Exclusive - Former Air Force secretary to lead Pentagon efficiency review

U.S. Air Force Secretary Michael Donley answers questions during the Reuters Aerospace and Defense Summit in Washington, in this December 14, 2009 file photo.

Credit: Reuters/Stelios Varias/Files

WASHINGTON | Tue Aug 27, 2013 6:41pm BST

WASHINGTON (Reuters) - Former Air Force Secretary Michael Donley will lead a major review of the Pentagon's organizational structure aimed at cutting headquarters costs by almost $40 billion (25 billion pounds) through fiscal year 2023, according to a document signed by Deputy Defense Secretary Ashton Carter.

Carter told key Pentagon officials in a memo dated Monday that he had asked Donley to submit his findings and recommendations for Defense Secretary Chuck Hagel's consideration by the end of September, said the official, who was not authorized to speak publicly.

Carter announced plans to bring in an outside expert last month when he unveiled the results of a four-month strategic review and announced plans to cut Pentagon headquarters costs by 20 percent.

At the time, he said implementing such cuts could be very challenging and the Pentagon needed an outside expert who was "deeply knowledgeable about the defense enterprise and eminently qualified to direct implementation of the ... reductions."

The U.S. military is grappling with massive mandatory spending cuts that could reduce the Pentagon's overall budget by $500 billion in the next decade, on top of $487 billion in cuts already planned.

Donley retired as the top civilian leading the Air Force at the end of June. He worked closely with Carter, who served as the Pentagon's acquisition chief before moving into his current job, when they managed a controversial competition to buy new refuelling planes for the Air Force.

(Reporting by Andrea Shalal-Esa; Editing by Bill Trott)

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JPMorgan's former 'London Whale' supervisor arrested in Spain

By Sarah White and Carlos Ruano

MADRID | Tue Aug 27, 2013 3:20pm BST

MADRID (Reuters) - Spanish police arrested former JP Morgan Chase trader Javier Martin-Artajo on Tuesday as he prepares to fight possible extradition to the United States over a $6.2 billion (3.9 billion pounds) financial scandal at the United States' largest bank.

The arrest came after the United States charged Spaniard Martin-Artajo and a junior colleague, Frenchman Julien Grout, with wire fraud and conspiracy to falsify books and records related to the trading losses, which were executed by Bruno Iksil.

Iksil, who was nicknamed the "London Whale" for his large bets on derivatives markets, is cooperating with U.S. prosecutors and has not been charged.

Martin-Artajo was released on condition he stays in Spain and checks in regularly with a court. A judicial source said on Tuesday he had told a Spanish court he is unwilling to be sent to the United States to face the charges.

Martin-Artajo, who handed himself in at a Madrid police station after being contacted by police, is accused of trying to inflate the value of trading positions held on his group's books. The mismarking allegedly took place as the traders tried to hide mounting losses in an illiquid derivatives market, where they had made outsized bets.

Martin-Artajo was Iksil's supervisor at JP Morgan's Chief Investment Office in London.

JPMorgan is battling to salvage its corporate image amid a swirl of litigation and investigations in the wake of the financial crisis, including a federal bribery investigation into whether it hired the children of key Chinese officials to help it win business.

The bank's boss Jamie Dimon attempted to dismiss the London Whale losses as a "tempest in a teapot" but this remark has come back to haunt him.

Martin-Artajo previously said through lawyers that he expects to be cleared of any wrongdoing and that he had cooperated with regulators.

His lawyer in London could not immediately be reached for further comment.

EXTRADITION

Meanwhile Spain's High Court has taken on his case and will decide whether he should be extradited, although Spain's cabinet has its say too. The United States has 40 days after his arrest to present its full extradition request to Spanish courts, according to the usual procedure.

Extraditions from Spain to the United States are rare and Madrid has tended to shun requests to send its citizens to be tried there.

"Spain does not extradite its citizens," a police source said, explaining that it was one of the reasons Martin-Artajo was not directly arrested but asked to present himself to police, after he was found, identified and deemed not to be a flight risk.

But one extradition lawyer who declined to be named said Martin-Artajo's alleged offence would in principle be considered extraditable, as it is punishable in both countries. Either way, administrative and judicial procedures can take many months.

Martin-Artajo handed himself in to police after they found him and got in touch with him, the authorities said, without detailing where they had tracked him down.

Former JPMorgan colleague Julien Grout, now living in his native France, has not yet been arrested, his lawyer said.

"No, they have not arrested Julien, nor would they because France does not extradite their own citizens," said Grout's U.S. lawyer Edward Little at Hughes Hubbard & Reed. "We are in discussions with the U.S. prosecutors about how we will proceed, but no decision has been made yet."

