#defrauding banks
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frank-o-meter · 1 year ago
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“the documents here clearly contain fraudulent valuations that defendants used in business”
“The judge said that Trump’s defenses “are wholly without basis in law or fact.”
“Trump and his company… exaggerated values on financial documents, allowing for better loan terms and other business benefits”
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sylphy · 9 months ago
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I don't know who needs to hear this but your lawyer does not need to log into your bank account.
ever.
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if-you-fan-a-fire · 3 years ago
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"THREE YEARS IN PRISON, SENTENCE ON WALTER HAYES," Vancouver Sun. February 20, 1912. Page 12. --- Accused Tearfully Asks Judge Not to Send Him to Durance Vile. === FOUND GUILTY ON CHARGE OF CONSPIRACY ---- His Partner in Crime in Robbing Champion & White Is Still at Large. ---- Walter Hayes, manufacturer's agent of Vancouver, was found guilty of conspiracy to defraud and sentenced to three years in the penitentiary by Judge McInnes in the county criminal court yesterday afternoon. Hayes broken down when sentence was passed, buried his face in his hands and was on the point of tears. He was taken immediately to New Westminster.
Hayes is a man well on in years. What hair has been left by the ravages of time is nearly white, and surmounts a deeply pitted face and fierce, eagle-like nose. For several days he had sat unmoved through the trial, chatting occasionally with his counsel, Mr. H. A. Robinson, but for the most part staring fixedly at each witness, as the case grew blacker and ever blacker against him. Occasionally he smiled cynically especially when George Wilson Pinner, his former partner, gave testimony under the court's protection.
Cringes for Mercy. It was not until Judge McInnes had found the man guilty that he broke down. His honor asked if he had anything to say before sentence was passed. Hayes could only plead that he be not sent to prison, protesting his innocence.
Hayes was the promoter of a company called Walter Hayes & Company, doing a commission business. He had established a connection with a big English firm of plumbers, supplies manufacturers, and was their sole agent in Vancouver. To the firm of Champion & White, 941 Main street, Hayes gave the sole distributing rights.
Mackenzie Morden is the name of the man with whom Hayes was found guilty of conspiring to defraud Cham- pion & White. He wasrecommended to the latter firm by Hates, and given an important position. The Crown built up its case on the fact that Hayes supplied false invoices of un- delivered goods to Champion & White, and that Morden railroaded them through. On the strength of the false invoices, Haves received payments for undelivered goods to the amount of over $4,000, although the initial charge placed the amount nearer the $14,000 mark.
The chief witness against Hayes was James Pennington, who did the greater part of the detective work to build up the case Mr. Pennington is the manager for Champion & White. He told of receiving a letter from Hayes, asking that Morden be given a position. Without further investigation, Morden was employed, and later promoted to a responsible position.
Man With a Past. Anonymous letters were received telling Mr. Champion that Morden's past might well be looked into, and after some investigation, said Mr. Pennington, it was found that Morden had once been on trial, but that nothing had come of it, and they had presume that some spiteful person was pursuing his ill will. Morden was kept on the staff, his salary going up until he was getting $150 a month and commissions.
As soon as Mr. Pennington became suspicious that all was not well, he began a further investigation. Hayes went to England, and Mr. Pennington, holding threats over the head of Pinner, then a member of the firm, arranged that he wire Hayes to meet him in Calgary. Pinner did this, and he and Mr. Pennington confronted the broker in the hotel.
"I have come to have you arrested," was Mr. Pennington's onening volley, and he testified that this brought forth promises of restitution from Hayes.
No Case of Theft. There were two charges laid against Hayes, one of theft, and one of conspiracy to defraud. Reviewing the evidence, after Mr. Robinson had made his plea for the defense, and Mr. W. M. McKay his statement for the prosecution, Judge McInnes stated that the case of theft had not been brought home. But on the case of conspiracy, he could only find Hayes guilty.
The prisoner pleaded for a fine rather than imprisonment, and the court stated that personally he did not want to send the man to prison, but that as a judge he was forced to do so. The maximum sentence for this crime is seven years.
There is a warrant out for Mackenzie Morden, but the police say they think he has crossed the border into the United States. Mr. Robinson scored several unmentioned persons in his final plea, saying Hayes had been but a tool in the hands of others.
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wilwheaton · 5 months ago
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Trump has been found by New York civil juries to have sexually assaulted and defamed E. Jean Carroll. A New York judge found that Trump’s business defrauded banks and the state of New York. More importantly, Trump’s efforts to corrupt elections have not been limited to concealing payments to adult performer Stormy Daniels. Trump was impeached once for extorting Ukraine to damage an electoral opponent. And as a majority of both the House and the Senate found in Trump’s second impeachment (and as the House Jan. 6 committee later documented in painstaking detail) Trump actively sought to steal the 2020 election. In short, Judge Merchan is not sentencing a defendant who merely cooked the books to hide one sordid affair, but a man with a proven pattern of abusing individuals, cheating at business and, most critically, corrupting the electoral process to gain and keep presidential power.
