With the tax season upon us, it’s a time many scammers look to take advantage of tax payers by getting their hands on personal information. Attorney General Mike DeWine is warning Ohioans of a new electronic scam.
The Ohio Attorney General wants people to watch out for emails and letters that claim to be from the IRS, but are actually scams created to capture personal information. Jennifer Stocker, owner of the Ohio Tax Lady tax preparation company, says the IRS will never email you directly unless you have contacted them via email.
“If you ever receive an email from any government agency that you did not contact and give them your email address, don’t respond to it. Contact your tax professional,” Stocker said.
According to a release issued by DeWine, one Franklin County resident received an email that appeared to be from the IRS indicating the consumer was late submitting his W-2 form. The email instructed him to click on a link to send the updated form. Luckily, the consumer recognized that the email was a scam. Another man from Cuyahoga County reported receiving a phony 1099 form, stating he had won $61,000.
“There are some people out there that like to take advantage of people, like to steal from people, and unfortunately with modern technology, it makes it easier,” Stocker explained. “You definitely want to keep your information in a locked filing cabinet. You want to make sure you do not give out your social security number to anyone. When picking up your tax return from a tax place, you should always have your driver’s license. And if your tax preparer is not asking for that driver’s license, there should be concern there.”
Monday, 21 March 2011
Sunday, 20 March 2011
Shaw Capital Management Scam Info:Just beware of Google Gmail Corporation Scam Email
Sometimes it’s hard to believe but true cyber criminals are going wild with technology and changing their tactics to boost their crimebusiness. No matter how it comes ,but internet is very much great short cut from which they can execute their fraud tactics and escape.
Email scams are very much common these days . Online fraudsters are using new modus operandi these days to defraud computer users . Fake notifications are sponsored through emails under most popular subject headings like that you have won a prize money of (xxxxxxx GBP) under reputed names.
One of such email fraud ,419 legal would like to highlight which is making rounds in the form of scam email notification that represents itself from GOOGLE GMAIL CORPORATION .The email says you have won a prize money of (?1,000,000.00 GBP) by Google /Rediffmail Lottery in conjunction with the GOOGLE GMAIL CORPORATION.
Infact Google which is one of the world’s leading search engine never sends any prize winning notification to it’s user. These are nothing but fraud tactics by scammers to gain personal information.
419 legal strongly recommend it’s readers and internet users to beware of such fraud email and avoid sending any personal information.
Dear Winner r
We are Pleased to inform you that you have won a prize money of (?1,000,000
.00 GBP) by Google /Rediffmail Lottery in conjunction with the GOOGLE GMAIL
CORPORATION. we collects all the email addresses of the people that are acti
ve online, Among the millions that subscribed to Yahoo, Hotmail and various
Microsoft window users, we only select thirteen people every year as our wi
nners, we are congratulating you for being one of the people selected. All p
articipants were selected through a computer balloting system drawn from Nin
e hundred thousand E-mail addresses from Canada, Australia, United States, A
sia, Europe, Middle East, Africa and Oceania as part of our international pr
omotions program which is conducted annually.
This Lottery was promoted and sponsored by Google Corporation and a
conglomerate of rediffmail and some multinational companies as part of
their social responsibility to the citizens in the communities where they
have operational base
Qualification Number: (G/4979CFV3)
However you will have to fill and submit this form to the events manager
1. Full name…………..
2. Contact Address……..
3. Age………………..
4. Telephone Number…….
5. Marital Status………
6. Sex………………..
7. Occupation………….
8. State/City:……………..
9. Country……………
Information required for payment Such as:
i. Account Holder Name:
ii. Account Number:
iii. Bank Name:
(Contact Director Lottery Deespartment)
Name: xxxxxx
Email: claimsdirector2011@live.com
Tel: +447017415089
Director Lottery Department
The Google Rediffmail Corporation.
NOTE: Always check your email inbox and spam folder for our emails as we
will be in constant correspondence with you because we are committed to
delivering your funds to you within the shortest time.
Email scams are very much common these days . Online fraudsters are using new modus operandi these days to defraud computer users . Fake notifications are sponsored through emails under most popular subject headings like that you have won a prize money of (xxxxxxx GBP) under reputed names.
One of such email fraud ,419 legal would like to highlight which is making rounds in the form of scam email notification that represents itself from GOOGLE GMAIL CORPORATION .The email says you have won a prize money of (?1,000,000.00 GBP) by Google /Rediffmail Lottery in conjunction with the GOOGLE GMAIL CORPORATION.
Infact Google which is one of the world’s leading search engine never sends any prize winning notification to it’s user. These are nothing but fraud tactics by scammers to gain personal information.
419 legal strongly recommend it’s readers and internet users to beware of such fraud email and avoid sending any personal information.
Dear Winner r
We are Pleased to inform you that you have won a prize money of (?1,000,000
.00 GBP) by Google /Rediffmail Lottery in conjunction with the GOOGLE GMAIL
CORPORATION. we collects all the email addresses of the people that are acti
ve online, Among the millions that subscribed to Yahoo, Hotmail and various
Microsoft window users, we only select thirteen people every year as our wi
nners, we are congratulating you for being one of the people selected. All p
articipants were selected through a computer balloting system drawn from Nin
e hundred thousand E-mail addresses from Canada, Australia, United States, A
sia, Europe, Middle East, Africa and Oceania as part of our international pr
omotions program which is conducted annually.
This Lottery was promoted and sponsored by Google Corporation and a
conglomerate of rediffmail and some multinational companies as part of
their social responsibility to the citizens in the communities where they
have operational base
Qualification Number: (G/4979CFV3)
However you will have to fill and submit this form to the events manager
1. Full name…………..
2. Contact Address……..
3. Age………………..
4. Telephone Number…….
5. Marital Status………
6. Sex………………..
7. Occupation………….
8. State/City:……………..
9. Country……………
Information required for payment Such as:
i. Account Holder Name:
ii. Account Number:
iii. Bank Name:
(Contact Director Lottery Deespartment)
Name: xxxxxx
Email: claimsdirector2011@live.com
Tel: +447017415089
Director Lottery Department
The Google Rediffmail Corporation.
NOTE: Always check your email inbox and spam folder for our emails as we
will be in constant correspondence with you because we are committed to
delivering your funds to you within the shortest time.
Shaw Capital Management Headlines: After a disaster, frauds pose as charities to take your card info | World Headlines: Shaw Capital Management
By Susan Ladika
Published: March 18, 2011
The scenes of devastation wrought by the earthquake and tsunami in Japan have Americans rushing to their computers, wanting to contribute to disaster relief efforts.
But before you input your credit card information on some charity’s website and hit “send,” vet the charitable organization to make sure it’s legitimate — or your money might end up feeding a scammer’s greed instead of a person in need.After a disaster, frauds pose as charities to take your card info
Just days after the disaster began to unfold, philanthropic and computer security experts were already hearing reports of fake e-mails and Facebook pages popping up, appealing for donations.
At a time like this, Americans are “very susceptible” to pleas for assistance, says Doug White, academic director of the George H. Heyman Center for Philanthropy and Fundraising at the New York University School of Continuing and Professional Studies. “People are saying, ‘What can we do to help the people of Japan?’ It’s a natural outpouring of our humanity.”
But just like any other online transaction, you need to do your due diligence about the organization where you plan to send money and the security of its website. That can protect you from credit card and identity theft — and make sure you’re not padding the pockets of a fraudster.
Check out the charity
The most important thing you can do before making a donation is to research the charity.
“A lot of fake organizations emerge after something like this,” White says.
And even if one is legit, “a charity in a situation like this needs to have an on-ground presence.” Donating to a startup that isn’t already involved in Japan “may hinder their ability to really follow through on promises,” says Bennett Weiner, chief operating officer of the Better Business Bureau Wise Giving Alliance. The organization monitors and reports on charities that solicit nationally or provide national or international services.
You can learn more about a charity you have your eye on through the Better Business website or sites such as Charity Navigator or Guide Star.
Charity Navigator has vetted 5,500 of the 1 million charities in existence, says spokeswoman Sandra Miniutti. The groups evaluated accounts for about 65 percent of all donations made and are registered with the Internal Revenue Service as 501(c)3 nonprofit organizations
The one major exception to Charity Navigator’s rating system are groups such as the Salvation Army, which are registered as churches and do not have to file an IRS Form 990, or Return of Organization Exempt From Income Tax.
You can check to see if an organization is designated as a 501(c)3 at the IRS website.
In a situation such as the disaster in Japan, White recommends choosing a charity that has a long history of taking in large sums of money quickly, such as the Red Cross, World Vision or UNICEF, which should help ensure the funds are processed properly.
TIPS TO AVOID GETTING SCAMMED
* Check out a charity thoroughly. You can use sites such as the Better Business Bureau, Charity Navigator, Guide Starand the Internal Revenue Service.
* Only make donations through a charity’s website. Manually enter the domain name into the address bar.
* Be wary of e-mails requesting donations. Don’t ever click on a link included in unsolicited “charity” e-mails.
* Don’t send credit card information via e-mail or through social networking sites because they probably aren’t secure.
* Make donations via credit card, debit card or check so you can track them with your financial institution; credit card donations have the most protection.
* Donation requests via online advertising banners can be scams.
* If someone calls requesting a donation, do not divulge your credit card number. Ask them to mail you a donation envelope.
* Give only to charities, not individuals, particularly if the “individual” e-mails a sob story, ostensibly from Japan.
* If you make a donation via credit card or debit card, check your online statement or account a few days later to be sure you have been charged the correct amount.
Sources: Robert Siciliano, CEO of IDTheftSecurity.com; Wells Fargo; McAfee; Discover
Weiner says it’s important to remember “different organizations have different expertise, depending n what phase of the disaster they are involved in.” Some focus on search and rescue, others on emergency relief and others on reconstruction
If you want to deduct the donation from your taxes, your contribution must go to a U.S.-based charity, he adds.
Keep your guard up
While you probably know better than to fall prey to a Nigerian e-mail scam or a phony bank e-mail asking you to “verify” your account information, it’s easier to fall victim to an emotional appeal during a natural disaster.
“Watch out for phishing expeditions,” Weiner says. You might receive a spam e-mail claiming to link to the website of a well-known charity, and the e-mail could very well link to a phony site that’s set up to collect your personal information and use it for credit card theft or identity theft.
Instead, if you want to give money to a particular organization, Weiner recommends going directly to that charity’s website to make a donation through its secure server.
Miniutti also warns against clicking through on links posted on Facebook, even if they look legitimate.
Also be wary of people claiming to be victims of the disaster, she says. In the earthquake and tsunami devastated regions, “victims in Japan don’t have Internet, let alone your e-mail address.”
Not-so high tech
Not all scammers rely on high-tech techniques
Some will use the phone to call, claiming they represent a particular charity, and ask for your credit card number so you can make a “donation.” (Being registered on the Do Not Call List does not prohibit legitimate charities from contacting you.)
Rather than providing your credit card information, Weiner recommends writing down the charity’s information, and then checking it out online.
“People’s guards go down when it’s a charity and their emotions are involved,” he says.
Even fundraising efforts at local businesses should be scrutinized. You should ask what charity the money is going to, what percentage of proceeds is being donated and if there is a maximum or minimum amount that will be donated, Weiner says.
While these may not be scams, the efforts may be happening without the knowledge or blessing of the charity being touted.
Cash, check, charge?
The experts agree that a credit card donation is the best route to take because it gets to the recipient fastest. And the major credit card companies have announced they are waiving transaction fees for contributions to certain charities because of the disaster.
Many organizations also accept donations via text, but there may be texting fees, and delays of days or weeks before the money arrives, White says.
Donations should never be made in cash. While checks are secure, they may be more labor intensive to process.
In a statement, Wells Fargo recommends making donations by credit card, debit card or check because they can be tracked. If you see an unauthorized transaction, you should notify your financial institution immediately.
If you think you’ve fallen victim to fraud, you can contact the National Center for Disaster Fraud, set up by the U.S. Department of Justice following Hurricane Katrina. If you think you’re a victim of a cybercrime, contact the Internet Crime Complaint Center established by the FBI, or the National White Collar Crime Center.
Published: March 18, 2011
The scenes of devastation wrought by the earthquake and tsunami in Japan have Americans rushing to their computers, wanting to contribute to disaster relief efforts.
But before you input your credit card information on some charity’s website and hit “send,” vet the charitable organization to make sure it’s legitimate — or your money might end up feeding a scammer’s greed instead of a person in need.After a disaster, frauds pose as charities to take your card info
Just days after the disaster began to unfold, philanthropic and computer security experts were already hearing reports of fake e-mails and Facebook pages popping up, appealing for donations.
At a time like this, Americans are “very susceptible” to pleas for assistance, says Doug White, academic director of the George H. Heyman Center for Philanthropy and Fundraising at the New York University School of Continuing and Professional Studies. “People are saying, ‘What can we do to help the people of Japan?’ It’s a natural outpouring of our humanity.”
But just like any other online transaction, you need to do your due diligence about the organization where you plan to send money and the security of its website. That can protect you from credit card and identity theft — and make sure you’re not padding the pockets of a fraudster.
Check out the charity
The most important thing you can do before making a donation is to research the charity.
“A lot of fake organizations emerge after something like this,” White says.
And even if one is legit, “a charity in a situation like this needs to have an on-ground presence.” Donating to a startup that isn’t already involved in Japan “may hinder their ability to really follow through on promises,” says Bennett Weiner, chief operating officer of the Better Business Bureau Wise Giving Alliance. The organization monitors and reports on charities that solicit nationally or provide national or international services.
You can learn more about a charity you have your eye on through the Better Business website or sites such as Charity Navigator or Guide Star.
Charity Navigator has vetted 5,500 of the 1 million charities in existence, says spokeswoman Sandra Miniutti. The groups evaluated accounts for about 65 percent of all donations made and are registered with the Internal Revenue Service as 501(c)3 nonprofit organizations
The one major exception to Charity Navigator’s rating system are groups such as the Salvation Army, which are registered as churches and do not have to file an IRS Form 990, or Return of Organization Exempt From Income Tax.
You can check to see if an organization is designated as a 501(c)3 at the IRS website.
In a situation such as the disaster in Japan, White recommends choosing a charity that has a long history of taking in large sums of money quickly, such as the Red Cross, World Vision or UNICEF, which should help ensure the funds are processed properly.
TIPS TO AVOID GETTING SCAMMED
* Check out a charity thoroughly. You can use sites such as the Better Business Bureau, Charity Navigator, Guide Starand the Internal Revenue Service.
* Only make donations through a charity’s website. Manually enter the domain name into the address bar.
* Be wary of e-mails requesting donations. Don’t ever click on a link included in unsolicited “charity” e-mails.
* Don’t send credit card information via e-mail or through social networking sites because they probably aren’t secure.
* Make donations via credit card, debit card or check so you can track them with your financial institution; credit card donations have the most protection.
* Donation requests via online advertising banners can be scams.
* If someone calls requesting a donation, do not divulge your credit card number. Ask them to mail you a donation envelope.
* Give only to charities, not individuals, particularly if the “individual” e-mails a sob story, ostensibly from Japan.
* If you make a donation via credit card or debit card, check your online statement or account a few days later to be sure you have been charged the correct amount.
Sources: Robert Siciliano, CEO of IDTheftSecurity.com; Wells Fargo; McAfee; Discover
Weiner says it’s important to remember “different organizations have different expertise, depending n what phase of the disaster they are involved in.” Some focus on search and rescue, others on emergency relief and others on reconstruction
If you want to deduct the donation from your taxes, your contribution must go to a U.S.-based charity, he adds.
Keep your guard up
While you probably know better than to fall prey to a Nigerian e-mail scam or a phony bank e-mail asking you to “verify” your account information, it’s easier to fall victim to an emotional appeal during a natural disaster.
“Watch out for phishing expeditions,” Weiner says. You might receive a spam e-mail claiming to link to the website of a well-known charity, and the e-mail could very well link to a phony site that’s set up to collect your personal information and use it for credit card theft or identity theft.
Instead, if you want to give money to a particular organization, Weiner recommends going directly to that charity’s website to make a donation through its secure server.
Miniutti also warns against clicking through on links posted on Facebook, even if they look legitimate.
Also be wary of people claiming to be victims of the disaster, she says. In the earthquake and tsunami devastated regions, “victims in Japan don’t have Internet, let alone your e-mail address.”
Not-so high tech
Not all scammers rely on high-tech techniques
Some will use the phone to call, claiming they represent a particular charity, and ask for your credit card number so you can make a “donation.” (Being registered on the Do Not Call List does not prohibit legitimate charities from contacting you.)
Rather than providing your credit card information, Weiner recommends writing down the charity’s information, and then checking it out online.
“People’s guards go down when it’s a charity and their emotions are involved,” he says.
