Archive for January, 2009
Happy to have avoided U1stFinancial
This week I got an encouraging email from someone doing research on United First Financial and their Money Merge Account. I’m glad the facts and opinions posted here are being read by people considering paying $3,500 for this product.
Here’s what she had to say:
Carnival of Fraud – January 12, 2009
Welcome to the January 12, 2009 edition of carnival of fraud.
Silicon Valley Blogger presents Ponzi Scheme, The Madoff Scandal: Tips To Avoid Becoming A Scam Victim posted at The Digerati Life, saying, “Thank you!”
The Smarter Wallet presents Avoid Scams: Watch Out For False Advertising and Skip The Snake Oil! posted at The Smarter Wallet, saying, “Thanks!”
Lennar CEO lies about losses in joint venture
Lennar Corporation (NYSE:LEN) CEO Stuart Miller was on CNBC on Friday to “respond” to allegations made by Barry Minkow and Fraud Discovery Institute about the company’s propensity for fraud. In the process of trying to diminish the impact of the serious allegations, Miller got caught in a blatant lie.
One of the allegations made in FDI’s original report on Lennar is that the company profits from cheating joint venture partners out of the money due to them. Minkow specifically named the LandSource venture (a project now in bankruptcy) as an instance in which Lennar profited while the other parties came out big losers.
Lennar CEO Stuart Miller: Transparency? Or lies?
On Friday, Stuart Miller, the CEO of Lennar (NYSE:LEN) went on CNBC to respond to fraud allegations made by Barry Minkow and Fraud Discovery Institute. But did he really respond? Do you feel he is being transparent? Or is he creating more lies in response to the damaging report?
You be the judget. Here’s the transcript of the relevant portion of the interview:
Lennar CEO responds to Barry Minkow and Fraud Discovery Institute
Early today, Barry Minkow and Fraud Discovery Institute released a report on Lennar Corporation (NYSE:LEN), highlighting what the authors believe to be ten red flags of fraud at the company. Lennar’s stock was hit hard by the news.
It didn’t take long for Lennar’s CEO Stuart Miller to speak out against the allegations. About all he was able to do, however, is try to discredit the messenger. Lennar didn’t have any substantive response to any of the allegations, they simply highlighted Barry’s well-known criminal past and referred to Nicolas Marsch (Barry’s client) as a “disgruntled litigant.”
Lennar Corporation: Fraud in Progress?
Today Barry Minkow and the Fraud Discovery Institute released a lengthy report about Lennar Corporation (NYSE:LEN), the nation’s second largest homebuilder. It’s apparent that the company has a certain way of doing business, and it’s not pretty.
There is a video accompanying the report, which is featured on a new website about the company: www.Lenn-ron.com. (The URL is in honor of the company’s similarities to Enron.)
Increased Government Spending Won’t Fix the Economy
Using government money (our money!) to “create jobs” sounds great, doesn’t it? When you hear about massive layoffs, a proposal that create jobs sounds appealing. But this really isn’t the way to stimulate our economy. The government will spend far too much money creating far too few jobs, when the real way to get ourselves out of this financial mess is to create incentives for long-term growth. (Read: Lower taxes and create a situation in which businesses and consumers can thrive.)
Downsize DC offers the following educational information on the right way to stimulate (fix) the economy:
Commit One of the Largest Financial Crimes in History, Continue to Live in Your $7 Million Apartment
As our friend Bernard Madoff waits around for the wheels of justice to move in his “alleged” $50 billion Ponzi scheme… he’s been a busy boy.
No, he’s not sitting in jail, where a fraudster of his magnitude deserves to be. Instead, he was allowed to post a $10 million bond, and is nice and cozy in his $7 million Manhattan apartment. What a hardship!
SEC employees more worried about future careers than actual enforcement?
It can’t be! It’s being alleged that Securities and Exchange Commission employees cared more about their careers than actually doing their jobs. One might think that a strong enforcement record might be career enhancing, but what do I know.
It’s easy to pick on the SEC in general. There are lots public companies doing questionable things. The agency has limited time and resources. So a lot of cases that aren’t obviously egregious might not be fully investigated or prosecuted, but it’s hard to blame the agency for that.
“Climate Change”: Just Another Fraud on Consumers
I sometimes wonder how all this “global warming” and “climate change” stuff got started. Who decided that it was some major catastrophe in process, for which we should spend billions of dollars in a meaningless fashion? And how did so many people get duped into believing this lie?
Well, one person we can thank, is “internet inventing” Al Gore. Never mind that he heats enormous houses and flies on his own private jet, both creating a bunch of naughty carbon. He says we need to reduce carbon emissions… “we” being everyone else.
