Interludes - Mortgage Fraud

Mortgage fraud in the Southern District of Texas

http://www.justice.gov/usao/txs/1News/Releases/2012%20April/120430%20Trammell.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diversions 8

We have said often before on this blog but it bears repeating - a good (and honest) financial advisor is one that is interested in your long-term financial goals.  Unfortunately, a lot of investment fraud (which is a great deal of fraud in the first place) occurs when people place their money with the wrong advisor.

     As we have seen in this latest thread, if your advisor is wants you to be distracted from the investment, if he is not telling you the reasons for the investment or, once again, the how and why of the investment, there is an issue.  Every con artist who ever ran a three-card monte racket or a "hide the ball" game is familiar with distractions.  Con artists use distractions and diversions as part of their strategy.  Like a good magician (who is at least honest in saying that his "magic" is the art of diversion and illusion), you are looking one way when the real action is happening in another corner.  You are meant to be distracted so that you do not have the interest, or the time, to find out what is really going on.

     Next week we will be starting another thread.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diverions 7

We have, therefore, the difference between a real financial advisor and one who uses distractions,  A financial planner, a real one anyway, is one who is interested in their client's long-term goals by asking his clients to look at the how and why of investments, not just the results.  When a financial advisor does not want his clients to examine the how and why of investments, but rather would continually distract the investor, we have nothing less than a con game.

     I began this thread by talking about how a con artist, usually the stereotypical boardwalk con artist (running a three card monte or other type of scam) will employ a beautiful woman to act as his assistant.  However, the woman is there solely as a distractor.  She is present to prevent the mark from being able to focus on the task and thus not able to try and develop a strategy on how to "beat the system." 

     So, is a financial planner trying to distract you to prevent you from focusing on the investments?  Are you being discouraged from asking the how and why of your investments, or just being told to focus on the returns?

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diversions 6

So - as discussed, a real financial advisor is interested in telling his clients how and why the investments work.  He wants his clients to be fully fluent in the knowledge so that the clients know why the investment counselor is making these choices for his client.  The investment counselor does not want his clients to be distracted by trivialities.

     The con artist, however, the less-than-honest investment counselor is always looking for a distraction so that the investor does not have the time (or the initiative) to find out how and why the money is being invested in a certain way.  The "sexy girl" in this case is a metaphor for some type of device that keeps the client distracted.  The client should be focusing (according to the shady investment counselor) on the distraction, not on the real issues.  Then, like the three card monty or the shell game that is prominent on boardwalks, suddenly the investor finds that his money is gone and he has no way to account for his loss.

     So - the real question - is your investment counselor focusing on the how and why of investments, or is he simply trying to blur your focus?

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diversions 5

OK - back to reality

     So, in the last post, we asked if the attractive person was being used to distract you from the actual investment.  This is nothing more than playing the "3 card monte" game on a boardwalk and having the huckster employ a pretty woman to distract the person playing (usually the pretty woman is a confederate). 

     But, for "serious" investments, it may be obvious for a so-called "financial advisor" to employ an attractive woman.  But, attraction is carried by many different devices.

     One of the more common tactics of a scam artist/scam investment counselor is to continually try and distract the investor with the promises of returns rather than focus on the actual mechanism of the returns themselves.  In this case, the "attractor" is the promise of the high rate of returns which is used to distract the investor from the way the returns are supposed to be made.  A good, and real, investment counselor will want his clients to know how the returns are being made rather than future rate of returns. 

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - BRITISH teenage SCAMMERS earn MILLIONS 3!

Sorry - can't get enough of a good thing.  I really love this story!

http://gulfnews.com/news/world/uk/british-teenage-brothers-ran-stock-picking-robot-racket-1.1011647

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - British TEENAGE fraudsters EARN millions 2!

Sorry, this is still too good to pass up, so enjoy the latest article on these two teenagers who were able to convince much older people of their stock picking "robot."

http://www.thesun.co.uk/sol/homepage/news/4271092/Brit-twins-in-12m-stock-scam-probe.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - TEENAGE internet FRAUDSTERS earn MILLIONS!

OK - yet another interlude, but this is just too good to pass up.

http://www.metro.co.uk/news/896848-british-twins-face-us-charges-after-1-2million-stock-robot-fraud

Personally, I think the kids ought to be given a medal.  Human ingenuity at its finest.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - Fraud sentenced in the Southern District of Texas

Still busy today, so here is another story regarding fraud from the Southern District of Texas.

http://www.justice.gov/usao/txs/1News/Releases/2012%20April/120419%20Scott.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - Insurance Scam in the Southern District of Texas

Busy day today, so I will just treat my readers to a news story on insurance fraud shenanigans here in the Southern District of Texas.

http://www.justice.gov/usao/txs/1News/Releases/2012%20April/120417%20Alcala.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diversions 4

Let's take a step back for a moment before we explore the concept of distraction in a white collar scam.