Even fundraising efforts at local businesses should be scrutinized. You should ask what charity the money is going to, what percentage of proceeds is being donated and if there is a maximum or minimum amount that will be donated, Weiner says.
While these may not be scams, the efforts may be happening without the knowledge or blessing of the charity being touted.
Cash, check, charge?
The experts agree that a credit card donation is the best route to take because it gets to the recipient fastest. And the major credit card companies have announced they are waiving transaction fees for contributions to certain charities because of the disaster.
Many organizations also accept donations via text, but there may be texting fees, and delays of days or weeks before the money arrives, White says.
Donations should never be made in cash. While checks are secure, they may be more labor intensive to process.
In a statement, Wells Fargo recommends making donations by credit card, debit card or check because they can be tracked. If you see an unauthorized transaction, you should notify your financial institution immediately.
If you think you’ve fallen victim to fraud, you can contact the National Center for Disaster Fraud, set up by the U.S. Department of Justice following Hurricane Katrina. If you think you’re a victim of a cybercrime, contact the Internet Crime Complaint Center established by the FBI, or the National White Collar Crime Center.
shaw capital management scam info:Internet scam money trail leads to Martha’s Vineyard
Edgartown police have traced a cyberspace trail through more than a dozen states in pursuit of a craigslist scam artist who cons people into sending money to Martha’s Vineyard to buy a nonexistent all-terrain vehicle.
This week, they turned to their own high-tech tools, surveillance video, and their own new crime-fighting website, to track down the Internet thief.
Officer Michael Gazaille first began investigating the scam in December, when Brian Cullen called the Edgartown Police Department from Oregon, Wisconsin.
Mr. Cullen saw an advertisement posted on craigslist, the wildly popular online aggregation of free classified ads offering everything imaginable for sale from locations around the world. The ad offered a Polaris four-wheel, all-terrain vehicle (ATV) for sale. The price was $2,920.
The seller directed Mr. Cullen to an eBay web page where the well-known online auction market arranges escrow service for people buying and selling items at a distance. The escrow service holds the money, until the buyer gets the merchandise and approves the sale. Then the service releases the money to the seller.
Except, it wasn’t really an eBay web page. It was a spoof, intended to look like a page on the eBay site, although Officer Gazaille said there were some fairly obvious clues that something was amiss.
Mr. Cullen filled in all the information required by the fake web page. The seller instructed him to wire the $2,920 price to Martha’s Vineyard, by Western Union’s money transfer service.
He did. Big mistake.
Someone picked up the money at the Stop & Shop grocery store in Edgartown, which offers Western Union money transfer service. The suspect listed an Oak Bluffs address on the form. Asked for the required identification, he showed the clerk an Illinois driver’s license issued to Luri Kankadze. Police could not find anyone by that name in any local records. He is not at the address he listed. Police assume that the I.D. was also a fake.
Tangled web
When Officer Gazaille began to untangle the web of deceit, his investigation seemed to branch in hundreds of directions.
“It’s frustrating,” Mr. Gazaille said. “You want to get the FBI involved, but they’re completely overwhelmed, unless you’re talking hundreds of thousands of dollars worth of scams.”
But he kept at it, though he doesn’t have any special training in cyber-crime fighting. He learned as he went along, using the Internet.
He got a subpoena for information about the email accounts that had been used. After more than a week, the mail services sent him 48 pages of information.
“They’ll give you information on the last two months,” Mr. Gazaille said. “Emails sent, where they were sent from. Most of them were in the Kansas area.”
The seller listed the location of the non-existent ATV as Montana. The seller sent email from hundreds of different locations. Those turned out to be public places such as coffee shops, libraries, and other outlets that provide free wireless internet service, open to anyone.
The Edgartown officer followed the money and discovered something interesting. Michael Cummings, of Glencove, Ontario fell for the same scam. Same craigslist advertisement, same price, same amount wired by Western Union to Martha’s Vineyard. This time the suspect picked up the money at the Stop & Shop in Vineyard Haven.
“The only connection to the Vineyard was the money was actually wired to the Vineyard,” Mr. Gazaille said.
But he also discovered what looked like many other attempts to con unsuspecting buyers.
“It’s probably a bigger scam than the Vineyard,” Mr. Gazaille said. “Kansas, New York, a couple were sent from Illinois. Texas police are involved.”
Cyber crime-fighting
If Mr. Gazaille were a fireman, he might fight fire with fire. But he is a police officer, so he fought a cyber thief with cyber tools. Posing as an interested buyer, he answered the craigslist advertisement, which was still posted online.
“I went back and forth with these people for a couple of weeks,” Officer Gazaille said. “They went through the same process with me. I was hoping they would send the money here. But at the last second, they wanted me to send the money to a different guy at a different place.”
Though the investigation stopped just short of the point of money changing hands, police considered sending an actual wire transfer of money, hoping to nab a suspect when he picked it up on-Island.
“We were thinking about it,” Mr. Gazaille said. “We talked about it for a while.” Police sometimes use real money during their investigations. District attorneys may keep funds for that purpose in closely monitored accounts. The source of the money is often cash seized during drug investigations.
All attempts to catch the cyber criminal have not yielded a suspect. But police do have some important clues. By going through Western Union records, Mr. Gazaille found the time the thief picked up the money, and matched that to surveillance camera images. The same person picked up the money at the two different Stop & Shop locations.
Officer Gazaille asks that anyone who recognizes the images published in today’s Times call the Edgartown police department’s crime tip line at 774-310-1190.
Police have surveillance video, which could offer further clues. The two-minute 42-second video, posted on the police department’s new website shows the suspect filling out the Western Union paperwork and speaking briefly with the Stop & Shop clerk, as well as a store patron who was next in line at the counter.
If police can catch up with the thief, he will face charges of larceny and wire fraud.
Fair warning
Online marketplaces like craigslist and eBay display prominent warnings about fraud and how to prevent it. Though they thought they were taking precautions by using the fake E-bay escrow service, the two victims in this case violated several simple guidelines posted in multiple places on both sites.
“Deal locally with folks you can meet in person,” warns craigslist under the link “avoid scams and fraud,” on its home page. “Follow this one rule and avoid ninety-nine percent of scam attempts on craigslist.”
Another warning in bold type advises against using a money transfer service.
“Never wire funds via Western Union, Moneygram, or any other wire service. Anyone who asks you to do so is a scammer.”
There are several places to report Internet fraud.
Victims of cyber-crime may file reports at the Internet Crime Complaint Center (IC3).
The Federal Trade Commission (FTC) operates a telephone help line where you can get information about identity theft and other on-line crimes. The number for the FTC is 1-877-ID-THEFT (1-877-438-4338). Complaints can also be filed at that number.
Collectively, federal, state, and local law enforcement receive many thousands of complaints about Internet fraud. As Officer Gazaille found out, tracking down the perpetrators is a frustrating and time-consuming process.
The reports help investigators track trends, discover new scams, and issue appropriate warnings. But it is unrealistic to expect individual cases of fraud will be solved, and the money returned to the victims.
The best way to do that, Officer Gazaille says, is be wary enough to steer clear of the con in the first place.
This week, they turned to their own high-tech tools, surveillance video, and their own new crime-fighting website, to track down the Internet thief.
Officer Michael Gazaille first began investigating the scam in December, when Brian Cullen called the Edgartown Police Department from Oregon, Wisconsin.
Mr. Cullen saw an advertisement posted on craigslist, the wildly popular online aggregation of free classified ads offering everything imaginable for sale from locations around the world. The ad offered a Polaris four-wheel, all-terrain vehicle (ATV) for sale. The price was $2,920.
The seller directed Mr. Cullen to an eBay web page where the well-known online auction market arranges escrow service for people buying and selling items at a distance. The escrow service holds the money, until the buyer gets the merchandise and approves the sale. Then the service releases the money to the seller.
Except, it wasn’t really an eBay web page. It was a spoof, intended to look like a page on the eBay site, although Officer Gazaille said there were some fairly obvious clues that something was amiss.
Mr. Cullen filled in all the information required by the fake web page. The seller instructed him to wire the $2,920 price to Martha’s Vineyard, by Western Union’s money transfer service.
He did. Big mistake.
Someone picked up the money at the Stop & Shop grocery store in Edgartown, which offers Western Union money transfer service. The suspect listed an Oak Bluffs address on the form. Asked for the required identification, he showed the clerk an Illinois driver’s license issued to Luri Kankadze. Police could not find anyone by that name in any local records. He is not at the address he listed. Police assume that the I.D. was also a fake.
Tangled web
When Officer Gazaille began to untangle the web of deceit, his investigation seemed to branch in hundreds of directions.
“It’s frustrating,” Mr. Gazaille said. “You want to get the FBI involved, but they’re completely overwhelmed, unless you’re talking hundreds of thousands of dollars worth of scams.”
But he kept at it, though he doesn’t have any special training in cyber-crime fighting. He learned as he went along, using the Internet.
He got a subpoena for information about the email accounts that had been used. After more than a week, the mail services sent him 48 pages of information.
“They’ll give you information on the last two months,” Mr. Gazaille said. “Emails sent, where they were sent from. Most of them were in the Kansas area.”
The seller listed the location of the non-existent ATV as Montana. The seller sent email from hundreds of different locations. Those turned out to be public places such as coffee shops, libraries, and other outlets that provide free wireless internet service, open to anyone.
The Edgartown officer followed the money and discovered something interesting. Michael Cummings, of Glencove, Ontario fell for the same scam. Same craigslist advertisement, same price, same amount wired by Western Union to Martha’s Vineyard. This time the suspect picked up the money at the Stop & Shop in Vineyard Haven.
“The only connection to the Vineyard was the money was actually wired to the Vineyard,” Mr. Gazaille said.
But he also discovered what looked like many other attempts to con unsuspecting buyers.
“It’s probably a bigger scam than the Vineyard,” Mr. Gazaille said. “Kansas, New York, a couple were sent from Illinois. Texas police are involved.”
Cyber crime-fighting
If Mr. Gazaille were a fireman, he might fight fire with fire. But he is a police officer, so he fought a cyber thief with cyber tools. Posing as an interested buyer, he answered the craigslist advertisement, which was still posted online.
“I went back and forth with these people for a couple of weeks,” Officer Gazaille said. “They went through the same process with me. I was hoping they would send the money here. But at the last second, they wanted me to send the money to a different guy at a different place.”
Though the investigation stopped just short of the point of money changing hands, police considered sending an actual wire transfer of money, hoping to nab a suspect when he picked it up on-Island.
“We were thinking about it,” Mr. Gazaille said. “We talked about it for a while.” Police sometimes use real money during their investigations. District attorneys may keep funds for that purpose in closely monitored accounts. The source of the money is often cash seized during drug investigations.
All attempts to catch the cyber criminal have not yielded a suspect. But police do have some important clues. By going through Western Union records, Mr. Gazaille found the time the thief picked up the money, and matched that to surveillance camera images. The same person picked up the money at the two different Stop & Shop locations.
Officer Gazaille asks that anyone who recognizes the images published in today’s Times call the Edgartown police department’s crime tip line at 774-310-1190.
Police have surveillance video, which could offer further clues. The two-minute 42-second video, posted on the police department’s new website shows the suspect filling out the Western Union paperwork and speaking briefly with the Stop & Shop clerk, as well as a store patron who was next in line at the counter.
If police can catch up with the thief, he will face charges of larceny and wire fraud.
Fair warning
Online marketplaces like craigslist and eBay display prominent warnings about fraud and how to prevent it. Though they thought they were taking precautions by using the fake E-bay escrow service, the two victims in this case violated several simple guidelines posted in multiple places on both sites.
“Deal locally with folks you can meet in person,” warns craigslist under the link “avoid scams and fraud,” on its home page. “Follow this one rule and avoid ninety-nine percent of scam attempts on craigslist.”
Another warning in bold type advises against using a money transfer service.
“Never wire funds via Western Union, Moneygram, or any other wire service. Anyone who asks you to do so is a scammer.”
There are several places to report Internet fraud.
Victims of cyber-crime may file reports at the Internet Crime Complaint Center (IC3).
The Federal Trade Commission (FTC) operates a telephone help line where you can get information about identity theft and other on-line crimes. The number for the FTC is 1-877-ID-THEFT (1-877-438-4338). Complaints can also be filed at that number.
Collectively, federal, state, and local law enforcement receive many thousands of complaints about Internet fraud. As Officer Gazaille found out, tracking down the perpetrators is a frustrating and time-consuming process.
The reports help investigators track trends, discover new scams, and issue appropriate warnings. But it is unrealistic to expect individual cases of fraud will be solved, and the money returned to the victims.
The best way to do that, Officer Gazaille says, is be wary enough to steer clear of the con in the first place.
Tuesday, 15 March 2011
Shaw Capital Management Scam Info: Invoice Factoring Could Be Next Big Thing for Fraud Scam, Predicts Lawyer » shawcapitalmanagementscaminfo.com - Shaw Capital Management Scam Information Prevention
Baltimore, MD — (SBWIRE) — 03/09/2011 — Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, and asset based financing, accounts receivable management, and other related financial services.
One of the biggest challenges facing businesses in the current economic climate is getting invoices paid and the use of invoice factoring could become a significant area for fraud, according specialist fraud lawyer Arun Chauhan of Midlands firm Challinors.
“In the current economic climate the use of factoring is becoming more prevalent,” says Arun, a Partner at Challinors and head of its Fraud & Asset Recovery department. “The problem of getting invoices paid is a growing problem and an increase in fraud in Factoring is an area that will not be immune from this threat.”
The issue of invoice payment is not unique to the economic climate but one that is encountered by all businesses and in particular start up businesses. Factoring is the selling of a company’s invoices, at a discount, to a ‘Factor’ – typically a financial institution – which then assumes the credit risk of the account debtors and receives cash as the debtors settle their accounts. The company then receives the value of the invoice less a percentage retained by the company as their fee for the factoring service.
“The Factor will typically obtain a personal guarantee or some form of security from a director of a company before commencement of any agreement,” explains Arun.
There are two specific types of factoring – Open and hidden factoring. In Open Factoring the company does not mind if its customers know if they are using a Factor. The debtor is sent invoices by the Factor to recover the face value of the invoices.
If a company has decided to Factor invoices to improve cash flow, it may wish to keep this from its customers. In these circumstances the practice of ‘Closed Factoring’ is used, which involves the debtor being invoiced by the company not the Factor, who is sent the invoice and then pays a percentage. When the debtor pays the invoice the sum due to the Factor is then paid.
“The process of factoring is susceptible to fraudulent activity, if there are not sufficient controls in place within a business,” says Arun. “A Managing Director may not be aware that those dealing with the raising of invoices for the company may well be devising a fraudulent scheme by creation location of businesses: “The fact that the postcode of a company is the same or in a similar geographical location to the debtor is one warning sign to look for. Another is the existence of large invoice amounts relative to the average for that debtor.”
The fraud is sometimes not internal but purely perpetrated to cause loss to the Factor. “One example of this was uncovered in 2008 where the Directors of a Manchester based computer firm, Ravelle, were convicted in a £3.25 million fraud upon its creditors. The fraud was centred on the creation of false sales documents and a complex web of inter-company transactions designed to deceive Factoring companies into providing finance to the Ravelle Group. This is a prime example of collusion, which is one pre-requisite for factoring fraud.
“Many types of fraud are only possible if collusion between parties exists. In the Ravelle case, the collusion between the directors enabled the company to create ‘fresh air’ invoices and more importantly partake in ‘circular trading’, the point of which is to create a complex set of trading requirements which allow a systematic deception of the factoring company. The schemes that keep companies running could not have been implemented without the continued input of the parties at Ravelle, and one of the Directors was a qualified accountant.”
He adds: “In the current economic climate the temptation for directors to cross the line and partake in Factoring fraud is greater owing to the constraints on cash flow. Any fraudulent activity is bound to leave a trail of evidence that will soon be detected, and our specialist fraud lawyers are skilled in finding such discrepancies. The fraud will eventually be detected, no matter how small.”
Challinors has offices in Birmingham city centre, Edgbaston, West Bromwich and Nottingham. The firm has 23 partners and over 100 fee earners, and is ranked as one of the top legal firms in the West Midlands, being Number 1 in the Chambers UK Directory in a number of categories. For more information visit:http://www.challinors.co.uk.
Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
One of the biggest challenges facing businesses in the current economic climate is getting invoices paid and the use of invoice factoring could become a significant area for fraud, according specialist fraud lawyer Arun Chauhan of Midlands firm Challinors.
“In the current economic climate the use of factoring is becoming more prevalent,” says Arun, a Partner at Challinors and head of its Fraud & Asset Recovery department. “The problem of getting invoices paid is a growing problem and an increase in fraud in Factoring is an area that will not be immune from this threat.”