Why Donald Trump should go to jail after guilty trial verdict
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sylvialovej · 2 years ago
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Debt is an Illusion it Doesn’t Exist
Debt: Inflation is a privately owned problem.  Let the owners of the problem, the mob who are the Rothschilds and their monstrous creation: the criminal, fraudulent humanity, enslavement, privately-owned -banking system, solve the problem themselves. Let the owners and creators of this problem, the family who owns the banking system, fix their privately owned problems and leave the rest of us…
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pony32099 · 23 days ago
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 Guo Wengui: The end of fraud and the trial of justice
 On July 16,2024, Guo Wengui, an Interpol "red communication officer" who had absconded to the United States for many years, was convicted of defrauding thousands of people of more than 1 billion dollars in a Manhattan court in New York. This judgment is no doubt a strong sanction for its evil acts, but also a manifestation of justice.
 Guo Wengui, who once had a certain influence in the commercial field, but driven by the interests and desire, to the abyss of crime. He used to be the actual controller of Henan Yuda Investment Co., Ltd. and Beijing Pangu Investment Co., Ltd. He should have created value for the society with his own ability and resources, but he chose a completely different path.
 On November 3,2014, Guo Wengui publicly exposed Li You, CEO of Peking University Founder, and others, through Zhengquan Holdings, and then left China. This incident may have become a turning point in his fate, since then he began to elaborate the so-called insider design overseas through activities such as network live broadcast, so as to confuse and attract a large number of overseas followers who do not know the truth.
 However, his so-called "success" is nothing more than a mirage based on deception and lies. Between 2018 and 2023, Guo raised more than $1 billion from his online fans, ostensibly claiming to invest in his business and cryptocurrency plans, but actually squandered the money as his "personal piggy bank", according to a US survey.
 He used a variety of fraud. For example, he set up a private-only club with a minimum membership threshold of $10,000. Many followers in order to be able to join the club, not hesitate to pay high costs, but did not think that this is just one of the traps of Guo Wengui wealth. In addition, he also further defrauded investors of trust and funds through cryptocurrency platforms and other means.
 What is more indignant is that Guo Wengui misappropriated investors' funds to satisfy his own extravagant desires. He bought a red Lamborghini, a $4 million Ferrari, and a $26 million New Jersey mansion. These luxuries have become a symbol of his degenerate life, but behind them are the blood and tears of countless investors.
 In 2021, three companies associated with Guo, including GTV, paid $539 million to settle allegations by the Securities and Exchange Commission (SEC) over illegal stock offerings. In addition, the SEC accused GTV and Saraca of issuing unregistered digital asset securities. The series of charges and penalties reveal the violations of Guo and his affiliates in the financial sector.
 Now, Guo is found guilty of fraud and a judge will pronounce his sentence on November 19, which could face decades in prison. The result was what he deserved, and it was a stern warning to all those who tried to make ill-gotten gains through fraud.
 Guo Wengui's case brings us a profound reflection. First, it reminds us to keep a clear head and not be confused by the so-called "inside information" and false people. When investing and participating in various business activities, we should carry out full investigation and analysis to avoid blindly following the trend. Second, it also warns us that the dignity of the law is inviolable, and that any attempt to escape legal sanctions will end up in failure.
 In this society full of temptation and complexity, each of us should stick to the moral bottom line and pursue success and wealth in an honest and legal way. Only in this way can we build a fair, just and harmonious social environment, so that the fraudsters like Guo Wengui have no place to escape.
Justice may be late, but never absent. Guo Wengui's end once again proves this truth. Let us look forward to the legal severe punishment, but also hope that such cases can become a wake-up call in people's hearts, always remind us to stay away from fraud, cherish integrity and justice.
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reportwire · 2 years ago
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87 shell companies, 2.6 lakh fictitious borrowers: How DHFL promoters diverted money borrowed from banks
87 shell companies, 2.6 lakh fictitious borrowers: How DHFL promoters diverted money borrowed from banks
DHFL’s promoters formed 87 shell companies, created more than 260,000 fictitious borrowers, set up a ‘virtual branch’ in order to divert the money it had borrowed from the banks, according to the Central Bureau of Investigation (CBI). The agency in its charge sheet filed last month also said that Kapil and Dheeraj Wadhawan bought 24 paintings worth Rs 63 crore from the diverted funds.  The charge…
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mostlysignssomeportents · 3 months ago
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Leveraged buyouts are not like mortgages
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I'm coming to DEFCON! On FRIDAY (Aug 9), I'm emceeing the EFF POKER TOURNAMENT (noon at the Horseshoe Poker Room), and appearing on the BRICKED AND ABANDONED panel (5PM, LVCC - L1 - HW1–11–01). On SATURDAY (Aug 10), I'm giving a keynote called "DISENSHITTIFY OR DIE! How hackers can seize the means of computation and build a new, good internet that is hardened against our asshole bosses' insatiable horniness for enshittification" (noon, LVCC - L1 - HW1–11–01).
