No, we're not talking about Mavrodi, who recently died of a heart attack. Excessive greed and scam have led to the bankruptcy of more than one financial company. Fraudsters do not get tired of deceiving honest and respectable citizens, some even manage to fool the world financial establishment. True, in most cases the result of scams is always a prison cell.
Let's remember the loudest scams in the world and remind us that each of us can fall into a financial trap …
In English-speaking countries "business" is called business, and in French "business" - affaire. Initially, this concept meant in general any enterprise with the goal of making money.
You can steal money, you can extort money, or you can make people carry it "on a silver platter" themselves and thank you for agreeing to take it. Now this is "aerobatics". That is why they write novels and make films about real swindlers.
In general, the line between honest entrepreneurship and deception is very thin. That is why there is always an aura of romanticism around great businessmen and inveterate swindlers. And if you come across copies that combine both, then they are glorified not only in the circles of their business, but also receive worldwide fame. It is these people that will be discussed in our photo essay, where we have collected the most famous financial fraudsters.
The official careers of most of these people can inspire the deepest respect: they can rightfully be called outstanding top managers, the art of managing which could be learned. That is why those around them, right up to the moment of their exposure, considered the reputation of these people crystal clear.
Their crimes consisted of not paying taxes, manipulating financial statements, and often confusing corporate funds with personal ones. Interestingly, most of the major financial crimes occurred in the United States - America has once again proven its status as a country of great opportunity.
Promotional video:
Bernard Madoff
Today everyone knows the name of Bernard Madoff; the largest financial scandal is associated with him. Forbes eloquently calls him the robber of the century. After all, none other than the former chairman of the board of directors of the Nasdaq stock exchange was engaged in financial scams.
The company Madoff Securities, founded about 40 years ago, has been bringing its clients a stable profit of 12-13% per annum for many years. But in the end, Madoff's company lost $ 50 billion. At the same time, regular checks of the company's financial activities by the Federal Securities Commission showed only minor violations.
Many American and international foundations and banks, including BNP Paribas, HSBC, Nomura Holdings, as well as wealthy Americans, including filmmaker Steven Spielberg, have become victims of Madoff. This scam rocked Wall Street and resulted in real casualties. A French investor who had invested about $ 1.5 billion in Madoff's company committed suicide in his New York office.
Jerome Kerviel
A trader at Société Générale has been trading without the supervision of his superiors since 2005. During this time, according to the bank, he caused him damage in the amount of approximately $ 8 billion. Kerviel himself claimed that he had started illegal trade in order to achieve good results, present them to the authorities and receive bonuses.
According to the bank, this citizen simply wanted to appropriate the money for himself. In total, the trader was charged under four counts, among which were breach of trust and fraud. Gerard Kerviel managed 50 billion euros. Naturally, this was all illegal.
Bernard Ebbers and Scott Sullivan, WorldCom
The biggest scam in US history was organized by Bernard Ebbers, the head of WorldCom (the second largest telephone network operator in the United States), together with assistant Scott Sullivan. Ebbers directed all his efforts to the extensive expansion of the business at any cost. In the early 90s, his company made over 60 acquisitions. For example, in 1997, WorldCom acquired MCI for $ 40 billion, which was then three times the size of WorldCom itself.
In the late 1990s, Ebbers was the 376th richest person in the world, and his company was included in the list of the 500 largest US companies. Ebbers led an appropriate lifestyle - bought an 18-meter yacht for $ 20 million and the largest ranch in Canada for $ 47 million.
Problems began only in 2000, when Ebbers also had personal debts, he began to sell property. The WorldCom board of directors, frightened that the shareholders would not understand such behavior of the company's first person, gave Ebbers a loan of $ 375 million "for personal needs" at a paltry interest. Stopping constant takeovers, WorldCom began to fall apart. Ebbers could not save the company, he resigned in 2002, after which financial frauds in the amount of $ 11 billion began to surface.
A little later, Ebbers was sentenced to 25 years in prison. To Sullivan, who completely surrendered his ideological mastermind, the court was more favorable: he received only 5 years in prison.
Ralph Zioffe and Matthew Tannin
Hedge fund managers Bear Stearns, Tsioffey and Tannin, lied to investors about the fund's current health, which was heavily focused on mortgage-backed securities (far from being the most reliable at the time). At the same time, people continued to invest in the fund, trusting the information that the managers of Bear Stearns conveyed to the audience. Both managers were charged with conspiracy and fraud. The damage from their actions is estimated at $ 1.6 billion.
Dennis Kozlowski and Mark Schwartz, Tyco Industrial
Dennis Kozlowski and Mark Schwartz, top managers of the Bermuda-based Tyco Industrial. Under the leadership of these executives, the company made its largest acquisitions and became an international conglomerate. And Tyco CEO Dennis Kozlowski became famous as the absolute champion of the world in mergers and acquisitions - the corporation bought about 1000 companies related to various industries, and increased its revenues 12 times.