The issue of invoice payment is not unique to the economic climate but one that is encountered by all businesses and in particular start up businesses. Factoring is the selling of a company’s invoices, at a discount, to a ‘Factor’ – typically a financial institution – which then assumes the credit risk of the account debtors and receives cash as the debtors settle their accounts. The company then receives the value of the invoice less a percentage retained by the company as their fee for the factoring service.
“The Factor will typically obtain a personal guarantee or some form of security from a director of a company before commencement of any agreement,” explains Arun.
There are two specific types of factoring – Open and hidden factoring. In Open Factoring the company does not mind if its customers know if they are using a Factor. The debtor is sent invoices by the Factor to recover the face value of the invoices.
If a company has decided to Factor invoices to improve cash flow, it may wish to keep this from its customers. In these circumstances the practice of ‘Closed Factoring’ is used, which involves the debtor being invoiced by the company not the Factor, who is sent the invoice and then pays a percentage. When the debtor pays the invoice the sum due to the Factor is then paid.
“The process of factoring is susceptible to fraudulent activity, if there are not sufficient controls in place within a business,” says Arun. “A Managing Director may not be aware that those dealing with the raising of invoices for the company may well be devising a fraudulent scheme by creation location of businesses: “The fact that the postcode of a company is the same or in a similar geographical location to the debtor is one warning sign to look for. Another is the existence of large invoice amounts relative to the average for that debtor.”
The fraud is sometimes not internal but purely perpetrated to cause loss to the Factor. “One example of this was uncovered in 2008 where the Directors of a Manchester based computer firm, Ravelle, were convicted in a £3.25 million fraud upon its creditors. The fraud was centred on the creation of false sales documents and a complex web of inter-company transactions designed to deceive Factoring companies into providing finance to the Ravelle Group. This is a prime example of collusion, which is one pre-requisite for factoring fraud.
“Many types of fraud are only possible if collusion between parties exists. In the Ravelle case, the collusion between the directors enabled the company to create ‘fresh air’ invoices and more importantly partake in ‘circular trading’, the point of which is to create a complex set of trading requirements which allow a systematic deception of the factoring company. The schemes that keep companies running could not have been implemented without the continued input of the parties at Ravelle, and one of the Directors was a qualified accountant.”
He adds: “In the current economic climate the temptation for directors to cross the line and partake in Factoring fraud is greater owing to the constraints on cash flow. Any fraudulent activity is bound to leave a trail of evidence that will soon be detected, and our specialist fraud lawyers are skilled in finding such discrepancies. The fraud will eventually be detected, no matter how small.”
Challinors has offices in Birmingham city centre, Edgbaston, West Bromwich and Nottingham. The firm has 23 partners and over 100 fee earners, and is ranked as one of the top legal firms in the West Midlands, being Number 1 in the Chambers UK Directory in a number of categories. For more information visit:http://www.challinors.co.uk.
Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
Shaw Capital Management Scam Info: HFMWeek Daily Snapshot – 16 February
NEWSPAPERS AND WIRES
Hedge funds posted positive returns for a seventh consecutive month in January, with Japan-focused managers leading gainers, according to Singapore-based fund tracker Eurekahedge, reports Reuters. Hedge funds globally rose 0.06%, while Japan-focussed funds gained 1.26%, making it the best performing hedge fund region in the world, comprehensively outperforming the 0.1% gain of the benchmark Nikkei 225 Index .N225 in January.
Investors in hedge fund Diamondback Capital Management, which is struggling with fallout from an insider-trading investigation, have asked to pull $1bn in capital out of the firm, a person familiar with the situation said Tuesday, reports the Wall Street Journal. The amount isn’t final, and the tally could run higher as investors may put in redemption requests before the deadline later Tuesday. FBI agents raided Diamondback and several other hedge funds in November as part of an insider-trading probe.
DE Shaw & Co, one of the world’s biggest hedge fund firms, has told investors that it plans to charge them less, an investor with the firm said on Tuesday, reports Reuters. The New York-based firm, which oversees roughly $19bn in assets, plans to lower its fees to a 2.5% management fee and a 25% performance fee, said the person, who was not permitted to speak about the matter publicly. Previously, the firm charged a 3% management fee plus a 30% performance fee.
Actelion is preventing some hedge fund shareholders from attending a presentation at the biotechnology company’s headquarters this week, according to two people with knowledge of the situation, Bloomberg reports. Actelion is limiting attendance at the 17 February event in Allschwil, Switzerland, to the company’s largest shareholders and to research analysts from investment banks, according to the people, who declined to be identified because their discussions with the company were confidential.
A two-time CNBC pundit and Manhattan hedge-fund operator is at that heart of a brazen $4m Ponzi scheme, Manhattan DA Cyrus Vance said Tuesday, reports NY Daily News. Brian Kim was indicted on grand larceny and scheme to defraud charges for the scam that began in 2003 and through which he single-handedly bilked at least 45 West Coast investors out of cash from his Manhattan offices, officials said. “The defendant induced his clients to make risky and speculative investments by portraying himself as an accomplished trader and money manager,” Vance said.
Wall Street fraudster Bernard Madoff has said in a prison interview that unidentified banks and hedge funds were somehow “complicit” in his massive Ponzi scheme, AFP reports citing the New York Times. “They had to know,” Madoff said in story posted on the newspaper’s website late Tuesday. “But the attitude was sort of ‘If you’re doing something wrong, we don’t want to know.’”Madoff, who touted himself as one of New York’s most successful money managers, was arrested in late 2008 and sentenced in June 2009 to 150 years in prison.
Gold prices rose to a four-week high on Tuesday as inflation worries sparked a technical breakout, and as Chinese data curbed expectations for further interest rate hikes there, Reuters reports. Bullion investor sentiment improved after US regulatory filings confirmed that top hedge fund managers, such as John Paulson and George Soros, held their big bets on gold in the fourth quarter of last year. “The inflation mentality is beginning to take hold more, and that sparked gold’s rise today,” said Adam Hewison, president ofMarketClub.com.
Galleon Group founder Raj Rajaratnam should be ordered to turn over a list of expert witnesses and secretly recorded conversations he intends to use as part of his defence at trial, prosecutors said late Monday, the Wall Street Journal reports. In a court filing Monday, federal prosecutors in Manhattan said. Rajaratnam’s lawyers have refused to reveal who they may call as expert witnesses and have refused to disclose which secretly recorded wiretaps they plan to introduce at trial.
Hedge funds posted positive returns for a seventh consecutive month in January, with Japan-focused managers leading gainers, according to Singapore-based fund tracker Eurekahedge, reports Reuters. Hedge funds globally rose 0.06%, while Japan-focussed funds gained 1.26%, making it the best performing hedge fund region in the world, comprehensively outperforming the 0.1% gain of the benchmark Nikkei 225 Index .N225 in January.
Investors in hedge fund Diamondback Capital Management, which is struggling with fallout from an insider-trading investigation, have asked to pull $1bn in capital out of the firm, a person familiar with the situation said Tuesday, reports the Wall Street Journal. The amount isn’t final, and the tally could run higher as investors may put in redemption requests before the deadline later Tuesday. FBI agents raided Diamondback and several other hedge funds in November as part of an insider-trading probe.
DE Shaw & Co, one of the world’s biggest hedge fund firms, has told investors that it plans to charge them less, an investor with the firm said on Tuesday, reports Reuters. The New York-based firm, which oversees roughly $19bn in assets, plans to lower its fees to a 2.5% management fee and a 25% performance fee, said the person, who was not permitted to speak about the matter publicly. Previously, the firm charged a 3% management fee plus a 30% performance fee.
Actelion is preventing some hedge fund shareholders from attending a presentation at the biotechnology company’s headquarters this week, according to two people with knowledge of the situation, Bloomberg reports. Actelion is limiting attendance at the 17 February event in Allschwil, Switzerland, to the company’s largest shareholders and to research analysts from investment banks, according to the people, who declined to be identified because their discussions with the company were confidential.
A two-time CNBC pundit and Manhattan hedge-fund operator is at that heart of a brazen $4m Ponzi scheme, Manhattan DA Cyrus Vance said Tuesday, reports NY Daily News. Brian Kim was indicted on grand larceny and scheme to defraud charges for the scam that began in 2003 and through which he single-handedly bilked at least 45 West Coast investors out of cash from his Manhattan offices, officials said. “The defendant induced his clients to make risky and speculative investments by portraying himself as an accomplished trader and money manager,” Vance said.
Wall Street fraudster Bernard Madoff has said in a prison interview that unidentified banks and hedge funds were somehow “complicit” in his massive Ponzi scheme, AFP reports citing the New York Times. “They had to know,” Madoff said in story posted on the newspaper’s website late Tuesday. “But the attitude was sort of ‘If you’re doing something wrong, we don’t want to know.’”Madoff, who touted himself as one of New York’s most successful money managers, was arrested in late 2008 and sentenced in June 2009 to 150 years in prison.
Gold prices rose to a four-week high on Tuesday as inflation worries sparked a technical breakout, and as Chinese data curbed expectations for further interest rate hikes there, Reuters reports. Bullion investor sentiment improved after US regulatory filings confirmed that top hedge fund managers, such as John Paulson and George Soros, held their big bets on gold in the fourth quarter of last year. “The inflation mentality is beginning to take hold more, and that sparked gold’s rise today,” said Adam Hewison, president ofMarketClub.com.
Galleon Group founder Raj Rajaratnam should be ordered to turn over a list of expert witnesses and secretly recorded conversations he intends to use as part of his defence at trial, prosecutors said late Monday, the Wall Street Journal reports. In a court filing Monday, federal prosecutors in Manhattan said. Rajaratnam’s lawyers have refused to reveal who they may call as expert witnesses and have refused to disclose which secretly recorded wiretaps they plan to introduce at trial.
Shaw Capital Management Headlines: Leave HST vote where it is — Colin Hansen.| World Headlines: Shaw Capital Management
For all the speculation among B.C. Liberal leadership candidates about moving up the province wide vote on the harmonized sales tax, Finance Minister Colin Hansen would prefer it the government stuck to the scheduled date of Sept. 24.
“I think it would make sense to leave it there, “Hansen told me during an interview on Voice of B.C. on Shaw TV.
“But obviously leadership candidates have come up with other ideas,” he added, in quick difference to George Abbott and advocating a vote in late June. ” I think that’s a discussion that the caucus will have to have under the leadership of the new Premier.
Hansen’s rationale is that the opinion polls suggest public opposition to the tax is weakening and acceptance, however grudging, is on the rise.
“When it was first introduced, there’s no question there was huge anger out there,” he said. “There was a poll that was done by Ipsos-Reid just prior to the implementation that showed that…. I think the headline number was that 80 percent were opposed, but if you refined that down, there was 45 percent strongly opposed.
“They did that poll again a few months later — I think it was October — and it showed that the headline number had come down to only 72 percent opposed, but the number strongly opposed had actually come down to 32 percent.
“We know that that is shifting, that people…. It’s not like they’re warming up to it; it’s never going to win a popularity contest, but I think people are starting to realize that the ramifications of going back to the PST are huge. I hear it from a lot of people that say, “Look, I don’t like it. I don’t like the way that you did it, but now that it’s here, it’s probably worth keeping it rather than going back to the old PST system.”
He figures the polling trend is translating into a voting trend as well: “I find that people who were very public about their opposition a year ago are now coming out publicly and saying, “You know, I’m going to vote, actually, to keep the HST.” I talk to a lot of small-business owners, who were very opposed to it initially, but in the intervening months they’ve actually had a chance to talk to their accountants, and they realized that it actually works for their benefit and the benefit of their small business and their workers.”
On the other side of the ledger, Hansen cites a rising awareness that it would be far from painless to go back to the old provincial sales tax.
“First of all, we would have to forgo and repay $1.6 billion to the federal government….
That would definitely have the impact of significantly increasing our debt burden for future generations.”
Really? Others have speculated that Ottawa, having paid out the money in three installments (the third is due this July), wouldn’t dare ask for it back.
” I don’t think anyone would be in a position to say that,” replied Hansen. “We have an agreement with Ottawa that if we don’t live up to our side of the agreement, that we would have to pay that back to Ottawa.”
Not just Ottawa. Other provinces would squawk as well, and either that B.C. be obliged to keep its side of the deal or demand an equivalent payout for themselves.
“You’ve got to look at it why would anybody in another province say, “Okay, well, B.C. didn’t do their part of the deal, so we’re just going to let them keep those federal tax dollars”? I don’t think that’s realistic at all, and that’s certainly not what we would be faced with, given the language that’s in our agreements.”
Plus there are other consequences as well, such as the cost of having to go back to administer the provincial sales tax.
“It was costing us about $30 million a year. We’re now saving that. That actually is money freed up to pay for other programs. There’s about $150 million a year that it was costing the business community. Small companies always complained about the paper burden of filling in two sets of tax filings that they had to do. Now they only have one.
There’s also just the cost of getting the whole PST system back in place. It would be expensive, and it would be very time-consuming to re-establish that entire tax collection system.”
How long would it take to untangle the two tax systems and put things back as they were?
” I think that that timeline is something that we would have to work out. It’s not going to happen — it can’t happen — quickly. The actual legislation to establish the harmonized sales tax in British Columbia and Ontario was federal legislation. The legislation we passed in British Columbia was to get rid of the old provincial sales tax, so we would actually have to sit down and work with Ottawa in terms of the timing of the federal legislative agenda, as well as just all of the administrative things that would have to happen to re-establish the provincial sales tax system in British Columbia. It would not be a quick process.”
In order to sort out all the costs and implications, Hansen has appointed a four-person panel headed by former Alberta minister of finance Jim Dinning. Long over due some would say and too bad they didn’t appoint such an exercise before bringing in the tax in the first place.
“The purpose of the panel is to actually provide analysis and information to the public so that the public can make an informed vote,” said Hansen. “These are independent people who I think could wrap their heads around some of the dynamics of what it’s going to mean if the vote goes one way or the other.
“What we don’t want is whatever the outcome of the vote — which we’ve said we will respect the will of the majority — whatever that outcome is, we don’t want people two months later to say, “Oh, wait a second — I didn’t know that if we defeated the HST, I was going to be giving up my HST credit cheque which I now enjoy”; or that the cost of tax on accommodation is going to go up by a percentage point, because it came down as a result; or that the cost on a glass of beer at a restaurant is going to go up by 3 percent, because that would be rolling back to what we had before.
“There are lots of issues. We just want to make sure that people feel that they have independent, factual information upon which they can decide how they’re going to vote — vote to keep it, or vote to go back.”
Hansen defended the makeup of the panel as well.
“I get it that we, as politicians, do not have a lot of credibility on the subject of the benefits, the pros and cons, of harmonized sales tax,” he said.
“These are individuals who come from a variety of backgrounds. Jim Dinning, as you mentioned, was a former Finance Minister of Alberta. George Morfitt is a very respected and independent former auditor general in British Columbia. John Richards, a former NDP MLA from Saskatchewan, who has been at Simon Fraser University now for a number of years, is seen as an expert in public policy analysis. And Tracy — forgive me Tracy, I’m going to forget the last name (Redies) — is the president and CEO of Coast Capital.”
Hansen took a cautious approach on one of the other suggestions to come out of the leadership campaign, namely Kevin Falcon’s idea (borrowed from SFU economist Jon Kesselman) to cut the HST by one point as an incentive for folks to vote to save it.
” Well, I think that is an option for the new Premier and government in the future, to look at that,” said Hansen. ” I think the tax cut that the Premier had announced and then we backtracked on — that would have cost about $600 million a year, so this would be more expensive — to do one percentage point. That would then limit other options. But certainly it’s an option that we have in our agreement with Ottawa — that once the HST has been in place for two years — meaning July 1, 2012 — we would have the option of adjusting the 7 percent provincial rate.”
So expensive but do able. Which led Hansen back to another point about the cost to the province of going back to the PST, which is a loss of revenue (vis a vis sticking with the HST) down the road.
How so? The HST base will be broader in the long run, partly because of the phase out of transitional rebates, partly because the province is shifting to the purchase of services vis a vis goods, and partly because of some growth expected from the inducement to investment represented by the HST, according to Hansen.
“In the first year — the year we’re in right now — and the coming year, we are going to be collecting, under the HST system, about the same net amount to the provincial coffers as we would be collecting today if we’d kept the PST system in place,” he explained.
“But over time — even in this budget that I tabled, the second and third year — you start to see the income from HST ramping up, because we will see more economic activity. There will be more jobs in British Columbia, more people paying income tax, and there is a differing impact on the tax base.
“The other thing is: as some of the rebates that are in place now — the transitional rebates — get covered, then it actually winds up to be a net positive in those out years. That’s another factor. If the HST is eliminated in the vote and we go back to the PST system, there’s actually going to be a gap in terms of a revenue shortfall that otherwise would be there to help get to surplus budgets.”
The Dinning commission is scheduled to report out on the costs of changing back in six weeks or so.