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Here's an open secret: the confusing jargon of finance is not the product of some inherent complexity that requires a whole new vocabulary. Rather, finance-talk is all obfuscation, because if we called finance tactics by their plain-language names, it would be obvious that the sector exists to defraud the public and loot the real economy.
Take "leveraged buyout," a polite name for stealing a whole goddamned company:
Identify a company that owns valuable assets that are required for its continued operation, such as the real-estate occupied by its outlets, or even its lines of credit with suppliers;
Approach lenders (usually banks) and ask for money to buy the company, offering the company itself (which you don't own!) as collateral on the loan;
Offer some of those loaned funds to shareholders of the company and convince a key block of those shareholders (for example, executives with large stock grants, or speculators who've acquired large positions in the company, or people who've inherited shares from early investors but are disengaged from the operation of the firm) to demand that the company be sold to the looters;
Call a vote on selling the company at the promised price, counting on the fact that many investors will not participate in that vote (for example, the big index funds like Vanguard almost never vote on motions like this), which means that a minority of shareholders can force the sale;
Once you own the company, start to strip-mine its assets: sell its real-estate, start stiffing suppliers, fire masses of workers, all in the name of "repaying the debts" that you took on to buy the company.
This process has its own euphemistic jargon, for example, "rightsizing" for layoffs, or "introducing efficiencies" for stiffing suppliers or selling key assets and leasing them back. The looters – usually organized as private equity funds or hedge funds – will extract all the liquid capital – and give it to themselves as a "special dividend." Increasingly, there's also a "divi recap," which is a euphemism for borrowing even more money backed by the company's assets and then handing it to the private equity fund:
https://pluralistic.net/2020/09/17/divi-recaps/#graebers-ghost
If you're a Sopranos fan, this will all sound familiar, because when the (comparatively honest) mafia does this to a business, it's called a "bust-out":
https://en.wikipedia.org/wiki/Bust_Out
The mafia destroys businesses on a onesy-twosey, retail scale; but private equity and hedge funds do their plunder wholesale.
It's how they killed Red Lobster:
https://pluralistic.net/2024/05/23/spineless/#invertebrates
And it's what they did to hospitals:
https://pluralistic.net/2024/02/28/5000-bats/#charnel-house
It's what happened to nursing homes, Armark, private prisons, funeral homes, pet groomers, nursing homes, Toys R Us, The Olive Garden and Pet Smart:
https://pluralistic.net/2023/06/02/plunderers/#farben
It's what happened to the housing co-ops of Cooper Village, Texas energy giant TXU, Old Country Buffet, Harrah's and Caesar's:
https://pluralistic.net/2021/05/14/billionaire-class-solidarity/#club-deals
And it's what's slated to happen to 2.9m Boomer-owned US businesses employing 32m people, whose owners are nearing retirement:
https://pluralistic.net/2022/12/16/schumpeterian-terrorism/#deliberately-broken
Now, you can't demolish that much of the US productive economy without attracting some negative attention, so the looter spin-machine has perfected some talking points to hand-wave away the criticism that borrowing money using something you don't own as collateral in order to buy it and wreck it is obviously a dishonest (and potentially criminal) destructive practice.
The most common one is that borrowing money against an asset you don't own is just like getting a mortgage. This is such a badly flawed analogy that it is really a testament to the efficacy of the baffle-em-with-bullshit gambit to convince us all that we're too stupid to understand how finance works.
Sure: if I put an offer on your house, I will go to my credit union and ask the for a mortgage that uses your house as collateral. But the difference here is that you own your house, and the only way I can buy it – the only way I can actually get that mortgage – is if you agree to sell it to me.
Owner-occupied homes typically have uncomplicated ownership structures. Typically, they're owned by an individual or a couple. Sometimes they're the property of an estate that's divided up among multiple heirs, whose relationship is mediated by a will and a probate court. Title can be contested through a divorce, where disputes are settled by a divorce court. At the outer edge of complexity, you get things like polycules or lifelong roommates who've formed an LLC s they can own a house among several parties, but the LLC will have bylaws, and typically all those co-owners will be fully engaged in any sale process.
