Be Professional, Act Professionally
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Published in U.S. 1 Newspaper on August 9, 2000. All rights
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Bank Fraud: Tomas Norton
The biggest dollar amount of fraud in the United States
today is fraud against banks, says Tomas Norton of the Norton
Group (609-409-4490; fax, 609-409-4491, www.nortongroup.com). Norton’s
forensic accounting firm offers litigation support for banks and other
financial institutions, and with a sister company, the Norod Media
Group (www.norod.com), it moved to Rossmoor Drive last year.
Norton contributed testimony to a recent mortgage flipping scheme
that was tried in federal district court in the southern district
of New York. In the civil portion of this case, Walsh Securities was
found liable for an amount yet to be determined and will have to
reimburse
Citiscape Corporation, which purchased the mortgages.
In this 1997 scheme, condos or single family homes in Asbury Park
were bought at depressed prices, given cosmetic repairs, and sold
for inflated prices thanks to a questionable appraisal. A home might
be bought, for instance, for $30,000 plus $10,000 worth of repairs.
The home would then be appraised at $90,000, so a $70,000 mortgage
could be obtained.
Norton’s testimony was a comparison of purchase prices with appraisals
ranging from 122 to 714 percent, with the average rise being 370
percent.
These high spreads took place over days or weeks. “We noted that
spreads of this magnitude over a short period of time indicates the
appraisals were false on their face,” says Norton. Walsh
Securities
was found liable in at least 32 cases.
Result: the mutual funds lost money and so did the homeowners.
“The
low-income people had a $40,000 house but were liable for one worth
$70,000,” says Norton. “We represented Citiscape, which sold
the securities into the marketplace to mutual funds. Citiscape sued
Walsh, and a number of appraisers have pleaded guilty to fraud. This
is the first admission of any sort of guilt on the civil side. The
people who are really being cheated are the government or people who
can’t afford it.” The FBI is investigating the criminal portion
of the case.
Norton went to Seton Hall, Class of 1960, and has had 40 years of
banking experience, with jobs as CEO of several banks and deputy
commissioner
of the state banking department. He founded his firm, now located
on Rossmoor Drive, in 1978, and he has four other employees plus
freelance
consultants.
Another landmark case, now pending before the state supreme court,
could change the way banking services are delivered and paid for.
This fraud involves a fake certified check for $350,000 cashed by
the client. The case is known as City Check Cashing versus
Manufacturers
Hanover (now Chase).
Norton’s client, City Check Cashing, faxed a copy of the check to
the bank that issued the check, and the bank never called back. Three
hours later, believing the check to be good, the client cashed it
and gave the money to the client. But several days later the bank
got around to notifying City Check that the certified check was no
good.
“If you provide a service as an accommodation for free, and you
do it badly and harm results, are you responsible?” asks Norton.
“This case will set the standards for what banks can do and cannot
do.”
Consumers should guard against fraud, says Norton, particularly
against
identity fraud, which causes $10 billion of damage every year, and
that amount is only what gets reported. Up for litigation soon, he
predicts, will be a flurry of cases regarding banks with automated
check processors that do not check signatures on personal checks.
Insist on seeing your checks, he says, and inspect them when you get
your statement. “Banks don’t check signatures anymore, and after
60 days you are likely to be liable.”
— Barbara Fox
Top Of PageBe Professional, Act Professionally
If you want to be “professional,” says Joan
Rose Spiegel, keep learning. “The train is leaving, and you
want to be on it,” she says. “Ask questions. Don’t take no
easily. Work hard to be creative. Develop a new skill each
semester.”
The term “professional” formerly applied only to a small
sector
of the market, perhaps only doctors, lawyers, and clerics. Now almost
anyone can label herself a professional, says Rose, if she approaches
her work in a professional way and bolsters her skills on a regular
basis.
Just because you have skill and experience and a fancy title, she
says, does not mean you qualify. “We are professionals — not
because of our title, appearance, education, or income — but
because
of how we do our work and how we think about ourselves.”
With the slogan “positive changes for life,” Joan Rose Spiegel
offers transition consulting through the Rose Group (609-397-6097,
E-mail: rosespiegel@rcn.com). Rose has a BA in sociology from the
University of Miami, Class of
1965, and an MA in counseling psychology from Loyola in Maryland.