“We are providing them with as much information as we have in the Ministry of Finance. I don’t think it will be totally comprehensive, because there’s still data that’s evolving. As we have the experience with the harmonized sales tax, we’re starting to refine some of the numbers that were initially predictions, based on Stats Canada data. As we get hard data, it’s actually going to allow us to refine some of those projections.
“They’re scheduled to report out in April. I think they’re hoping that they can actually get it done earlier, if possible.”
That report may well contribute to the next premier’s thinking on the timing of the vote as well. And he/she may want to hold off any thought of changing the date, until after it is out and the public response has been gauged.
“I think it would make sense to leave it there, “Hansen told me during an interview on Voice of B.C. on Shaw TV.
“But obviously leadership candidates have come up with other ideas,” he added, in quick difference to George Abbott and advocating a vote in late June. ” I think that’s a discussion that the caucus will have to have under the leadership of the new Premier.
Hansen’s rationale is that the opinion polls suggest public opposition to the tax is weakening and acceptance, however grudging, is on the rise.
“When it was first introduced, there’s no question there was huge anger out there,” he said. “There was a poll that was done by Ipsos-Reid just prior to the implementation that showed that…. I think the headline number was that 80 percent were opposed, but if you refined that down, there was 45 percent strongly opposed.
“They did that poll again a few months later — I think it was October — and it showed that the headline number had come down to only 72 percent opposed, but the number strongly opposed had actually come down to 32 percent.
“We know that that is shifting, that people…. It’s not like they’re warming up to it; it’s never going to win a popularity contest, but I think people are starting to realize that the ramifications of going back to the PST are huge. I hear it from a lot of people that say, “Look, I don’t like it. I don’t like the way that you did it, but now that it’s here, it’s probably worth keeping it rather than going back to the old PST system.”
He figures the polling trend is translating into a voting trend as well: “I find that people who were very public about their opposition a year ago are now coming out publicly and saying, “You know, I’m going to vote, actually, to keep the HST.” I talk to a lot of small-business owners, who were very opposed to it initially, but in the intervening months they’ve actually had a chance to talk to their accountants, and they realized that it actually works for their benefit and the benefit of their small business and their workers.”
On the other side of the ledger, Hansen cites a rising awareness that it would be far from painless to go back to the old provincial sales tax.
“First of all, we would have to forgo and repay $1.6 billion to the federal government….
That would definitely have the impact of significantly increasing our debt burden for future generations.”
Really? Others have speculated that Ottawa, having paid out the money in three installments (the third is due this July), wouldn’t dare ask for it back.
” I don’t think anyone would be in a position to say that,” replied Hansen. “We have an agreement with Ottawa that if we don’t live up to our side of the agreement, that we would have to pay that back to Ottawa.”
Not just Ottawa. Other provinces would squawk as well, and either that B.C. be obliged to keep its side of the deal or demand an equivalent payout for themselves.
“You’ve got to look at it why would anybody in another province say, “Okay, well, B.C. didn’t do their part of the deal, so we’re just going to let them keep those federal tax dollars”? I don’t think that’s realistic at all, and that’s certainly not what we would be faced with, given the language that’s in our agreements.”
Plus there are other consequences as well, such as the cost of having to go back to administer the provincial sales tax.
“It was costing us about $30 million a year. We’re now saving that. That actually is money freed up to pay for other programs. There’s about $150 million a year that it was costing the business community. Small companies always complained about the paper burden of filling in two sets of tax filings that they had to do. Now they only have one.
There’s also just the cost of getting the whole PST system back in place. It would be expensive, and it would be very time-consuming to re-establish that entire tax collection system.”
How long would it take to untangle the two tax systems and put things back as they were?
” I think that that timeline is something that we would have to work out. It’s not going to happen — it can’t happen — quickly. The actual legislation to establish the harmonized sales tax in British Columbia and Ontario was federal legislation. The legislation we passed in British Columbia was to get rid of the old provincial sales tax, so we would actually have to sit down and work with Ottawa in terms of the timing of the federal legislative agenda, as well as just all of the administrative things that would have to happen to re-establish the provincial sales tax system in British Columbia. It would not be a quick process.”
In order to sort out all the costs and implications, Hansen has appointed a four-person panel headed by former Alberta minister of finance Jim Dinning. Long over due some would say and too bad they didn’t appoint such an exercise before bringing in the tax in the first place.
“The purpose of the panel is to actually provide analysis and information to the public so that the public can make an informed vote,” said Hansen. “These are independent people who I think could wrap their heads around some of the dynamics of what it’s going to mean if the vote goes one way or the other.
“What we don’t want is whatever the outcome of the vote — which we’ve said we will respect the will of the majority — whatever that outcome is, we don’t want people two months later to say, “Oh, wait a second — I didn’t know that if we defeated the HST, I was going to be giving up my HST credit cheque which I now enjoy”; or that the cost of tax on accommodation is going to go up by a percentage point, because it came down as a result; or that the cost on a glass of beer at a restaurant is going to go up by 3 percent, because that would be rolling back to what we had before.
“There are lots of issues. We just want to make sure that people feel that they have independent, factual information upon which they can decide how they’re going to vote — vote to keep it, or vote to go back.”
Hansen defended the makeup of the panel as well.
“I get it that we, as politicians, do not have a lot of credibility on the subject of the benefits, the pros and cons, of harmonized sales tax,” he said.
“These are individuals who come from a variety of backgrounds. Jim Dinning, as you mentioned, was a former Finance Minister of Alberta. George Morfitt is a very respected and independent former auditor general in British Columbia. John Richards, a former NDP MLA from Saskatchewan, who has been at Simon Fraser University now for a number of years, is seen as an expert in public policy analysis. And Tracy — forgive me Tracy, I’m going to forget the last name (Redies) — is the president and CEO of Coast Capital.”
Hansen took a cautious approach on one of the other suggestions to come out of the leadership campaign, namely Kevin Falcon’s idea (borrowed from SFU economist Jon Kesselman) to cut the HST by one point as an incentive for folks to vote to save it.
” Well, I think that is an option for the new Premier and government in the future, to look at that,” said Hansen. ” I think the tax cut that the Premier had announced and then we backtracked on — that would have cost about $600 million a year, so this would be more expensive — to do one percentage point. That would then limit other options. But certainly it’s an option that we have in our agreement with Ottawa — that once the HST has been in place for two years — meaning July 1, 2012 — we would have the option of adjusting the 7 percent provincial rate.”
So expensive but do able. Which led Hansen back to another point about the cost to the province of going back to the PST, which is a loss of revenue (vis a vis sticking with the HST) down the road.
How so? The HST base will be broader in the long run, partly because of the phase out of transitional rebates, partly because the province is shifting to the purchase of services vis a vis goods, and partly because of some growth expected from the inducement to investment represented by the HST, according to Hansen.
“In the first year — the year we’re in right now — and the coming year, we are going to be collecting, under the HST system, about the same net amount to the provincial coffers as we would be collecting today if we’d kept the PST system in place,” he explained.
“But over time — even in this budget that I tabled, the second and third year — you start to see the income from HST ramping up, because we will see more economic activity. There will be more jobs in British Columbia, more people paying income tax, and there is a differing impact on the tax base.
“The other thing is: as some of the rebates that are in place now — the transitional rebates — get covered, then it actually winds up to be a net positive in those out years. That’s another factor. If the HST is eliminated in the vote and we go back to the PST system, there’s actually going to be a gap in terms of a revenue shortfall that otherwise would be there to help get to surplus budgets.”
The Dinning commission is scheduled to report out on the costs of changing back in six weeks or so.
“We are providing them with as much information as we have in the Ministry of Finance. I don’t think it will be totally comprehensive, because there’s still data that’s evolving. As we have the experience with the harmonized sales tax, we’re starting to refine some of the numbers that were initially predictions, based on Stats Canada data. As we get hard data, it’s actually going to allow us to refine some of those projections.
“They’re scheduled to report out in April. I think they’re hoping that they can actually get it done earlier, if possible.”
That report may well contribute to the next premier’s thinking on the timing of the vote as well. And he/she may want to hold off any thought of changing the date, until after it is out and the public response has been gauged.
Shaw Capital Management Headlines: The Buzz: Yee vs. Crane bout continues | World Headlines: Shaw Capital Management
Capitol and California – State Politics
Published: Friday, Mar. 4, 2011 – 12:00 am | Page 3A
© Copyright The Sacramento Bee. All rights reserved.
The fight between UC Regent David Crane and state Sen. Leland Yee over public employee unionization is escalating by the day.
Now Yee, a San Francisco Democrat running for mayor, is planning a protest today at UC San Francisco to “rally against Regent Crane’s recent attack on working families.”
He also wants to deep-six Crane’s Senate confirmation to the regents.
It all started when Crane’s Sunday op-ed in the San Francisco Chronicle questioned whether public employees should be unionized, arguing that unionization makes more sense in the private sector.
Yee said Crane should “put away his Wisconsin playbook and come down from his ivory tower.”
But Crane says Yee is mischaracterizing his position. In a message to The Bee’s Capitol Alert, Crane said he believes UC workers should have collective bargaining rights. What he objects to, he said, is unionization for public workers protected by civil service laws, which UC workers are not.
Yee, not surprisingly, wasn’t assuaged.
“It is unconscionable for a multimillionaire regent to suggest that public-sector workers should not have collective bargaining rights, which has no effect on balancing the budget and protecting vital services,” replied Adam Keigwin, Yee’s chief of staff.
– Laurel Rosenhall
BY THE NUMBERS
California’s economic image suffered another blow this week when the U.S. Chamber of Commerce rated it in the bottom tier of states in the friendliness of its laws to business investment. California was placed in the bottom of three tiers in a nationwide review of state business laws for the chamber by Seyfarth Shaw LLP, a prominent employment and labor law firm.
– Dan Walters
WORTH REPEATING
“Legal obstruction and obfuscation won’t get us any closer to addressing California’s massive budget deficit.”
EVAN WESTRUP, spokesman for Gov. Jerry Brown, on cities’ intention to sue over Brown’s plan to eliminate redevelopment agencies
The fight between UC Regent David Crane and state Sen. Leland Yee over public employee unionization is escalating by the day.
Now Yee, a San Francisco Democrat running for mayor, is planning a protest today at UC San Francisco to “rally against Regent Crane’s recent attack on working families.”
He also wants to deep-six Crane’s Senate confirmation to the regents.
It all started when Crane’s Sunday op-ed in the San Francisco Chronicle questioned whether public employees should be unionized, arguing that unionization makes more sense in the private sector.
Yee said Crane should “put away his Wisconsin playbook and come down from his ivory tower.”
But Crane says Yee is mischaracterizing his position. In a message to The Bee’s Capitol Alert, Crane said he believes UC workers should have collective bargaining rights. What he objects to, he said, is unionization for public workers protected by civil service laws, which UC workers are not.
Yee, not surprisingly, wasn’t assuaged.
“It is unconscionable for a multimillionaire regent to suggest that public-sector workers should not have collective bargaining rights, which has no effect on balancing the budget and protecting vital services,” replied Adam Keigwin, Yee’s chief of staff.
– Laurel Rosenhall
BY THE NUMBERS
California’s economic image suffered another blow this week when the U.S. Chamber of Commerce rated it in the bottom tier of states in the friendliness of its laws to business investment. California was placed in the bottom of three tiers in a nationwide review of state business laws for the chamber by Seyfarth Shaw LLP, a prominent employment and labor law firm.
– Dan WaltersWORTH REPEATING
“Legal obstruction and obfuscation won’t get us any closer to addressing California’s massive budget deficit.”
EVAN WESTRUP, spokesman for Gov. Jerry Brown, on cities’ intention to sue over Brown’s plan to eliminate redevelopment agencies
Published: Friday, Mar. 4, 2011 – 12:00 am | Page 3A
© Copyright The Sacramento Bee. All rights reserved.
The fight between UC Regent David Crane and state Sen. Leland Yee over public employee unionization is escalating by the day.
Now Yee, a San Francisco Democrat running for mayor, is planning a protest today at UC San Francisco to “rally against Regent Crane’s recent attack on working families.”
He also wants to deep-six Crane’s Senate confirmation to the regents.
It all started when Crane’s Sunday op-ed in the San Francisco Chronicle questioned whether public employees should be unionized, arguing that unionization makes more sense in the private sector.
Yee said Crane should “put away his Wisconsin playbook and come down from his ivory tower.”
But Crane says Yee is mischaracterizing his position. In a message to The Bee’s Capitol Alert, Crane said he believes UC workers should have collective bargaining rights. What he objects to, he said, is unionization for public workers protected by civil service laws, which UC workers are not.
Yee, not surprisingly, wasn’t assuaged.
“It is unconscionable for a multimillionaire regent to suggest that public-sector workers should not have collective bargaining rights, which has no effect on balancing the budget and protecting vital services,” replied Adam Keigwin, Yee’s chief of staff.
– Laurel Rosenhall
BY THE NUMBERS
California’s economic image suffered another blow this week when the U.S. Chamber of Commerce rated it in the bottom tier of states in the friendliness of its laws to business investment. California was placed in the bottom of three tiers in a nationwide review of state business laws for the chamber by Seyfarth Shaw LLP, a prominent employment and labor law firm.
– Dan Walters
WORTH REPEATING
“Legal obstruction and obfuscation won’t get us any closer to addressing California’s massive budget deficit.”
EVAN WESTRUP, spokesman for Gov. Jerry Brown, on cities’ intention to sue over Brown’s plan to eliminate redevelopment agencies
The fight between UC Regent David Crane and state Sen. Leland Yee over public employee unionization is escalating by the day.
Now Yee, a San Francisco Democrat running for mayor, is planning a protest today at UC San Francisco to “rally against Regent Crane’s recent attack on working families.”
He also wants to deep-six Crane’s Senate confirmation to the regents.
It all started when Crane’s Sunday op-ed in the San Francisco Chronicle questioned whether public employees should be unionized, arguing that unionization makes more sense in the private sector.
Yee said Crane should “put away his Wisconsin playbook and come down from his ivory tower.”
But Crane says Yee is mischaracterizing his position. In a message to The Bee’s Capitol Alert, Crane said he believes UC workers should have collective bargaining rights. What he objects to, he said, is unionization for public workers protected by civil service laws, which UC workers are not.
Yee, not surprisingly, wasn’t assuaged.
“It is unconscionable for a multimillionaire regent to suggest that public-sector workers should not have collective bargaining rights, which has no effect on balancing the budget and protecting vital services,” replied Adam Keigwin, Yee’s chief of staff.
– Laurel Rosenhall
BY THE NUMBERS
California’s economic image suffered another blow this week when the U.S. Chamber of Commerce rated it in the bottom tier of states in the friendliness of its laws to business investment. California was placed in the bottom of three tiers in a nationwide review of state business laws for the chamber by Seyfarth Shaw LLP, a prominent employment and labor law firm.
– Dan WaltersWORTH REPEATING
“Legal obstruction and obfuscation won’t get us any closer to addressing California’s massive budget deficit.”
EVAN WESTRUP, spokesman for Gov. Jerry Brown, on cities’ intention to sue over Brown’s plan to eliminate redevelopment agencies
Shaw Capital Management Headlines: A bunch of misfits nobody wanted | World Headlines: Shaw Capital Management
By Wayne Scanlan, Postmedia News February 27, 2011
OTTAWA — In many ways, the Ottawa Senators are starting over.
As Monday’s NHL trade deadline looms, they’re in the midst of massive changes in player personnel, with a move toward a younger team, built around high draft choices this summer and beyond. It marks the end of an era born in the late 1990s when Ottawa felt it had a legitimate chance to contend for the Stanley Cup, year after year.
How will fans in the nation’s capital respond? The hockey club’s surveys show support for a new approach, on and off the ice. But will they ever be as grateful just to have the NHL in town as fans were the first time around?
Not likely. 12 playoff appearances since 1997 and a trip to the Cup finals in 2007 have created a marketplace spoiled by success, taking playoff berths for granted, and ripping, sourly, on playoff failure. Perhaps this second playoff absence in three seasons will be the pause that refreshes.
If nothing else, it is time to take stock of what the team is, what it wants to be and what it has been.
In a challenging phase of transition, it’s useful to remember a time when fans were so excited about their expansion Senators they showered them with standing ovations — even after defeats, on nights when they played above themselves; a time when Brad Marsh, a workingman’s veteran, was their hero and champion, a time when newspaper headlines routinely referred to the Senators as “Road Kill” and a daily Ottawa Citizen chart termed the Yelnats Puc (Stanley Cup spelled backwards) compared the 1992-93 Senators with the worst team on record at the time, the 1974-75 Washington Capitals.
The team’s goal, in 1993, was to finish last in order to draft Alexandre Daigle first overall that summer, a goal spoken of so openly by Ottawa management that Senators chairman Bruce Firestone was fined $100,000 “for certain intemperate and inappropriate comments.”
