Reports of frauds, deceptions and scams keep appearing, weekly even daily, on
major news channels and newspapers. Some of these frauds seem just too big and remote to be of immediate, direct relevance to our daily lives. But, we will eventually pay for the consequences and damages, in taxes, costs of goods and services, regulations, copy-cats etc.

I hope we can collect, in one thread, frauds and scams, reported or heard. We must become more aware and more educated to guard against frauds and scams
which impact upon the health, well being, and wealth of ourselves and our families.

Farepak boss takes luxury holiday

17 November 2006

"The boss of collapsed Christmas hamper firm Farepak, Sir Clive Thompson, has been holidaying in Argentina's capital, Buenos Aires, with his wife Judith.

They flew to Argentina earlier this week on 8,000 first-class tickets for a two-week holiday."

...

"Sir Clive refused to answer any more questions as he entered the luxury Alvear Palace Hotel, where rooms, each with a personal butler, can cost 2,500 a night."

...

From http://www.dailymail.co.uk/pages/live/articles/news/....

Sleazy Labour's 2m raid on council tax funds
By TIM SHIPMAN
Last updated at 10:38am on 24th November 2006

Police have launched a new investigation into Labour sleaze after a whistleblower revealed the party is creaming off at least 2m a year of taxpayers' money directly into party coffers.

Tony Blair has ordered thousands of his local councillors to hand over hundreds of pounds each from their publicly-funded allowances to Labour slush funds for electioneering and party propaganda.

More here...
Councillors' payments and how Labour is benefiting

The scam - also under investigation by sleaze watchdogs has been branded a "national disgrace", an "outrageous abuse of taxpayers' money" and an "affront to democracy".

News that their money is being used to line Labour's pockets will enrage council tax payers who have seen their bills soar as town halls have been starved of cash.

Council tax has more than doubled since Labour came to power. In Sunderland it rose last year by 4.9 per cent, double the rate of inflation.

Labour members quietly passed a resolution at their party conference in September calling on all councillors to hand over a percentage of their allowances direct from the council payroll to fill the financial black hole.

The party is saddled with debts totalling 22million as a result of the cash for peerages scandal, which has led to a drought in donations. The allowances, introduced by Labour in 1998, were originally intended to be used to help councillors carry out their duties for voters, rather than for party political purposes.

But those who refuse to pay the levy have now been threatened with disciplinary action by Labour whips.

The multi-million pound funding scandal came to light after the former leader of Sunderland council resigned from the party in disgust earlier this week after refusing to pay 215 - a three per cent levy on his 7,106 councillor's allowance - to Labour bosses in Sunderland.

Bryn Sidaway has now reported the matter to Northumbria police. He told the Daily Mail: 'It is a national disgrace. 'We are talking about millions of pounds a year going into the Labour Party war chest via the taxpayer - but without them even knowing. This is their money. They elect local councillors in the hope that it will improve their lives - not to fund Labour's bid to be re-elected.'

The scandal goes nationwide. Documents obtained by the Daily Mail show that, in October, Labour bosses sent a memo to every council group in England ordering them to "establish a levy on councillors for group funds, preferably collected through the council's payroll deduction scheme". All councillors were then ordered to sign an authorisation slip to deduct the money from their allowances at source.

Labour officials in Westminster are demanding that councillors hand over 10 per cent of their allowances and those in Gateshead are demanding six per cent.

If all of Labour's 6,176 councillors were to give up just five per cent of their allowances, Labour could rake in 2.1m this year - handing the party a war chest of more than 6m in time for the next election, due in 2009.

The sum is likely to be even larger because in addition to the basic allowance, councillors who hold cabinet offices or chair committees are paid tens of thousands of pounds extra. Labour has demanded a slice of those payments too.

The rule change making the levy compulsory was waved through in a public session at Labour conference on Monday 25 September, while attention was focussed on Cherie Blair's outburst condemning Gordon Brown as a liar.

The plans were sponsored by Labour's ruling National Executive Committee, on which Tony Blair, Gordon Brown, Party chairman Hazel Blears and Labour Treasurer Jack Dromy all sit. They signed off the plans on 20 September. A Labour spokesman made clear the rule amendment was approved "by the whole NEC", including the Prime Minister.

The revelations are a grave new embarrassment for Labour which is reeling from police inquiry into the cash for peerages affair in which four party donors for a were offered a seat in the Lords after they secretly loaned the party millions.

Tony Blair, who once pledged Labour would be "purer than pure" is set to become the first sitting prime minister to face police interrogation as part of a criminal inquiry.

