Tag Archives: fraud

Been lucky to have Andrew Sprung of xpostfactoid writing on the topic of perpetrators conceiving, executing, and expanding their carefully planned scheme of large-scale unauthorized plan-switching amongst ACA healthcare insurance subscribers. In the end, people switched over to other plans get lesser healthcare insurance than what they had signed up for initially with a different plan. The plan switch generates a bonus for the person selling a plan...

Celsius Network was never a real business. It did not have a viable business model. Really, it was a momentum trading scheme that relied on the premise that crypto prices would always rise. And when they didn't, it resorted to fake valuations and market manipulation to escape insolvency. It was fraudulent from the start.  This is the conclusion I've reached after studying the U.S. Examiner's final report (yes, I've read all 476 pages of it) and Celsius's audited reports and accounts up to...

Good read.Stumbling and MumblingLying for Money: a review Chris Dillow | Investors Chronicle

By William K. Black June 18, 2018     Kansas City, MO One of the prime myths that white-collar criminologists have to refute repeatedly is that blockchain makes fraud impossible.  Blockchain, in some settings, is a costly means of making some frauds much more difficult.  Blockchain is useless against the most important frauds.  The primitive worship of blockchain as a supposed garlic capable of warding off evil breeds complacency, and complacency produces increased fraud and greatly...

HSBC's results were bad. But they could get a whole lot worse. The list of lawsuits they are facing resembles Don Giovanni's catalogue of conquests, as eloquently explained by his accomplice Leporello. Don Giovanni was, of course, eventually sent to hell as retribution for his crimes. Will HSBC, too, be consigned to fire and brimstone? Somehow I doubt it...My Forbes piece on HSBC's catalogue of lawsuits is here.And if you like Mozart, Leporello's "catalogue aria" is here. The Italian words...

William K. Black February 12, 2016     Bloomington, MN The Bank Whistleblowers United announce the inaugural Financial Fraud Lemons of the Week award.  There can be no more fitting recipient than the ironically named Department of Justice (DOJ).  The “lemon” is used in the economics and criminology literature to refer to a car of surpassingly terrible quality.  The quality is so bad that the car can only be sold through fraud.  We will award it each week to an example of dishonesty or...

William K. Black February 4, 2016     Bloomington, MN Former Secretary of State Hillary Clinton, in her debate with Senator Sanders minutes ago, said that she went to Wall Street and told them to stop their “shenanigans.”  The context was that she was being asked to respond to the complaint that she was too close to on Wall Street billionaires.  She had every incentive, therefore, to demonstrate how tough she would be on Wall Street.  In that context, the best she could muster was the...