The NHL later altered the draft format to create a lottery for bottom dwellers and to escape the perception a team could lose on purpose to assure a first overall pick. Not that anyone was actually accused of losing on purpose.
As the 1992-93 expansion season wound down, the NHL sent investigators to interview Ottawa management, coaching staff and several key players to determine if the team was “throwing games” to secure the top selection. Brad Shaw was one of the players the league interviewed.
“I said to them in the inquisition,” Shaw recalls, “‘You know, we have 60-plus losses.’ We knew how to lose (without trying to).’
“We needed so many things to fall into place just to have a chance to wins that it was kind of humorous they were investigating in the first place.”
Losing on purpose? Not a chance, not for a determined group of castoffs playing for pride and future NHL paycheques — players who bristled at the commonly heard suggestion their team was a laughingstock.
It’s easier now for the players themselves to laugh, looking back 18 years later.
Shaw, now an assistant coach with the St. Louis Blues, was a 28-year-old defenceman out of Cambridge, Ont. He’d been left unprotected by the Hartford Whalers and claimed by Ottawa in the 1992 expansion draft.
Like most of the inaugural Senators, Shaw was asked to play above his credentials. In his own words, “I was not a first-pair NHL defenceman,” but he played on the first pair in Ottawa.
Laurie Boschman, the Senators first captain and a 13-year NHL veteran in the fall of 1992, remembers looking around at training camp, and gulping.
“There were players at camp I wasn’t as familiar with because they weren’t established NHLers,” Boschman says, putting it kindly.
Even before the players laced up their skates for the first time, there had been bad omens.
Poor Mel Bridgman, the Senators first general manager, selected three ineligible players at the slim-pickings expansion draft, and a newspaper employee named Larry Skinner, who had played a few NHL games, attended the tryout to write first-person stories and wound up being the top scorer in camp. Skinner returned to his newspaper gig and left the losing to the professionals.
“You were just a bunch of misfits nobody wanted,” says winger Jody Hull, now an assistant coach with the OHL Peterborough Petes. A first-round draft choice of the Hartford Whalers in 1987, Ottawa was Hull’s third NHL team, and after one season as a Senator, he joined the expansion Florida Panthers as a free agent.
“To already be with two expansion teams was a bit of an eye-opener,” says Hull, who rejoined the Senators from 2001-03.
If only it had been as easy as it looked in the inaugural Senators game, when the upstarts stunned the Montreal Canadiens 5-3 at the Civic Centre, the same Habs team that would go on to win the ‘93 Stanley Cup.
The whole town was beyond giddy, players included.
“I remember reading the papers before we started and the media were picking us to win maybe eight, nine games,” says goaltender Peter Sidorkiewicz, who played 64 games for the new Sens in Season 1.
“After the first game, when we beat Montreal, on Hockey Night In Canada, I think I was with Ken Hammond and Brad Marsh, we were standing in front of the mirror shaving, we looked at each other and said, ‘Those reporters have to be crazy, we’ll win 10 games by Christmas!’
“We went on and lost our next 21 (21 winless, to be precise), so I guess you guys were right.”
Only a Halloween tie with the Buffalo Sabres kept the Senators from a 21-game losing streak after the initial win. “Everywhere we went, every time we showed up in a town, by about the 20 game mark, we were the weak sisters of the league and the view was, ‘What an embarrassment it would be to lose to these guys,’” Shaw says. “It was well established that skill-wise we didn’t match up against any other team.”
Fans tend to reflect romantically about Ottawa’s lovable expansion team, which will mark its 20th anniversary the season after next, but they can’t know how difficult it was going into battle 84 times that season, and losing 70 of them. (The Senators 10-70-4 record overall, included an NHL record 40 road losses in 41 road games).
In the room, the novelty was wearing off. The fact it was a good group of guys, was a saving grace.
“If there had been some a-holes in there, and a bunch of infighting, it would have been a nightmare,” Sidorkiewicz says.
Still, none of them had experienced anything quite like it.
“To, on a daily basis, either be strong or be told how bad you were, it’s a tough go,” Shaw says. “It affects your personal confidence on the ice, it affects the team’s confidence as a whole.”
Marsh, a fan favourite, sans helmet, Ottawa’s representative at the NHL all-star game, was the symbol of the Senators hard-working, lunch pail bunch. He still runs into people on the street here who want to talk about the “good old days.”
“A lot of people have fond memories of the early years but they also don’t remember we didn’t win that many games,” says Marsh, in understatement. “On the flip side, there was no expectation of us to be challenging for a playoff spot.”
It must have been a tough year. Boschman, still just 32, retired when the season ended.
“The hardest thing was, if we didn’t work hard as a group every night, teams could really embarrass us,” Boschman says.
In fact, fear of embarrassment was the prime motivating factor.
Defenceman Norm Maciver led the team in scoring with 63 points while Sylvain Turgeon was the top sniper, a 25-goal man. Bob Kudelski contributed 21 goals, Jamie Baker was second in scoring with 48 points. Mike Peluso chipped in 15 goals while fighting his way to 318 penalty minutes.
“We had some performers who did really well that first year,” Boschman says, “but it was a hard year because you knew teams could turn it up and beat you in the third period even if you were competitive through the first two.”
With a coaching staff of Rick Bowness, E.J. McGuire and Alain Vigneault, and veterans like Boschman, Marsh, Shaw, Doug Smail and Hammond, the Senators didn’t lack leadership and direction. Top end talent was a different matter.
When Ottawa won, it was an event — and notjust for the players. Shaw remembers running into several people the next summer who claimed to have made a fortune on Pro-Line catching the Senators on a rare night of triumph.
“Guys would come up and say, ‘Hey, I made eight grand on you guys on Pro-Line. I took you guys to win, remember that one game you won against so and so. I had another four teams and I hit them all — and I made eight grand on two bucks.’
“If you could pick them right,” Shaw says, “if you could pick our 10 wins right you made a ton of money on Pro-Line. Because the odds were astronomical, to pick us to win.”
The odds grew longer on the night of April 10, 1993 on Long Island, when Bowness made a mistake with his lineup card, coupled with another penalty, the Senators confronted a 5-on-3 New York power play in the opening minute and were quickly down 1-0 to a team led by Pierre Turgeon, a 58-goal man that season.
Bring on consecutive road loss No. 39. (The Senators had already set an NHL record with 38 straight).
But no, a small miracle would take place that night, thanks to 42 saves by Sidorkiewicz, a little help from his goalposts and a hat trick from Boschman, who finished with nine goals on the season. Boschman’s third of the night against the Isles put the icing on a 5-3 victory, Ottawa’s first road win of the season, which fans on the Island graciously saluted with a standing ovation. (Pierre Turgeon, incidentally, was minus-3.)
We can’t know how big a deal that win was for those players, after getting kicked in the teeth 38 times on the road.
“It felt like we won the Stanley Cup,” Shaw says. We were near the end of the season and it was like holy — put whatever expletive in there you want.
“I’ve never seen a happier room. I’ve won championships and I’ve never seen a happier room. I think we all felt it was a huge monkey off our backs.”
Caught up in the emotion, players swarmed Boschman after his third goal, and Boschman, imitating Super Bowl and Stanley Cup champions of the day blurted out: “We’re going to Disneyland! We’re going to Disneyland!”
Later, after he’d showered and was walking out to the team bus, Boschman found a gang of his teammates waiting by the door of the bus. As Boschman approached, the players bowed down with arms extended, chanting like Wayne and Garth from the Wayne’s World movie: “We’re not worthy! We’re not worthy!”
Sadly, Sidorkiewicz, who was so heroic on Long Island, and faced 1,737 shots (“quality ones — they weren’t from the perimeter”) in 3,388 minutes of work that season, wrecked his shoulder with six minutes remaining in the final game.
Peter Douris, who appeared in just 19 games with the Boston Bruins, skated through the crease and collided with Sidorkiewicz.
“The next thing I knew, I was under the knife in the morning,” Sidorkiewicz says.
In June 1993, nine days before his 30th birthday, Sidorkiewicz was traded to New Jersey. The shoulder surgery kept him out of action until November. By then a rookie goalie by the name of Martin Brodeur had settled into the Devils crease. Sidorkiewicz appeared in just four more NHL games and finished his career with the AHL Albany River Rats in 1998.
Today he’s an assistant coach with the OHL Erie Otters, in his 12th year with the organization.
wscanlan@ottawacitizen.com
Twitter@HockeyScanner
© Copyright (c) The Ottawa Citizen
OTTAWA — In many ways, the Ottawa Senators are starting over.
As Monday’s NHL trade deadline looms, they’re in the midst of massive changes in player personnel, with a move toward a younger team, built around high draft choices this summer and beyond. It marks the end of an era born in the late 1990s when Ottawa felt it had a legitimate chance to contend for the Stanley Cup, year after year.
How will fans in the nation’s capital respond? The hockey club’s surveys show support for a new approach, on and off the ice. But will they ever be as grateful just to have the NHL in town as fans were the first time around?
Not likely. 12 playoff appearances since 1997 and a trip to the Cup finals in 2007 have created a marketplace spoiled by success, taking playoff berths for granted, and ripping, sourly, on playoff failure. Perhaps this second playoff absence in three seasons will be the pause that refreshes.
If nothing else, it is time to take stock of what the team is, what it wants to be and what it has been.
In a challenging phase of transition, it’s useful to remember a time when fans were so excited about their expansion Senators they showered them with standing ovations — even after defeats, on nights when they played above themselves; a time when Brad Marsh, a workingman’s veteran, was their hero and champion, a time when newspaper headlines routinely referred to the Senators as “Road Kill” and a daily Ottawa Citizen chart termed the Yelnats Puc (Stanley Cup spelled backwards) compared the 1992-93 Senators with the worst team on record at the time, the 1974-75 Washington Capitals.
The team’s goal, in 1993, was to finish last in order to draft Alexandre Daigle first overall that summer, a goal spoken of so openly by Ottawa management that Senators chairman Bruce Firestone was fined $100,000 “for certain intemperate and inappropriate comments.”
The NHL later altered the draft format to create a lottery for bottom dwellers and to escape the perception a team could lose on purpose to assure a first overall pick. Not that anyone was actually accused of losing on purpose.
As the 1992-93 expansion season wound down, the NHL sent investigators to interview Ottawa management, coaching staff and several key players to determine if the team was “throwing games” to secure the top selection. Brad Shaw was one of the players the league interviewed.
“I said to them in the inquisition,” Shaw recalls, “‘You know, we have 60-plus losses.’ We knew how to lose (without trying to).’
“We needed so many things to fall into place just to have a chance to wins that it was kind of humorous they were investigating in the first place.”
Losing on purpose? Not a chance, not for a determined group of castoffs playing for pride and future NHL paycheques — players who bristled at the commonly heard suggestion their team was a laughingstock.
It’s easier now for the players themselves to laugh, looking back 18 years later.
Shaw, now an assistant coach with the St. Louis Blues, was a 28-year-old defenceman out of Cambridge, Ont. He’d been left unprotected by the Hartford Whalers and claimed by Ottawa in the 1992 expansion draft.
Like most of the inaugural Senators, Shaw was asked to play above his credentials. In his own words, “I was not a first-pair NHL defenceman,” but he played on the first pair in Ottawa.
Laurie Boschman, the Senators first captain and a 13-year NHL veteran in the fall of 1992, remembers looking around at training camp, and gulping.
“There were players at camp I wasn’t as familiar with because they weren’t established NHLers,” Boschman says, putting it kindly.
Even before the players laced up their skates for the first time, there had been bad omens.
Poor Mel Bridgman, the Senators first general manager, selected three ineligible players at the slim-pickings expansion draft, and a newspaper employee named Larry Skinner, who had played a few NHL games, attended the tryout to write first-person stories and wound up being the top scorer in camp. Skinner returned to his newspaper gig and left the losing to the professionals.
“You were just a bunch of misfits nobody wanted,” says winger Jody Hull, now an assistant coach with the OHL Peterborough Petes. A first-round draft choice of the Hartford Whalers in 1987, Ottawa was Hull’s third NHL team, and after one season as a Senator, he joined the expansion Florida Panthers as a free agent.
“To already be with two expansion teams was a bit of an eye-opener,” says Hull, who rejoined the Senators from 2001-03.
If only it had been as easy as it looked in the inaugural Senators game, when the upstarts stunned the Montreal Canadiens 5-3 at the Civic Centre, the same Habs team that would go on to win the ‘93 Stanley Cup.
The whole town was beyond giddy, players included.
“I remember reading the papers before we started and the media were picking us to win maybe eight, nine games,” says goaltender Peter Sidorkiewicz, who played 64 games for the new Sens in Season 1.
“After the first game, when we beat Montreal, on Hockey Night In Canada, I think I was with Ken Hammond and Brad Marsh, we were standing in front of the mirror shaving, we looked at each other and said, ‘Those reporters have to be crazy, we’ll win 10 games by Christmas!’
“We went on and lost our next 21 (21 winless, to be precise), so I guess you guys were right.”
Only a Halloween tie with the Buffalo Sabres kept the Senators from a 21-game losing streak after the initial win. “Everywhere we went, every time we showed up in a town, by about the 20 game mark, we were the weak sisters of the league and the view was, ‘What an embarrassment it would be to lose to these guys,’” Shaw says. “It was well established that skill-wise we didn’t match up against any other team.”
Fans tend to reflect romantically about Ottawa’s lovable expansion team, which will mark its 20th anniversary the season after next, but they can’t know how difficult it was going into battle 84 times that season, and losing 70 of them. (The Senators 10-70-4 record overall, included an NHL record 40 road losses in 41 road games).
In the room, the novelty was wearing off. The fact it was a good group of guys, was a saving grace.
“If there had been some a-holes in there, and a bunch of infighting, it would have been a nightmare,” Sidorkiewicz says.
Still, none of them had experienced anything quite like it.
“To, on a daily basis, either be strong or be told how bad you were, it’s a tough go,” Shaw says. “It affects your personal confidence on the ice, it affects the team’s confidence as a whole.”
Marsh, a fan favourite, sans helmet, Ottawa’s representative at the NHL all-star game, was the symbol of the Senators hard-working, lunch pail bunch. He still runs into people on the street here who want to talk about the “good old days.”
“A lot of people have fond memories of the early years but they also don’t remember we didn’t win that many games,” says Marsh, in understatement. “On the flip side, there was no expectation of us to be challenging for a playoff spot.”
It must have been a tough year. Boschman, still just 32, retired when the season ended.
“The hardest thing was, if we didn’t work hard as a group every night, teams could really embarrass us,” Boschman says.
In fact, fear of embarrassment was the prime motivating factor.
Defenceman Norm Maciver led the team in scoring with 63 points while Sylvain Turgeon was the top sniper, a 25-goal man. Bob Kudelski contributed 21 goals, Jamie Baker was second in scoring with 48 points. Mike Peluso chipped in 15 goals while fighting his way to 318 penalty minutes.
“We had some performers who did really well that first year,” Boschman says, “but it was a hard year because you knew teams could turn it up and beat you in the third period even if you were competitive through the first two.”
With a coaching staff of Rick Bowness, E.J. McGuire and Alain Vigneault, and veterans like Boschman, Marsh, Shaw, Doug Smail and Hammond, the Senators didn’t lack leadership and direction. Top end talent was a different matter.
When Ottawa won, it was an event — and notjust for the players. Shaw remembers running into several people the next summer who claimed to have made a fortune on Pro-Line catching the Senators on a rare night of triumph.
“Guys would come up and say, ‘Hey, I made eight grand on you guys on Pro-Line. I took you guys to win, remember that one game you won against so and so. I had another four teams and I hit them all — and I made eight grand on two bucks.’
“If you could pick them right,” Shaw says, “if you could pick our 10 wins right you made a ton of money on Pro-Line. Because the odds were astronomical, to pick us to win.”
The odds grew longer on the night of April 10, 1993 on Long Island, when Bowness made a mistake with his lineup card, coupled with another penalty, the Senators confronted a 5-on-3 New York power play in the opening minute and were quickly down 1-0 to a team led by Pierre Turgeon, a 58-goal man that season.
Bring on consecutive road loss No. 39. (The Senators had already set an NHL record with 38 straight).
But no, a small miracle would take place that night, thanks to 42 saves by Sidorkiewicz, a little help from his goalposts and a hat trick from Boschman, who finished with nine goals on the season. Boschman’s third of the night against the Isles put the icing on a 5-3 victory, Ottawa’s first road win of the season, which fans on the Island graciously saluted with a standing ovation. (Pierre Turgeon, incidentally, was minus-3.)
We can’t know how big a deal that win was for those players, after getting kicked in the teeth 38 times on the road.
