Tag Archives | Fraud

Supreme Court Aids Corporate Fraudsters

Is this really the time to give a “get-out-of-jail-free” card to corporate chiefs who can’t resist fraudulently dipping into the honey pot of riches that they have access to? I mean we’re still unraveling (and paying for) the massive frauds perpetrated by the banksters at AIG, Goldman Sachs and their Wall Street cronies and shills in Washington. I suppose it shouldn’t be too much of a surprise that the Supreme Court is in on it too, but the timing shows a particularly callous disregard for public sentiment. Report from the Los Angeles Times:

A Supreme Court ruling Thursday dealt a severe blow to legislation meant to fight public corruption and also could affect the recent convictions of former Enron chief Jeffrey Skilling and former newspaper magnate Conrad Black.

In ruling on “honest-services fraud,” the justices said Skilling and Black were wrongly convicted on that charge. All nine justices agreed that such fraud was too vague to constitute a crime unless a bribe or kickback was involved.

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The EU Financial Crisis: An Opportunity For Forex Fraud

currency[disinformation editor’s note: We decided to run this article because of recent wild swings in currency exchange rates resulting from turmoil  in the financial markets. We recognize that the author is promoting his website but feel that our readers may still value the information.]

Trading in foreign exchange, or forex, has become increasingly popular in recent years for a variety of reasons.  The Internet has become the “Great Facilitator”, but has it also spawned another industry, that of forex fraud?

Unfortunately, the answer to that question is a resounding “Yes”.  Foreign currency trading is not immune, not by a long shot.  Published figures from federal authorities note that forex fraud has increased dramatically, impacting 26,000 individuals to the tune of $460 million over a period of six years, and that was three years ago.  With this kind of “music” playing in the background in the shadows, what must a forex trader do?… Read the rest

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Congress Shot Down, Last Night, The Most Important Wall Street Reform Ever Proposed

What is Congress getting right now? A Philosopher’s Stone? The Holy Grail? The Ark of the Covenant? Your ideas are quite welcome. Zach Carter writes on Alternet:

Late last night, the U.S. Senate rejected the single most important element of Wall Street reform by a vote of 33 to 61.

The SAFE Banking Act would have forced the break-up of the nation’s six largest banks, and dramatically reduced the political clout of America’s financial elite.

The 61 votes against the measure are votes in favor of Wall Street’s stranglehold on our economy.

No matter what else is ultimately enacted in the name of Wall Street reform, Congress has decided that it will not confront the single greatest problem in the U.S. economy: too big to fail.

On Wednesday, the Senate also voted down a $50 billion Wall Street tax that would have been used to fund the cost of shutting down a major failing bank.

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Wall Streeters’ Chain Email Reveals They’re Even Worse People Than We Thought

Image: ExiledOnline.com

Image: ExiledOnline.com

Think that the financial crash has left investment banking hotshots humbler and wiser? Not likely. The National Review blog The Corner has a defiant email that has been circulating over the last couple days among discontented Wall Streeters. Seriously, these people are as douche-y as you imagined:

We are Wall Street. It’s our job to make money. Whether it’s a commodity, stock, bond, or some hypothetical piece of fake paper, it doesn’t matter.

We would trade baseball cards if it were profitable. I didn’t hear America complaining when the market was roaring to 14,000 and everyone’s 401k doubled every 3 years. Just like gambling, its not a problem until you lose. I’ve never heard of anyone going to Gamblers Anonymous because they won too much in Vegas.

Well now the market crapped out, & even though it has come back somewhat, the government and the average Joes are still looking for a scapegoat.

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Let’s Give Goldman Sachs Their Own “Shitty Deal” (On Twitter)

Goldman SucksIn celebration of this paragon of capitalism, Goldman Sachs, on April 30th we'll be giving away copies of Danny Schechter's latest documentary on Wall Street fraud, Plunder: The Crime of Our Time (available now on DVD and iTunes) for those who Tweet the following:
Let's Give Goldman Sachs Their Own "Shitty Deal" #Plunder #GoldmanSucks #FreeFriday http://bit.ly/cuUXky
(If you haven't heard of the "shitty deal" yet read here.) As always the more you Tweet the above phrase, the greater your chances of receiving a copy of Plunder on DVD. Here's the trailer:
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Government Brings Fraud Charges Against Goldman Sachs

Goldman_SachsFinally! Despite the cozy relationship between the Obama administration’s financial team of Geithner, Summers, et al with their brethren on Wall Street, the SEC reveals that it has the balls to go up against Goldman Sachs. I fear for the job security of senior SEC staffers, but meanwhile they are hurting Goldman where it counts – the firm’s stock price dropped 10% on the announcement, as reported by NPR:

The government has accused Goldman Sachs & Co. of defrauding investors by failing to disclose conflicts of interest in mortgage investments it sold as the housing market was faltering.

The Securities and Exchange Commission announced Friday civil fraud charges against the Wall Street powerhouse and one of its vice presidents. The agency alleges Goldman failed to disclose that one of its clients helped create — and then bet against — subprime mortgage securities that Goldman sold to investors.

Investors in the mortgage securities are alleged to have lost more than $1 billion, the SEC noted.

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As The Crisis Deepens, More Attention is Being Paid To Financial Fraud

plunder_art_dvd

The “F Word” (for fraud) is back in polite conversation on Wall Street. Fraud and financial crime are slowly becoming part of the debate over what must be done to restore confidence in what has so plainly been a confidence game.

Drilling for oil has knocked financial reform out of the headlines but among commentators, a concern with crime and the absence of punishment is being raised again.

First there was Robert Reich, the former Clinton Labor Secretary, a small man with a large and insistent voice. He’s practically spitting because he’s so pissed off with the inaction, asking where has the SEC been—not the Bush SEC which blew the Madoff probe but the Obama appointees:

“It’s now clear Lehman Brothers’ balance sheet was bogus before the bank collapsed in 2008, catapulting the Street and the world into the worse financial crisis since 1929. The Lehman bankruptcy examiner’s recent report details what just about everyone on the Street has known since the firm imploded—that Lehman defrauded its investors.… Read the rest

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Madoff Explains How He Concealed Fraud

CBS News correspondent Randall Pinkston reports:

In a wide-ranging jailhouse interview with SEC Inspector General David Kotz, convicted swindler Bernard Madoff explained how he managed to conceal his multi-billion-dollar fraud operation.

“It never entered the SEC’s mind that it was a Ponzi scheme,” Madoff said, because of “the reputation I had.”

“They thought the likelihood of Madoff being a big criminal was probably not something that was realistic,” said Paul Atkins, a former SEC Commissioner.

At the height of his career, Madoff was regarded as a financial genius, he even served as chairman of NASDAQ.

In 2003, Madoff was sure he would be caught and was surprised when investigators did not check his accounts to see if he had actually traded stocks – which he had not.

It is accounting 101, Madoff told the inspector general, to look at DTC – Depositor Trust Commission – to discover a Ponzi scheme.

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