Investment Scam Quotes

And now that I have been scammed once, I felt like it could not happen to me again.

The friend who saved up to invest in a fund and saw her money dissolve like sugar on the tongues of bankers who barely got a scolding from the SEC. The life we’d been promised was a scam,

Goldman Sachs preaching about diversity so it can be at the front of the line for the next government bailout. It’s AstraZeneca waxing eloquent about climate change so it can secure multibillion-dollar government contracts for vaccine production. It’s State Street building feminist statues to detract attention from wage discrimination lawsuits from female employees, all the while marketing its exchange-traded fund with the ticker “SHE.” It’s Chamath Palihapitiya founding a social impact investment fund and criticizing Silicon Valley, even though he and his wealth are products of Silicon Valley, all to cover up for his prior tenure as an executive at Facebook who dreamed out loud about a private corporate military. Those companies and people use their market power to prop up woke causes as a way to accumulate greater political capital—only to later come back and cash in that political capital for more dollars.

As imperfect as these solutions may be, one thing is clear to me: mixing ancillary social causes with the pursuit of profit is a bad investment in every sense.

The formula was the same formula we see in every election: Republicans demonize government, sixties-style activism, and foreigners. Democrats demonize corporations, greed, and the right-wing rabble. Both candidates were selling the public a storyline that had nothing to do with the truth. Gas prices were going up for reasons completely unconnected to the causes these candidates were talking about. What really happened was that Wall Street had opened a new table in its casino. The new gaming table was called commodity index investing. And when it became the hottest new game in town, America suddenly got a very painful lesson in the glorious possibilities of taxation without representation. Wall Street turned gas prices into a gaming table, and when they hit a hot streak we ended up making exorbitant involuntary payments for a commodity that one simply cannot live without. Wall Street gambled, you paid the big number, and what they ended up doing with some of that money you lost is the most amazing thing of all. They got America—you, me, Priscilla Carillo, Robert Lukens—to pawn itself to pay for the gas they forced us to buy in the first place. Pawn its bridges, highways, and airports. Literally sell our sovereign territory. It was a scam of almost breathtaking beauty, if you’re inclined to appreciate that sort of thing.

Ali and his cousin Ahmad were seeking jobs abroad to enable them to escape the economic hardship in Pakistan that had been caused by massive flooding. Ali borrowed $4,000 from family and friends to pay an agent for a tourist visa that would enable him to reach Cambodia, where he and Ahmad were met by a broker. They paid the broker a further $1,475 each for a work visa processing fee, before being taken to a large compound in Cambodia's capital, Phnom Penh. After their passports were taken and they were warned not to try to leave, they were forced to work alongside approximately 1,000 other people, each forced to scam five people daily with cryptocurrency investment schemes. They were watched over, fined and beaten if they failed to comply:

From Loss to Recovery – $350,000 Saved I deposited $350,000 USDT into a shady broker called Soolike. They locked my funds, accused me of violating trading rules, and refused to release my capital. I contacted Bitreclaim (bitreclaims@protonmail.com), and they immediately began an audit and blockchain trace. In less than three weeks, they recovered $343,000 USDT into my Exodus wallet. This team doesn’t mess around.

So I’m just proposing that we level the playing field and make those woke shareholders, like BlackRock or Al Gore’s Generation Investment Management, bear the same liability as any ordinary social activist when they engage in ordinary social activism through the companies that they invest in. Limited shareholder liability was never meant to protect well-heeled woke investors from the consequences of their actions during PR stunts at woke parades.

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So much of what my generation had been promised disintegrated at our touch. Consider the friend, a painter of seascapes, who dreamed of affording waterfront property. On the day the levees broke, the Gulf flooded her studio and painted her walls with costly oils. Consider the friend who worked for six years at a company he hated on the promise of a sabbatical, only to be let go. The friend who complained about family reunions and lost every relative over the age of fifty to a virus. The friend who saved up to invest in a fund and saw her money dissolve like sugar on the tongues of bankers who barely got a scolding from the SEC. The life we'd been promised was a scam, the world a scam, the whole goddamn play a scam and there seemed nothing to do but burn it down as rioters did in Paris, New York, Nairobi—and then creep back through the embers because what other choice did we have?

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What is true of asset managers is true of lawyers. Willem Buiter, former Chief Economist for Citigroup, puts it aptly: the first third of lawyers produce the immense social value we know as the 'rule of law'. The next third are working on legal disputes that are essentially zero-sum games: each side over-invests in winning the tournament and so they are socially useless....The final third of lawyers are socially predatory: they are employed in the legal scams that fleece the productive.

