How to draw clients in style Madof?

He was brought up in the elite circles of Buenos Aires, where he has acquired finesse and access to major customers who postlaha his way to the investment world and work with wealthy clients in large private banks in New York as UBS and JPMorgan Chase. While Ernan Arbizu care for the riches of its South American clients, he illegally took millions from their accounts in two banks for years without being noticed, says New York Times.
Moreover – Arbizu says regular „churn“ in the accounts of its customers in UBS and even visited the office of the Swiss giant in Manhattan, to ensure that illegal transactions are passed successfully. All this happened at least year after he was moved from UBS to Chase in the autumn of 2006
Step of the investment banking world, a few serious blows in recent months, the stone and its wealthy customers were affected by a number of fraudulent schemes insolvent hedge funds and investigation of tax evasion from Washington to Europe, writes the edition.
Several large banks have been affected by the scandal with Madof. I recently UBS agreed to pay 780 million dollars in a deal with the U.S. Department of Justice, which accused the bank that has helped wealthy Americans to concealing taxes worth billions of dollars in secret offshore accounts.
Curious case of Arbizu, whose career ended when a customer of Chase revealed its crimes reported in May 2007, namely light on this dark part of the investment world and raises questions about the control that some of the biggest financial institutions exercise on their bankers.
Arbizu describes himself as one of those „3 percent of the bankers, who at one time capable of tension.
„We feel like we can take risks that other people can not even dream that we can manage these risks. I do not know why, „he says.
In addition, however, he says that UBS „has no control over its bankers“ and accused the bank that creates an atmosphere of tension to maintain customers and attract new ones. The bank refused comment on these allegations.
Born in Argentina Arbizu away from the U.S. back in Argentina in May 2008, just before being charged by federal authorities in New York on federal bank fraud.
He argues that individual has not benefited from their actions, but rather transfer money between accounts to justify the investment unrealistic promises it has made to major customers. „Of course, I made a huge mistake and I feel very bad,“ he says.
Although its fraud pale compared with those of Bernard Madof who deceived investors with 65 billion dollars, the history of Arbizu has similar logic to „rob Peter to pay Paul, which is water and Madof commented Release .
40-year-old Arbizu says that to maintain a sense of success among some of the major clients of UBS, he is pretending it is still their personal banker, even after you left and went in the Chase. To this end he helped his successor at UBS, Jose Dekastro to the moment and he himself left the bank and moved to Venezuela last July.
UBS conducted an internal investigation on the work of Dekastro last year and decided that although he did „stupid things“ by helping Arbizu, it is not subject to investigation.
Last June, weeks after Arbizu was charged in New York, Argentine authorities made a raid at the offices of JPMorgan Chase in Buenos Aires and seized the data of 200 wealthy Argentine customers, many customers at the Arbizu whose name and assets were subsequently published by an Argentinian newspaper.
However Arbizu, who says helping the Argentinian authorities in their investigation of alleged tax evasion and money laundering among customers of Chase, was not zasechen of control systems, none of the banks that worked.
Indeed, for more than five years he was never caught.
In early 2003 he joined UBS as a private banker to wealthy clients in Argentina and Chile. Initially worked in the office of the Bank in Connecticut, then moved to Manhattan, where he received 300 thousand dollars a year plus bonuses to manage 13 investment accounts worth 200 million dollars.
In his words from the beginning he was subjected to enormous pressure from the UBS, to retain existing customers and attract new ones. Only months after he joined the bank promised one of the most important clients – wealthy farmer from Argentina – the yield of 21% of investment. „Of course, it was not possible,“ said Arbizu.
After several months the farmer asked for its return. Then supplement Arbizu secret account of the farmer, using 2.8 million from another account of a customer – wealthy politician in Paraguay.
In November 2006 UBS Arbizu left and went to JPMorgan Chase, without notice to the family policy. Next April last contacted Arbizu and told him that needs the money from your account at UBS for the purchase of land.
Scared to cover fraud, Arbizu told him that is still a banker at UBS and the family took money from a secret account at JPMorgan Chase video Argentinian media tycoon.
He explains that to do so, sent a fax to customer requests for transfer of funds, signed with false signatures to the office of UBS in New York. Then visit the offices yourself to ensure that the transaction was successful, as used for the purpose of using its successor Dekastro.
„All there like me and trust me, you remember Arbizu. „I think that my presence there authorized them to do the checks then.
Weeks later, however, the media tycoon for fraud and how to call the boss of Arbizu in the Chase, to complain. The company fired banker informed the authorities and financial control in Manhattan, which is a prerequisite for the subsequent charges against Arbizu 12 illegal transfer to UBS and JPMorgan Chase totaling over 5.3 million dollars.
In the words of 12-Arbizu they transfer some of which are made to accounts in a tax heaven like Andorra and Netherlands Antilles are only worth 2.8 million dollars. He secretly made eight transactions accounts of his former clients in UBS between March 2007 and March 2008 or 16 months after it had already left the bank.
JPMorgan has not canceled its case against him, but do not take steps that would move forward. In February the bank without much noise closed the investigation against Arbizu, which had notified the Financial Regulator. The bank spokesman refused to specify whether the case was settled out or terminated.
UBS did not even proceed against Arbizu. In April 2008 she started an internal investigation in June registered the illegal transfer worth 2.8 million dollars on behalf of the Paraguayan nameless client. However, the bank said it received a complaint of this transfer until months after they started the investigation against Arbizu.
In December it is protection investigation. Earlier this month it said it started an investigation against the heir to the Arbizu, Dekastro being told that he has left the company during an internal investigation for „violation of company policy and rules on confidentiality of our customers.“
„I know I’m stupid,“ said Arbizu. „I feel that in all these years my head was divided into two parts, each of these problems were in a small section in the other – my“ normal „life.“

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Finance