Why not subscribe?

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.


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.



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).

No comments:

Post a Comment