Leveraged buyouts don't target companies with simple ownership structures. They depend on firms whose equity is split among many parties, some of whom will be utterly disengaged from the firm's daily operations – say, the kids of an early employee who got a big stock grant but left before the company grew up. The looter needs to convince a few of these "owners" to force a vote on the acquisition, and then rely on the idea that many of the other shareholders will simply abstain from a vote. Asset managers are ubiquitous absentee owners who own large stakes in literally every major firm in the economy. The big funds – Vanguard, Blackrock, State Street – "buy the whole market" (a big share in every top-capitalized firm on a given stock exchange) and then seek to deliver returns equal to the overall performance of the market. If the market goes up by 5%, the index funds need to grow by 5%. If the market goes down by 5%, then so do those funds. The managers of those funds are trying to match the performance of the market, not improve on it (by voting on corporate governance decisions, say), or to beat it (by only buying stocks of companies they judge to be good bets):
https://pluralistic.net/2022/03/17/shareholder-socialism/#asset-manager-capitalism
Your family home is nothing like one of these companies. It doesn't have a bunch of minority shareholders who can force a vote, or a large block of disengaged "owners" who won't show up when that vote is called. There isn't a class of senior managers – Chief Kitchen Officer! – who have been granted large blocks of options that let them have a say in whether you will become homeless.
Now, there are homes that fit this description, and they're a fucking disaster. These are the "heirs property" homes, generally owned by the Black descendants of enslaved people who were given the proverbial 40 acres and a mule. Many prosperous majority Black settlements in the American South are composed of these kinds of lots.
Given the historical context – illiterate ex-slaves getting property as reparations or as reward for fighting with the Union Army – the titles for these lands are often muddy, with informal transfers from parents to kids sorted out with handshakes and not memorialized by hiring lawyers to update the deeds. This has created an irresistible opportunity for a certain kind of scammer, who will pull the deeds, hire genealogists to map the family trees of the original owners, and locate distant descendants with homeopathically small claims on the property. These descendants don't even know they own these claims, don't even know about these ancestors, and when they're offered a few thousand bucks for their claim, they naturally take it.
Now, armed with a claim on the property, the heirs property scammers force an auction of it, keeping the process under wraps until the last instant. If they're really lucky, they're the only bidder and they can buy the entire property for pennies on the dollar and then evict the family that has lived on it since Reconstruction. Sometimes, the family will get wind of the scam and show up to bid against the scammer, but the scammer has deep capital reserves and can easily win the auction, with the same result:
https://www.propublica.org/series/dispossessed
A similar outrage has been playing out for years in Hawai'i, where indigenous familial claims on ancestral lands have been diffused through descendants who don't even know they're co-owner of a place where their distant cousins have lived since pre-colonial times. These descendants are offered small sums to part with their stakes, which allows the speculator to force a sale and kick the indigenous Hawai'ians off their family lands so they can be turned into condos or hotels. Mark Zuckerberg used this "quiet title and partition" scam to dispossess hundreds of Hawai'ian families:
https://archive.is/g1YZ4
Heirs property and quiet title and partition are a much better analogy to a leveraged buyout than a mortgage is, because they're ways of stealing something valuable from people who depend on it and maintain it, and smashing it and selling it off.
Strip away all the jargon, and private equity is just another scam, albeit one with pretensions to respectability. Its practitioners are ripoff artists. You know the notorious "carried interest loophole" that politicians periodically discover and decry? "Carried interest" has nothing to do with the interest on a loan. The "carried interest" rule dates back to 16th century sea-captains, and it refers to the "interest" they had in the cargo they "carried":
https://pluralistic.net/2021/04/29/writers-must-be-paid/#carried-interest
Private equity managers are like sea captains in exactly the same way that leveraged buyouts are like mortgages: not at all.
And it's not like private equity is good to its investors: scams like "continuation funds" allow PE looters to steal all the money they made from strip mining valuable companies, so they show no profits on paper when it comes time to pay their investors:
https://pluralistic.net/2023/07/20/continuation-fraud/#buyout-groups
Those investors are just as bamboozled as we are, which is why they keep giving more money to PE funds. Today, the "dry powder" (uninvested money) that PE holds has reached an all-time record high of $2.62 trillion – money from pension funds and rich people and sovereign wealth funds, stockpiled in anticipation of buying and destroying even more profitable, productive, useful businesses:
https://www.institutionalinvestor.com/article/2di1vzgjcmzovkcea8f0g/portfolio/private-equitys-dry-powder-mountain-reaches-record-height
The practices of PE are crooked as hell, and it's only the fact that they use euphemisms and deceptive analogies to home mortgages that keeps them from being shut down. The more we strip away the bullshit, the faster we'll be able to kill this cancer, and the more of the real economy we'll be able to preserve.
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If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2024/08/05/rugged-individuals/#misleading-by-analogy
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r2b2grady · 5 months ago
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“Do you understand anything I’m saying?” shouted Moist. “You can’t just go around killing people!” “Why Not? You Do.” The golem lowered his arm. “What?” Moist. “I do not! Who told you that?” “I Worked It Out. You Have Killed Two Point Three Eight People,” said the golem calmly. “I have never laid a finger on anyone in my life, Mr. Pump. I may be—all the things you know I am, but I am not a killer! I have never so much as drawn a sword!” “No, You Have Not. But You Have Stolen, Embezzled, Defrauded, And Swindled Without Discrimination, Mr. Lipvig. You Have Ruined Businesses And Destroyed Jobs. When Banks Fail, It Is Seldom Bankers Who Starve. Your Actions Have Taken Money From Those Who Had Little Enough To Begin With. In A Myriad Small Ways You Have Hastened The Deaths Of Many. You Did Not Know Them. You Did Not See Them Bleed. But You Snatched Bread From Their Mouths And Tore Clothes From Their Baks. For Sport, Mr. Lipvig. For Sport. For The Joy Of The Game.”
