International Law

Sunday Fraud From Around the Web

Interesting ABA Journal piece about the American fascination with criminals:

"Americans have always had a peculiar relationship with crime and criminals. Each generation seems to fret about unprecedented lawlessness, while bestowing on its most outrageous criminals the kind of celebrity reserved for folk heroes and movie stars.

From Mingtiandi, we learn about a business networking scam:

"I received two emails inviting me to an "Exclusive business breakfast meeting by invitation only!" from something cheesily called the "XL Results Foundation."

It seems this foundation is a bogus business networking scheme that bilks would-be entrepreneurs for membership money while providing them with non-existent training and networking opportunities. And I thought those dodgy financial consultants were bad! You can find out how the scam works from this posting on ripoffreport.com and this Australian report from Perth."

The new National Museum of Crime and Punish ment--opening May 22 in Washington, D.C.--will focus on that nation al fascination with exhibits that chronicle both our history of bad be haviors and our sometimes cruel and ingenious ways of reproving them.

...
It seems this pyramid scam has already made the rounds in Singapore, Indonesia and Australia and is now hoping to take advantage of the overly optimistic crowding the streets of Shanghai."

The FIB reports on the conviction of Amit Mathur:

"Boston, MA... A Shrewsbury investment adviser was convicted of 20 counts of fraud in Federal District Court in Worcester on Friday, May 16, 2008 in connection with a scheme that bilked 15 investors of approximately $13 million.

AMIT MATHUR, age 38, of 3 Sunflower Circle, Shrewsbury, Massachusetts, was convicted of 18 counts of mail and two counts of wire fraud.

According to the evidence presented at trial, MATHUR held himself out as a fantastically successful investment adviser operating a firm in Worcester known as Entrust Capital Management, Inc. ("Entrust").

During that period, MATHUR received approximately $16 million from investors. According to evidence presented at trial, MATHUR told investors -- in person and in marketing literature -- that Entrust was operating a hedge fund that consistently achieved positive rates of return and did better than the general stock market indices.

In this way, MATHUR lulled his investors into a false sense of security to persuade them to invest money and to leave their money with Entrust for the long term.

In fact, during its entire existence, according to the evidence introduced at trial, the Entrust fund suffered consistent losses.

Moreover, in several instances, MATHUR never even invested the money investors gave him. Instead, he misappropriated more than $5 million of investors' money for his own personal use, including luxury items such as several cars, gambling, New England Patriots football season tickets, jewelry, and clothing.

On each count for which he was convicted, MATHUR faces a maximum sentence of 20 years in prison, a fine of $250,000, and restitution to the victims."

Interesting that there are several real companies that have the name "Entrust". Could this be what Sam E. Antar talks about when discussing "manufacturing a wall of legitimacy"?

Full post as published by Misleading Advertising Law on June 01, 2008 (boomark / email).