Posts tagged ‘PYRAMID SCHEME’

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Ray Dirks, Whistleblower

Back in the news after 42 years

On March 6, 1973, Ray Dirks got an unexpected phone call in the morning from an ex-employee of a West Coast life insurance company he was following called Equity Funding Corporation of America. 

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Peering into Financial Fraud

Crazy Eddie’s cousin Sam now trains Feds in spotting white-collar crime

Remember Crazy Eddie?  The 1980s electronics retailer with the famous television commercials bellowing uncontrollably about the company’s prices being “insane!

Well, despite over $300 million in annual sales at its peak, Crazy Eddie went bankrupt in 1989 after being exposed as an 18-year, $100 million accounting fraud. 

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Short-Swing Profiteers

Billionaire hedge funders play poker over an activist target

At an investor conference last December, hedge fund activist Bill Ackman spent 3½ hours explaining why Herbalife, the 33-year-old direct marketer of nutritional supplements, was nothing more than a Ponzi scheme whose stock was worthless.