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Friday, June 21, 2024 | Back issues
Courthouse News Service Courthouse News Service

Jig Is up for Executive Scammers

MANHATTAN (CN) - A once-married couple pleaded guilty to federal charges of conspiring to scam AIG and Deutsche Bank out of $470,000, to pay off debts on their horse farm in Upstate New York.

Heidi Walker, 47, was a managing director at Deutsche Asset management and AIG Global Investment group.

Her husband Peter Pfabe, 52, who also worked for a large bank, formed two sham corporations for the scheme: Pennsylvania-based Saint Andrews Marketing and Connecticut-based Greenwich Marketing Association, according to the superseding information and a statement from the U.S. Attorney's Office announcing their pleas.

Walker began authorizing phony invoices at Deutsche Bank for her husband's corporations in 2002, claiming the charges were for "Marketing and Review Services," "company review and alert updates," "monthly commentary report," "Winter Conference Sponsorship," and "Speaker Sponsorship," according to the superseding information.

"Although many of the invoices were addressed to Deutsche Asset Management employees - or, in some cases, former Deutsche Asset Management employees - other than Walker, she was always the one who authorized payment," the U.S. Attorney's Office said in its statement.

From Deutsche, Walker signed off on about $220,000 to Saint Andrews and $125,000 to Greenwich Marketing Association, according to the superseding information.

Walker took a job with AIG Global Investment in 2006, and the couple pulled the same scheme there to the tune of $125,000, purportedly for "editing services for investment commentary" and "Client Investment Management Survey 2008," according to the information.

On Dec. 29, 2005, Walker wrote Pfabe a $74,500 check from the Greenwich Marketing Association account to their Field Pointe Farm, in Salt Point, N.Y., according to the information.

Both pleaded guilty on Tuesday to conspiracy to commit mail fraud and wire fraud.

They face up to 5 years in prison at their June 28 sentencing.

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