Kozlowski and his partner became notorious for their exorbitant spending of money. With the help of his former CFO Schwartz, Kozlowski spent about $ 600 million. Everyone envied the couple's lifestyle. They knew how to really chic: parties on the islands, exclusive things made of precious metals and stones - an umbrella stand for $ 15 thousand, a shower curtain for $ 6 thousand, wardrobe hangers for $ 2 thousand. artists (one of them belongs to the brush of Monet).
The true state of affairs of Tyco Industrial became known only when the partners began to get rid of their own shares. Dennis Kozlowski and Mark Schwartz received 25 years in prison.
Allen Stanford
Stanford is the founder of Stanford Financial Group and Antigua-based Stanford International Bank. Investors trusted almost unlimitedly both institutions. But after a few years, the company began to seriously interest the SEC, the FBI and the IRS.
In particular, it was interesting why Stanford is promising investors such a high return on investment. The US Securities and Exchange Commission accused the founder of the company and several of its members in conducting fraudulent transactions worth $ 8 billion.
Jeffrey Skilling and Andrew Fastow, Enron
The Enron company began its activity with the production of energy resources, but then began to engage in trading: it provided energy resources to the largest US companies on a long-term basis and at fixed prices. In 15 years, Enron has become the seventh largest company in the United States. Its assets were worth $ 47.3 billion.
Financial difficulties began in 1997, when Enron acquired a loss-making company. Executives Jeffrey Skilling and his CFO Andrew Fastow decided to hide the loss of the new asset. Fastov proposed an ingenious plan, which consisted of the creation of shell partnerships and companies (usually in offshore zones), which bought illiquid property from Enron along with debts, and paid off with shares of Enron itself.
As a result, the corporation managed to hide debts for a long time, which reached $ 40 billion. But in 2001, after a public investigation, the corporation had to declare itself bankrupt, two days later, Enron's shares fell from $ 90 apiece to 42 cents.
The collapse of "Enron" led to unprecedented consequences. Investors lost tens of billions of dollars, thousands of people were left without jobs, and pension savings worth more than a billion were burned.
Jeffrey Skilling ended up with 25 years in prison, and his assistant only 6 years: Fastov turned in his partner and thereby saved himself.
Martin Grass, Rite Aid
Rite Aid pharmacy chain CEO Martin Grass became famous for attributing $ 1.6 billion in excess profits to the company in order to receive bonuses.
Grasse, along with his accomplices, falsified accounts payable data, took into account income from the sale of medicines that were not actually sold and did not take into account losses from theft of products. Subordinates who helped them cover their tracks were regularly paid large bonuses. As follows from the materials of the prosecution, the leaders of Rite Aid deceived the company's auditors. Grasse drew up bogus financial statements and misled investors.
As a result, Grass was charged with falsifying accounting documents, forging minutes of board meetings, perjuring the SEC (the Securities and Exchange Commission that regulates American business) and fabricating evidence. He was charged with 36 counts of breaking the law. Several other top managers of the company were also convicted in the same case.
Samuel Waxel, ImClone Systems
Samuel Waxel is the founder and CEO of ImClone Systems, a biotechnology company. According to the New York prosecutor's office, in December 2001, Waxel learned that his firm's and already actively advertised drug against cancer Ebitrux would not receive approval from the US Food and Drug Administration (FDA).
It was not difficult for him to predict how the stock market would react to this news. Waxel began to "drain" the securities of his own company, carefully encrypting and using his daughter's brokerage account. But the operations were blocked by an investment bank. If the deal was successful, the founder of ImClone would have managed to raise $ 1 million.
The trial ended with the confession of the accused. Walksell said that he was deeply saddened by his actions, asked for forgiveness from all cancer patients and stressed that his brainchild, undoubtedly, will still help patients in the future. The court sentenced Waxel to the maximum sentence requested by the prosecution - more than 7 years in prison, to a fine of $ 3 million and damages in the amount of $ 1.26 million.
Nigel Potter, Wembley
Nigel Potter - the head of the Wembley casino chain, owned two of the largest gambling houses in Colorado and Lincoln Park. In the latter, things were going uphill, profits significantly exceeded revenues in Colorado, and Potter raised the issue of reallocating the company's cash, deciding that it was time for the Lincoln Park division to start its assets and become the sole representative of the state's gambling business.
He wanted to get official permission to install 1000 additional slot machines in Lincoln Park and thus solve the problem with competitors. He is accused of trying to bribe a government employee in the amount of $ 4 million. I must say that the court was supportive of Potter and ruled: 3 years in prison.
In Pennsylvania, Potter spent about a year and a half, then he was transferred to a Manhattan detention center, from which, a month and a half later, he was sent to the UK - first to prison and then to house arrest.