What is truth?

Posts tagged ‘Fraud’

Monetary ignorance in motion

Fines for them – jail for you

Below is a reality check – this is how the world really works.

Companies that are accused of massive fraud and are “too big to fail” (especially if they are transnational banks) – get fined and the directors walk away without charges. Have a look at this press release from Reuters . Note also those phrases that ALWAYS seem to accompany such settlements, i.e. “without admitting wrongdoing” and “no individual charged”.

We found it fascinating that there is “no admission of any wrongdoing” and yet millions of dollars are paid in fines. How odd!

However – if a lowly individual does anything wrong – the book gets thrown at the person (and quite rightly so). See here for the case of the rogue trader that cost UBS about $2.3 billion. Seven years in the slammer!

The point about this comparison – is that there are 2 standards, one for “them” and one for you. This applies to Australia, just as it does in the western world.

  The ASP will fully examine the legislation that protects directors from having perpetrated corporate fraud. It is a nonsense to fine a corporation (which has no soul and no conscience) – while directors are free to repeat their actions.


British Socialist – brain dead


On 5th September 2012, the Socialist Party of Great Britain and Positive Money entered into a debate. This debate is available on Youtube here.

If you are short of time – start watching the video at the 18:20 mark. Prior to that, the Socialist representative makes an idiot of himself by claiming that banks do not create money, and that capitalism is to blame. In reality, we do not have a capitalist system – but rather a crony capitalist, corporate welfare and fascist system. This tactic is called that of a “straw man”.

If you are a serious student of money – and happen to watch the whole video, congratulations! You will now know more that 99% of all politicians and economists.

For those who are really short of time – watch the 4:20 video of “How Money is Created”.

(My thanks to Liam for sending in  this article)

Banking System Rotten to the Core

By William K Black PhD

The following is a transcript of a recent speech given by Professor William Black on an Economics Panel regarding the fradulent roots of our current crisis and the urgent need for criminal prosecutions among major US banks

In the Savings and Loans crisis, which was 1/70th the size of this crisis, our agency made over 10,000 criminal referrals and that resulted in the conviction on felony grounds of over 1,000 elites in what were designated as major cases. And to pick up on what’s just been said, this is not just some sidelight to economics, this is why we have recurrent intensifying crises, is these epidemics of fraud from the C-Street—from the CEOs and CFOs.

In the Savings and Loans crisis, the inevitable National Commission said that fraud was invariably present at the typical large failure. In the Enron era, always frauds from the very top of the organization, and in this crisis the frauds came from the very top of the organization again. But what’s different in this crisis? In this crisis, the same agency that I worked with that made over 10,000 criminal referrals in a tinier crisis made zero criminal referrals. They got rid of the entire function. And so there are zero convictions of anybody in the elite ranks of Wall Street. And if they can defraud us with impunity they will cause crisis after crisis and they will produce maximum inequality.

full article at source: http://www.financialsense.com/contributors/william-black/2011/11/25/banking-system-rotten-to-the-core

Criminal Probability Theory

Tanya Khovanova

I am sitting in front of my computer and scheming, or, more precisely, scamming. I am inventing scams as a way of raising awareness of how probability theory can be used for deception.

My first scam is my lottery project. Suppose I create and run a private lottery. I will award minor payments to some participants, while promising a grand prize of one hundred million dollars. However, there will be a very small probability that anyone will win the big payout. My plan is to live lavishly on my proceeds, hoping no one ever wins the big ticket.

The beauty of this scheme is that nobody will complain until someone scores the top prize. After all, everyone has been receiving what I promised, and no one realizes my fraud. If nobody wins the big award until I retire, I will have built my life style on deception without having been caught.

Suppose someone wins the hundred million dollars. Oops. I am in big trouble. On the other hand, maybe I can avoid jail time. I could tell the winner that the money is gone and if s/he complains to the police, I will declare bankruptcy and we will all lose. Alternatively, I can suggest a settlement in exchange for silence. For example, we could share future proceeds. Probability theory will help me run this lottery with only a small chance of being exposed.

But even a small chance of failure will cause me too much stress, so I have come up with an idea for another scam. I will write some complicated mathematical formulas with which to persuade everyone that global warming will necessarily produce earthquakes in Boston in the near future. Then I’ll open an insurance company and insure everyone against earthquakes. As I really do not expect earthquakes in my lifetime, I can spend the money. I’ll just need to keep everyone scared about earthquakes. This time I can be sure that I won’t be caught as no one will have a reason to complain. The only danger is that someone will check my formulas and prove that I used mathematics to lie.

Perhaps I need a scam that covers up the lie better. Instead of inventing an impossible catastrophe, I need to insure against a real but rare event. Think Katrina. I collect the money and put aside money for payouts and pocket the rest. But I actually tweak my formulas and put aside less than I should, boosting my bank account. I will be wealthy for many years, until this event happens. I might die rich but if this catastrophe happens while I’m still alive, I’ll declare bankruptcy.