She started out as a social worker for the State of Florida, moved
to marketing, did career counseling at what’s now the College of New
Jersey, and then did career management for an international
outplacement
firm before starting her own business in Princeton. She is married
to Herb Spiegel, formerly head of the Small Business Development
Center at Mercer County Community College (see story on page 15),
and they live in Lambertville.
To act in a professional manner, be accountable for your behavior,
says Rose. “Pay attention to non-verbal communication signs, such
as being on time to meetings, not keeping someone waiting, or
returning
calls in a prompt time. Being a professional means showing respect
for others and yourself, and doing what is intrinsically fair and
right.”
1. Have a positive state of mind. “In the movie `ErinBrokovitch,’ Erin believed in her abilities and intelligence and senseof self. She had confidence and passion and commitment which otherssaw. Feeling confident comes from within.”2. Drive your own bus, have a goal. “Be selectiveof the people and books you learn from. Choose a mentor or coach.Know your values. Take a risk and follow-up on something you haveavoided. Make something happen to influence people and events —you are in a position to do that.” Rose believes that when someoneachieves a goal, that person acquires focus, direction, persistence,and power.3. Know the expectations of your business ororganizationso you can help to achieve them. “Everyone wants to be appreciated— offer your talents and skills. Provide solutions when youpresenta problem. Contribute an idea. Volunteer for a team project.”4. Deal effectively with change. “Demonstrateflexibilityby managing multiple tasks, prioritizing projects, and handlingcrises.”5. Value the skills you do routinely. “Self praiseis part of being a professional,” says Rose.Top Of PageNew Programs At MCCCNew traditional credit programs at Mercer College thisyear include certificates in aviation flight technology, E-commerce,and engineering science. Mercer’s fall semester starts Monday, August28, and registration is supposed to be finished by Tuesday, August22. Registration is also available at Quakerbridge Mall on Thursdayand Friday, August 17 and 18, from 5:30 to 9 p.m. or online atwww.mccc.edu,or call 609-586-4800, extension 3228. Tuition is $68.50 per credithour.An E-commerce Certificate will give computer savvyentrepreneursthe qualifications needed to create a powerful and expandableE-business.The E-commerce curriculum is designed so that students leave withthe know-how to plan, design, develop, implement, and maintainindividualweb sites for electronic commerce. Classes for this certificateincludeEnglish composition, website design, E-marketing, building E-commercewebsites, advanced E-commerce websites, and a technical/businesselective. With classroom knowledge and experience as a guide, graduatestudents can build their own E-businesses, become web developers oreditors, or be successful by designing or maintaining web pages forelectronic commerce.The Engineering Science Transferring Certificate can helptransfer students accelerate into the sophomore year at a four-yearcollege in a specific engineering program major. Certificationrequiresthat 33-34 credits be earned through the program’s courses. Classesinclude calculus, general chemistry, English composition, engineeringgraphics, university physics, and an elective.The Health Science Associate in Applied Science Degreeis for licensed or certified health care professionals who have notyet earned a college degree. Professionals who may find this programhelpful and rewarding include dental assistants, medical technicians,licensed practical nurses, or pharmacy technicians. Students willbe required to take English composition 1 & 2, introductorypsychology,general education electives, concepts of health and fitness, livingwith health, college algebra, some core science classes, and technicaland professional electives. To graduate. students will have to acquire62 credits.A Retail Management Certificate of Proficiency opens thedoor for many career opportunities in the retail industry. Thisprogramhelps students become qualified managers who possess knowledge inretailing, merchandising, advertising, sales, marketing and totalquality management — knowledge that is valuable in the retailindustry today. Courses for this program include business mathematics,principles of marketing, retail management, retail merchandising,personal salesmanship, principles of advertising, consumer behavior,English composition, computer concepts, and total quality management:a customer orientation. Altogether, the certification of proficiencyrequires 30 credits for completion.The noncredit division offers two new four-session businesscommunication courses, one on global communication starting Wednesday,September 20, at 7 p.m., and another on American business language,starting Wednesday, October 25. On Monday evenings, a certificateprogram in nonprofit management begins on September 18 with ManagementSkills for Nonprofits taught by Marge Smith, former directorof the YWCA. 609-586-9446 E-mail: ConEd@mccc.edu or call 609-586-9446.Previous StoryNext StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