Grout, who reported to Iksil and is the lowest-ranked person so far targeted in the investigation, is in his mid-thirties and is married to an American. His lawyer previously said he had moved to France several months ago and was not fleeing anything.

A source with knowledge of the matter has said Grout would offer to face the charges in the United States on condition he is granted bail. Grout himself declined to answer questions from a Reuters reporter at his parent's holiday home in southern France earlier this month.

(Additional reporting by Clare Hutchison in London, Catherine Bremer in Paris and Blanca Rodriguez in Madrid; Editing by Louise Heavens and David Holmes)

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Former Grant Thornton partner pleads guilty to stealing $4 million

By Nate Raymond

NEW YORK | Wed Aug 21, 2013 1:46pm EDT

NEW YORK (Reuters) - A former partner at Grant Thornton pleaded guilty on Wednesday to stealing nearly $4 million in client payments to the global accounting firm.

Craig Haber, who prosecutors said diverted money to his own bank accounts between 2004 and 2012, pleaded guilty to a charge of mail fraud in federal court in New York.

"I knew my conduct was wrong," Haber said at a court hearing. "I apologize sincerely to the firm for my actions."

Haber, 59, had been a partner at Grant Thornton from 1993 to 2012 in the firm's New York offices.

As part of his plea, he has agreed to not appeal any order requiring up to $4.34 million in restitution. He also agreed to forfeit $3.97 million, as well as all rights to his downtown Manhattan apartment and $1.8 million in a brokerage account.

Haber was arrested in February in connection with the theft, in which Haber stole $3.97 million in payments intended for Grant Thornton, a court document said.

Grant Thornton is the sixth-largest accounting firm globally with $4.2 billion in revenues in 2012, according to International Accounting Bulletin.

The firm was not named in court documents, but a spokesman for Grant Thornton previously confirmed its role and said it cooperated with the investigation. Grant Thornton terminated Haber in July, charging documents said.

Tim Blair, a spokesman for the firm, said Wednesday the firm was "pleased that the authorities have resolved this matter swiftly."

At a hearing on Wednesday, Haber admitted to telling clients to mail checks directly to his office instead of through the normal processing channel. He then deposited the checks into a bank account he controlled, Haber said.

Charging documents said Haber then used the money for personal expenses, including his New York apartment's mortgage, according to charging documents.

Sentencing before U.S. District Judge Kevin Castel is set for December 13.

Haber faces a maximum 20 years in prison. Under a plea agreement detailed in court, prosecutors have stipulated to a sentencing guideline of 51 to 61 months in prison and a fine of $10,000 to $100,000.

The case is U.S. v. Haber, U.S. District Court, Southern District of New York, 13-cr-434.

(Additional reporting by Dena Aubin; editing by Andrew Hay)

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Former Grant Thornton partner pleads guilty to stealing $4 million

By Nate Raymond

NEW YORK | Wed Aug 21, 2013 1:46pm EDT

NEW YORK (Reuters) - A former partner at Grant Thornton pleaded guilty on Wednesday to stealing nearly $4 million in client payments to the global accounting firm.

Craig Haber, who prosecutors said diverted money to his own bank accounts between 2004 and 2012, pleaded guilty to a charge of mail fraud in federal court in New York.

"I knew my conduct was wrong," Haber said at a court hearing. "I apologize sincerely to the firm for my actions."

Haber, 59, had been a partner at Grant Thornton from 1993 to 2012 in the firm's New York offices.

As part of his plea, he has agreed to not appeal any order requiring up to $4.34 million in restitution. He also agreed to forfeit $3.97 million, as well as all rights to his downtown Manhattan apartment and $1.8 million in a brokerage account.

Haber was arrested in February in connection with the theft, in which Haber stole $3.97 million in payments intended for Grant Thornton, a court document said.

Grant Thornton is the sixth-largest accounting firm globally with $4.2 billion in revenues in 2012, according to International Accounting Bulletin.

The firm was not named in court documents, but a spokesman for Grant Thornton previously confirmed its role and said it cooperated with the investigation. Grant Thornton terminated Haber in July, charging documents said.

Tim Blair, a spokesman for the firm, said Wednesday the firm was "pleased that the authorities have resolved this matter swiftly."

At a hearing on Wednesday, Haber admitted to telling clients to mail checks directly to his office instead of through the normal processing channel. He then deposited the checks into a bank account he controlled, Haber said.

Charging documents said Haber then used the money for personal expenses, including his New York apartment's mortgage, according to charging documents.

Sentencing before U.S. District Judge Kevin Castel is set for December 13.

Haber faces a maximum 20 years in prison. Under a plea agreement detailed in court, prosecutors have stipulated to a sentencing guideline of 51 to 61 months in prison and a fine of $10,000 to $100,000.

The case is U.S. v. Haber, U.S. District Court, Southern District of New York, 13-cr-434.

