The scheme was perpetrated through Red Sea Management Ltd, a Costa Rican asset protection and offshore investments company founded and led by Jonathan Curshen, a dual U.S.-UK citizen residing in Sarasota, Florida.

FORBES: Cooking the Carbon Books, CO2 Tech Charged with Fraud

The challenge was daunting: The electronics and entertainment giant was struggling with red ink and management paralysis.

FORBES: It Takes a Crisis

Also, when things went wrong, and the risk-management models flashed red, the firm could not unwind its positions as quickly as the model had assumed.

ECONOMIST: A new approach to financial risk