     If you have an investment portfolio (one that is still worth something anyway), look at the standard disclaimer that accompanies the portfolio.  They will always say that the investor should look carefully at any potential investment and get independent advice.  The keyword here, however, is that in a real investment scheme that is not looking to defraud investors, the investment counselor and analyst will tell the potential investor to examine the investment carefully.

     In other words, the person's attention should be taken up completely by the investment prospectus.  The person should not be distracted or have his attention in any way taken away from the prospectus and its contents.

     In other words, a real investment counselor who is selling a real investment will want to make certain that the investor's attention is where it belongs.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diverions 3

So - when will a sex distraction be used in a white collar fraud scam?

     After all, a white collar fraud investment scam (i.e. getting the mark to invest in a pyramid scheme or not do all of the checks necessary to determine if an investment is legitimate) is not like a 3-card monty or some kind of street scam where there may be a sexy lady in a miniskirt diverting the marks attention?  Right?

     Well, look at it this way.  When determining whether to make such an investment, who is more likely to get the attention of the average male?  The young, attractive woman or the balding, middle aged guy?  It's a basic question, of course.  And this does not mean that every attractive woman attempting to sell an investment is a con artist.  Far from it.

    The real key, however, is not whether the attractive person is attempting to sell the mark an investment scheme.  The real key is: is the attractive person being used to create a diversion?

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distractions and Diversions 2

Using the concept of a diversion - in this case using sex a diversion in a con game - is really nothing more than a form of misdirection.  Misdirection is nothing more than looking to the left when you should be looking to the right.  Magicians use this trick all the time (in fact, it is amazing how much magic, especially "street magic," has in common with con games - but that is another story).

     A con artist will use a pretty woman (or, let's face it, a handsome man), as a way to make his "mark" look away from where the real action is happening.  Once again, this is nothing more than basic human psychology.  If the mark cannot pay attention to what is really going on, then it is much easier to convince him to invest in the con.  Con artists are counting on this.  Misdirection may not be the only element in a fraud, but it can be an important, if not the important, component of a fraud.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - Millionaire Scam Artist

OK - before we return to our regularly scheduled programming - more on the millionaire scam artist.

http://ca.news.yahoo.com/blogs/daily-buzz/millionaire-matchmaker-contestant-pleads-guilty-fraud-150837270.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - Millionaire Scam Artist

Well, no sooner do we start a new thread then there is a new and exciting story in the world of scam artists. 

Bravo TV's millionaire in residence turns out to be a fraudster.  Well, well, well.

http://www.blippitt.com/millionaire-scam-artist/

Back to our regularly scheduled programming tommorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Distraction and Diversion 1

Time to move on to a new thread.

     Have you ever been to a magic show?  Next time you go, look at the magician's assistant.  The chances are, she will be a beautiful woman dressed in a skimpy outfit.  Look at the recent commercials for the "Carl's Jr." restaurant chain - the model for the cover of the Sports Illustrated Swimsuit edition (2012) is eating a hamburger....but leaving little to the imagination about what she is really thinking.  Go to an NFL football game or an NBA basketball game and try to keep your eyes off the cheerleaders (if you can).

     I am not talking here about "sex sells," although this has been known to advertisers since the dawn of time.  I am instead talking about using beautiful women as a distraction while a con is going on, right under the eyes of the mark being conned.

     Beautiful women dresed in skimpy outfits are a great distraction, and not just for men.  Studies have shown they attract the attention of women as well (I'm talking about straight women here too, not a lesbian).  They are the perfect addition to a con game.  We will spend the next two weeks or so learning about how sex is used to distract a mark in a con game.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Viktor Bout Sentenced

One last article on the sentencing of Viktor Bout, the inspiration for the thread "The Real Lord of War."

http://blogs.wsj.com/corruption-currents/2012/04/05/viktor-bout-sentenced-to-25-years/

Note that the article (briefly) discusses shell corporations.  We will be examining this in a later post.

A new thread tommorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Viktor Bout Sentenced

The Russian government is incensed at the 25 year sentencing of Viktor Bout.  One country's illegal arms dealer is another country's international businessman.

http://www.nytimes.com/2012/04/07/world/europe/russia-denounces-us-sentencing-of-arms-dealer.html

See "The Real Lord of War" thread.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Viktor Bout Sentenced

Viktor Bout, was sentenced to 25 years in Federal prison for arms dealing.

http://www.cbc.ca/news/world/story/2012/04/05/viktor-bout-arms-trafficker-convicted.html

He was previously featured on the thread "Lord of War."

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Two Houstonians sentenced for bank fraud

http://www.justice.gov/usao/txs/1News/Releases/2012%20April/120405%20%20Felder%20and%20Lowe.html

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Benny Hinn Forever! 19

Well, we are at the end of our conversation regarding Benny Hinn. 

