MetaFilter posts tagged with fraud

Even better than the real thing?

fiercecupcake — Sat, 18 May 2013 11:32:15 -0800

Widespread fraud has been discovered in the case of an Indian generic drug manufacturer that makes generic Lipitor (atorvastatin calcium) and many other drugs. Ranbaxy has "pleaded guilty to seven federal criminal counts of selling adulterated drugs with intent to defraud." Many people rely on generic drugs to be able to afford drug therapy. The basic principle of generics is based on bioequivalence, but do all generics provide comparable levels of bioavailability to their brand-name counterparts? Besides Ranbaxy and Lipitor, other widely used generics from different companies have been affected lately: generic Seroquel (quetiapine fumarate), an atypical antipsychotic, generic Wellbutrin (buproprion), an atypical antidepressant, and birth control pills. Here is an FDA listing of currently authorized generic drugs.

Dowsing for Dynamite

kristi — Sat, 04 May 2013 12:05:09 -0800

If you’re going to have security theater, you need props. James McCormick was sentenced yesterday in the UK to three ten-year jail terms for selling magic wands - rebranded gag golf ball finders he claimed could detect explosives.

Retweet to add additional diamonds to your shopping basket

Wordshore — Tue, 12 Feb 2013 05:03:32 -0800

Twitter is experimenting with online shopping: "American Express card holders who connect their card numbers to their Twitter accounts can post on Twitter to trigger a purchase of select products, including discounted American Express gift cards, Kindle Fire tablets from Amazon.com Inc. and jewelry from designer Donna Karan. The program will roll out over the next few days." CNET report the mechanism for purchasing an item: "Amex cardholders first sync their card with Twitter. Then, when they come across products that are eligible to purchase under the plan -- products that American Express will promote through a Twitter feed -- they simply send out a tweet that includes a special hashtag. Amex will then send them an @-reply with a confirming hashtag. Finally, the buyer has to send out a second tweet with the special hashtag within 15 minutes." Adweek adds: "...Once they do, Amex will process the order and send the product via free two-day shipping." CNN have more on the first sale offer: "The two companies announced the partnership on Monday and kicked it off with a single product offering, a $25 American Express gift card for $15. Other products will be available starting Wednesday morning." The Atlantic wire hedge their bets on whether this will be successful or not: "There are a lot of things about this arrangement not to like, but we'll leave it to our commenters to point them out. Suffice it to say that this strange new social shopping idea is both strange and new. It could fail fabulously, or people could be really into it. Kind of like Twitter, circa 2007."

One man's Free Speech is another man's fraud?

saulgoodman — Tue, 05 Feb 2013 10:25:46 -0800

US Justice Department suing Standard and Poor's over a "scheme to defraud investors" before the financial crisis. More details on these recent developments from The Tech online edition here, which notes: "For many years, the ratings agencies have defended themselves successfully in civil litigation by saying their ratings were independent opinions, protected by the First Amendment, which guarantees the right to free speech. Developments in the wake of the financial crisis have raised questions about the agencies’ independence, however." Reuters opts to let S&P break the news for themselves here.

The untouchables

doctornemo — Wed, 23 Jan 2013 05:46:16 -0800

Wall Street's leaders have utterly escaped jail. "There have been no arrests of senior Wall Street executives." Frontline examines why the United States federal government didn't go after the financial titans. (via)

Gregor MacGregor the Cacique of Poyais

rongorongo — Mon, 31 Dec 2012 01:11:41 -0800

In 1820 Gregor MacGregor, chieftain of the Central American principality of Poyais arrived in London and explained his problem: his principality had a fine climate, friendly natives, and a democratic government, but it needed investors and settlers to help develop it and exploit its abundant natural resources. To this end his government was to issue a £200,000 bond which would pay off at a generous 6%, as well as land rights for a modest 3 shillings an acre. MacGregor would eventually raise funds worth £3.2 billion -at today's prices- for the entirely fictional principality; this makes him arguably the most successful con-men of all time. Gregor MacGregor was part of the same Scottish clan as his better known kinsmen Rob Roy. He gave Poyais a flag and coat of arms, some favourable artist's impressions as well as money and the above mentioned bonds. All this was written up in the fabulously fraudulent book "Sketch of the Mosquito Shore: including the territory of Poyais" which can be downloaded here. The colony had echoes of the real - but disastrous - Darien Scheme which had also lured in many Scots in the 1690s. This time the majority of the settlers were rescued - but about 200 died. After finding that the British were becoming wise to his con MacGregor moved to France and tried the same story there. Finally he fled to Venezuela where he persuaded the country to recognise him as a General and where he lived out the rest of his days. This paper describes the scheme and the country in more detail. Poyais had an area which roughly corresponds to Olancho region in Honduras - it is still sparsely developed.

