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biggest_scams [2021/09/13 04:01]
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biggest_scams [2021/09/13 04:41] (current)
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| In the 1980s, Keating's offenses were discovered to cover Wall Street culture, which allowed the financial to make use of his Lincoln savings and loans as a basis for his crimes. Lose legislation and excessive political power. By the end of the decade, it was apparent that Keating had plundered its federally-supported bank, gambling with hazardous junk bonds and dumping huge money into political campaigns on the part of his investors. Following a $3.4 billion taxpayer expense scam, Keating was targeted by federal civil racketeering and fraud lawsuits which finally sent him into jail. [([[https://eu.usatoday.com/story/money/nation-now/2016/05/03/who-charles-keating/83897058/|USA Today]])] | In the 1980s, Keating's offenses were discovered to cover Wall Street culture, which allowed the financial to make use of his Lincoln savings and loans as a basis for his crimes. Lose legislation and excessive political power. By the end of the decade, it was apparent that Keating had plundered its federally-supported bank, gambling with hazardous junk bonds and dumping huge money into political campaigns on the part of his investors. Following a $3.4 billion taxpayer expense scam, Keating was targeted by federal civil racketeering and fraud lawsuits which finally sent him into jail. [([[https://eu.usatoday.com/story/money/nation-now/2016/05/03/who-charles-keating/83897058/|USA Today]])] |
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| | ===== Jordan Belfort ===== |
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| | The wolf of Wall Street had not been written by Jordan Belfort, which has been adapted to the cinema for a blockbuster film with Leonardo DiCaprio once again, may have disappeared in darkness. After robbing more than $100,000,000 as part of the drug and sex-powered corporate thievery spree based on a so-called pump-and-dump scam, Belfort served 22 months in prison, buying big amounts of worthless stocks to drive his price up and selling his equities in one go. [([[https://slate.com/culture/2013/12/wolf-of-wall-street-true-story-jordan-belfort-and-other-real-people-in-dicaprio-scorsese-movie.html|Slate]])] |
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| | ===== Financial Advisory Consultants By James Paul Lewis Jr. ===== |
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| | In January 2004, officials arrested James Paul Lewis Jr. in a hotel in Houston charging him with a national fraud of $814 million that hit hundreds. During 20 years Lewis managed his company as a gigantic Ponzi scam, which never made any actual investments, but used money from new victims to repay previous investors, like in other Ponzi schemes. [([[https://www.cbsnews.com/news/calif-man-charged-in-814m-scam/|CBS News]])] |
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| | ===== Sam Israel III ===== |
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| | Bayou Hedge Fund Group, established by Sam Israel III in 1996, soon attracted hundreds of millions of dollars in investments. The Fund was nonetheless a Ponzi program, and Israel formed an incorrect accounting company to audit Bayou with the aim of reassuring investors in order to avoid disclosing bad results. The jig was up after his customers were tampered with $300 million. In one of the most strange turns in the history of fraud, Israel has feigned suicidality. Israel was detained, convicted and sentenced to 20 years. He ran and was arrested immediately. [([[https://www.cnbc.com/2010/01/27/Suicide-is-Painless:-The-Fall-of-Samuel-Israel-III.html?slide=1|CNBC]])] |
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| | ===== Charles Forbes ===== |
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| | While his fraud soon looks normal in the tide of corporate crime, Charles Forbes mastered what may have been the biggest accounting scandal in history back in 1998. Forbes, CEO of Cendant, a travel and real estate business that became Avis Budget, had been convicted of weaving a web of corporative falsehoods, which fooled investors and destroyed 14 billion dollars in a single day, and sentenced them to 12 years in jail. [([[https://www.reuters.com/article/cendant-forbes-appeal/ex-cendant-chairman-fails-to-overturn-fraud-conviction-idUSL1N0Z910620150623|Reuters]])] |
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| | ===== Centennial Technologies ===== |
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| | In 2000, a man called Emanuel Pinez received a jail term of five years and was forced to repay $150 million for the swindle by his firm, Centennial Technologies Inc. It was the lead performer on the New York Stock Exchange just four years earlier in 1996. Among other scams, earnings were exaggerated from a PC memory cardmaker, who once even sent fruit baskets at Christmas and gave the clients the gifts. Approximately 20,000 investors have lost 50 million dollars. [([[https://www.nytimes.com/2000/05/18/business/jail-and-150-million-restitution-for-fraud.html|NYTimes]])] |
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| | ===== Reed Slatkin ===== |
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| | In 2002, Reed Slatkin pled guilty to fifteen charges for a 15-year Ponzi regime that snapped 800 rich investors who had deposited about $600 million. EarthLink's co-founder and ordained Minister of Scientology, Slatkin had high-level ties in both Hollywood and the world of technology, including major figures like Greta Van Susteren and Giovanni Ribisi on his list of victims. He was imprisoned for fourteen years.[([[https://www.wsj.com/articles/SB101718484270953360|WSJ]])] |
