Kenneth Rijock

Kenneth Rijock

Tuesday, September 19, 2017

Gary James Lundgren, banned from selling securities for the rest of his life by FINRA*, after a long history of violations, capped by a flat refusal to open his books to the agency, is still thumbing his nose at the American regulator, by selling bonds to Americans, while he resides in the Republic of Panama, an offshore sanctuary, outside the reach of American justice.

Lundgren, who has a long and sordid career involving the sale of suspicious High Yield Investment Products (HYIP), and defrauding expats by stealing their real estate, is believed to have stayed out of the Continental United States for years, due to the fact that there are warrants for his arrest. He is operating as a broker-dealer, but he has no license to sell securities.

Above is a screenshot from one of his websites; note that he is using the name "Interpacific Investors," which was the name of his US firm,  reportedly closed at the insistence of American regulators.

Additionally, Lundgren is acting as a finance company in Panama, though he is not authorized to do so, as he is not licensed to provide financial services. 
* Readers who are not familiar with Mr. Lundgren's case are advised to read our prior blog articles, which detailed the FINRA proceedings against him.


Donald Trump and Ricardo Martinelli
More than two weeks after a Federal magistrate judge in Miami ordered his extradition, to face massive criminal charges in his native Panama Ricardo Martinelli's defense team has not yet filed the Habeus Corpus proceeding that they stated would be filed on his behalf, to contest the decision. Given that Martinelli, the former president of the Republic of Panama, could be shipped out at any time, their failure to act is puzzling. he faces more than a dozen corruption charges, including Insider Trading, plus the illegal surveillance case, which is the specific subject of his extradition.

Martinelli remains in custody in the downtown Federal Detention Center, as his efforts to bond out were met with failure. Some Panama sources claim that he intended to flee the United States for the "safety" of the Dominican Republic, should he have succeeded in obtaining release on bond. The Dom Rep is home to a number of fugitives from justice, wanted by Panama, and who have, bluntly, bought their freedom from extradition, through payoffs.

The final order to extradite Martinelli must come from the US Secretary of State, and Panamanians sincerely involved in reforming their country are anxiously awaiting his decision, as he is the poster child for the corruption, and financial crime, that Panama wants to relegate to history, as it moves forward towards true reform.

Monday, September 18, 2017


The upcoming September 25 referendum on independence, to be held by the Kurdish Regional Government, has spawned not only anti-Israeli, but also anti-American anger in Turkey. Elements of the ruling party in Turkey have staged anti-American protests, including one at the American airbase at Incirlik. 

Iraq, which was artificially created in 1920, by the victorious European powers, is composed of a number of diverse ethnic and religious groups, and Kurdish territory was divided among several countries. Statements to the effect that the loss of Kurdistan will affect Iraqi territorial integrity and history are not supported by fact. Some officials in the Middle East are calling Kurdistan the "next Israel," as it is a movement by a specific ethnic group for independence, and could threaten the existence of a number of countries in the region, by oppressed ethnic groups

 Israel is the only country that has supported Kurdish independence, drawing further Arab wrath, but the fact that the US, which is not a supporter, is being targeted by Turkey, does not bode well for American financial interests there, meaning that Country Risk on Turkey may have to be increased substantially, if the officially-sponsored anti-American demonstrations continue.

Turkey is also unhappy with the American criminal prosecution of the Iranian oil sanctions evader, Reza Zarrab, and the other defendants, and compliance officers who are charged with assessing Country Risk in the Middle East should be be watchful.

Sunday, September 17, 2017


Vladimir Kokorev, an aging, frail Russian businessman who, with his wife & son, has been held for two years as a material witness in a bogus money laundering and corruption investigation targeting the president of Equatorial Guinea, will be the subject of proceedings before the European Parliament, on September, 28, 2017.

 A Spanish investigative judge, Ana Isabel de Vega Serrano, recently extended Kokorev's material witness custody order for two more years but no evidence or information implicating Kokorev has ever been produced, notwithstanding the demands of Kokorev's counsel, who have accused Spanish business interests of fabricating a criminal case for financial gain in Equatorial Guinea.

The case is considered to be a major human rights violation, by a number of MEP members, who have repeatedly brought it up in the press. The European Parliament hearing,  entitled Justice, Human Rights and Due Process in the EU - The Case of Vladimir Kokorev," will be presided over by MEP Fulvio Martusciello, and will feature testimony by attorneys and experts, and will be open to the press.


Twenty three prominent human rights organizations have petitioned the Secretary of the Treasury to impose sanctions upon Ricardo Martinelli, the former president of Panama, who is fighting extradition to his country,where he faces an obscene amount of criminal charges pending against him.  Copied on the letter is the Secretary of State, who will make the final decision regarding Martinelli's extradition from the United States.

The organizations have invoked what is known as the Global Magnitsky Human Rights Act, which authorizes the US Government to impose financial sanctions and visa restrictions upon foreign nationals involved in corruption and human rights violations. Martinelli, and his associates, are accused of having stolen over $100m for government social projects aimed at assisting the citizens of Panama.

Whether this petition will accelerate the conclusion of Martinelli's extradition is not known, but it demonstrates the universal disgust of the NGOs with the massive corruption he is accused of participating in during his term in office. Panama's anti-corruption prosecutors are eagerly awaiting his extradition, and many Panamanians have questioned why the United States allowed him to enter in the first place, given his sordid record on corruption, insider trading, and illegal surveillance, all of which were well known when he fled to Miami, just ahead of criminal charges.

Readers who wish to review the letter may access the complete text here.

if Panama is going to move towards real reform, Martinelli, his corrupt cabinet members, and his criminal associates, all must end up in a Panama City courtroom, to face justice, and the stolen millions recovered and returned to government accounts.

Saturday, September 16, 2017


Ponzi schemer Franicsco Illarramendi, who pled guilty in US District Court in Connecticut, and is presently serving a sentence of 156 months, is now seeking to be released from confinement, while his Habeus Corpus petition is pending. He is asking that the Court place him under Supervised Release until there is a ruling on the petition, which alleges that his constitutional rights were violated during the proceedings.

Illarramendi claims that his Sixth Amendment rights were denied, due to his inability to select counsel of choice, and due to ineffective assistance of counsel. A fair reading of the petition when it was filed did not indicate that it has any legal merit.Ponzi schemers, when caught, frequently deny liability, and seek to portray themselves as victims.

Additionally, he pleads that he cannot adequately defend all his pending civil proceedings, and that he should be released to properly assist his stand-by counsel. His two hedge funds were not registered with the appropriate regulatory agencies, and he has been a primary target of civil action by the US Government.

Readers of this blog may recall that the defendant changed lawyers multiple times, delaying sentencing the case for five years, from 2011 to 2015.  His release pending sentencing was revoked, and he was returned to custody, in 2013, for violating the terms of his release. It is doubtful, given his prior conduct during the case, that there will be any release granted, and in any event his motion to be released at this stage has no basis at law, notwithstanding a 15-page pro se motion, detailing his reputed clean prison record, and alleged non-existent flight risk status.


If you are a senior officer at an international bank whose clients are engaged in financial transactions with Venezuelan entities or nationals, or is considering extending credit to them, look at the present value of the Bolivar to one US Dollar. It is one of the reasons were have raised Country Risk on Venezuela to the highest, meaning unacceptable, level. The country's creditors are owed billions of dollars, and and utter default is looming in the near term.