Though I was lying to everyone, I might be able to avoid jail time. I might be able to prove that it was an honest mistake. Mathematical models include some subjective parameters; besides, everyone believes that nature is unpredictable. Who would ever know that I rigged my formulas in my favor? I can claim that the theory ended up being more optimistic than reality is. Who could punish me for optimism?

Maybe I can be accused of lying if someone proves that I knew that the optimistic model doesn’t quite match the reality. But it is very difficult for the courts to punish a person for a math mistake.

When I started writing this essay, I wanted to write about the financial crisis of 2008. I ended up inventing scams. In a way, I did write about the financial crisis. My scams are simplified versions of what banks and hedge funds did to us. Will we ever see someone punished?


Irish Life and Permanent & insider trading (up date)


Dear Sir or Madam
Following the revelations that Irish Life and Permanent engaged in activities that can only be described as fraudulent and detrimental to the welfare of the shareholders in the year 2008 (the movement of 7 billion to Anglo Irish Bank) in an attempt to defraud the shareholders of that institution I now call upon you to state if any investigation in ongoing and who if any persons involved are been charged with insider trading and what criminal action s are been considers
If it turns out to be the case that no action is been taken I then hereby state that it is my contention that persons within this institution engaged in insider trading and I demand charges be brought against them immediately a full investigation should be carried out and all persons involved be removed from positions within the Irish life and permanent until such investigations are finishes and the guilty prosecuted 
Thomas Clarke
Independent Candidate for Wicklow
Marlton Road
Wicklow Town

show details 4:53 PM (1 hour ago)
Dear Mr. Clarke,
Thank you for your email of 17 February.
The Central Bank of Ireland has been involved in a number of investigations in relation to Anglo and we have reached a point where we concluded that certain matters are of such a serious nature that it was appropriate that they were referred to the Gardai. We are, of course, fully assisting the Gardai with their investigations.
As these matters are the subject of a criminal investigation and it would be wholly inappropriate for the Central Bank to comment publicly in any way that might prejudice the successful conclusion of those investigations. 
Yours sincerely,
Sylvia Branigan
Public Contacts Unit
This email does not constitute legal opinion or advice

Wicklow TD’s Dail activity watch

speaker:Billy Timmins : 9 Dail debates

There are more results than we have shown here. See more:

Social Insurance (23 Nov 2010)
Billy Timmins: Question 34: To ask the Minister for Social Protection
the position regarding the number of self-employed persons; the number
of these who are currently unemployed; the pension provision of these
persons; and if he will make a statement on the matter.  [44059/10]

Social Insurance (23 Nov 2010)
Billy Timmins: Did the Minister indicate in his reply the total number
of self-employed people in the country?  How many of them are
unemployed?  Is that statistic available?

Social Insurance (23 Nov 2010)
Billy Timmins: The start of the question concerned the position of the
number of self-employed persons who are currently unemployed and the
pension provisions of these persons.

speaker:Billy Timmins : 2 Written Answers

Written Answers – Diplomatic Representation: Diplomatic Representation (23 Nov 2010)
Billy Timmins: Question 222: To ask the Minister for Foreign Affairs
the position regarding a matter (details supplied).  [43890/10]

Written Answers – Grant Payments: Grant Payments (23 Nov 2010)
Billy Timmins: Question 314: To ask the Minister for Agriculture,
Fisheries and Food  further to Parliamentary Question No. 238 of 3
November 2010, the position regarding the matter; if this will be paid
as a matter of urgency; and if he will make a statement on the matter.

Self employed, why would you ?

Yesterday I came across a few people suffering from these same problems and they seem to be the forgotten victims and as self employed persons they are not going to get a welcome in the local Dole office far from it I can tell you from firsthand experience

The bottom line here is nobody gives a dam about the self employed  

But the big boys and the lads that kept this Ponzi scheme going are now the very people getting the big Jobs in NAMA and the little people are tossed by the wayside to rot!

Are you happy with that?

Then do something about if you’re not!

Gold and Silver Breakout

This article was highlighted to me this morning and might be of some interest to some of you .

By: Jim_Willie_CB

Some significant events are in progress, extremely important developments in the grand pathogenesis that reflects the deep decay and deterioration in the US financial structure. The most recent events pertaining to mortgage loans, home foreclosures, and disclosed fraud carry great potential to open extremely wide cracks in the American social order. Revealed systemic fraud is slowly coming into the open. Civil disobedience has already entered the arena of popular protest. However, the recent events surrounding illegal home foreclosure seizure of properties elevates the exposed fraud to a very clear high new level. This is a boil ready to break open, releasing financial puss

Full article source here http://www.marketoracle.co.uk/Article23276.html

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