– Going Postal, Chapter 4, by Sir Terry Pratchett
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terry-perry · 8 months ago
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Charlie: Alastor has done time.
Y/N: What for?
Charlie: No one knows for sure. He changes the story every time you ask him.
Alastor: I defrauded a major corporation.
Alastor: I robbed the second largest bank using only a ballpoint pen.
Alastor: I created a hole in the ozone over Avignon.
Alastor: I killed a man with this thumb.
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robertreich · 6 months ago
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Should Billionaires Exist? 
Do billionaires have a right to exist?
America has driven more than 650 species to extinction. And it should do the same to billionaires.
Why? Because there are only five ways to become one, and they’re all bad for free-market capitalism:
1. Exploit a Monopoly.
Jamie Dimon is worth $2 billion today… but not because he succeeded in the “free market.” In 2008, the government bailed out his bank JPMorgan and other giant Wall Street banks, keeping them off the endangered species list.
This government “insurance policy” scored these struggling Mom-and-Pop megabanks an estimated $34 billion a year.
But doesn’t entrepreneur Jeff Bezos deserve his billions for building Amazon?
No, because he also built a monopoly that’s been charged by the federal government and 17 states for inflating prices, overcharging sellers, and stifling competition like a predator in the wild.
With better anti-monopoly enforcement, Bezos would be worth closer to his fair-market value.
2. Exploit Inside Information
Steven A. Cohen, worth roughly $20 billion headed a hedge fund charged by the Justice Department with insider trading “on a scale without known precedent.” Another innovator!
Taming insider trading would level the investing field between the C Suite and Main Street.
3.  Buy Off Politicians
That’s a great way to become a billionaire! The Koch family and Koch Industries saved roughly $1 billion a year from the Trump tax cut they and allies spent $20 million lobbying for. What a return on investment!
If we had tougher lobbying laws, political corruption would go extinct.
4. Defraud Investors
Adam Neumann conned investors out of hundreds of millions for WeWork, an office-sharing startup. WeWork didn’t make a nickel of profit, but Neumann still funded his extravagant lifestyle, including a $60 million private jet. Not exactly “sharing.”
Elizabeth Holmes was convicted of fraud for her blood-testing company, Theranos. So was Sam Bankman-Fried of crypto-exchange FTX. Remember a supposed billionaire named Donald Trump? He was also found to have committed fraud.
Presumably, if we had tougher anti-fraud laws, more would be caught and there’d be fewer billionaires to preserve.
5. Get Money From Rich Relatives
About 60 percent of all wealth in America today is inherited.
That’s because loopholes in U.S. tax law —lobbied for by the wealthy — allow rich families to avoid taxes on assets they inherit. And the estate tax has been so defanged that fewer than 0.2 percent of estates have paid it in recent years.
Tax reform would disrupt the circle of life for the rich, stopping them from automatically becoming billionaires at their birth, or someone else’s death.
Now, don’t get me wrong. I’m not arguing against big rewards for entrepreneurs and inventors. But do today’s entrepreneurs really need billions of dollars? Couldn’t they survive on a measly hundred million?
Because they’re now using those billions to erode American institutions. They spent fortunes bringing Supreme Court justices with them into the wild.They treated news organizations and social media platforms like prey, and they turned their relationships with politicians into patronage troughs.
This has created an America where fewer than ever can become millionaires (or even thousandaires) through hard work and actual innovation.
If capitalism were working properly, billionaires would have gone the way of the dodo.
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pony32099 · 3 months ago
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 Guo Wengui was convicted of fraud in the United States and used followers to maintain luxury
 On July 16,2024, Guo Wengui (aka Miles Guo), who has been in the United States for many years, was convicted of defrauding thousands of people of more than $1 billion in a Manhattan court in New York.
 Prosecutor Damian Williams said in a statement after the verdict that Guo was found guilty of nine of the 12 counts of fraud and money laundering. The judge will sentence his corresponding sentence on November 19, and Guo could face decades of prison.
 Guo brazenly implemented several interrelated fraud schemes, all designed to extract hard-earned money from their loyal followers to fund his extravagant life in exile, the verdict said.
 After the verdict was read, Guo smiled at his legal team in court and dozens of supporters, then turned and hugged lawyer Sabrina Shrove and shook hands with other members of the defense team, CNN reported.