Keep the CEO in the picture

smoke — Tue, 11 Dec 2012 15:41:42 -0800

When Michael Woodford discovered a staggering level of fraud in the optical multinational, Olympus, he was determined to expose it. As CEO of the company he was promptly fired for his efforts, and believed his life was in danger. His story is a fascinating one, highlighting two unique worlds; the hermetic environment of business elites and the insular world of Japan Inc. Woodford himself is quite atypical as a CEO: "I'm quite leftwing, you know. I could be a communist, if that worked any better than capitalism.", but the whole experience has left him with some familiar, if not controversial opinions about Japanese culture and business.

Honey, I Shrunk the Tariff

vidur — Thu, 06 Dec 2012 15:55:00 -0800

"Honey laundering is a complex exercise that involves several players in the honey chain from apiary to wholesaler to retailer. In the case against ALW, evidence was presented to show the use of fake country-of-origin documents for shipments, replacement of labels on Chinese containers with fraudulent ones, switching of honey containers in a third country, and even the blending of Chinese honey with glucose syrup or honey from another country."

The flawed science surrounding Diederik Stapel

srboisvert — Wed, 28 Nov 2012 20:02:29 -0800

Press Release The Levelt, Noort and Drenth Committees have published their joint final report of the investigation into the massive academic fraud by Diederik Stapel, a social psychologist, who is known mainly for his work on social priming. English translation of the full report [pdf]. 55 publications with fraudulent data, 11 with suspect data and a pretty damning indictment of the sloppiness of collaborators, reviewers and the field of social psychology as a whole with a recognition of the courage of the three student whistleblowers.

Thanks for two hours of your time

the man of twists and turns — Fri, 26 Oct 2012 03:34:40 -0800

"I am calling you from Windows": A tech support scammer dials Ars Technica Earlier this month, the Federal Trade Commission

launched a major international crackdown on tech support scams in which telemarketers masquerade as major computer companies, con consumers into believing that their computers are riddled with viruses, spyware and other malware, and then charge hundreds of dollars to remotely access and “fix” the consumers’ computers. At the request of the FTC, a U.S. District Court Judge has ordered a halt to six alleged tech support scams pending further hearings, and has frozen their assets.

More Ars: How To Troll A Tech Support Scammer

A good troll is a prepared troll, and Ted was ready. He dragged out the call by pretending to connect his Windows 95 and Windows Vista computers to CompuServe via dial-up Internet, by providing an expired credit card number, and by providing absurd answers to basic questions.

After FTC crackdown, users chronicle tech support scam calls: Recording of Scam Telemarketers (Video) Trolling The Windows Indian Phone Call Scam (Youtube) Scamming the scammers -- catching the virus call centre scammers red-handed (Youtube)

Election Fever

Hollywood Upstairs Medical College — Thu, 25 Oct 2012 09:32:00 -0800

An opposition provincial official in a hotly contested election has threatened to arrest international election observers monitoring for fraud and voter intimidation. In an area with a rich history of secessionist fervor, ballot box stuffing, and repeated infringements on the voting rights and representation of ethnic minorities, this pronouncement is certainly controversial. Rogue vigilantes, organized in this province, are expected to deploy to polling sites across the nation, causing alarm. It is not a chaotic contest in a fledgling democracy. It is Texas, the United States. Previously. Texas is not the only state with election protection issues as the 2012 federal, state, and local elections draw near. In Ohio, the election may come down to a "nightmare scenario" of provisional ballots, and absentee ballots were mailed with the wrong election day. In Florida, absentee ballots were mis-printed, and are now being hand-copied. Voter registrations in Virginia were found trashed by Republican-connected contractors. If there is any hint of a problem when voting on Election Day, or if you observe any hint of voter intimidation or suppression beforehand, call toll-free 1-866-OUR-VOTE (1-866-687-8683), a hotline sponsored by a consortium of non-profits. For aid in Spanish, call 1-888-Ve-Y-Vota (1-888-839-8682). Click on your state for a list of regulations and your voting rights. If you are not volunteering on Election Day for voter contact or mobilization, consider volunteering as an poll watcher or legal help, especially if you are a lawyer.

Wow, that’s quite a scenario!

crayz — Sun, 02 Sep 2012 05:53:12 -0800

Marathon Man: A Michigan dentist’s improbable transformation.

The Juris Doctor is 'Versatile' Thanks Mainly to Numerous Logical Fallacies

reenum — Thu, 16 Aug 2012 16:37:03 -0800

Many people say that a law degree enables the holder to do virtually anything. Am Law Daily explores the logical fallacies behind this statement.