“It felt like we won the Stanley Cup,” Shaw says. We were near the end of the season and it was like holy — put whatever expletive in there you want.
“I’ve never seen a happier room. I’ve won championships and I’ve never seen a happier room. I think we all felt it was a huge monkey off our backs.”
Caught up in the emotion, players swarmed Boschman after his third goal, and Boschman, imitating Super Bowl and Stanley Cup champions of the day blurted out: “We’re going to Disneyland! We’re going to Disneyland!”
Later, after he’d showered and was walking out to the team bus, Boschman found a gang of his teammates waiting by the door of the bus. As Boschman approached, the players bowed down with arms extended, chanting like Wayne and Garth from the Wayne’s World movie: “We’re not worthy! We’re not worthy!”
Sadly, Sidorkiewicz, who was so heroic on Long Island, and faced 1,737 shots (“quality ones — they weren’t from the perimeter”) in 3,388 minutes of work that season, wrecked his shoulder with six minutes remaining in the final game.
Peter Douris, who appeared in just 19 games with the Boston Bruins, skated through the crease and collided with Sidorkiewicz.
“The next thing I knew, I was under the knife in the morning,” Sidorkiewicz says.
In June 1993, nine days before his 30th birthday, Sidorkiewicz was traded to New Jersey. The shoulder surgery kept him out of action until November. By then a rookie goalie by the name of Martin Brodeur had settled into the Devils crease. Sidorkiewicz appeared in just four more NHL games and finished his career with the AHL Albany River Rats in 1998.
Today he’s an assistant coach with the OHL Erie Otters, in his 12th year with the organization.
wscanlan@ottawacitizen.com
Twitter@HockeyScanner
© Copyright (c) The Ottawa Citizen
Shaw Capital Management Headlines: Work begins to make way for new Earthquakes home | World Headlines: Shaw Capital Management
http://www.sacbee.com/2011/03/04/3450457/work-begins-to-make-way-for-new.html
The Associated Press
Published: Friday, Mar. 4, 2011 – 3:18 pm
SANTA CLARA, Calif. – Demolition is under way on an old factory that will eventually become the permanent home of the San Jose Earthquakes soccer team.
Team officials, local leaders and soccer fans gathered Thursday as an excavator made the first tear into the former FMC plant near the Mineta San Jose International Airport.
The Earthquakes plan to build a $60 million stadium at the Santa Clara site. The proposed complex also would include office space, retail space and hotel rooms.
The San Jose Mercury News reports that the team still needs to get a building permit approved by the city.
The Earthquakes returned to San Jose in 2008 after briefly relocating to Houston. The team is playing home games in Buck Shaw Stadium at Santa Clara University until their new stadium is ready.
The Associated Press
Published: Friday, Mar. 4, 2011 – 3:18 pm
SANTA CLARA, Calif. – Demolition is under way on an old factory that will eventually become the permanent home of the San Jose Earthquakes soccer team.
Team officials, local leaders and soccer fans gathered Thursday as an excavator made the first tear into the former FMC plant near the Mineta San Jose International Airport.
The Earthquakes plan to build a $60 million stadium at the Santa Clara site. The proposed complex also would include office space, retail space and hotel rooms.
The San Jose Mercury News reports that the team still needs to get a building permit approved by the city.
The Earthquakes returned to San Jose in 2008 after briefly relocating to Houston. The team is playing home games in Buck Shaw Stadium at Santa Clara University until their new stadium is ready.
Friday, 11 March 2011
Shaw Capital Management Headlines: South Korea’s Current-Account Surplus Narrowed in January | World Headlines: Shaw Capital Management
business planning
international business development consultants.
(www.consultgsi.com)
Thursday, February 24, 2011
(Updates with official’s comment in the sixth paragraph.)
Feb. 25 (Bloomberg) — South Korea’s current-account surplus narrowed to an 11-month low in January as imports surged amid an economic recovery and rising energy demand.
The surplus was $229 million, compared with $2.11 billion in December, the Bank of Korea said in a statement in Seoul today. The current account is the broadest measure of trade, tracking goods, services and investment income.
South Korea has stepped up measures to limit won gains driven by foreign capital inflows, helping keep exports competitive. Overseas shipments contributed to the fastest economic expansion last year since 2002, stoking price pressures and prompting the Bank of Korea to raise interest rates.
“The current account stands to worsen should oil prices move much higher,” said Kwon Young Sun, an economist at Nomura Holdings Inc. in Hong Kong. “We see an increasing risk that the BOK will choose not to raise rates in March because of uncertainties surrounding the Middle East crisis.”
The won rose 0.2 percent to 1,128.95 per dollar as of 10:30 a.m. in Seoul. The benchmark Kospi stock index lost 0.33 percent. The currency has weakened about 0.27 percent against the dollar this year, according to data compiled by Bloomberg.
The nation will probably post a current-account surplus in February as exports remain “stronger than expected” even as imports rise, Lee Young Bog, an official at the Bank of Korea, told reporters in Seoul today.
Earnings Boost
Total exports on a customs-cleared basis rose 45.4 percent last month from a year earlier, compared with a 22.6 percent gain in December. Imports climbed 32.4 percent after rising 21.7 percent in December.
Overseas shipments have boosted earnings last year at companies including Samsung Electronics Co., Asia’s biggest maker of semiconductors, flat screens and mobile phones.
The central bank unexpectedly left the nation’s benchmark interest rate at 2.75 percent this month after raising it in January, July and November from a record-low 2 percent. Inflation quickened to 4.1 percent in January from 3.5 percent in December, exceeding the bank’s target of 2 percent to 4 percent through 2012.
The surplus on traded goods narrowed to $1.63 billion last month from $3.68 billion in December, today’s report showed. The services deficit, which measures the flow of travel, transport costs and royalties, was $1.64 billion in January, compared with $1.15 billion in December.
–With assistance from Patricia Lui in Singapore. Editors: Lily Nonomiya, Ken McCallum
international business development consultants.
(www.consultgsi.com)
Thursday, February 24, 2011
(Updates with official’s comment in the sixth paragraph.)
Feb. 25 (Bloomberg) — South Korea’s current-account surplus narrowed to an 11-month low in January as imports surged amid an economic recovery and rising energy demand.
The surplus was $229 million, compared with $2.11 billion in December, the Bank of Korea said in a statement in Seoul today. The current account is the broadest measure of trade, tracking goods, services and investment income.
South Korea has stepped up measures to limit won gains driven by foreign capital inflows, helping keep exports competitive. Overseas shipments contributed to the fastest economic expansion last year since 2002, stoking price pressures and prompting the Bank of Korea to raise interest rates.
“The current account stands to worsen should oil prices move much higher,” said Kwon Young Sun, an economist at Nomura Holdings Inc. in Hong Kong. “We see an increasing risk that the BOK will choose not to raise rates in March because of uncertainties surrounding the Middle East crisis.”
The won rose 0.2 percent to 1,128.95 per dollar as of 10:30 a.m. in Seoul. The benchmark Kospi stock index lost 0.33 percent. The currency has weakened about 0.27 percent against the dollar this year, according to data compiled by Bloomberg.
The nation will probably post a current-account surplus in February as exports remain “stronger than expected” even as imports rise, Lee Young Bog, an official at the Bank of Korea, told reporters in Seoul today.
Earnings Boost
Total exports on a customs-cleared basis rose 45.4 percent last month from a year earlier, compared with a 22.6 percent gain in December. Imports climbed 32.4 percent after rising 21.7 percent in December.
Overseas shipments have boosted earnings last year at companies including Samsung Electronics Co., Asia’s biggest maker of semiconductors, flat screens and mobile phones.
The central bank unexpectedly left the nation’s benchmark interest rate at 2.75 percent this month after raising it in January, July and November from a record-low 2 percent. Inflation quickened to 4.1 percent in January from 3.5 percent in December, exceeding the bank’s target of 2 percent to 4 percent through 2012.
The surplus on traded goods narrowed to $1.63 billion last month from $3.68 billion in December, today’s report showed. The services deficit, which measures the flow of travel, transport costs and royalties, was $1.64 billion in January, compared with $1.15 billion in December.
–With assistance from Patricia Lui in Singapore. Editors: Lily Nonomiya, Ken McCallum
Shaw Capital Management Headlines: Shaw Capital Management Scam Info:Internet Scam Against Vermont National Guard
Maj. Gen. Michael Dubie Has Identity Stolen
By Randy Gyllenhaal
Reporter
http://www.wptz.com/news/26881374/detail.html
BURLINGTON, Vt. — An international scam using social media sites like Facebook and Skype used the likeness of Vermont National Guard General Michael Dubie to steal money from victims around the world.
Dubie learned of the scam after his staffers found fake social media accounts using pictures of the General. The Guard says the criminals lured women in foreign countries into wiring thousands of dollars, thinking they were donating to help the Vermont National Guard.
“It’s pretty discouraging,” said Dubie Tuesday in his Colchester office. “I think it’s even more troubling that they’re exploiting myself and other members of the military.”
According to chat transcripts between the scammers and the victims, the fake General Dubie would flirt with foreign women to build a relationship and then ask them for money. One woman in Toronto was fooled and wired $3,000 to the criminals.
Click the video above to see some of the chat logs
“The best word to use is flirting with these women,” said Lt. Dyana Allen, who has been tracking the scam. “They’re trying to build their trust, it’s a typical identity scam.”
The Guard has already removed many fake Facebook accounts but they keep popping back up. They’ve also created a real account for General Dubie which they hope will stop people from communicating with fake ones.
The FBI has started an investigation after learning that similar scams are happening to high ranking members of the military across the country.
“We have found out that there are a number of other senior officers around the country who have had this same thing happen,” Dubie said.
By Randy Gyllenhaal
Reporter
http://www.wptz.com/news/26881374/detail.html
BURLINGTON, Vt. — An international scam using social media sites like Facebook and Skype used the likeness of Vermont National Guard General Michael Dubie to steal money from victims around the world.
Dubie learned of the scam after his staffers found fake social media accounts using pictures of the General. The Guard says the criminals lured women in foreign countries into wiring thousands of dollars, thinking they were donating to help the Vermont National Guard.
“It’s pretty discouraging,” said Dubie Tuesday in his Colchester office. “I think it’s even more troubling that they’re exploiting myself and other members of the military.”
According to chat transcripts between the scammers and the victims, the fake General Dubie would flirt with foreign women to build a relationship and then ask them for money. One woman in Toronto was fooled and wired $3,000 to the criminals.
Click the video above to see some of the chat logs
“The best word to use is flirting with these women,” said Lt. Dyana Allen, who has been tracking the scam. “They’re trying to build their trust, it’s a typical identity scam.”
The Guard has already removed many fake Facebook accounts but they keep popping back up. They’ve also created a real account for General Dubie which they hope will stop people from communicating with fake ones.
The FBI has started an investigation after learning that similar scams are happening to high ranking members of the military across the country.
“We have found out that there are a number of other senior officers around the country who have had this same thing happen,” Dubie said.
Shaw Capital Management Headlines: Leave HST vote where it is — Colin Hansen. | World Headlines: Shaw Capital Management
By VAUGHN PALMER 18 FEB 2011
For all the speculation among B.C. Liberal leadership candidates about moving up the province wide vote on the harmonized sales tax, Finance Minister Colin Hansen would prefer it the government stuck to the scheduled date of Sept. 24.
“I think it would make sense to leave it there, “Hansen told me during an interview on Voice of B.C. on Shaw TV.
“But obviously leadership candidates have come up with other ideas,” he added, in quick difference to George Abbott and advocating a vote in late June. ” I think that’s a discussion that the caucus will have to have under the leadership of the new Premier.
Hansen’s rationale is that the opinion polls suggest public opposition to the tax is weakening and acceptance, however grudging, is on the rise.
“When it was first introduced, there’s no question there was huge anger out there,” he said. “There was a poll that was done by Ipsos-Reid just prior to the implementation that showed that…. I think the headline number was that 80 percent were opposed, but if you refined that down, there was 45 percent strongly opposed.
“They did that poll again a few months later — I think it was October — and it showed that the headline number had come down to only 72 percent opposed, but the number strongly opposed had actually come down to 32 percent.
“We know that that is shifting, that people…. It’s not like they’re warming up to it; it’s never going to win a popularity contest, but I think people are starting to realize that the ramifications of going back to the PST are huge. I hear it from a lot of people that say, “Look, I don’t like it. I don’t like the way that you did it, but now that it’s here, it’s probably worth keeping it rather than going back to the old PST system.”
He figures the polling trend is translating into a voting trend as well: “I find that people who were very public about their opposition a year ago are now coming out publicly and saying, “You know, I’m going to vote, actually, to keep the HST.” I talk to a lot of small-business owners, who were very opposed to it initially, but in the intervening months they’ve actually had a chance to talk to their accountants, and they realized that it actually works for their benefit and the benefit of their small business and their workers.”
On the other side of the ledger, Hansen cites a rising awareness that it would be far from painless to go back to the old provincial sales tax.
“First of all, we would have to forgo and repay $1.6 billion to the federal government….
That would definitely have the impact of significantly increasing our debt burden for future generations.”
Really? Others have speculated that Ottawa, having paid out the money in three installments (the third is due this July), wouldn’t dare ask for it back.
” I don’t think anyone would be in a position to say that,” replied Hansen. “We have an agreement with Ottawa that if we don’t live up to our side of the agreement, that we would have to pay that back to Ottawa.”
Not just Ottawa. Other provinces would squawk as well, and either that B.C. be obliged to keep its side of the deal or demand an equivalent payout for themselves.
“You’ve got to look at it why would anybody in another province say, “Okay, well, B.C. didn’t do their part of the deal, so we’re just going to let them keep those federal tax dollars”? I don’t think that’s realistic at all, and that’s certainly not what we would be faced with, given the language that’s in our agreements.”
Plus there are other consequences as well, such as the cost of having to go back to administer the provincial sales tax.
“It was costing us about $30 million a year. We’re now saving that. That actually is money freed up to pay for other programs. There’s about $150 million a year that it was costing the business community. Small companies always complained about the paper burden of filling in two sets of tax filings that they had to do. Now they only have one.
There’s also just the cost of getting the whole PST system back in place. It would be expensive, and it would be very time-consuming to re-establish that entire tax collection system.”
How long would it take to untangle the two tax systems and put things back as they were?
” I think that that timeline is something that we would have to work out. It’s not going to happen — it can’t happen — quickly. The actual legislation to establish the harmonized sales tax in British Columbia and Ontario was federal legislation. The legislation we passed in British Columbia was to get rid of the old provincial sales tax, so we would actually have to sit down and work with Ottawa in terms of the timing of the federal legislative agenda, as well as just all of the administrative things that would have to happen to re-establish the provincial sales tax system in British Columbia. It would not be a quick process.”
In order to sort out all the costs and implications, Hansen has appointed a four-person panel headed by former Alberta minister of finance Jim Dinning. Long over due some would say and too bad they didn’t appoint such an exercise before bringing in the tax in the first place.
“The purpose of the panel is to actually provide analysis and information to the public so that the public can make an informed vote,” said Hansen. “These are independent people who I think could wrap their heads around some of the dynamics of what it’s going to mean if the vote goes one way or the other.
“What we don’t want is whatever the outcome of the vote — which we’ve said we will respect the will of the majority — whatever that outcome is, we don’t want people two months later to say, “Oh, wait a second — I didn’t know that if we defeated the HST, I was going to be giving up my HST credit cheque which I now enjoy”; or that the cost of tax on accommodation is going to go up by a percentage point, because it came down as a result; or that the cost on a glass of beer at a restaurant is going to go up by 3 percent, because that would be rolling back to what we had before.
“There are lots of issues. We just want to make sure that people feel that they have independent, factual information upon which they can decide how they’re going to vote — vote to keep it, or vote to go back.”
Hansen defended the makeup of the panel as well.
“I get it that we, as politicians, do not have a lot of credibility on the subject of the benefits, the pros and cons, of harmonized sales tax,” he said.
“These are individuals who come from a variety of backgrounds. Jim Dinning, as you mentioned, was a former Finance Minister of Alberta. George Morfitt is a very respected and independent former auditor general in British Columbia. John Richards, a former NDP MLA from Saskatchewan, who has been at Simon Fraser University now for a number of years, is seen as an expert in public policy analysis. And Tracy — forgive me Tracy, I’m going to forget the last name (Redies) — is the president and CEO of Coast Capital.”
Hansen took a cautious approach on one of the other suggestions to come out of the leadership campaign, namely Kevin Falcon’s idea (borrowed from SFU economist Jon Kesselman) to cut the HST by one point as an incentive for folks to vote to save it.
” Well, I think that is an option for the new Premier and government in the future, to look at that,” said Hansen. ” I think the tax cut that the Premier had announced and then we backtracked on — that would have cost about $600 million a year, so this would be more expensive — to do one percentage point. That would then limit other options. But certainly it’s an option that we have in our agreement with Ottawa — that once the HST has been in place for two years — meaning July 1, 2012 — we would have the option of adjusting the 7 percent provincial rate.”