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| | ===== Enron ===== |
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| | Like Keating in the 80's, the Enron brand has been used to represent Wall Street's corporate greed, white-collar thievery and powerless regulation in the early 2000s. The top brass of the energy company has built a vast network of accounts aimed at inflating earnings, covering debts and fooling regulators and investment companies alike. Once a Wall Street boy, the Enron stock peaked at $90.75 and fell to barely 26 cents per share. The stockholders lost 74 billion USD as a result of what was the greatest bankruptcy in history at that time. [([[https://www.investopedia.com/updates/enron-scandal-summary/|Investopedia]])] |
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| | ===== Tyco ===== |
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| | Dennis Kozlowski (Tyco CEO) and a number of key employees in 2002 were accused with fabricating reports using Enron-esque accountancy, lying to authorities and scamming hundreds of millions of dollars at its investors. They utilized the savings to support the prolific life of a $6,000 shower curtain and umbrella stand, including cartooning. Kozlowski was imprisoned for 61⁄2 years and freed in 2015. [([[https://www.nytimes.com/2002/09/13/business/2-top-tyco-executives-charged-with-600-million-fraud-scheme.html|NYTimes]])] |
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| | ===== Worldcom ===== |
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| | In 2002, the WorldCom telecom company filed bankruptcy on account of its participation in the Enron crisis only one month after its auditor, Arthur Andersen LLP, was convicted. With simple but successful deception, the firm collapses and loss for investors after Tyco and Enron even faded. CEO Bernard Ebbers was condemned to 25 years' imprisonment by WorldCom executives who exaggerated revenue and cash flow with a list of costs for investment. [([[https://www.investopedia.com/terms/w/worldcom.asp|Investopedia]])] |
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| | ===== HealthSouth ===== |
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| | HealthSouth was formerly one of the world's leading healthcare corporations but was a sticky bank for its leaders between 1996 and 2002. Top managers have carried out $2.8 billion in fraud based on the same accounting techniques that have been permitted to hide for so long by Enron, WorldCom and Tyco. For their part in covering up debt, exaggerating revenue, reporting fraudulent reports and, like their contemporaries, making unrecovered gains to fund abominably prickly lives, Richard Scrushy and other key officials were condemned to jail. [([[https://www.cfo.com/fraud/2017/03/two-cfos-tell-tale-fraud-healthsouth/|CFO]])] |
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| | ===== Fannie Mae ===== |
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| | At the height of the 2006 housing bubble, the mortgage giant Fannie Mae was forced to pay $400 millions for its leaders' shares, including the handling of the company's accounting, payment of undeserved maximum bonuses and conspiratory cover-up. During the next several months, Fannie Mae would play a major part in America's perhaps worst swindle – the recession in 2008 and the lending and investment practices it prompted. [([[https://www.nytimes.com/2006/05/23/business/23cnd-fannie.html|NYTimes]])] |
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| | ===== War Dogs ===== |
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| | At the time of their massively $300 million government bidding for acquiring more than 100 million rounds of weapons to supply the US-backed rebels of Afghanistan, David Packouz and Efraim Diveroli were two ambitious young arms merchants in the early 1920s. By breaching their contract, and buying cheap Chinese-made ammunition, the duo drastically enhanced their earnings, a fact which the couple understood and had been covering up. [([[https://www.bustle.com/entertainment/where-are-the-real-war-dogs-now-david-packouz-efraim-diveroli|Bustle]])] |
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| | ===== Bernie Madoff ===== |
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| | In 2008 Bernie Madoff fell by grace following the plan of Ponzi that ended all Ponzi schemes, little less than 90 years after Charles Ponzi became renowned for his name. Madoff, on the other hand, managed for decades to maintain his financial juggling action beginning in the 1970s. Formerly regarded to be one of the largest investors in the world, Madoff pled guilty in 2009 to designing the world's largest Ponzi scam, which raised $19 billion, much of the savings of his close family and friends, with Madoff now in prison serving a 150-year sentence. [([[https://www.bloomberg.com/news/articles/2018-12-11/the-bernie-madoff-ponzi-scheme-who-s-where-now|Bloomberg]])] |
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| | ===== Fyre Festival ===== |
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| | In recent news, the Fyre Event was a disastrous documentary by Netflix that reveally shows the interior workings of the disaster in 2017, which was charged for industry elites and VIPs as a costly and ultra-luxurious music festival. Instead, visitors were stuck in the Bahama in filthy and raw lodges with severe supply shortages and, most memorably, cold cheese sandwiches, because of misleading advertising, overpromising marketers and a comedy of mistakes. Billy McFarland, the founder of the event, was sentenced to six years' imprisonment. [([[https://www.businessinsider.com/fyre-festival-expectations-vs-reality-2017-4?IR=T#instead-guests-ended-up-waiting-for-hours-at-the-airport--9|Business Insider]])] |