Mr Sidaway said: "It was brought in via the back door in the hope that it would go unnoticed and unchallenged. They have identified Labour councillors as cash cows to fund the black hole in the party's accounts created by the cash for honours scandal and the reduction in the contributions they received from the trade union movement.

"The money is taken directly from the council's payroll accounts - even before any of the tax is applied - and we, as councillors, are expected to sign up to it without question or hesitation.

"I feel ashamed. I have been a Labour Party supporter for 48 years - ever since I was 15-years-old. Corruption is rife. It is shambolic and disgusting. The public is being deceived and betrayed by a Government hell bent on staying in power. We are being run by a dictatorship. Democracy has simply been swept away."

He accused party chiefs of using "intimidation" and "bullying" to get others to fall into line.

"The sad fact is this: The Labour Party is desperate for money and will do just about anything to make sure it has enough money in the kitty to win the next election," he said. "The stench of desperation is horrible."

A CID detective took a statement from Mr Sidaway on Monday. Northumbria Police are investigating whether the plans breach the terms of the Political Parties, Elections and Referendums 2000 Act, which calls for all donations over 1,000 to be reported to the Electoral Commission. He believes that local parties may be failing to declare donations to the Commission.

A Northumbria Police spokeswoman said: "I can confirm that we have taken a statement from Bryn Sidaway and are deciding whether this is a police matter." The intitial probe is expected to take one month.

Lee Martin, the Tory leader on Sunderland council has made a separate complaint to the Standards Board for England claiming that the plans breach the local government code of conduct, which states that councillors must ensure public cash is "not used for the activities of a registered political party".

They claim it is an abuse of council funds - and a breach of the code - to let council payroll staff devote their time to arranging direct debits from councillors into Labour accounts.

Tory MP Mike Penning said that if Labour councillors can afford to pay some of their allowances to their party, they should have the allowances cut.

He said: "If Labour councillors don't need this money to work on behalf of their communities, they should hand it back rather than hand it over to fill the black hole in their party finances. It should be returned to taxpayers."

In contrast with Labour, the Conservative Party Board has ruled that Tory councillors cannot be forced to pay any levy to the Party, apart from a fixed 25 a year to cover the cost of professional support from the Conservative Councillors' Association.

Shadow Local Government Minister, Eric Pickles, said: "It is scandalous that the Labour Party is systematically abusing councillor allowances and attempting to avoid bankruptcy by using council taxpayers' money to bail them out.

"At a time when council tax has gone through the roof, families and pensioners will be shocked to learn that their money is not being used on cleaning the streets or empty bins but to give cash payments to the Labour Party direct from the council payroll."

A Liberal Democrat spokesman confirmed that some LibDem councils, including Richmond in Surrey, run a voluntary programme in which their councillors hand over cash to fund party activities but he said: 'I'm not aware that any of them set up direct debits from the council payroll. It is a voluntary scheme.'

Angus MacNeil, the Scottish Nationalist MP whose complaint sparked the Scotland Yard cash for honours inquiry, has referred the Labour scam to Sir Alistair Graham, who chairs the Committee on Standards in Public Life.

He said: "This is a misuse of the council payroll to help the Labour Party. This is a bill that will be footed by the taxpayer. At a time when cabinet ministers are being questioned by police, Labour at the other end of the spectrum is behaving like a bunch of loan sharks demanding money with menaces."

Former independent MP and anti-sleaze campaigner Martin Bell, said: "This is outrageous. This manages to be an affront to democracy at both the local and national level."

James Frayne, campaign director of the Taxpayers' Alliance, said: "The crisis in party funding has clearly made Labour officials completely lose the plot. This is obviously morally wrong and is an outrageous abuse of taxpayers' money. The Labour leadership should put a stop to this immediately and pay back anything that's been sent to the Party."

A spokeswoman for the Standards Board of England said she could not comment on an ongoing investigation. Ged Fitzgerald, chief executive of Sunderland City Council, insisted that the council had been reinbursed by the Labour Party for funnelling the payments from the council payroll.

A Labour party spokesperson said: "Labour councillors agree to abide by Labour Party rules including the payment of a Group levy. This levy is from councillors personally and not the council.

"The rule changes adopted by the NEC and the Full open annual conference this September in Manchester established that all Labour Groups should, as many do already, levy all councillors to contribute to Group activities and administration."

" Sir Clive Thompson, has been holidaying in Argentina's capital, Buenos Aires, with his wife Judith."

And two of the other directors live within a mile of where I live in SW6.

Anything legal that I can do to help bring them to justice?

TP

Radioactive poisoning seems quite fashionable.

