Ex-Salomon Worker And $20m Fraud

Police arrested Bernard Jaffe Jr in Florida on Wednesday on charges that he submitted false information when securing a $20m credit line from the Bank of New York. He is believed to have claimed that he earned $2.2m at Salomon in 1999 and that he held $43m in Salomon securities. He actually earned $205,000 and had just $758,000 in securities. He is also thought to have claimed in financial statements that he was worth more than $171m in total.

US federal prosecutors said in a statement that Jaffe had not paid back any of the $20m. He now faces up to 30 years in jail if convicted.
Prosecutors claim that he obtained $5m in unsecured credit each year from the Bank of New York between 1996 - 2000.