(Additional reporting by Dena Aubin; editing by Andrew Hay)

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Former Grant Thornton partner pleads guilty to stealing $4 million

By Nate Raymond

NEW YORK | Wed Aug 21, 2013 1:46pm EDT

NEW YORK (Reuters) - A former partner at Grant Thornton pleaded guilty on Wednesday to stealing nearly $4 million in client payments to the global accounting firm.

Craig Haber, who prosecutors said diverted money to his own bank accounts between 2004 and 2012, pleaded guilty to a charge of mail fraud in federal court in New York.

"I knew my conduct was wrong," Haber said at a court hearing. "I apologize sincerely to the firm for my actions."

Haber, 59, had been a partner at Grant Thornton from 1993 to 2012 in the firm's New York offices.

As part of his plea, he has agreed to not appeal any order requiring up to $4.34 million in restitution. He also agreed to forfeit $3.97 million, as well as all rights to his downtown Manhattan apartment and $1.8 million in a brokerage account.

Haber was arrested in February in connection with the theft, in which Haber stole $3.97 million in payments intended for Grant Thornton, a court document said.

Grant Thornton is the sixth-largest accounting firm globally with $4.2 billion in revenues in 2012, according to International Accounting Bulletin.

The firm was not named in court documents, but a spokesman for Grant Thornton previously confirmed its role and said it cooperated with the investigation. Grant Thornton terminated Haber in July, charging documents said.

Tim Blair, a spokesman for the firm, said Wednesday the firm was "pleased that the authorities have resolved this matter swiftly."

At a hearing on Wednesday, Haber admitted to telling clients to mail checks directly to his office instead of through the normal processing channel. He then deposited the checks into a bank account he controlled, Haber said.

Charging documents said Haber then used the money for personal expenses, including his New York apartment's mortgage, according to charging documents.

Sentencing before U.S. District Judge Kevin Castel is set for December 13.

Haber faces a maximum 20 years in prison. Under a plea agreement detailed in court, prosecutors have stipulated to a sentencing guideline of 51 to 61 months in prison and a fine of $10,000 to $100,000.

The case is U.S. v. Haber, U.S. District Court, Southern District of New York, 13-cr-434.

(Additional reporting by Dena Aubin; editing by Andrew Hay)

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This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Former Grant Thornton partner pleads guilty to stealing $4 million

By Nate Raymond

NEW YORK | Wed Aug 21, 2013 1:46pm EDT

NEW YORK (Reuters) - A former partner at Grant Thornton pleaded guilty on Wednesday to stealing nearly $4 million in client payments to the global accounting firm.

Craig Haber, who prosecutors said diverted money to his own bank accounts between 2004 and 2012, pleaded guilty to a charge of mail fraud in federal court in New York.

"I knew my conduct was wrong," Haber said at a court hearing. "I apologize sincerely to the firm for my actions."

Haber, 59, had been a partner at Grant Thornton from 1993 to 2012 in the firm's New York offices.

As part of his plea, he has agreed to not appeal any order requiring up to $4.34 million in restitution. He also agreed to forfeit $3.97 million, as well as all rights to his downtown Manhattan apartment and $1.8 million in a brokerage account.

Haber was arrested in February in connection with the theft, in which Haber stole $3.97 million in payments intended for Grant Thornton, a court document said.

Grant Thornton is the sixth-largest accounting firm globally with $4.2 billion in revenues in 2012, according to International Accounting Bulletin.

The firm was not named in court documents, but a spokesman for Grant Thornton previously confirmed its role and said it cooperated with the investigation. Grant Thornton terminated Haber in July, charging documents said.

Tim Blair, a spokesman for the firm, said Wednesday the firm was "pleased that the authorities have resolved this matter swiftly."

At a hearing on Wednesday, Haber admitted to telling clients to mail checks directly to his office instead of through the normal processing channel. He then deposited the checks into a bank account he controlled, Haber said.

Charging documents said Haber then used the money for personal expenses, including his New York apartment's mortgage, according to charging documents.

Sentencing before U.S. District Judge Kevin Castel is set for December 13.

Haber faces a maximum 20 years in prison. Under a plea agreement detailed in court, prosecutors have stipulated to a sentencing guideline of 51 to 61 months in prison and a fine of $10,000 to $100,000.

The case is U.S. v. Haber, U.S. District Court, Southern District of New York, 13-cr-434.

(Additional reporting by Dena Aubin; editing by Andrew Hay)

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Photos: Rock Icon's Former Home on Sale

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Photos: Rock Icon's Former Home on Sale

External links are provided for reference purposes. ABC News is not responsible for the content of external Internet sites. Copyright © 2013 ABC News Internet Ventures. Yahoo! - ABC News Network

View the original article here