So expensive but do able. Which led Hansen back to another point about the cost to the province of going back to the PST, which is a loss of revenue (vis a vis sticking with the HST) down the road.
How so? The HST base will be broader in the long run, partly because of the phase out of transitional rebates, partly because the province is shifting to the purchase of services vis a vis goods, and partly because of some growth expected from the inducement to investment represented by the HST, according to Hansen.
“In the first year — the year we’re in right now — and the coming year, we are going to be collecting, under the HST system, about the same net amount to the provincial coffers as we would be collecting today if we’d kept the PST system in place,” he explained.
“But over time — even in this budget that I tabled, the second and third year — you start to see the income from HST ramping up, because we will see more economic activity. There will be more jobs in British Columbia, more people paying income tax, and there is a differing impact on the tax base.
“The other thing is: as some of the rebates that are in place now — the transitional rebates — get covered, then it actually winds up to be a net positive in those out years. That’s another factor. If the HST is eliminated in the vote and we go back to the PST system, there’s actually going to be a gap in terms of a revenue shortfall that otherwise would be there to help get to surplus budgets.”
The Dinning commission is scheduled to report out on the costs of changing back in six weeks or so.
“We are providing them with as much information as we have in the Ministry of Finance. I don’t think it will be totally comprehensive, because there’s still data that’s evolving. As we have the experience with the harmonized sales tax, we’re starting to refine some of the numbers that were initially predictions, based on Stats Canada data. As we get hard data, it’s actually going to allow us to refine some of those projections.
“They’re scheduled to report out in April. I think they’re hoping that they can actually get it done earlier, if possible.”
That report may well contribute to the next premier’s thinking on the timing of the vote as well. And he/she may want to hold off any thought of changing the date, until after it is out and the public response has been gauged
For all the speculation among B.C. Liberal leadership candidates about moving up the province wide vote on the harmonized sales tax, Finance Minister Colin Hansen would prefer it the government stuck to the scheduled date of Sept. 24.
“I think it would make sense to leave it there, “Hansen told me during an interview on Voice of B.C. on Shaw TV.
“But obviously leadership candidates have come up with other ideas,” he added, in quick difference to George Abbott and advocating a vote in late June. ” I think that’s a discussion that the caucus will have to have under the leadership of the new Premier.
Hansen’s rationale is that the opinion polls suggest public opposition to the tax is weakening and acceptance, however grudging, is on the rise.
“When it was first introduced, there’s no question there was huge anger out there,” he said. “There was a poll that was done by Ipsos-Reid just prior to the implementation that showed that…. I think the headline number was that 80 percent were opposed, but if you refined that down, there was 45 percent strongly opposed.
“They did that poll again a few months later — I think it was October — and it showed that the headline number had come down to only 72 percent opposed, but the number strongly opposed had actually come down to 32 percent.
“We know that that is shifting, that people…. It’s not like they’re warming up to it; it’s never going to win a popularity contest, but I think people are starting to realize that the ramifications of going back to the PST are huge. I hear it from a lot of people that say, “Look, I don’t like it. I don’t like the way that you did it, but now that it’s here, it’s probably worth keeping it rather than going back to the old PST system.”
He figures the polling trend is translating into a voting trend as well: “I find that people who were very public about their opposition a year ago are now coming out publicly and saying, “You know, I’m going to vote, actually, to keep the HST.” I talk to a lot of small-business owners, who were very opposed to it initially, but in the intervening months they’ve actually had a chance to talk to their accountants, and they realized that it actually works for their benefit and the benefit of their small business and their workers.”
On the other side of the ledger, Hansen cites a rising awareness that it would be far from painless to go back to the old provincial sales tax.
“First of all, we would have to forgo and repay $1.6 billion to the federal government….
That would definitely have the impact of significantly increasing our debt burden for future generations.”
Really? Others have speculated that Ottawa, having paid out the money in three installments (the third is due this July), wouldn’t dare ask for it back.
” I don’t think anyone would be in a position to say that,” replied Hansen. “We have an agreement with Ottawa that if we don’t live up to our side of the agreement, that we would have to pay that back to Ottawa.”
Not just Ottawa. Other provinces would squawk as well, and either that B.C. be obliged to keep its side of the deal or demand an equivalent payout for themselves.
“You’ve got to look at it why would anybody in another province say, “Okay, well, B.C. didn’t do their part of the deal, so we’re just going to let them keep those federal tax dollars”? I don’t think that’s realistic at all, and that’s certainly not what we would be faced with, given the language that’s in our agreements.”
Plus there are other consequences as well, such as the cost of having to go back to administer the provincial sales tax.
“It was costing us about $30 million a year. We’re now saving that. That actually is money freed up to pay for other programs. There’s about $150 million a year that it was costing the business community. Small companies always complained about the paper burden of filling in two sets of tax filings that they had to do. Now they only have one.
There’s also just the cost of getting the whole PST system back in place. It would be expensive, and it would be very time-consuming to re-establish that entire tax collection system.”
How long would it take to untangle the two tax systems and put things back as they were?
” I think that that timeline is something that we would have to work out. It’s not going to happen — it can’t happen — quickly. The actual legislation to establish the harmonized sales tax in British Columbia and Ontario was federal legislation. The legislation we passed in British Columbia was to get rid of the old provincial sales tax, so we would actually have to sit down and work with Ottawa in terms of the timing of the federal legislative agenda, as well as just all of the administrative things that would have to happen to re-establish the provincial sales tax system in British Columbia. It would not be a quick process.”
In order to sort out all the costs and implications, Hansen has appointed a four-person panel headed by former Alberta minister of finance Jim Dinning. Long over due some would say and too bad they didn’t appoint such an exercise before bringing in the tax in the first place.
“The purpose of the panel is to actually provide analysis and information to the public so that the public can make an informed vote,” said Hansen. “These are independent people who I think could wrap their heads around some of the dynamics of what it’s going to mean if the vote goes one way or the other.
“What we don’t want is whatever the outcome of the vote — which we’ve said we will respect the will of the majority — whatever that outcome is, we don’t want people two months later to say, “Oh, wait a second — I didn’t know that if we defeated the HST, I was going to be giving up my HST credit cheque which I now enjoy”; or that the cost of tax on accommodation is going to go up by a percentage point, because it came down as a result; or that the cost on a glass of beer at a restaurant is going to go up by 3 percent, because that would be rolling back to what we had before.
“There are lots of issues. We just want to make sure that people feel that they have independent, factual information upon which they can decide how they’re going to vote — vote to keep it, or vote to go back.”
Hansen defended the makeup of the panel as well.
“I get it that we, as politicians, do not have a lot of credibility on the subject of the benefits, the pros and cons, of harmonized sales tax,” he said.
“These are individuals who come from a variety of backgrounds. Jim Dinning, as you mentioned, was a former Finance Minister of Alberta. George Morfitt is a very respected and independent former auditor general in British Columbia. John Richards, a former NDP MLA from Saskatchewan, who has been at Simon Fraser University now for a number of years, is seen as an expert in public policy analysis. And Tracy — forgive me Tracy, I’m going to forget the last name (Redies) — is the president and CEO of Coast Capital.”
Hansen took a cautious approach on one of the other suggestions to come out of the leadership campaign, namely Kevin Falcon’s idea (borrowed from SFU economist Jon Kesselman) to cut the HST by one point as an incentive for folks to vote to save it.
” Well, I think that is an option for the new Premier and government in the future, to look at that,” said Hansen. ” I think the tax cut that the Premier had announced and then we backtracked on — that would have cost about $600 million a year, so this would be more expensive — to do one percentage point. That would then limit other options. But certainly it’s an option that we have in our agreement with Ottawa — that once the HST has been in place for two years — meaning July 1, 2012 — we would have the option of adjusting the 7 percent provincial rate.”
So expensive but do able. Which led Hansen back to another point about the cost to the province of going back to the PST, which is a loss of revenue (vis a vis sticking with the HST) down the road.
How so? The HST base will be broader in the long run, partly because of the phase out of transitional rebates, partly because the province is shifting to the purchase of services vis a vis goods, and partly because of some growth expected from the inducement to investment represented by the HST, according to Hansen.
“In the first year — the year we’re in right now — and the coming year, we are going to be collecting, under the HST system, about the same net amount to the provincial coffers as we would be collecting today if we’d kept the PST system in place,” he explained.
“But over time — even in this budget that I tabled, the second and third year — you start to see the income from HST ramping up, because we will see more economic activity. There will be more jobs in British Columbia, more people paying income tax, and there is a differing impact on the tax base.
“The other thing is: as some of the rebates that are in place now — the transitional rebates — get covered, then it actually winds up to be a net positive in those out years. That’s another factor. If the HST is eliminated in the vote and we go back to the PST system, there’s actually going to be a gap in terms of a revenue shortfall that otherwise would be there to help get to surplus budgets.”
The Dinning commission is scheduled to report out on the costs of changing back in six weeks or so.
“We are providing them with as much information as we have in the Ministry of Finance. I don’t think it will be totally comprehensive, because there’s still data that’s evolving. As we have the experience with the harmonized sales tax, we’re starting to refine some of the numbers that were initially predictions, based on Stats Canada data. As we get hard data, it’s actually going to allow us to refine some of those projections.
“They’re scheduled to report out in April. I think they’re hoping that they can actually get it done earlier, if possible.”
That report may well contribute to the next premier’s thinking on the timing of the vote as well. And he/she may want to hold off any thought of changing the date, until after it is out and the public response has been gauged
shaw Capital Management Headlines: shaw capital management scam info:Internet scam money trail leads to Martha’s Vineyard
By Steve Myrick
Published: February 2, 2011
http://www.mvtimes.com/marthas-vineyard/article.php?id=4371
Edgartown police have traced a cyberspace trail through more than a dozen states in pursuit of a craigslist scam artist who cons people into sending money to Martha’s Vineyard to buy a nonexistent all-terrain vehicle.
Published: February 2, 2011
http://www.mvtimes.com/marthas-vineyard/article.php?id=4371
Edgartown police have traced a cyberspace trail through more than a dozen states in pursuit of a craigslist scam artist who cons people into sending money to Martha’s Vineyard to buy a nonexistent all-terrain vehicle.
This week, they turned to their own high-tech tools, surveillance video, and their own new crime-fighting website, to track down the Internet thief.
Officer Michael Gazaille first began investigating the scam in December, when Brian Cullen called the Edgartown Police Department from Oregon, Wisconsin.
Mr. Cullen saw an advertisement posted on craigslist, the wildly popular online aggregation of free classified ads offering everything imaginable for sale from locations around the world. The ad offered a Polaris four-wheel, all-terrain vehicle (ATV) for sale. The price was $2,920.
The seller directed Mr. Cullen to an eBay web page where the well-known online auction market arranges escrow service for people buying and selling items at a distance. The escrow service holds the money, until the buyer gets the merchandise and approves the sale. Then the service releases the money to the seller.
Except, it wasn’t really an eBay web page. It was a spoof, intended to look like a page on the eBay site, although Officer Gazaille said there were some fairly obvious clues that something was amiss.
Mr. Cullen filled in all the information required by the fake web page. The seller instructed him to wire the $2,920 price to Martha’s Vineyard, by Western Union’s money transfer service.
He did. Big mistake.
Someone picked up the money at the Stop & Shop grocery store in Edgartown, which offers Western Union money transfer service. The suspect listed an Oak Bluffs address on the form. Asked for the required identification, he showed the clerk an Illinois driver’s license issued to Luri Kankadze. Police could not find anyone by that name in any local records. He is not at the address he listed. Police assume that the I.D. was also a fake.
Tangled web
When Officer Gazaille began to untangle the web of deceit, his investigation seemed to branch in hundreds of directions.
“It’s frustrating,” Mr. Gazaille said. “You want to get the FBI involved, but they’re completely overwhelmed, unless you’re talking hundreds of thousands of dollars worth of scams.”
But he kept at it, though he doesn’t have any special training in cyber-crime fighting. He learned as he went along, using the Internet.
He got a subpoena for information about the email accounts that had been used. After more than a week, the mail services sent him 48 pages of information.
“They’ll give you information on the last two months,” Mr. Gazaille said. “Emails sent, where they were sent from. Most of them were in the Kansas area.”
The seller listed the location of the non-existent ATV as Montana. The seller sent email from hundreds of different locations. Those turned out to be public places such as coffee shops, libraries, and other outlets that provide free wireless internet service, open to anyone.
The Edgartown officer followed the money and discovered something interesting. Michael Cummings, of Glencove, Ontario fell for the same scam. Same craigslist advertisement, same price, same amount wired by Western Union to Martha’s Vineyard. This time the suspect picked up the money at the Stop & Shop in Vineyard Haven.
“The only connection to the Vineyard was the money was actually wired to the Vineyard,” Mr. Gazaille said.
But he also discovered what looked like many other attempts to con unsuspecting buyers.
“It’s probably a bigger scam than the Vineyard,” Mr. Gazaille said. “Kansas, New York, a couple were sent from Illinois. Texas police are involved.”
Cyber crime-fighting
If Mr. Gazaille were a fireman, he might fight fire with fire. But he is a police officer, so he fought a cyber thief with cyber tools. Posing as an interested buyer, he answered the craigslist advertisement, which was still posted online.
“I went back and forth with these people for a couple of weeks,” Officer Gazaille said. “They went through the same process with me. I was hoping they would send the money here. But at the last second, they wanted me to send the money to a different guy at a different place.”
Though the investigation stopped just short of the point of money changing hands, police considered sending an actual wire transfer of money, hoping to nab a suspect when he picked it up on-Island.
“We were thinking about it,” Mr. Gazaille said. “We talked about it for a while.” Police sometimes use real money during their investigations. District attorneys may keep funds for that purpose in closely monitored accounts. The source of the money is often cash seized during drug investigations.
All attempts to catch the cyber criminal have not yielded a suspect. But police do have some important clues. By going through Western Union records, Mr. Gazaille found the time the thief picked up the money, and matched that to surveillance camera images. The same person picked up the money at the two different Stop & Shop locations.
Officer Gazaille asks that anyone who recognizes the images published in today’s Times call the Edgartown police department’s crime tip line at 774-310-1190.
Police have surveillance video, which could offer further clues. The two-minute 42-second video, posted on the police department’s new website shows the suspect filling out the Western Union paperwork and speaking briefly with the Stop & Shop clerk, as well as a store patron who was next in line at the counter.
If police can catch up with the thief, he will face charges of larceny and wire fraud.
Fair warning
Online marketplaces like craigslist and eBay display prominent warnings about fraud and how to prevent it. Though they thought they were taking precautions by using the fake E-bay escrow service, the two victims in this case violated several simple guidelines posted in multiple places on both sites.
“Deal locally with folks you can meet in person,” warns craigslist under the link “avoid scams and fraud,” on its home page. “Follow this one rule and avoid ninety-nine percent of scam attempts on craigslist.”
Another warning in bold type advises against using a money transfer service.
“Never wire funds via Western Union, Moneygram, or any other wire service. Anyone who asks you to do so is a scammer.”
There are several places to report Internet fraud.
Victims of cyber-crime may file reports at the Internet Crime Complaint Center (IC3).
The Federal Trade Commission (FTC) operates a telephone help line where you can get information about identity theft and other on-line crimes. The number for the FTC is 1-877-ID-THEFT (1-877-438-4338). Complaints can also be filed at that number.
Collectively, federal, state, and local law enforcement receive many thousands of complaints about Internet fraud. As Officer Gazaille found out, tracking down the perpetrators is a frustrating and time-consuming process.
The reports help investigators track trends, discover new scams, and issue appropriate warnings. But it is unrealistic to expect individual cases of fraud will be solved, and the money returned to the victims.
The best way to do that, Officer Gazaille says, is be wary enough to steer clear of the con in the first place.
Shaw Capital Management Headlines: Shaw Capital Scam Info: Fraud fears make B.C. residents less likely to give to charities
By Gillian Shaw, Vancouver Sun February 25, 2011
The aftershocks had barely settled in the Christchurch earthquake before the online charity scams started appearing on the Internet and in people’s email inboxes.
Such high-profile online scams are fuelling fears of fraud, with more than 50 per cent of Canadians saying they are less likely to give money to charities due to concerns about fraud, according to a survey released Thursday.
But the reality is that online schemes are a drop in the bucket compared with more complicated ones involving charitable tax schemes and bogus charity receipts, says Toronto lawyer Mark Blumberg, who specializes in nonprofit and charity law.
“The fact that Canadians are more worried is largely related to media coverage,” Blumberg said of the Angus Reid poll, conducted for Capital One.