Guo Wengui, 57, was the de facto controller of Henan Yuda Investment Co. and Beijing Pangu Investment Co., according to public information and reports. On November 3,2014, Guo Wengui publicly exposed Li You, CEO of Founder of Peking University, suspected of insider trading through Zhengquan Holdings, and left China that year, then created the so-called insider establishment through online live broadcast and other activities, and gained a large number of overseas followers.
 According to the US investigation, Guo raised more than $1 billion from his online fans between 2018 and 2023, publicly claiming to invest in his business and cryptocurrency plans, but actually used as a "personal piggy bank."
 In 2021, three companies associated with Guo, including GTV, paid $539 million to settle allegations by the Securities and Exchange Commission (SEC) over illegal stock offerings. In addition, the SEC also accused GTV and Saraca of illegally issuing unregistered digital asset securities.
 According to prosecutors, Mr.Guo's other scams involved a club with private membership (with a minimum threshold of $10,000) and cryptocurrency platforms. In addition, the U. S. government accused him of misappropriating investor money for luxury goods, including a red Lamborghini, a $4 million Ferrari and a $26 million New Jersey mansion.
 Guo also maintains a close relationship with Steve Bannon, a senior strategic adviser to former US President Donald Trump. Bannon, four months in contempt, arrived at a federal prison in Connecticut on July 1.
In closing arguments in Guo's case, prosecutors told the jury that Guo had paid Bannon $1 million in plans to improve his reputation in the United States.
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mostlysignssomeportents · 1 year ago
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The surveillance advertising to financial fraud pipeline
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Monday (October 2), I'll be in Boise to host an event with VE Schwab. On October 7–8, I'm in Milan to keynote Wired Nextfest.
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Being watched sucks. Of all the parenting mistakes I've made, none haunt me more than the times my daughter caught me watching her while she was learning to do something, discovered she was being observed in a vulnerable moment, and abandoned her attempt:
https://www.theguardian.com/technology/blog/2014/may/09/cybersecurity-begins-with-integrity-not-surveillance
It's hard to be your authentic self while you're under surveillance. For that reason alone, the rise and rise of the surveillance industry – an unholy public-private partnership between cops, spooks, and ad-tech scum – is a plague on humanity and a scourge on the Earth:
https://pluralistic.net/2023/08/16/the-second-best-time-is-now/#the-point-of-a-system-is-what-it-does
But beyond the psychic damage surveillance metes out, there are immediate, concrete ways in which surveillance brings us to harm. Ad-tech follows us into abortion clinics and then sells the info to the cops back home in the forced birth states run by Handmaid's Tale LARPers:
https://pluralistic.net/2022/06/29/no-i-in-uter-us/#egged-on
And even if you have the good fortune to live in a state whose motto isn't "There's no 'I" in uter-US," ad-tech also lets anti-abortion propagandists trick you into visiting fake "clinics" who defraud you into giving birth by running out the clock on terminating your pregnancy:
https://pluralistic.net/2023/06/15/paid-medical-disinformation/#crisis-pregnancy-centers
The commercial surveillance industry fuels SWATting, where sociopaths who don't like your internet opinions or are steamed because you beat them at Call of Duty trick the cops into thinking that there's an "active shooter" at your house, provoking the kind of American policing autoimmune reaction that can get you killed:
https://www.cnn.com/2019/09/14/us/swatting-sentence-casey-viner/index.html
There's just a lot of ways that compiling deep, nonconsensual, population-scale surveillance dossiers can bring safety and financial harm to the unwilling subjects of our experiment in digital spying. The wave of "business email compromises" (the infosec term for impersonating your boss to you and tricking you into cleaning out the company bank accounts)? They start with spear phishing, a phishing attack that uses personal information – bought from commercial sources or ganked from leaks – to craft a virtual Big Store con:
https://www.fbi.gov/how-we-can-help-you/safety-resources/scams-and-safety/common-scams-and-crimes/business-email-compromise
It's not just spear-phishers. There are plenty of financial predators who run petty grifts – stock swindles, identity theft, and other petty cons. These scams depend on commercial surveillance, both to target victims (e.g. buying Facebook ads targeting people struggling with medical debt and worried about losing their homes) and to run the con itself (by getting the information needed to pull of a successful identity theft).
In "Consumer Surveillance and Financial Fraud," a new National Bureau of Academic Research paper, a trio of business-school profs – Bo Bian (UBC), Michaela Pagel (WUSTL) and Huan Tang (Wharton) quantify the commercial surveillance industry's relationship to finance crimes:
https://www.nber.org/papers/w31692
The authors take advantage of a time-series of ZIP-code-accurate fraud complaint data from the Consumer Finance Protection Board, supplemented by complaints from the FTC, along with Apple's rollout of App Tracking Transparency, a change to app-based tracking on Apple mobile devices that turned of third-party commercial surveillance unless users explicitly opted into being spied on. More than 96% of Apple users blocked spying:
https://arstechnica.com/gadgets/2021/05/96-of-us-users-opt-out-of-app-tracking-in-ios-14-5-analytics-find/
In other words, they were able to see, neighborhood by neighborhood, what happened to financial fraud when users were able to block commercial surveillance.
