of the recruits to show that they had failed Class 10 and were not overqualified for the jobs.
After CBI raids at their residences early this year, the employees were placed under suspension. "It was a sudden development in the case," a CBI officer said. "The arrested people had recruited sweepers and messengers in Chennai, Tuticorin, Karaikudi, Vellore, Salem and Thanjavur in 2010." Those arrested are IOB union state general secretary Chinni Krishna and assistant general secretaries Umapathy from Vellore, Rangarajan from Karaikudi, Swaminathan from Thanjavur, Balasubramanian from Chennai, Kandasamy from Salem, Thomas Balan from Tuticorin and Soundararajan from Puducherry. All of them are senior clerical cadre employees in various branches of the bank. The arrested were produced before the 11th CBI court in Parry's, where the judge remanded them in judicial custody till August 14. They were taken to the Puzhal prison.
Based on an input that many candidates managed to get appointment using fake certificates, CBI's anti-corruption branch in Chennai had registered a case and conducted searches on the bank's establishments in different parts of the state in May.
IOB general manager (human resources) Indira Padmini said, "The matter is with the CBI. The people involved in the case were already under suspension." Inquiries revealed that many daily-wage workers had managed to get appointment letters with assistance from some union leaders after paying money.
The officials said the allegation was that as many as 951 people recruited as daily-wage workers in the bank for several years were made regular in 2010. The educational qualification for the post of sweeper and messenger was SSLC failed. Many applicants who had passed SSLC or Plus-Two produced fake certificates claiming that they had failed in Class 10.
http://timesofindia.indiatimes.com/city/chennai/8-Indian-Overseas-Bank-staff-behind-bars-for-job-scam/articleshow/39454362.cms
CBI arrests four bank officials--The Hindu
The Central Bureau of Investigation (CBI) arrested four senior officials of a nationalised bank on the charge of taking bribe and produced them before the CBI court here on Friday.
The officials took bribe to the tune of several lakhs from temporary employees of the bank in the southern region with a promise to regularise their services. Following complaints from the temporary staff, a departmental enquiry was conducted.
The four officials were found guilty and dismissed from service. Sessions Judge M.M. Krishnan remanded them in judicial custody till August 14.
Bank staff, chief arrested for multi-crore loan fraud-Times of India-2nd August 2014
SHIMOGA/ BANGALORE: Unearthing a multi-crore scam involving disbursal of gold loans by a cooperative bank, Shimoga police on Friday arrested 18 staff members of the Shimoga District Central Cooperative Bank (SDCCB), including its president Manjunath Gowda, for their alleged involvement in irregular practices.
Gowda and the bank employees were charged with disbursing loans against fake gold, and in some cases, with no gold being mortgaged against the money advanced. According to a preliminary probe, the bank incurred a loss of Rs 68 crore for non-compliance with rules in issuing gold loans, which police feel may cross Rs 100 crore.
The arrested were booked under sections 420 (cheating), 406 (punishment for criminal breach of trust), 408 (criminal breach of trust) and 409 (criminal breach of trust by a public servant in a bank) of the IPC, and 120B of Misappropriation of Bank Funds.
The scam broke out early in July, after the bank's general manager Nagabhushan lodged a complaint with Doddapet police on July 15, alleging large-scale financial irregularities in the Amir Ahmed Circle branch in Shimoga city.
Realizing the proportion of the fraud, Shimoga SP Koushalendra Kumar ordered a probe, and police seized several documents, including papers relating to illegal investment in various properties, gold-coated silver worth Rs 10 crore and cash.
The issue figured in the legislative council on July 26, and cooperation minister HS Mahadev Prasad ordered a CID inquiry into the gold loan fraud across 28 branches of the SDCCB.
When the fraud was first unearthed, it was found that only three bank staffers and the manager had sanctioned gold loans against deposits of fake gold, and in some cases, without any gold. A detailed investigation resulted in police arresting 18 persons, including Gowda, his driver, general manager and complainant Nagabhushan, seven staffers of the Gandhi Bazaar branch, five gold appraisers and two members of a rowdy group involved in underworld activities.
A report on the arrests made and investigation so far was sent to the state government and Reserve Bank of India, the SP said.
Don't worry, depositors told
As news about the arrests spread, depositors started thronging the bank's branches to withdraw their deposits and pledged gold. These were small depositors who had pledged pure gold to avail of loans from the bank.
Seethamma of KR Pet, a vendor, had availed of Rs 50,000 by depositing her valuables. She has been visiting the bank every day since the fraud came to light, and has even borrowed money to withdraw her pledged gold.
According to officials of the Karnataka State Cooperative Apex Bank, there is no need for depositors to panic as the SDCCB is a subsidiary and comes under the purview of RBI guidelines. The bank has total deposits to the tune of Rs 1,000 crore, with a turnover of Rs 1,800 crore.
