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A Chairlift to Securities Fraud

The Securities and Exchange Commission brought charges against the owners of Jay Peak resort in Vermont’s Northeast Kingdom just as ski and snowboard season is winding down. The Miami-based ownership was allegedly using fraudulent EB-5 offerings to raise money and take a bit off off the top for themselves. Jay Peak is wonderful mountain for […]

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Rosie Ruiz, center, is helped by Boston police after winning the women's division of the Boston Marathon, April 21, 1980. Ms. Ruiz had a partial unofficial time of 2 hours, 31 minutes, and may have broken the women's record set in 1979. (AP Photo)

Racing, Compliance and Cheating

With the Boston Marathon on Monday, the legend of Rosie Ruiz comes up as one of the most infamous sports cheats. Races have since added controls, but cheaters still look for ways around the controls. For those of you not familiar with the history of the Boston Marathon, Rosie Ruiz was declared the winner of […]

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Videogame Failure and Securities Fraud

As a Red Sox fan, Curt Schilling is an iconic player to me, leading the team to break the curse of the Bambino. I don’t think that leads to him being a successful entrepreneur or video game developer. Nonetheless, he invested a great deal of his own wealth and raised a big pile of capital […]

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Phishing for Losses

You’re security is only as secure as your employees. I was struck by this when I received an email from the head of my firm wanted to discuss a wire. I was being subject to a phishing attack. I think we all see this often. Personally, I always find it curious when a bank sends […]

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The Good, Bad and the Ugly of Lending

In browsing through the Wall Street Journal I ran into three stories side by side: China Calls Lending Platform Ezubo a $7.6 Billion Ponzi Scheme J.P. Morgan Acquires Nearly $1 Billion Worth of Lending Club Loans Remember ‘Liar Loans’? Wall Street Pushes a Twist on the Crisis-Era Mortgage Each is a different side of specialty […]

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Femke Van den Driessche

It’s Hard to Tell What the Next Form of Cheating Will Look Like

One of the problems with compliance is that the fraudsters seem to be one step ahead of the regulators. The regulators try to push out rules to prevent bad behavior. Regulators look at their charges to find cheating. But the cheaters are often one step ahead. We saw this in professional cycling over the weekend. […]

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Shkreli Gets His Holiday Gift… Handcuffs

One of the most hated men in American business was grabbed by the FBI and put in handcuff. The Securities and Exchange Commission slapped a “me too” suit on him as well. Martin Shkreli did the perp walk last week for running a ponzi scheme. Shkreli became the face of what is wrong with the […]

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Twitter for Stock Manipulation

Twitter is stream of random thoughts, news, insightful commentary, boring stories, humor, sadness, food pictures, hate, love, and cat pictures. The internet as a whole. At least a few traders have used Twitter as stock pricing indicator. Theoretically, that means stories could be planted that would move the stock price of a company. One trader […]

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newton mass

Failing the Family

Some Securities and Exchange Commission cases catch my attention because of their headlines or their focus on a real estate investments. The case against Lee Dana Weiss caught my attention because it was from my home town. The story is one of alleged self-dealing and failure to disclose conflicts. In a complaint filed in U.S. […]

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False Credentials, Fraud and Fund-Raising

With graduation season upon us we are lauding those students who have excelled in academic achievement, or at least did just enough to earn their degrees. It is all too easy for a fraudster to concoct false degrees, titles and awards to lure in unwary investors. With two recent fraud cases, the Securities and Exchange […]

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