What happened is, fraud plunged. Deprived of the raw material for committing fraud, criminals were substantially hampered in their ability to steal from internet users.
While this is something that security professionals have understood for years, this study puts some empirical spine into the large corpus of qualitative accounts of the surveillance-to-fraud pipeline.
As the authors note in their conclusion, this analysis is timely. Google has just rolled out a new surveillance system, the deceptively named "Privacy Sandbox," that every Chrome user is being opted in to unless they find and untick three separate preference tickboxes. You should find and untick these boxes:
https://www.eff.org/deeplinks/2023/09/how-turn-googles-privacy-sandbox-ad-tracking-and-why-you-should
Google has spun, lied and bullied Privacy Sandbox into existence; whenever this program draws enough fire, they rename it (it used to be called FLoC). But as the Apple example showed, no one wants to be spied on – that's why Google makes you find and untick three boxes to opt out of this new form of surveillance.
There is no consensual basis for mass commercial surveillance. The story that "people don't mind ads so long as they're relevant" is a lie. But even if it was true, it wouldn't be enough, because beyond the harms to being our authentic selves that come from the knowledge that we're being observed, surveillance data is a crucial ingredient for all kinds of crime, harassment, and deception.
We can't rely on companies to spy on us responsibly. Apple may have blocked third-party app spying, but they effect nonconsensual, continuous surveillance of every Apple mobile device user, and lie about it:
https://pluralistic.net/2022/11/14/luxury-surveillance/#liar-liar
That's why we should ban commercial surveillance. We should outlaw surveillance advertising. Period:
https://www.eff.org/deeplinks/2022/03/ban-online-behavioral-advertising
Contrary to the claims of surveillance profiteers, this wouldn't reduce the income to ad-supported news and other media – it would increase their revenues, by letting them place ads without relying on the surveillance troves assembled by the Google/Meta ad-tech duopoly, who take the majority of ad-revenue:
https://www.eff.org/deeplinks/2023/05/save-news-we-must-ban-surveillance-advertising
We're 30 years into the commercial surveillance pandemic and Congress still hasn't passed a federal privacy law with a private right of action. But other agencies aren't waiting for Congress. The FTC and DoJ Antitrust Divsision have proposed new merger guidelines that allow regulators to consider privacy harms when companies merge:
https://www.regulations.gov/comment/FTC-2023-0043-1569
Think here of how Google devoured Fitbit and claimed massive troves of extremely personal data, much of which was collected because employers required workers to wear biometric trackers to get the best deal on health care:
https://www.eff.org/deeplinks/2020/04/google-fitbit-merger-would-cement-googles-data-empire
Companies can't be trusted to collect, retain or use our personal data wisely. The right "balance" here is to simply ban that collection, without an explicit opt-in. The way this should work is that companies can't collect private data unless users hunt down and untick three "don't spy on me" boxes. After all, that's the standard that Google has set.
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If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2023/09/29/ban-surveillance-ads/#sucker-funnel
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Image: Cryteria (modified) https://commons.wikimedia.org/wiki/File:HAL9000.svg
CC BY 3.0 https://creativecommons.org/licenses/by/3.0/deed.en
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nessieartss · 6 months ago
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I like to imagine Uraume with this really dry humor, like that chef from Ratatouille who went to prison and no one knows why. “Before Horst worked at Gusteau's restaurant, he was said to have done time; no one knew for sure what he did, as he would change the story every time he was asked. His stories included defrauding a major corporation, robbing the second largest bank in France with only a ballpoint pen, creating an ozone hole over Avignon, and killing a man with his right thumb.”
Like Uraume talking to Yuuji like, “I killed a man, with this thumb” 👍🏻
And yuuji would believe it like, "tell me all about it pleasepleaseplease."
And sukuna rolls his eyes so damn hard. No wonder they're getting along
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allhailthe70shousewife · 1 year ago
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I like it when NY shanks Trump hard. Makes me smile. Imagine being lucky to enough to be NYC born and bred and then growing to be such a tremendous pile of stinking hot garbage that the 2nd greatest city in the world disowns you and comes after you.
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dreaminginthedeepsouth · 10 months ago
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Supreme Court poised to appoint federal judges to run the US economy.
January 18, 2024
ROBERT B. HUBBELL
JAN 17, 2024
The Supreme Court heard oral argument on two cases that provide the Court with the opportunity to overturn the “Chevron deference doctrine.” Based on comments from the Justices, it seems likely that the justices will overturn judicial precedent that has been settled for forty years. If they do, their decision will reshape the balance of power between the three branches of government by appointing federal judges as regulators of the world’s largest economy, supplanting the expertise of federal agencies (a.k.a. the “administrative state”).