Another example, one that touches more people, is the nursing home industry. Numerous studies have shown that living at home, in a house or an apartment, is better psychologically, more fulfilling, and cheaper than living in nursing homes.14 Yet these institutions prosper when federal programs that foster living in the community are cut. There are also funding disincentives that the U.S. Congress, through Medicare and Medicaid, has created to ensure the profit bonanza of nursing homes. According to the activist disability journal Mouth (1995), there are 1.9 million people with disabilities living in nursing homes at an annual cost of $40,784, although it would cost only $9,692 a year to provide personal assistance services so the same people could live at home. Sixty-three percent of this cost is taxpayer funded. In 1992, 77,618 people with developmental disabilities (DD) lived in state-owned facilities at an average annual cost of $82,228, even though it would cost $27,649 for the most expensive support services to live at home. There are 150,257 people with mental illness living in tax-funded asylums at an average annual cost of $58,569. Another 19,553 disabled veterans also live in institutions, costing the Veterans Administration a whopping $75,641 per person.15 It is illogical that a government would want to pay more for less. It is illogical until one studies the amount of money spent by the nursing home lobby. Nursing homes are a growth industry that many wealthy people, including politicians, have wisely invested in. The scam is simple: get taxpayers to fund billions of dollars to these institutions which a few investors divide up. The idea that nursing homes are compassionate institutions or necessary resting places has lost much of its appeal recently, but the barrier to defunding them is built on a paternalism that eschews human dignity. As we have seen with public housing programs in the United States, the tendency is to warehouse (surplus) people in concentrated sites. This too has been the history with elderly people and people with disabilities in nursing homes. These institutions then can serve as a mechanism of social control and, at the same time, make some people wealthy.

After BlackRock created its Sustainability Accounting Standards Board, the firm quietly secured its status as the main financial administrator of the economic stimulus package during the COVID-19 pandemic, effectively playing the role of the government—and probably made a pretty penny for doing it. In January 2020, pharmaceutical giant AstraZeneca announced to much fanfare at (of course) the World Economic Forum in Davos a new investment commitment of $1 billion over ten years into environmental sustainability initiatives to fight climate change.

After BlackRock created its Sustainability Accounting Standards Board, the firm quietly secured its status as the main financial administrator of the economic stimulus package during the COVID-19 pandemic, effectively playing the role of the government—and probably made a pretty penny for doing it. In January 2020, pharmaceutical giant AstraZeneca announced to much fanfare at (of course) the World Economic Forum in Davos a new investment commitment of $1 billion over ten years into environmental sustainability initiatives to fight climate change. Just a couple of months later, it received a $1.2 billion grant—not a loan, but a grant—from US taxpayers to subsidize its development of for-profit vaccines.

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These funds had been built up over many years, mainly from North American sources sympathetic to the cause of a united Ireland, and it seemed that the money never entered the Republic of Ireland or the Province, but would be invested mainly in Europe. There was also income from protection rackets, bank robberies, post office raids, black taxis, DSS scams, video and CD pirating, fruit machines, republican clubs and pubs and local collections among sympathisers. 

Italy police arrest 8 in Mafia wind farms plot. Operation “Aeolus,” named after the ancient Greek god of winds, netted eight suspects, arrested in the Trapani area of western Sicily [and on the Italian mainland]. Police in Trapani said the local Mafia bribed city officials in nearby Mazara del Vallo so the town would invest in wind farms to produce energy. (Associated Press, 2009 [Google hosted])

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Never invest in any scheme that is based on a metaphor, or anything with the word, “next”, in it (e.g., “this kid is the next Elvis Presley”, “this will be the Lake Lucerne of the Southwest”). You will lose your shirt.

Before wrapping up this chapter, let us look at one of the deadly scams in the Indian primary market history. There was company named ‘MS shoes east’. Shares of this company traded in Rs 150-200 range throughout the year 1994. But towards December 1994 it spurted to Rs 500 without any justifiable rationale behind the raise. Its promoter Pavan Sachedeva and his broker artificially manipulated the stock price to this level.   By February 1995, the company devised an expansion plan for an estimated expense Rs 700 crores. It proposed to raise around Rs 428 crores by means of Fully convertible bonds. These bonds were to be sold at Rs 199 each through public issue. The idea was to provoke people to subscribe the issue with a hope of converting this bond of Rs 199 to a share of Rs 500.   Well, his brokers was constantly buying the stocks from the open market to maintain the price at that high level. But the situation had already worsened. He had bought too much and had too little money at hand that he could not pay the stock exchange for all the purchases he made. BSE could not give money to the sellers of that security. Things turned out to be serious. You may find it hard to believe  - the BSE was shut down for three consecutive days without any business.   Before this drama came to light, FCD ('Fully Convertible Debenture) public issue was a big success and it almost stole the show. Delighted by the overwhelming response from the investing community, MS Shoes had announced to close the public issues few days before the stipulated time. The world came to know that the cruel plan of manipulating the stock price was only to push the bond issue successfully. Even the authorities woke up to the problem. The company was issued a notice. And also it allowed the investors to take back their FCD application. Almost all the investors took back. Even the underwriter refused to buy the unsold portion of the issue because the company had voluntarily announced to close the issue before the end date. The ruling was in favor the underwriter. Sachedeva declared himself to be innocent. MS shoes office resembled a mourning house with  deserted look.   There was one Sachedeva who came to light. There were and probably still are more of them out there.