     As I stated, I cannot state as to whether Hinn is committing fraud.  He is not deceiving people per se.  He is indeed spreading the Gospel.  But, how much of Hinn's money is actually going to fund his high living lifestyle from his "investors?"  That, of course, is the real question. 

     We already know that many ministries decided that Hinn does not live the life he is supposed to live as a preacher and such ministries informed their congregants to avoid giving money to Hinn.  But, once again, Hinn makes no secret of his lifestyle either.

    Note that this does not mean that Hinn is scot-free.  He may be committing tax fraud (in which case the IRS would certainly be interested) or he may have some scheme going where the vast amount of the money he takes in does not go to evangalism, but rather into his own pocket and as such has violated a law or statute.  Hinn may indeed find himself at the wrong end of an investigation - just look at Jim and Tammye Faye from a few years back.

     This is a basic problem when dealing with people such as Hinn.  Benny Hinn is a money-making machine whose industry has no oversite or review.  If Hinn's organization is to "spread the word," and Hinn is "spreading the word?" then what should be Hinn's remuneration for this?

     There are no easy answers.

    We start on a new topic tommorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Benny Hinn Forever! 18

So, how can we wrap up our conversation on Benny Hinn? 

     There is no doubt that Hinn lives very well.  There is also no doubt that Hinn gets on TV and preaches the New Testament.  There is further no doubt that Hinn preaches a brand of Christianity that not only seems to believe that people should be millionaires, but also that Hinn can act like a Jedi Master and use the Force to heal people of all sorts of diseases. 

     This, of course, makes him controversial, not only among non-believers but also among Christians.  As I stated earlier, I find his claims of "healing" to be ridiculous and certainly unproven, but Hinn also does not hide the fact that he lives a life most people would envy in terms of material wealth and a posh lifestyle.  If a person donates money to Hinn, leaving aside the religious claims (which once again are outside our discussion topic), Hinn is not in a technical sense deceiving his donors. 

     Perhaps the best way to sum up our conversation is to say that people who contribute to Hinn's ministries remember the old Latin adage: caveat emptor (buyer beware).  There are a great many Christian organizations that are far more transparent than Hinn's who will gladly show their investors to where their money and donations go.  "Investing" in evangalism is not the same as investing for long-term retirement.   The real question therefore is: does an "investor" in Hinn believe he is fulfilling a religious mandate by giving to Hinn's ministry which is not as transparent as perhaps it should be. 

     Hinn's lifestyle and expenses may not excuse Hinn from being transparent, but Hinn apparently chooses not to have the same level of transparency as other faith-based organizations and apparently makes no apology for it.  Hinn is rightfully criticized for this approach and while I am certainly no expert on Christianity, I have doubts that Hinn's lifestyle is not exactly what the founder of Christianity had in mind.

We'll wrap this up tommorrow.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Interludes - Obama Campaign Contributor fraud

Fraud even affects Presidential campaigns.

http://news.yahoo.com/top-obama-campaign-donor-accused-fraud-204442621.html;_ylt=AsjVKeTqnm_B_gjKiV0JykWs0NUE;_ylu=X3oDMTNsdmVzbTFoBG1pdANUb3BTdG9yeSBGUARwa2cDNTZmYWJmNjQtNDAxYi0zOWQ0LTg1YzUtNDhkNGQzNTVhMTdjBHBvcwMyBHNlYwN0b3Bfc3RvcnkEdmVyA2VmYTEwYTExLTdjNzItMTFlMS1iYjMzLWI1ZGVjZDY5OTM4OQ--;_ylg=X3oDMTFrM25vcXFyBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdAMEcHQDc2VjdGlvbnMEdGVzdAM-;_ylv=3

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk

Benny Hinn Forever! 17

OK, I stated yesterday that strictly by-the-book, Hinn may not be committing financial fraud per se.  He is selling himself as an evangalist and there is enough information out there for people to understand that by giving money to Benny Hinn Ministries, they are giving money to Hinn also.  And, Hinn will take this money....eagerly.

But, please make no mistake about it - I do not endorse nor do I care to associate with Hinn.  I am extremely skeptical of how he spends his money (it certainly does seem to go to Benny Hinn himself) and I am appalled at his so-called "faith healings" which would put P.T. Barnum to shame for their outright hucksterisms and showmanship.  Hinn's actions would be hilarious if real people were not actually being hurt by his claims of "healing," (which have never been put to a scientific test).

I mentioned the James Randi Educational Foundation on this blog before - it is an organization that fights fraud and charlatans who pretend they have psychic or "supernatural" powers.

Here is James Randi on Benny Hinn:

http://www.randi.org/site/index.php/swift-blog/1010-thoughts-on-faith-healing.html

We will wrap this up over the next two days.

NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE.  IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.

Have a great and fraud-free day.

http://www.tauskvega.com

----------à>>>>>>>>>>>>>>>gene tausk