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Saturday, January 10, 2009

What if it's all a Ponzi scheme -- more

Earlier, I grew depressed thinking that the reason all that bailout money wasn't helping right the economy was that the whole thing was a vast Ponzi scheme.

http://mikekr.blogspot.com/2008/12/what-if-its-all-ponzi-scheme.html

There's more, albeit this one is smaller.

The Commodity Futures Trading Commission and the Securities and Exchange Commission brought civil charges against a Pennsylvania man accused of running a $50 million Ponzi scheme since at least February 1995. Authorities said in a complaint Thursday that Joseph S. Forte, of Broomall, Pa., turned himself in to authorities in December and signed a confession with the U.S. postal inspector after his alleged Ponzi scheme fell apart.

http://online.wsj.com/article/SB123146543612166835.html

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But there's more!

B. Ramalinga Raju, founder and chairman of Satyam Computer Services, Ltd., said he made up a $1 billion cash balance, overstated the amount of debt owed to the company and understated its liabilities.

After a while, this reached "simply unmanageable proportions", he said, and was "like riding a tiger, not knowing how to get off without being eaten."

The company's auditors are PWC (Price Waterhouse Coopers).