402:, which was secured against the assets of the company. Peters was convicted of conspiring and causing false reports to go to the bank about the value of the security and hiding from the bank the true (and dire) state of financial affairs of the company. Peters was also convicted by the jury for his role in a scheme to divert valuable assets from the bank, which involved returning cheques payable to World Auto Parts to customers, asking that these cheques be redrafted to ITEC, a company that Peters had formed without the Chase Manhattan Bank's knowledge.
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face a criminal trial, but was acquitted of all charges. The company became bankrupt due to financial and market pressures, and its assets were later sold for £1.25 million. Peters was subject to a United States court case in 2007; the charges included conspiracy, fraudulently inflating the value of security to a bank, bank fraud, mail fraud and wire fraud.
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to prevent the publication of Peters' allegations against the company and for its perceived lack of accountability to the public. The internal policies of the WDA were of concern, particularly the subsequent employment of the WDA's investment officer by the Parrot
Corporation, who was instrumental in
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The company suffered financial difficulties in 1985, a company investigation uncovered fraud, culminating in the dismissal of company director Frank E. Peters. A British political controversy ensued, with its focus upon the fraud and the WDA's investment practices. Peters was extradited to
Britain to
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was criticised for failing to ensure proper financial controls were in place within the WDA. The police investigation, which involved officers attending the offices of
Northern Trust Bank in Chicago, was criticised due to its cost, as were the costs of defending a claim against the company by Peters
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manufacturing line in early 1989 would provide an opportunity to produce profit. The line did not start production until late 1989 and due to these delays and the collapse of diskette prices during this period, they suffered additional financial losses. The company failed to recover its costs from
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Financial problems were experienced in 1985 due to the decline in the market price for diskettes, the poor performance of the pound against the dollar, the increasing costs of equipment, the delay in the construction of the
Cwmbran factory and late funding by the WDA. An internal investigation
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fell off his ankle after breaking into pieces. The U.S. District Judge, William M. Skretny, did not accept Peters' explanation and revoked his bail. Peters will be confined to a jail cell until his sentencing, which was set for 16 June 2010.
413:
Peters was sentenced to 108 months (9 years) in jail by Judge
William M. Skretny on 27 January 2011. Peters was also ordered to pay restitution of over $ 11,000,000 to Chase Bank and forfeit over $ 23,000,000.
504:"The Northern Trust Company, Plaintiff-counterdefendant-appellee, v. Frank E. Peters and Marta Chaikovska, defendants-counterplaintiffs-appellants - 69 F.3d 123 - Justia US Court of Appeals Cases and Opinions"
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police regarding the missing funds. The £2 million of the ECSC loan was actually deposited in the
Northern Trust Bank as collateral for the loan guarantee, a fact unknown to the WDA and the company investors.
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398:. Peters was the President of World Auto Parts, a company located in Buffalo in the late 1990s and in 2000. The company had a $ 10,500,000 revolving line of credit with the
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The 60,000 sq ft (5,600 m) factory that housed the company, now known as Brecon House, William Brown Close, Llantarnam
Industrial Park, was later used by
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the companies' formation and funding. Changes were made by the
Secretary of State for Wales to the WDA's employment policies to prevent future conflicts of interest.
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and the subject of much discussion. The WDA was criticised for its involvement and perceived to have poorly invested public funds in a "murky transaction". The
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on the 16 May 1989, with the loss of 180 jobs. The assets of the company and its trading name were sold for £1.25 million on 20 July 1989 to Arma BV.
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loan was missing from the Parrot accounts. Due to this irregularity, Peters was fired by the company and subsequently arrested and questioned by the
212:. Peters was an investor in the company along with the WDA who contributed £1.5 million, with a further £2.5 million in the form of a loan from the
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companies. The WDA approached an
American citizen, Frank E. Peters to set up the company, his role was to provide expertise in setting up the
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240:. Additional investors were arranged by the WDA for the purpose of purchasing equipment and to provide working capital for the company.