A senior police officer said all deposits would be returned to the investors with full maturity value, and the money defrauded will be recovered from the accused after investigation is complete.
Rajya Sabha MP Ayanur Manjunath has written to Nabard, seeking supercession of the bank and inspection of its records by Nabard.
Who is Manjunath Gowda?
Manjunath Gowda, 56, was once a close associate of former chief minister BS Yeddyurappa. He was appointed vice-president of the Karnataka Janata Paksha (KJP), which the former CM founded after he fell out with the BJP.
Gowda contested from Thirthahalli assembly constituency in Shimoga district on a KJP ticket in the 2013 assembly elections, and lost by a narrow margin of 120 votes to primary and secondary education minister Kimmanne Ratnakar. When Yeddyurappa returned to the BJP, Gowda did not follow him.
Gowda and the bank employees were charged with disbursing loans against fake gold, and in some cases, with no gold being mortgaged against the money advanced. According to a preliminary probe, the bank incurred a loss of Rs 68 crore for non-compliance with rules in issuing gold loans, which police feel may cross Rs 100 crore.
The arrested were booked under sections 420 (cheating), 406 (punishment for criminal breach of trust), 408 (criminal breach of trust) and 409 (criminal breach of trust by a public servant in a bank) of the IPC, and 120B of Misappropriation of Bank Funds.
The scam broke out early in July, after the bank's general manager Nagabhushan lodged a complaint with Doddapet police on July 15, alleging large-scale financial irregularities in the Amir Ahmed Circle branch in Shimoga city.
Realizing the proportion of the fraud, Shimoga SP Koushalendra Kumar ordered a probe, and police seized several documents, including papers relating to illegal investment in various properties, gold-coated silver worth Rs 10 crore and cash.
The issue figured in the legislative council on July 26, and cooperation minister HS Mahadev Prasad ordered a CID inquiry into the gold loan fraud across 28 branches of the SDCCB.
When the fraud was first unearthed, it was found that only three bank staffers and the manager had sanctioned gold loans against deposits of fake gold, and in some cases, without any gold. A detailed investigation resulted in police arresting 18 persons, including Gowda, his driver, general manager and complainant Nagabhushan, seven staffers of the Gandhi Bazaar branch, five gold appraisers and two members of a rowdy group involved in underworld activities.
A report on the arrests made and investigation so far was sent to the state government and Reserve Bank of India, the SP said.
Don't worry, depositors told
As news about the arrests spread, depositors started thronging the bank's branches to withdraw their deposits and pledged gold. These were small depositors who had pledged pure gold to avail of loans from the bank.
Seethamma of KR Pet, a vendor, had availed of Rs 50,000 by depositing her valuables. She has been visiting the bank every day since the fraud came to light, and has even borrowed money to withdraw her pledged gold.
According to officials of the Karnataka State Cooperative Apex Bank, there is no need for depositors to panic as the SDCCB is a subsidiary and comes under the purview of RBI guidelines. The bank has total deposits to the tune of Rs 1,000 crore, with a turnover of Rs 1,800 crore.
A senior police officer said all deposits would be returned to the investors with full maturity value, and the money defrauded will be recovered from the accused after investigation is complete.
Rajya Sabha MP Ayanur Manjunath has written to Nabard, seeking supercession of the bank and inspection of its records by Nabard.
Who is Manjunath Gowda?
Manjunath Gowda, 56, was once a close associate of former chief minister BS Yeddyurappa. He was appointed vice-president of the Karnataka Janata Paksha (KJP), which the former CM founded after he fell out with the BJP.
Gowda contested from Thirthahalli assembly constituency in Shimoga district on a KJP ticket in the 2013 assembly elections, and lost by a narrow margin of 120 votes to primary and secondary education minister Kimmanne Ratnakar. When Yeddyurappa returned to the BJP, Gowda did not follow him.
CBI court sentences bank officer to one-year RI in Chennai-The Hindu
The CBI court on Wednesday sentenced a State Bank of India officer to a year’s rigorous imprisonment in a fraud case.
The anti-corruption branch of CBI, Chennai, registered a case against M. Murugappan, clerk-cum-typist at State Bank of India, Ambattur Industrial Estate branch, alleging he had cheated the bank by opening savings accounts in his relative’s names without their knowledge, during 1993-97.
He forged signatures and misappropriated funds entrusted to him by crediting the money in the fake accounts and withdrawing the proceeds.
He also destroyed evidence gathered against him. This resulted in the bank losing over Rs. 31 lakh.
Following trial, E.M.K. Siddharthar, XI additional special judge for CBI cases, convicted Murugappan and slapped a fine of Rs. 40,000 on him.