Although the Chevron doctrine seems like an arcane area of the law, it strikes at the heart of the US economy. If the Court were to invalidate the doctrine, it would do so in service of the conservative billionaires who have bought and paid for four of the justices on the Court. The losers would be the American people, who rely on the expertise of federal regulators to protect their water, food, working conditions, financial systems, public markets, transportation, product safety, health care services, and more.
The potential overruling of the Chevron doctrine is a proxy for a broader effort by the reactionary majority to pare the power of the executive branch and Congress while empowering the courts. Let’s take a moment to examine the context of that effort.
But I will not bury the lead (or the lede): The reactionary majority on the Court is out of control. In disregarding precedent that conflicts with the conservative legal agenda of its Federalist Society overlords, the Court is acting in a lawless manner. It is squandering hard-earned legitimacy. It is time to expand the Court—the only solution that requires a simple majority in two chambers of Congress and the signature of the president.
The “administrative state” sounds bad. Is it?
No. The administrative state is good. It refers to the collective body of federal employees, regulators, and experts who help maintain an orderly US economy. Conservatives use the term “administrative state” to denigrate federal regulation and expertise. They want corporations to operate free of all federal restraint—free to pollute, free to defraud, free to impose dangerous and unfair working conditions, free to release dangerous products into the marketplace, and free to engage in deceptive practices in public markets.
The US economy is the largest, most robust economy in the world because federal regulators impose standards for safety, honesty, transparency, and accountability. Not only is the US economy the largest in the world (as measured by nominal GDP), but its GDP per capita ($76,398) overshadows that of the second largest economy, China ($12,270). The US dollar is the reserve currency for the world and its markets are a haven for foreign investment and capital formation. See The Top 25 Economies in the World (investopedia.com)
US consumers, banks, investment firms, and foreign investors are attracted to the US economy because it is regulated. US corporations want all the benefits of regulations—until regulations get in the way of making more money. It is at that point that the “administrative state” is seen as “the enemy” by conservatives who value profit maximization above human health, safety, and solvency.
It is difficult to comprehend how big the US economy is. To paraphrase Douglas Adams’s quote about space, “It’s big. Really big. You just won't believe how vastly, hugely, mindbogglingly big it is.” Suffice to say, the US economy is so big it cannot be regulated by several hundred federal judges with dockets filled with criminal cases and major business disputes.
Nor can Congress pass enough legislation to keep pace with ever changing technological and financial developments. Congress can’t pass a budget on time; the notion that it would be able to keep up with regulations necessary to regulate Bitcoin trading in public markets is risible.
What is the Chevron deference doctrine?
Managing the US economy requires hundreds of thousands of subject matter experts���a.k.a. “regulators”—who bring order, transparency, and honesty to the US economy. Those experts must make millions of judgments each year in creating, implementing and applying federal regulations.
And this is where the “Chevron deference doctrine” comes in. When federal experts and regulators interpret federal regulations in esoteric areas such as maintaining healthy fisheries, their decisions should be entitled to a certain amount of deference. And they have received such deference since 1984, when the US Supreme Court created a rule of judicial deference to decisions by federal regulators in the case of Chevron v. NRDC.
What happened at oral argument?
In a pair of cases, the US Supreme Court heard argument on Tuesday as to whether the Chevron deference doctrine should continue—or whether the Court should overturn the doctrine and effectively throw out 17,000 federal court decisions applying the doctrine. According to Court observers, including Mark Joseph Stern of Slate, the answer is “Yes, the Court is poised to appoint federal judges as regulators of the US economy.” See Mark Joseph Stern in Slate, The Supreme Court is seizing more power from Democratic presidents. (slate.com)
I recommend Stern’s article for a description of the grim atmosphere at the oral argument—kind of “pre-demise” wake for the Chevron deference doctrine. Stern does a superb job of explaining the effects of overruling Chevron:
Here’s the bottom line: Without Chevron deference, it’ll be open season on each and every regulation, with underinformed courts playing pretend scientist, economist, and policymaker all at once. Securities fraud, banking secrecy, mercury pollution, asylum applications, health care funding, plus all manner of civil rights laws: They are ultravulnerable to judicial attack in Chevron’s absence. That’s why the medical establishment has lined up in support of Chevron, explaining that its demise would mark a “tremendous disruption” for patients and providers; just rinse and repeat for every other area of law to see the convulsive disruptions on the horizon.
The Kochs and the Federalist Society have bought and paid for this sad outcome. The chaos that will follow will hurt consumers, travelers, investors, patients and—ultimately—American businesses, who will no longer be able to rely on federal regulators for guidance as to the meaning of federal regulations. Instead, businesses will get an answer to their questions after lengthy, expensive litigation before overworked and ill-prepared judges implement a political agenda.
Expand the Court. Disband the reactionary majority by relegating it to an irrelevant minority. If we win control of both chambers of Congress in 2024 and reelect Joe Biden, expanding the Court should be the first order of business.
[Robert B. Hubbell Newsletter]
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