And the term 'Legal' merely means, "a miniscule chance of being found out".

"Radioactive poisoning seems quite fashionable."

Local pharmacy say they've just sold the last batch.

Must be someone else with the same idea round here.

TP

Not exactly a fraud or scam but ..........Wonderful message from Ing Savings to me this morning. I can't believe their cheek!

"We're writing to advise you that this month the Bank of England raised the base rate from 4.75% to 5.0%.

At ING Direct we want to offer all our customers a consistently good rate. On this occasion this means we have made the decision to maintain our ING Direct Savings Account interest rate at 4.75% AER*.

While some people may be willing to follow headline-grabbing rates, we know from talking to our customers that the majority prefer their savings to be earning consistently and want to relax knowing they don't have to constantly check Best Buy tables. "

Absolutely right. I don't want any better rate thank you very much. I'd much prefer it to stay the same.

"ING Direct - we always remember it's your money we're saving."

Yes I got it too, totally superior isn't it Bolshi! Makes one feel like moving all the pennies out, quite apart from the interest rate!

Kayak. It's just the wording that peed me off. The rates ARE still pretty good.

Not too bad but http://www.icicibank.co.uk/ are leading by a lot at the moment. After they raised their rates :-)

"The rates ARE still pretty good. "

Glad to hear you confirm my impression.

TP

I had never heard of ICICI bank until last Saturday. We were at an Indian community centre queuing for an Indian visa for our jollies next year and icicicicici (what a daft name I said immediately - people could get confused) set up a display there. Very nice people but I'm afraid I wouldn't put money into an Indian bank. Not sure why. guess I'm a bit prejudiced.

Or does the name just remind me of BCCI?

Erm....err....just to further help trash what it means to be a customer of ING Direct...

1. Your e-mail is about three days late. Others had this same e-mail on the 24th November.

2. As you are already a customer, I bet you my 5 that you are probably not aware of their 5.25% AER Ing Direct Web Saver account product, which is so very easy to open and can link up with your existing Ing Direct Internet savings account.



If you are thinking of moving your money out of ING, check out 'Icesave' as well as 'HiSAVE'.

Good rates Doc but, unfortunately, no use to me as we need to withdraw amounts on regular basis.

Firstdirect also do a savings account whereby if you withdraw anything during the month the whole balance earns nothing for the whole month. Pretty useless unless you can guarantee from the start that you will be able to withdraw the whole balance each time, and also on the first day of the month each time. I wonder how many people sign up without understanding the rule properly, or are caught out by unforeseen circumstances. This type of account should be banned IMHO.

I did open one with 1 but that was merely to save the 10 per month charge Firstdirect have just (very bravely) introduced!

You guys might like this:-

CHAPS Calculator

Bolshi, #324. It reminded me of the weasel word generator I was shown many years ago. Managements often seem comfortable, demand and dishes out those wonderful sounding, but meaninless and usually deceitful phrases and expressions. Popular word vary by business and profession. These used to be one to three word phrases but seem to have wormed into whole sentence these days.

Some shorter examples

"offer"
"consistently good"
"we know"
"from talking"
"our customers"
"majority prefer"
"always remember"

ING is probably a good bank but it is not a PR statement.

I wonder whether Fairpak literatures and statements contain similar entertaining expressions.

axdpc. They must go on the same course. Probably run by a Blair aide.

I've just re-read my post #324 "we need to withdraw amounts on regular basis"

I must remind the wife that we also need to occassionally deposit some as well!

A lot of companies don't seem to like you withdrawing anything out ever. The penalties are pretty severe. I liken them to the credit card providers who screw you if you don't pay off all the remaining balance every month.

It remind me of when I was looking round in order to change my broker. I looked at Jarvis who seemed great, but on reading the small print I found that they charged 10 for every cash withdrawal even though it was via bacs. "We are not a bank sir!" Was their reply when I asked why this daft amount. "And I'm no longer a potential customer chum!"

TV Quiz phone-in rip-offs

Bolshi, on post #329. "I'm afraid I wouldn't put money into an Indian bank. Not sure why. guess I'm a bit prejudiced."

IMO, it is unhealthy and dangerous that PC pressure sometime forces people to ignore their experiences. We should act based on our past experiences much moderated or enhanced by learning. I, too, avoid some companies and brands; take a default cynical view of commercial, financial and political spins; arm myself with a mental shotgun when confronted with those smiling, insistent, trying to put a foot inside the door, door knocking energy salesmen; and make great effort to avoid helping people whom I judge to have high possbility of exploiting others with quiet gloat and afterwards gleefully repay with sharp elbows and poisonous daggers. ...