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The company suffered trading losses year on year from its inception to 1986 and its directors were confident that the
355:" diskette production facility and attempts to find a buyer for the company were not successful. The company entered
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686:"As ankle monitor breaks, bail gets turned into jail | Buffalo News Newspaper | Find Articles at BNET"
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WIPO Patent Filing for floppy diskette. To make counterfeiting more difficult - Parrot Corp, 2 November 1987
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Parrot
Corporation was set up in 1983 as the only British based fully integrated manufacturer of floppy
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708:"USA v. Peters et al 1:03-cr-00211 New York Western Federal District Court Docket Page 25"
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Peters was released without charge and returned to the United States, in 1989 he would be
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On 1 August 2007, Frank E. Peters was convicted after a jury trial of six charges in
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manufacturer formed in 1983, that operated from Llantarnam Industrial Park in
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This article is about a British company. For the French wireless company, see
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The financial difficulties of the Parrot Corporation were scrutinised by the
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to Britain to face six criminal charges. He was acquitted in 1991 after a
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as their training facility for their new manufacturing plant in Newport.
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608:"Treaty establishing the European Coal and Steel Community, ECSC Treaty"
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Receivers report. Held at Companies House. Reference JPC/NDF/JJH/CPARROT
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carried out by the company secretary discovered that £2 million of the
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for personal computers, a start-up venture funded partly by the
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216:(ECSC), an organisation serving to unify the industry of
196:" floppy diskettes and provided duplication services and
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fraudulently inflating the value of security to a bank
630:"Welsh development Agency (Hansard, 21 October 1985)"
428:, relating to the collapse of the Parrot Corporation.
224:. The ECSC would provide the loan on condition of a
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405:Peters' bail was revoked in January 2010 after his
144:. The company was a start-up venture funded by the
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220:and created the foundation for the modern-day
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732:"MAN SENTENCED TO 108 MONTHS FOR BANK FRAUD"
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660:. realestate.bnpparibas.co.uk. 12 July 2006
378:in the United States. The charges included
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586:"Frank E. Peters Conviction Press Release"
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545:"Welsh Affairs (Hansard, 2 March 1987)"
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228:, this guarantee was provided by the
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658:"Cwmbran eyesore gets a makeover"
214:European Coal and Steel Community
684:Herbeck, Dan (25 January 2010).
635:Parliamentary Debates (Hansard)
550:Parliamentary Debates (Hansard)
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168:. The company manufactured 8",
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295:Secretary of State for Wales
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588:. usdoj.gov. 1 August 2007
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130:Parrot Corporation Limited
24:Parrot Corporation Limited
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244:Financial irregularities
146:Welsh Development Agency
298:in the United States.
285:Political controversy
210:production facilities
720:FreeCourtDockets.com
400:Chase Manhattan Bank
364:LG Electronics Wales
230:Northern Trust Bank
206:manufacturing plant
202:technology transfer
119:Number of employees
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688:. Findarticles.com
506:. Cases.justia.com
407:electronic monitor
291:British Parliament
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638:. 21 October 1985
376:Buffalo, New York
198:technical support
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746:. Retrieved
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370:Later events
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94:Headquarters
38:Company type
755:Justice.gov
610:. Europa.eu
271:Crown Court
784:Categories
433:References
396:wire fraud
392:mail fraud
388:bank fraud
380:conspiracy
314:Bankruptcy
303:injunction
267:jury trial
263:extradited
713:11 August
692:11 August
664:3 October
642:11 August
614:11 August
592:11 August
557:11 August
510:11 August
322:of a new
162:diskettes
89:Dissolved
418:See also
341:the new
338:diskette
140:, south
108:Products
48:Industry
748:7 March
350:⁄
331:⁄
275:Cardiff
269:in the
255:British
236:in the
234:Chicago
191:⁄
177:⁄
156:History
148:(WDA).
138:Cwmbran
98:Cwmbran
76: (
71:Defunct
61: (
56:Founded
42:Private
182:" and
742:(PDF)
735:(PDF)
279:Wales
142:Wales
102:Wales
750:2011
715:2010
694:2010
666:2010
644:2010
616:2010
594:2010
559:2010
512:2010
394:and
251:ECSC
86:Fate
78:1989
74:1989
63:1983
59:1983
307:BBC
273:at
200:to
166:WDA
123:180
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