The survey found that 58 per cent of British Columbians are somewhat or very concerned about being the victim of charity fraud -a fear shared by 65 per cent of all Canadians. Although that’s up from 51 per cent of British Columbians in November 2009, Blumberg said charitable fraud has declined.
“The No. 1 fraud over the last seven years were charity gifting tax schemes,” he said.
In such schemes, a taxpayer puts up an amount, for example $1,000, and gets a charitable tax receipt for $5,000. But when Canada Revenue Agency catches up with it, taxpayers find themselves not only losing the $5,000 deduction and the $1,000 they shelled out to get it, but even more in interest, penalties and the cost of a protracted tax battle.
The survey found that 41 per cent of donors don’t take steps to ensure a charity is registered, including checking for ID or visiting a charity’s website before making a donation. And up to 22 per cent of Canadians say they prefer to donate online.
The statistics aren’t lost on cybercriminals who prey on people’s sympathetic reaction to world disasters.
“Everybody in the world today has an email address,” said Gerry Egan, director of product management for Symantec, an Internet and computer security company. Egan warns users not to click on links in emails purporting to be from charitable organizations. Instead, if you want to donate, go directly to a website that you know to be the one of the charity you are seeking. Even that can be fraught with problems, though.
Cybercriminals capitalize on world disasters, “poisoning” search engine results with links to fraudulent websites
“I don’t want to be a scaremonger, but you have to be somewhat suspicious,” he said.
gshaw@vancouversun.com
Read Gillian Shaw’s blog at www. vancouversun.com/digitallife
© Copyright (c) The Vancouver Sun
The aftershocks had barely settled in the Christchurch earthquake before the online charity scams started appearing on the Internet and in people’s email inboxes.Such high-profile online scams are fuelling fears of fraud, with more than 50 per cent of Canadians saying they are less likely to give money to charities due to concerns about fraud, according to a survey released Thursday.
But the reality is that online schemes are a drop in the bucket compared with more complicated ones involving charitable tax schemes and bogus charity receipts, says Toronto lawyer Mark Blumberg, who specializes in nonprofit and charity law.
“The fact that Canadians are more worried is largely related to media coverage,” Blumberg said of the Angus Reid poll, conducted for Capital One.
The survey found that 58 per cent of British Columbians are somewhat or very concerned about being the victim of charity fraud -a fear shared by 65 per cent of all Canadians. Although that’s up from 51 per cent of British Columbians in November 2009, Blumberg said charitable fraud has declined.
“The No. 1 fraud over the last seven years were charity gifting tax schemes,” he said.
In such schemes, a taxpayer puts up an amount, for example $1,000, and gets a charitable tax receipt for $5,000. But when Canada Revenue Agency catches up with it, taxpayers find themselves not only losing the $5,000 deduction and the $1,000 they shelled out to get it, but even more in interest, penalties and the cost of a protracted tax battle.
The survey found that 41 per cent of donors don’t take steps to ensure a charity is registered, including checking for ID or visiting a charity’s website before making a donation. And up to 22 per cent of Canadians say they prefer to donate online.
The statistics aren’t lost on cybercriminals who prey on people’s sympathetic reaction to world disasters.
“Everybody in the world today has an email address,” said Gerry Egan, director of product management for Symantec, an Internet and computer security company. Egan warns users not to click on links in emails purporting to be from charitable organizations. Instead, if you want to donate, go directly to a website that you know to be the one of the charity you are seeking. Even that can be fraught with problems, though.
Cybercriminals capitalize on world disasters, “poisoning” search engine results with links to fraudulent websites
“I don’t want to be a scaremonger, but you have to be somewhat suspicious,” he said.
gshaw@vancouversun.com
Read Gillian Shaw’s blog at www. vancouversun.com/digitallife
© Copyright (c) The Vancouver Sun
Shaw Capital Management Headlines: Domino’s Pizza Opens First New Store in Poland Residents of Warsaw can now get Domino’s Pizza delivered to their door | World Headlines: Shaw Capital Management
ANN ARBOR, Mich., March 8, 2011 – /PRNewswire/ – Domino’s Pizza (NYSE: DPZ), the recognized world leader in pizza delivery, has opened its first store in Poland, with the promise of hot, delicious pizza for the residents of Warsaw. The new store is located in the Mokotow district of Warsaw, which is an area with a high density of apartments and a vibrant business district.
DP Polska SA is the Master Franchisee for Poland and is wholly owned by DP Poland plc, a publicly traded entity on the AIM market of the London Stock Exchange. The company’s management has extensive experience in consumer brands, retailing, marketing and finance. Their broad business experience makes them well-positioned to develop Domino’s into a leading brand in Poland.
“This first store is world-class and the quality of the pizzas is outstanding,” said Peter Shaw, chief executive of DP Poland. “We have now taken our first step in realizing our vision to transform the pizza delivery market in Poland, Europe’s sixth largest economy. I would like to pay tribute to the incredible energy and professionalism of our team that has made this first store open on time and on budget.”
Domino’s Pizza now operates in 70 markets worldwide, with nearly half of its global retail sales coming from international stores, generating roughly a third of its operating income.
About Domino’s Pizza®
Founded in 1960, Domino’s Pizza is the recognized world leader in pizza delivery. Domino’s is listed on the NYSE under the symbol “DPZ.” As of the fourth quarter of 2010, through its primarily locally-owned and operated franchised system, Domino’s operated a network of 9,351 franchised and Company-owned stores in the United States and over 65 international markets. Domino’s Pizza had global retail sales of over $6.2 billion in 2010, comprised of over $3.3 billion domestically and over $2.9 billion internationally.
In June 2010, Pizza Today named Domino’s its “Chain of the Year” – making the company a two-time winner of the honor. In late 2009, Domino’s debuted its ‘Inspired New Pizza’ – a permanent change to its hand-tossed product, reinvented from the crust up. Helped by the launch of its Domino’s Smart Slice school lunch pizza in late 2010, Domino’s Pizza is collaborating with the Alliance for a Healthier Generation to serve healthier school foods and beverages in the United States. In 2011, Domino’s was ranked #1 in Forbes Magazine’s “Top 20 Franchises for the Money” list.
Twitter - http://twitter.com/dominos
Facebook - http://www.facebook.com/Dominos
Order - www.dominos.com
Mobile – http://mobile.dominos.com
Info - www.dominosbiz.comShaw Capital Management Headlines: Domino’s Pizza Opens First New Store in Poland Residents of Warsaw can now get Domino’s Pizza delivered to their door | World Headlines: Shaw Capital Management
DP Polska SA is the Master Franchisee for Poland and is wholly owned by DP Poland plc, a publicly traded entity on the AIM market of the London Stock Exchange. The company’s management has extensive experience in consumer brands, retailing, marketing and finance. Their broad business experience makes them well-positioned to develop Domino’s into a leading brand in Poland.
“This first store is world-class and the quality of the pizzas is outstanding,” said Peter Shaw, chief executive of DP Poland. “We have now taken our first step in realizing our vision to transform the pizza delivery market in Poland, Europe’s sixth largest economy. I would like to pay tribute to the incredible energy and professionalism of our team that has made this first store open on time and on budget.”
Domino’s Pizza now operates in 70 markets worldwide, with nearly half of its global retail sales coming from international stores, generating roughly a third of its operating income.
About Domino’s Pizza®
Founded in 1960, Domino’s Pizza is the recognized world leader in pizza delivery. Domino’s is listed on the NYSE under the symbol “DPZ.” As of the fourth quarter of 2010, through its primarily locally-owned and operated franchised system, Domino’s operated a network of 9,351 franchised and Company-owned stores in the United States and over 65 international markets. Domino’s Pizza had global retail sales of over $6.2 billion in 2010, comprised of over $3.3 billion domestically and over $2.9 billion internationally.
In June 2010, Pizza Today named Domino’s its “Chain of the Year” – making the company a two-time winner of the honor. In late 2009, Domino’s debuted its ‘Inspired New Pizza’ – a permanent change to its hand-tossed product, reinvented from the crust up. Helped by the launch of its Domino’s Smart Slice school lunch pizza in late 2010, Domino’s Pizza is collaborating with the Alliance for a Healthier Generation to serve healthier school foods and beverages in the United States. In 2011, Domino’s was ranked #1 in Forbes Magazine’s “Top 20 Franchises for the Money” list.
Twitter - http://twitter.com/dominos
Facebook - http://www.facebook.com/Dominos
Order - www.dominos.com
Mobile – http://mobile.dominos.com
Info - www.dominosbiz.comShaw Capital Management Headlines: Domino’s Pizza Opens First New Store in Poland Residents of Warsaw can now get Domino’s Pizza delivered to their door | World Headlines: Shaw Capital Management
Shaw Capital Management Headlines: Shaw Capital Scam Info:Invoice Factoring could be Next Big Thing for Fraud Scam Predicts Lawyer
(openPR) – Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, and asset based financing, accounts receivable management, and other related financial services.
One of the biggest challenges facing businesses in the current economic climate is getting invoices paid and the use of invoice factoring could become a significant area for fraud, according specialist fraud lawyer Arun Chauhan of Midlands firm Challinors.
“In the current economic climate the use of factoring is becoming more prevalent,” says Arun, a
Partner at Challinors and head of its Fraud & Asset Recovery department. “The problem of getting invoices paid is a growing problem and an increase in fraud in Factoring is an area that will not be immune from this threat.”
The issue of invoice payment is not unique to the economic climate but one that is encountered by all businesses and in particular start up businesses. Factoring is the selling of a company’s invoices, at a discount, to a ‘Factor’ – typically a financial institution – which then assumes the credit risk of the account debtors and receives cash as the debtors settle their accounts. The company then receives the value of the invoice less a percentage retained by the company as their fee for the factoring service.
“The Factor will typically obtain a personal guarantee or some form of security from a director of a company before commencement of any agreement,” explains Arun.
There are two specific types of factoring – Open and hidden factoring. In Open Factoring the company does not mind if its customers know if they are using a Factor. The debtor is sent invoices by the Factor to recover the face value of the invoices.
If a company has decided to Factor invoices to improve cash flow, it may wish to keep this from its customers. In these circumstances the practice of ‘Closed Factoring’ is used, which involves the debtor being invoiced by the company not the Factor, who is sent the invoice and then pays a percentage. When the debtor pays the invoice the sum due to the Factor is then paid.
“The process of factoring is susceptible to fraudulent activity, if there are not sufficient controls in place within a business,” says Arun. “A Managing Director may not be aware that those dealing with the raising of invoices for the company may well be devising a fraudulent scheme by creation location of businesses: “The fact that the postcode of a company is the same or in a similar geographical location to the debtor is one warning sign to look for. Another is the existence of large invoice amounts relative to the average for that debtor.”
The fraud is sometimes not internal but purely perpetrated to cause loss to the Factor. “One example of this was uncovered in 2008 where the Directors of a Manchester based computer firm,
Ravelle, were convicted in a £3.25 million fraud upon its creditors. The fraud was centred on the creation of false sales documents and a complex web of inter-company transactions designed to deceive Factoring companies into providing finance to the Ravelle Group. This is a prime example of collusion, which is one pre-requisite for factoring fraud.
“Many types of fraud are only possible if collusion between parties exists. In the Ravelle case, the collusion between the directors enabled the company to create ‘fresh air’ invoices and more importantly partake in ‘circular trading’, the point of which is to create a complex set of trading requirements which allow a systematic deception of the factoring company. The schemes that keep companies running could not have been implemented without the continued input of the parties at Ravelle, and one of the Directors was a qualified accountant.”
He adds: “In the current economic climate the temptation for directors to cross the line and partake in Factoring fraud is greater owing to the constraints on cash flow. Any fraudulent activity is bound to leave a trail of evidence that will soon be detected, and our specialist fraud lawyers are skilled in finding such discrepancies. The fraud will eventually be detected, no matter how small.”
Challinors has offices in Birmingham city centre, Edgbaston, West Bromwich and Nottingham. The firm has 23 partners and over 100 fee earners, and is ranked as one of the top legal firms in the West Midlands, being Number 1 in the Chambers UK Directory in a number of categories. For more information visit: www.challinors.co.uk.
Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
Shaw Capital Management and Financing provides export trade financing to clients in every major world market and can convert accounts receivable finance transactions in 17 currencies. We have no minimum or maximum monthly volume requirements. Other factoring companies require a financial commitment for the amount of freight bills you factor each month. Our highly skilled team provides full administrative support – including credit management, invoicing, collections, account reporting, expense reporting, fuel card management and much more! With Shaw Capital Management and Financing, you get paid in full minus our fee the day we receive your freight bills. Other factoring companies holdback 10 to 15 percent of your money or more for each invoice in a reserve account. That reserve amount is not immediately provided to your company. In the end, you receive part of that percentage back, depending on how long it takes the factoring company to receive payment on the invoice.
P.O. Box 17078
Baltimore, MD 21297
United States
(openPR) – Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, and asset based financing, accounts receivable management, and other related financial services.One of the biggest challenges facing businesses in the current economic climate is getting invoices paid and the use of invoice factoring could become a significant area for fraud, according specialist fraud lawyer Arun Chauhan of Midlands firm Challinors.
“In the current economic climate the use of factoring is becoming more prevalent,” says Arun, aPartner at Challinors and head of its Fraud & Asset Recovery department. “The problem of getting invoices paid is a growing problem and an increase in fraud in Factoring is an area that will not be immune from this threat.”
The issue of invoice payment is not unique to the economic climate but one that is encountered by all businesses and in particular start up businesses. Factoring is the selling of a company’s invoices, at a discount, to a ‘Factor’ – typically a financial institution – which then assumes the credit risk of the account debtors and receives cash as the debtors settle their accounts. The company then receives the value of the invoice less a percentage retained by the company as their fee for the factoring service.
“The Factor will typically obtain a personal guarantee or some form of security from a director of a company before commencement of any agreement,” explains Arun.
There are two specific types of factoring – Open and hidden factoring. In Open Factoring the company does not mind if its customers know if they are using a Factor. The debtor is sent invoices by the Factor to recover the face value of the invoices.
If a company has decided to Factor invoices to improve cash flow, it may wish to keep this from its customers. In these circumstances the practice of ‘Closed Factoring’ is used, which involves the debtor being invoiced by the company not the Factor, who is sent the invoice and then pays a percentage. When the debtor pays the invoice the sum due to the Factor is then paid.
“The process of factoring is susceptible to fraudulent activity, if there are not sufficient controls in place within a business,” says Arun. “A Managing Director may not be aware that those dealing with the raising of invoices for the company may well be devising a fraudulent scheme by creation location of businesses: “The fact that the postcode of a company is the same or in a similar geographical location to the debtor is one warning sign to look for. Another is the existence of large invoice amounts relative to the average for that debtor.”
The fraud is sometimes not internal but purely perpetrated to cause loss to the Factor. “One example of this was uncovered in 2008 where the Directors of a Manchester based computer firm,
Ravelle, were convicted in a £3.25 million fraud upon its creditors. The fraud was centred on the creation of false sales documents and a complex web of inter-company transactions designed to deceive Factoring companies into providing finance to the Ravelle Group. This is a prime example of collusion, which is one pre-requisite for factoring fraud.
“Many types of fraud are only possible if collusion between parties exists. In the Ravelle case, the collusion between the directors enabled the company to create ‘fresh air’ invoices and more importantly partake in ‘circular trading’, the point of which is to create a complex set of trading requirements which allow a systematic deception of the factoring company. The schemes that keep companies running could not have been implemented without the continued input of the parties at Ravelle, and one of the Directors was a qualified accountant.”
He adds: “In the current economic climate the temptation for directors to cross the line and partake in Factoring fraud is greater owing to the constraints on cash flow. Any fraudulent activity is bound to leave a trail of evidence that will soon be detected, and our specialist fraud lawyers are skilled in finding such discrepancies. The fraud will eventually be detected, no matter how small.”
Challinors has offices in Birmingham city centre, Edgbaston, West Bromwich and Nottingham. The firm has 23 partners and over 100 fee earners, and is ranked as one of the top legal firms in the West Midlands, being Number 1 in the Chambers UK Directory in a number of categories. For more information visit: www.challinors.co.uk.
Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
Shaw Capital Management and Financing provides export trade financing to clients in every major world market and can convert accounts receivable finance transactions in 17 currencies. We have no minimum or maximum monthly volume requirements. Other factoring companies require a financial commitment for the amount of freight bills you factor each month. Our highly skilled team provides full administrative support – including credit management, invoicing, collections, account reporting, expense reporting, fuel card management and much more! With Shaw Capital Management and Financing, you get paid in full minus our fee the day we receive your freight bills. Other factoring companies holdback 10 to 15 percent of your money or more for each invoice in a reserve account. That reserve amount is not immediately provided to your company. In the end, you receive part of that percentage back, depending on how long it takes the factoring company to receive payment on the invoice.
P.O. Box 17078Baltimore, MD 21297United States
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