BY: Lars Forsberg
Longboat Retirement Solutions LLC
Sam Israel — Bayou Hedge Fund Group
Scammed $450 million from the hedge fund he ran.
Joseph Nacchio — Qwest Communications International
Scammed $3 billion through insider trading by selling $52 million in stock despite knowledge that his company was facing financial difficulties. As part of his severance agreement, he continues to serve as a consultant to Qwest. He is paid $1.5 million a year.
Bernard Ebbers — WorldCom
Scammed $100 Billion with accounting shenanigans. $3.8 billion worth of normal operating expenses, which should all be recorded as expenses for the fiscal year in which they were incurred, were treated as investments and were recorded over a number of years. This accounting trick grossly exaggerated profits for the year the expenses were incurred. When the gig was up WorldCom’s stock price, plummeted from more than $60 to less than 20 cents.
Kenneth Lay and Jeffery Skilling — Enron
Scammed $74 Billion with some fairly complicated accounting practices that involved the use of shell companies, Enron was able to keep hundreds of millions worth of debt off its books. The complex web of deceit unraveled and the share price dove from over $90 to less than 70 cents.
Bernard Madoff — Bernard L. Madoff Investment Securities LLC
Scammed $18 billion with Ponzi scheme.
CEO, Dennis Kozlowski, CFO Mark Swartz and CLO Mark Belnick sold 7.5 million shares of unauthorized Tyco stock, for a reported $450 million.
HealthSouth — CEO and founder Richard Scrushy sold HealthSouth shares worth $75 million in late 2002, prior to releasing an earnings loss. The scandal unfolded in March, 2003, when the SEC announced that HealthSouth exaggerated revenues by $1.4 billion. The stock fell from a high of $20 to a close of 45 cents, in a single day.
Allen Stanford — Recently sentenced to 110 years in prison and ordered to forfeit $5.9 billion dollars for his $7 billion dollar Ponzi scheme.
Raj Rajaratnam — The founder of the $7 billion Galleon hedge fund, was sentenced in October 2011 to an 11-year prison term on an insider-trading conviction.
Rajat Gupta — The former Goldman Sachs director, was convicted of conspiracy and three counts of securities fraud for feeding confidential information to a corrupt hedge fund manager.
Nice bunch of trustworthy guys. These guys worked for large “trustworthy and knowledgeable” firms, with big names.
Who’s interests were they serving?
Maybe it’s time that you invest in yourself. The good people at Longboat Retirement Solutions NEVER touch your money. We liberate you from the Wall Street Ponzi scheme. Make your move.