Gene's Three Rules Regarding Fraud

OK - the third rule

"Always remember the parable of the chessboard."

What does this mean?  We will discuss this 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

Gene's Three Rules Regarding Fraud

OK - so, what is next:

Gene's Rule 2:  If you can't explain how my investment is supposed to make money for me in two minutes or less, I'm not interested.

     Fraud schemes generally have one thing in common - the fraudster has a long explanation as to how the money will be made.  If I invest in a stock or bond, it's pretty simple to explain how I am making money.  If I invest in a factory, then I invest in a factory.  If I lend money to someone, it is clear what is my rate of return.

    Fraud schemes, however, usually have some harebrained or zigzag or outright loony explanation ("I have a formula for playing the market that no one else knows") that is a dead giveaway.  And, the time it takes to explain these moneymaking "ideas" usually runs at least 10 minutes, if not more.

In my book, you have two minutes to explain it to me. More than that, something is up.

More on this later.

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

Gene's Three Rules regarding Fraud

I mentioned sometime in an earlier post that since this is my blog, I can pretty well post what I please.  I am going to take advantage of this lack of editorial control to spend some time examining what I call Gene's Three Rules of Fraud.

Why three rules?  Well, three rules (or laws) were good enough for Sir Isaac Newton, Sir Arthur C. Clarke and Larry Niven, so I guess they are good enough for me. 

So, without further introduction:

 

RULE 1:  If it sounds to good to be true, it probably is.

 

No major points for originality there, but when it comes to fraud schemes, this is always worth remembering.  If someone is promising a 10% annual rate of return when the average is 2% as an investment, the would-be investor should be paying attention and Rule 1 should always be in the back of the investor's mind. 

 

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

Dr. Henry Jones - Master Fraudster

Interesting Wikipedia article on Dr. Henry Jones who ran a massive fraud scheme.

http://en.wikipedia.org/wiki/Tri_Energy

We will probably be analyzing this in depth for a future article.

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

Credit/Debit Card Fraud

Credit/Debt Card Fraud in the Southern District

http://www.justice.gov/usao/txs/1News/Releases/2012%20August/120830%20Wong.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

Conspiracy to distribute false pharmaceuticals

Conspiracy to distribute false pharmaceuticals in the Northern District of Texas

http://www.justice.gov/usao/txn/PressRelease/2012/AUG2012/aug23jones_carles_anthony_arrest.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

More on the El Paso corruption case

Additional sentencing with the El Paso corruption case

http://www.justice.gov/usao/txw/press_releases/2012/EP%20Corruption_Jones%20Sanchez%20sentencing2.pdf

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