Bernie Madoff

Confidence Games: If Two And Two Add Up To Five, Investors Are In Trouble

News Analysis: An Istanbul, Turkey, Currency Trader, of apparent British origins, is suspected of bilking his clients for more than 130 Million Pounds ($200 Million Dollars). Using various charades, he communicated to his unfortunate investors that he was not able to pay them back  their monies. Now, this apparent  British “Bernie Madoff” style Trader made off with investors’ funds. They should have realized, in  Confidence Games: If two and two add up to five, Investors are in trouble.

We think that in 2015, many more Financial Deviances will be sprouting up like weeds on Wall Street. Accountants, Arbitrageurs, Bankers, Brokers, Fund Operators, (AABBFOs) etc. will be ‘hard-pressed’ in the forthcoming economy, which we foresee. Flimsy investment advice by self-interested “Professionals” will not be able to cope with then-present economic realities. Investors will lose billions of Euros in such investments; this, both due to fraud but also ineptness of judgement.

As always, we suggest: “Trust, But Verify”.

If you want Business and/or Investment Advice, seek out those Seasoned Professionals who put their Clients First, and they, Second. Beware of those “AABBFO” ‘Professionals’ who have the mentalities of Trollops. They will not give you a ‘Treat’ but a ‘Trick’.

Reality.

Reference: http://www.telegraph.co.uk/news/uknews/crime/11307920/Police-let-trader-at-centre-of-130m-con-slip-through-their-fingers.html

☆ Financial Pirate Bernie Madoff Thinks Well Of Himself

News Analysis: Financial Pirate Bernie Madoff Thinks Well Of Himself even though he stole $65+/- Billion Dollars from his ‘Clients’; this directly or through Commissioned  Minions working for him. Many people say he exemplifies a “Anything For A Buck” (AFAB) Philosophy of Commerce.  ‘Let the Shtarkers fleece the Freiers’ many people on “Wall Street” in New York City think.

One must acknowledge that Bernie had made many people Wealthy (by his own admission); due to his Financial Acumen. Those that had gained from him are NOT discussed nor identified by the Mass Media for ‘Reasons Unknown’. Perhaps, Harry M. Markopolos, who discovered Bernie’s fraud Early On (and was totally ignored and later ‘oppressed’ by the Securities Exchange Commission for reporting the “Shenanigans” of  its “Buddy Bernie”) can suggest an answer about the Mass Media and Bernie?

As we have maintained for a long, long while “The Morality of the Marketplace is Very Low”; Bernie Madoff evidences this thought very well.

It will be interesting to see if Bernie Madoff is granted a Presidential Pardon before the Current U.S. White House Resident leaves office. Using the Legal Principle of “Stare Decisis” as his possible foundation for such a pardon (based on earlier U.S. President Bill Clinton’s Executive Pardon of Felon Marc Rich) might allow for such a move in the Current President’s thinking? If so, Bernie Madoff can rejoin his yet undiscovered Ill-Gotten Gains. He can possibly reward his ‘Friends’ (as other continue to do as rewards for past favorable actions while having been  in Office).

Reality.

Reference: http://www.israelnationalnews.com/News/News.aspx/178792

Forensic Accountants (FA’s), with Experience, are Priceless

News Analysis: Forensic Accountants (FA’s), with Experience, are Priceless when looking for Fraudulent Accounting Irregularities. Those Individuals who “Cook The Books” are loathe to find “FA’s” reviewing their previous Numerical Machinations. The adage: “Figures do not Lie, But Liars Figure” apply to many. Embezzlers, “Ponzi Scheme” Operators, as well as a myriad of other ‘Slight of Hand’ Persons  engage in  ‘Bogus’ Accounting Entries in Financial Records.