Three Double Lives

the man of twists and turns — Fri, 03 Aug 2012 07:19:54 -0800

From Vanity Fair, The Murder Hustle: In 1988, 'When businessman Gene Hanson died in a California doctor's office, his partner, John Hawkins, a former Studio 54 bartender, got $1 million in insurance. Nine months later, Hanson was caught in Texas with a new face and a new name, Wolfgang Von Snowden. He and the doctor are awaiting trial for murder. Hawkins, a scam artist and sex addict, has disappeared with the money. Ann Louise Bardach investigates three double lives in the business community of Columbus, Ohio, the Genet underground of West Hollywood, and the luxury condos of Miami's Biscayne Bay.' Part 1. Part 2: 'How an international manhunt finally brought down John Hawkins, the former Studio 54 party boy who now faces trial in the U.S. for murder one.' Part 3: 'A Harvard-educated neurologist, a courtly southerner, and a Hollywood hustler have all been convicted in a bizarre murder/insurance scam. Their crime was the same, but they had three very different motives.' John Hawkins was the subject of the made-for-TV-movie (based on an 'America's Most Wanted' episode) If Looks Could Kill, which featured Brad Dourif as Gene Hanson. via Longform

"Gosh, another oversight"

adamvasco — Sat, 14 Jul 2012 21:44:50 -0800

Banksters this story stretches far beyond Britain. Barclays is the first bank in the spotlight because it offered to co-operate fully with regulators. It will not be the last. Investigations into the fixing of LIBOR and other rates are also under way in America, Canada and the EU. Between them, these probes cover many of the biggest names in finance: the likes of Citigroup, JPMorgan Chase, UBS, Deutsche Bank and HSBC. Employees, from New York to Tokyo, are implicated.
The rotten heart of finance. A scandal over key interest rates is about to go global.
Naomi Wolf: The media's 'bad apple' thesis no longer works. This global financial fraud and its gatekeepers.

The law school scam as a cognitive bias

reenum — Fri, 06 Jul 2012 17:58:24 -0800

Discover Magazine posted a couple of blog entries about the law school scam as a cognitive bias and why law school tuition isn't more dispersed.

“Buy my art . . . or I’ll kick your ass.”

the man of twists and turns — Tue, 26 Jun 2012 19:08:20 -0800

Sponge-Fraud!: 'Artist Todd White seemingly had it all. With a multi-million-dollar art brand, collectors and clients ranging from Sylvester Stallone to Coca-Cola, and a burgeoning reputation in art-mad Britain, his days as lead character designer of SpongeBob SquarePants were but a distant memory. But, as David Kushner reports, when his confidante and gallerist Peggy Howell reported a burglary of his paintings at the hand of ninjas, things took a turn for the even stranger.' Suit and counter-suit

"It is unlikely, I think, that this will generate a lot of media publicity," [Judge] Baer sighed to the jury in his preliminary instructions.

Sticherbeast — Fri, 22 Jun 2012 04:18:45 -0800

The Scam Wall Street Learned from the Mafia is Matt Taibbi's take on the recent convictions in the municipal bond bid-rigging case of United States v. Dominick P. Carollo, Steven E. Goldberg, and Peter S. Grimm. These three fraudsters are among the fifteen convicted so far with regard to the federal government's investigation into nationwide municipal bond bid-rigging schemes. Indictment and superseding indictment here. Taibbi talks a little bit more about the case on Don Imus.

10 Faces Behind The Incredible Law School Underemployment Crisis

reenum — Fri, 01 Jun 2012 18:27:57 -0800

10 Faces Behind The Incredible Law School Underemployment Crisis

The Hippy and the Expressionists

netbros — Sat, 26 May 2012 16:42:58 -0800

Confessions of a Genius Art Forger — In one of Germany's greatest art scandals, former hippie and talented artist Wolfgang Beltracchi forged dozens of paintings over a period of 35 years, earning millions and fooling top collectors and museums. In a SPIEGEL interview, he reveals how he did it and why he eventually got caught. Photo Gallery. Background... Investigators Zero in on Massive Art Forgery Scandal — Over the past 15 years, the art world has been amazed at the number of lost expressionist masterpieces from the early 20th century that have found their way to auction. Investigators now believe that many of them could be forgeries. An ex-hippy, his wife and an art fan from Krefeld may be behind the scandal. Germany's Mega-Forgery Scandal Gets Even Bigger — It was already thought to be the biggest art forgery scandal in Germany since World War II. Now, documents show that Wolfgang Beltracchi may have been copying early 20th century expressionists since the mid-1980s. He may even have sold one forgery to the artist's widow. German Art Forgery Scandal Reaches Hollywood — The scope of what is believed to be Germany's biggest art forgery scandal since World War II has reached as far as Hollywood. American actor Steve Martin bought one of the fake paintings in 2004 and later sold it at a loss of some 200,000 euros. Forgery Scandal Embarrasses International Art World — More details are emerging about what is thought to be Germany's biggest postwar art forgery scandal. The affair casts an unflattering light on a leading German art historian who authenticated a fake artwork supposedly painted by German surrealist Max Ernst. The piece was sold for $7 million to Daniel Filipacchi, a top New York art collector. Art Forger All Smiles After Guilty Plea Seals Deal — The trial in the most spectacular case of art forgery ever seen in Germany is over -- and ringleader Wolfgang Beltracchi can be happy with the outcome. Because of his confession, the millionaire fraudster has been given a virtual slap on the wrist, while the truth has been sacrificed for a deal. Ringleader Reveals He Faked Many More Works — In one of the most spectacular art forgery cases in German history, fraudster Wolfgang Beltracchi was sentenced to six years in prison last autumn. Set to begin doing time in March 2012, he tells SPIEGEL the scope of his counterfeiting was far greater than previously known, including works by some 50 artists.