Small investors typically have had a conventional myth: “stock market is a sick place. All we see are gambling but investment”. In the recent decade or so they have started looking at the market positively in sizable number  by getting out of this myth.  If there are scams of this nature which could potentially unsettle this welcome change in their perception, this great system of capital market would lose its shine very soon.

Damon Silvers, an AFL-CIO attorney and a member of the panel, was grilling me about PPIP, trying to get me to admit it was a heads-Wall-Street-wins-tails-taxpayers-lose scam, when the cross-examination took a personal turn. “Let me stop you right there,” Silvers said. “What I don’t get—and I practice law, and you’ve been in banking—is a deal—” “I’ve never actually been in banking,” I interrupted. “Well, a long time ago,” he said. “Actually, never,” I replied. “Investment banking,” Silvers retorted. “Never investment banking,” I said. “I’ve spent my entire life in public service at the Treasury and the Federal Reserve.” “All right,” Silvers conceded. “Very well then.” And then he continued his attack on PPIP as a shocking handout to financial interests.

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Of all the unlikely people to get mixed up with Madoff’s Ponzi scheme, Stephen Greenspan is the type of person you’d expect to be immune to investment fraud. With advanced degrees from Johns Hopkins University, he spent his career as a clinical professor of psychiatry at the University of Colorado studying social incompetence and gullibility. At the time of his retirement, Greenspan had published nearly 100 scientific papers and was well-known in psychology for his book Annals of Gullibility. With interest and expertise in the science of gullibility, shouldn’t Greenspan have recognized that Madoff’s firm was a scam? Yet he too was one of BLMIS’s private investors.

The coin drops into the wishing well, and your wish is manifest in the role-models that you have paid to carry your banner. An interesting phenomenon isn’t it? You work for an income that you invest in a puppet who represents who you have been led to believe that you want to be. You go to school to educate yourself, and yet the knowledge that you acquire only keeps you in the box that was assembled by a scam artist that you hired (at top dollar) to build.

The central structure of the scam is that you take an industry in which a big up-front investment is needed in order to earn rewards at a later date—the crucial dimension of time that defines the commercial fraud as compared to other kinds of theft.

ED issues notice to NDTV, Prannoy Roy, wife Radhika and Vikram Chandra for Rs.4369 cr. Foreign Exchange Management Act (FEMA) violations with help of Chidambaram. This also includes the 40 million dollars routed to NDTV by Malaysian firm Maxis’s subsidiary Astro, the accused in the Aircel- Maxis scam. According to Income Tax Commissioner S K Srivastava’s complaint to CBI, this 40 million dollar was the bribe received by Chidambaram from Maxis for the illegal Foreign Investment Promotion Board (FIPB) clearance of

At one time, I worked for a 401k retirement Plan company that handled retirement plans for Transamerica, Vanguard, and all others 401k and IRA corporations operating in America. I can tell you, first hand, that retirement plans are a scam designed to make investors money without spending a dime of their own money.

Today, Pharma still regards Africa as the beau ideal to test immunizations, and as a lucrative receptacle for dumping expired and defective stocks.5 Bill Gates has played a key role in legitimizing this arrangement while collaborating with captive or corrupt WHO officials to scam Western donor nations into footing the bill, and guaranteeing rich profits for pharmaceutical companies in which, coincidentally, he holds hefty stock positions. Gates—the “biggest funder of vaccines in the world”6—is heavily invested in lucrative partnerships with almost all the world’s largest vaccine companies.7 Bill and Melinda Gates have continued the tradition of human experimentation in Africa with the WHO stepping neatly into the role of an enabling colonial vassal.

In a way, one could argue that the whole financial sector is a scam of sorts, since it represents itself as largely about directing investments toward profitable opportunities in commerce and industry, when, in fact, it does very little of that. The overwhelming bulk of its profits comes from colluding with government to create, and then to trade and manipulate, various forms of debt. All I am really arguing in this book is that just as much of what the financial sector does is basically smoke and mirrors, so are most of the information-sector jobs that accompanied its rise as well.

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