As an example, Bernie Madoff, was the former Chairman of National Association of Securities Dealers Automated Quotations (NASDAQ). He was thought by “FA” Mr. Harry M. Markopolos to be engaged in a “Scam” against Investors. Mr. Markopolos reported his findings to the U.S. Securities and Exchange Commission (SEC), to NO AVAIL. In fact, it was reported that some even investigated Mr. Markopolos (the Messenger)! Both the SEC’s Inexperienced Accountants and Attorneys refused to believe that the former Chairman of NASDAQ “was a Crook”.  A “FA” NEVER makes such a NAIVE CONCLUSION that Someone is Legitimate merely because  of his or her former Occupation! 

Some people, in retrospect, wonder if Monies were given to any SEC Attorneys to “Quash” or Delay any Investigations of Madoff? They opine: “If the Chairman of NASDAQ offers bribes, why would mere SEC Attorneys not have accepted? They do not earn much money and Bernie could pay. Look how many years he operated freely.”

Approximately Sixteen Years AFTER some suspicions were aroused about Bernie Madoff and his “Gang of Crooks” did the U.S. Government close down his Operations. PATHETIC! If the ‘SEC’ had PROMPTLY listened to Mr. Markopolos and sent EXPERIENCED “FA’s” to examine Bernie’s Books, the Ponzi Scheme would have been recognized and ended. Since it did not, Investors from All Over The World lost Billions of Dollars. Unfortunately, much money is still missing.

There are those who think that a Presidential Pardon for Bernie Madoff would allow him to enjoy his ill-gotten gains (as it occurred years earlier for Felon Marc Rich by being Pardoned by then-U.S. President William Jefferson Clinton; the last week of his term).

Corporations and Nations can do themselves a favor by recruiting and training “FA’s” to look at their  Accounting Records and see where Embezzlement  or other thefts may be occurring or may have occurred by their “Honest” Employees. Trust, But Verify.

Reference: http://www.bloomberg.com/news/2013-12-03/madoff-behaved-like-a-lunatic-over-fund-probe-jury-told.html

Corruption is Where One Finds It, Just Look

News Analysis: Corruption Is Where One Finds It, Just Look (as Transparency International has for 2013). Since in almost all countries the “AFAB” Acronym (Anything For A Buck) is the Operational Guide for some of their residents, Corruption is rampant. The Mores and Folkways of the Country’s Culture are of little importance compared to the Precepts of “AFAB”. “Beg, Borrow, Cheat, and Steal” become their Operational Guide.

Businessmen in Cabals with Bankers illicitly Connive (Bernie Madoff Convolution); Bankers do the same  with Bankers (LIBOR Scandal); Government Workers collaborate with Defense Contractors (Fighter Aircraft Program); Federal Government Leaders do it with other Countries Heads-of-State (Iraq War).  

The important thing to realize is that Corruption takes at least Two Parties: A Donor and A Recipient. Corruption grows in relation to the Sizes of the Economies in which it exists. For example, one can be of the opinion that the Largest Transaction Currency Amounts will take place where the biggest “Deals” are available. To wit, a $1.26 Trillion+/- Deal with Banks was Signed Off by the U.S. Government within approximately 30 days of a New Regime commencing! Many people think that the paperwork for a “Deal” that Large  would obviously  HAD TO HAVE BEEN WRITTEN BEFORE THE ELECTION OCCURRED. Conveniently there were NO Requirements that the monies be lent to businesses for the hiring of workers. The banks lent the majority of the money back to the U.S. Government and collected the interest! Bankers Collaborating with Government leaders before the Election is thought by many. Corruption? A completely “Legal” transaction (those involved would say). Much of the monies lent are noncollectable (unfortunately for  U.S. Taxpayers).

A very Valuable Anti-Corruption Tool was implemented recently by Russian President Vladimir Putin. In it, Government Employees had to declare ANY Assets they held abroad and cease and desist from keeping them (if they wanted to retain their employment in the Government). This is an Excellent Idea which is needed in America and other “Big Ticket” Countries.

Keep in mind that a Corruption PERCEPTION Index is just that. Connotation is NOT the same as Denotation; they exist one way or the other regarding “Corruption”, in the eyes of the beholders.

One Man’s “Corruption” is another Man’s “Efficient Business”. Reality.

Reference: http://cpi.transparency.org/cpi2013/results/