Jesse's Café Américain Thu 2010-05-06 13:44 EDT
Control Frauds HyperInflate and Extend Bubbles Maximizing Damage - A Control Fraud at Work in the Silver Market Short Positions?
Here is a working paper by William K. Black about 'control frauds' and how they relate to the most recent credit crisis in the United States, a breakdown of stewardship that has placed the rest of the world's financial sector at risk as well...``Control frauds'' are seemingly legitimate entities controlled by persons that use them as a fraud ``weapon.'' A single control fraud can cause greater losses than all other forms of property crime combined. This article addresses the role of control fraud in financial crises. Financial control frauds' primary weapon is accounting. Fraudulent lenders produce exceptional short-term ``profits'' through a four-part strategy: extreme growth (Ponzi), lending to uncreditworthy borrowers, extreme leverage, and minimal loss reserves...
Control Frauds HyperInflate; controls Fraud; Extend Bubbles Maximizing Damage; Jesse's Café Américain; Silver Market Short Positions; working.