Man accused in bank fraud case escapes from police station in Indore-Hindustan Times
According to Palasia police, Ritesh (30), a resident of Somani Nagar, called the sentry, Vijay Singh, at 3.15am and said he had to answer nature's call.
Singh opened the gate and took him out of the lockup. Ritesh suddenly pushed Singh and fled from the police station.
Singh raised an alarm and those present in the police station launched a search for Ritesh in nearby areas but could not find him.
On Wednesday, Ritesh and his accomplice, Santosh Malviya were arrested for fraudulently withdrawing Rs.2.9 lakh from a bank account in Palasia.
A senior police officer said they will fix responsibility on those who were on duty and action would be taken against them.
Bank of America fined $1.3 bn for mortgage fraud
A US judge Wednesday ordered Bank of America to pay a $1.3 billion penalty for selling bad loans to mortgage finance firms Fannie Mae and Freddie Mac amid the housing crisis.
The penalty comes after a New York jury in October 2013 found that Bank of America and Countrywide defrauded the two US mortgage giants in a lending program in 2007. Bank of America bought Countrywide in 2008.
The program was "from start to finish the vehicle for a brazen fraud by the defendants, driven by a hunger for profits and oblivious to the harms thereby visited, not just on the immediate victims, but also on the financial system as a whole," wrote US District Judge Jed Rakoff in the penalty order.
The US Justice Department alleged that Countrywide created the so-called "Hustle" program in 2007 as government-backed Freddie and Fannie were tightening their underwriting guidelines and loan purchase requirements in response to rising mortgage defaults.
Countrywide allegedly eliminated key checkpoints on loan quality and compensated employees solely based on loan volumes, leading to "rampant instances of fraud" as Countrywide informed the loan-finance firms that it had tightened requirements, the Justice Department said in court papers.
While writing that the fraud "more than warrants" the $1.3 billion penalty, Rakoff said Bank of America should not have to pay the full $3 billion associated with the 17,611 Hustle-generated loans purchased by Freddie and Fannie.
The reason is that a "meaningful" number of the loans were of "acceptable quality," the judge said. He cited a US government expert who estimated that 57.2 percent of the Hustle loans were not "materially defective."
Rakoff also imposed a $1 million penalty on Rebecca Mairone, a former Countrywide executive whom the jury found helped perpetrate the fraud.
The jury`s decision and the subsequent penalty "make clear that mortgage fraud cannot be viewed as simply another cost of doing business in the financial world," said US Attorney Preet Bharara.
A Bank of America spokesman criticized Rakoff`s order.
"We believe that this figure simply bears no relation to a limited Countrywide program that lasted several months and ended before Bank of America`s acquisition of the company. We`re reviewing the ruling and will assess our appellate options."http://zeenews.india.com/business/news/international/bank-of-america-fined-1-3-bn-for-mortgage-fraud_105100.html
The penalty comes after a New York jury in October 2013 found that Bank of America and Countrywide defrauded the two US mortgage giants in a lending program in 2007. Bank of America bought Countrywide in 2008.
The program was "from start to finish the vehicle for a brazen fraud by the defendants, driven by a hunger for profits and oblivious to the harms thereby visited, not just on the immediate victims, but also on the financial system as a whole," wrote US District Judge Jed Rakoff in the penalty order.
The US Justice Department alleged that Countrywide created the so-called "Hustle" program in 2007 as government-backed Freddie and Fannie were tightening their underwriting guidelines and loan purchase requirements in response to rising mortgage defaults.
Countrywide allegedly eliminated key checkpoints on loan quality and compensated employees solely based on loan volumes, leading to "rampant instances of fraud" as Countrywide informed the loan-finance firms that it had tightened requirements, the Justice Department said in court papers.
While writing that the fraud "more than warrants" the $1.3 billion penalty, Rakoff said Bank of America should not have to pay the full $3 billion associated with the 17,611 Hustle-generated loans purchased by Freddie and Fannie.
The reason is that a "meaningful" number of the loans were of "acceptable quality," the judge said. He cited a US government expert who estimated that 57.2 percent of the Hustle loans were not "materially defective."
Rakoff also imposed a $1 million penalty on Rebecca Mairone, a former Countrywide executive whom the jury found helped perpetrate the fraud.
The jury`s decision and the subsequent penalty "make clear that mortgage fraud cannot be viewed as simply another cost of doing business in the financial world," said US Attorney Preet Bharara.
A Bank of America spokesman criticized Rakoff`s order.
"We believe that this figure simply bears no relation to a limited Countrywide program that lasted several months and ended before Bank of America`s acquisition of the company. We`re reviewing the ruling and will assess our appellate options."http://zeenews.india.com/business/news/international/bank-of-america-fined-1-3-bn-for-mortgage-fraud_105100.html
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