Do-it-yourself bar codes

Chocolate Pickle — Tue, 22 May 2012 23:16:01 -0800

Has there ever been any advance in retailing that didn't in turn create a new opportunity for fraud? Take barcodes, for example: You can go to the store, buy a cheap box of Legos, and take it home. Then you use your computer to create peel-and-stick stickers with that same barcode on it. Now you go back to the store, pick up expensive boxes of Legos, and put your own stickers over their barcodes. Voila! You can now buy them for low price, and resell for a profit. That is what Thomas Langenbach is accused of having done, and it seems that he made over $30,000 reselling them on eBay.

The Great Wine Caper

mreleganza — Mon, 14 May 2012 14:13:49 -0800

Rare-wine collectors are savvy, competitive guys with a taste for impossible finds. The biggest hoax in history took place right under their noses. Finally faced with copious, almost pornographically explicit evidence, the wine world has spent the last two months absorbing the implications...If his rise had demonstrated anything, it was how easily the urge to know more can be overpowered by the temptation to know less. (via)

Italians have a lot of hells...

Artw — Sun, 13 May 2012 07:10:38 -0800

The Nine Circles Of Hell, As Depicted In LEGO

Data trove reveals scope of law schools' hiring of their own graduates

reenum — Fri, 04 May 2012 03:50:51 -0800

A report by the ABA shows that some law schools hire as many as 15% of new graduates in an effort to boost employment numbers.

Executive Compensation

kliuless — Tue, 03 Apr 2012 04:32:10 -0800

The Incentive Bubble (ungated pdf) - "The fraying of the compact of American capitalism by rising income inequality and repeated governance crises is disturbing. But misallocations of financial, real, and human capital arising from the financial-incentive bubble are much more worrisome to those concerned with the competitiveness of the American economy."

An economy can be only as strong as the allocation mechanisms that ensure that capital of all types moves toward its highest social use. When risk is repeatedly mispriced because investors enjoy skewed incentive schemes, financial capital is being misallocated. When managers undertake unwise investments or mergers in order to meet expectations that will trigger large compensation packages, real capital is being misallocated. And when relative compensation is as distorted as it has been by the financial-incentive bubble over the past several decades, one can only assume that human capital is being misallocated, to a disturbing degree. Awakening our monitors to their responsibilities and to the flaws of market-based compensation provides the best hope for correcting these misallocations and strengthening the U.S. economy for the challenges of this century.

Satyajit Das: ~~Pravda~~ The Economist's Take on Financial Innovation - "There is no acknowledgement that much of what is called financial innovation is economic rent extraction, exploiting lack of transparency as well as information and knowledge asymmetries. There is no discussion of the destructive bonus culture which encourages certain behaviours in financial institutions... The unpalatable reality that few, self interested industry participants and their cheerleaders are prepared to admit is that much of what passes for financial innovation is specifically designed to conceal risk, obfuscate investors and reduce transparency. The process is entirely deliberate. Efficiency and transparency is not consistent with the high profit margins on Wall Street and the City. Financial products need to be opaque and priced inefficiently to produce excessive profits." Wall Street's Broken Windows - "James Q. Wilson was a political scientist who often studied the government response to blue collar crime. The public knows him best for his theory called 'broken windows...' Wilson took social norms, community, and ethics seriously. He argued that as community broke down fewer honest citizens were active in monitoring and policing behavior. The breakdown in community was criminogenic – it led to widespread serious blue collar crime. He urged us to take even minor blue collar crimes and breaches of civility seriously and to demand that they be contained through social pressure and policing... Similarly, corruption that is excused and tolerated by elites is unlikely to remain at the level of 'a few deals.' Corruption is likely to spread in incidence and severity precisely because it undermines community and the rule of law and it is likely to grow more pervasive and harmful the more we tolerate it."