<http://l.yimg.com/us.yimg.com/i/us/nws/p/ap_logo_106.png> Bank, contractor employees uncover fraud scheme By BILL KACZOR, Associated Press WriterWed Jul 30, 4:53 PM ET http://news.yahoo.com/s/ap/20080730/ap_on_bi_ge/state_defrauded_2 <http://news.yahoo.com/s/ap/20080730/ap_on_bi_ge/state_defrauded_2&printer=1 ;_ylt=AnSKrMk2OVYljYU..N9qPmFv24cA> &printer=1;_ylt=AnSKrMk2OVYljYU..N9qPmFv24cA Federal authorities have charged a Lebanese native with fraud after he allegedly deceived Florida officials into diverting millions of dollars to an account he set up, instead of a road building company that was supposed to get the money. Employees of a bank and the contractor are being credited with uncovering the $5.7 million scheme, leading to Ali Hassan Hammoud's arrest as he was attempting to fly to Beirut. Some of the money had been wire transferred to Beirut before the FBI arrested Hammoud, 35, at Miami International Airport last week as he was waiting to board a plane bound for that Middle Eastern city. Most of the cash has been recovered, said Tara Klimek, a spokeswoman for the Florida Department of Financial Services. "We are expecting a full recovery," Klimek said Wednesday. "There are a lot of questions that still remain." She said the FBI is trying to determine if any state employees were involved. Details of the scheme were disclosed after court documents were unsealed Tuesday in Miami, where Hammoud was being held without bond on fraud charges pending a federal court appearance there Friday. The state last week sent money intended for Anderson Columbia Co. Inc. to an account Hammoud had opened at Regions Bank in Miami in the name of the Lake City-based contractor, FBI Special Agent Zachary Coates wrote in a sworn statement. In June, Hammoud allegedly sent the state a form saying Anderson Columbia had switched banks and wanted payments sent to the Regions account. The form indicated "Rick Ward," identified as a "accountant" with Anderson Columbia, was requesting the change. Ward was not an accountant with Anderson Columbia but was a service manager for the company's Marianna, Fla., branch, and his name was listed on the company's Web site, Coates wrote. Ward told the FBI he neither prepared nor signed the authorization form and knew nothing about it. The form was accompanied by a letter that appeared to be on Regions stationary, but bank officials have denied anyone there wrote or authorized it. The state failed to contact Anderson Columbia to verify the new account at Regions before sending the money there, said company comptroller Brian Schreiber. "It's not a matter of dropping the ball," Schreiber said. "They have some outdated procedures." The unsealed court documents do not show whether Hammoud had any connection to Anderson Columbia or why he would have targeted the company. The state made four electronic cash transfers totaling about $5.7 million to the bogus account July 21-22, according to Coates' statement. About $3.8 million was transferred to a second Regions account Hammoud opened in the name of Zamaiss Import Export Inc. and then withdrawn through a variety of means including international wire transfers, all during the same two days. That left a negative balance of $1,405 in the Zamaiss account. Clerks at two Regions branches in Miami thought the transfers were unusual and reported their suspicions to the bank's security office, which contacted Hammoud on July 23. He was arrested the next day. Anderson Columbia, meanwhile, contacted the state July 22 after the company failed to receive the money. Within hours state officials had notified the FBI, Klimek said. Hammoud's lawyer, Stephen Rosen, declined comment. Hammoud was born in Lebanon and lived in Miramar. The unsealed documents do not show his citizenship. Records show Hammoud has prior arrests on charges that include possession of counterfeit designer clothing, auto theft and fraud dating to 1996. (F)AIR USE NOTICE: All original content and/or articles and graphics in this message are copyrighted, unless specifically noted otherwise. All rights to these copyrighted items are reserved. Articles and graphics have been placed within for educational and discussion purposes only, in compliance with "Fair Use" criteria established in Section 107 of the Copyright Act of 1976. The principle of "Fair Use" was established as law by Section 107 of The Copyright Act of 1976. "Fair Use" legally eliminates the need to obtain permission or pay royalties for the use of previously copyrighted materials if the purposes of display include "criticism, comment, news reporting, teaching, scholarship, and research." 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