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Spreading the Message

The competition of ideas makes our great democracy stronger. It is our duty as citizens to seek out the best ideas from both sides of a debate so we can continue progressing as a society.

Debate can be passionate without being personal. Spirited and positive debates are the cornerstones of our democracy. We should not fear alternative ideas but should carefully consider them on their merits. As a nation we must embrace the debate and discussion of ideas about the various issues concerning us.

Over the last several weeks, my input about white collar crime has been published in the blogs below.

I thank these blogs for covering my side of the issue on white collar crime, Sarbanes Oxley, internal controls, the accounting profession, and more.

Their readers have agreed and disagreed with me. I respect them all and hope that my input on the issues that we discussed may contribute to helping prevent white collar crime, strengthening the integrity of financial information, and help strengthen our financial markets.

Links to Recent Blog Commentary

October 13, 2006: Corporate Governance Blog - Sam Antar Shares His Thoughts - How Crazy is He? by Mike Rhodes

October 12, 2006: Embezzment Lawyer Blog - Reformed White Collar Criminal Offers Insights into Preventing Fraud

October 12, 2006: Financial Rounds - Tuesday/Wednesday Link Dump - Sam E. Antar (Former Crazy Eddie CFO) is in favor of Sarbanes-Oxley by Unknown Professor

October 12, 2006: Governance News Watch - Former Fraudster's Support for SOX by Janice Brand

October 11, 2006: Herb Greenberg's Market Blog - Sam Antar (Required Reading) by Herb Greenberg

October 11, 2006: MarketWatch.com -Making a Strong Case for Sarbanes-Oxley A former crook argues against watering down securities law by Herb Greenberg

October 11, 2006: Corporate and Securities Law Blog - What Warren Buffett and Crazy Eddie Say about Corporate Ethics and Avoiding Shenanigans by Alex Simpson

October 10, 2006: Financial Crytography - Audit Follies - Atlantic differences, branding UnTrust, thunbs on Sarbanes-Oxley, alternates... by Iang

October 5, 2006: sox first -Auditors and White Collar Crime: Advice from an Expert by Leon Gettler

October 3, 2006: The Streetside Investor - A Crook Like Me by the Streetside Editor

October 3, 2006: POM Talk The Blog for Institutional Investors - Former Fraudster Warns We are not Training Auditors to Recognize Corporate Fraud

October 2, 2006: The D & O Diary - Crazy Eddie's Cousin Sammy Takes on Alan Greenspan by Kevin Lacroix

September 29, 2006: Herb Greenberg's Market Blog - Reality on White Collar Crime by Herb Greenberg

September 29, 2006: Seeking Alpha - Merck's Offshore Shuffling: Shades of Crazy Eddie

September 28, 2006: Jeffrey Matthews is not Making This Up - Where's Sammy Antar When You Need Him? by Jeff Matthews

September 18, 2006: Barron's Online Tech Trader Daily - Once Insane, Now Perfectly Lucid Crazy Eddie's CFO by Eric Savitz

September 14, 2006: Jeff Mathews is Not Making This Up - Tom Joads Truck by Jeff Matthews (See my posted comments)

September 13, 2006: CFO Blog: Ron's Rants - 21st Century Road Show by Ronald Fink

September 13, 2006: Robert Rector - Sinners and Saints by Robert Rector

May 5, 2006: Financial Executives International Blog - Twas the Night Before 2 Congressional Hearings, and All Thru the House... Thru Testimony and Comment Letters, They Did Browse by Edith Orenstein

For other recent newspaper coverage see the Recent Articles page of my website http://www.whitecollarfraud.com/.

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Popular Posts

Did a Clever SEC Bait Goldman Sachs into Compounding Its Legal Problems With the "Kiss of Death" Message?

Updated: At 3:48 AM ET 04/20/2010 on bottom

The Kiss of Death

In filing its lawsuit against Goldman Sachs (NYSE: GS) on a Friday, the Securities and Exchange Commission sent what I call the "kiss of death" message to the embattled company. In other words, the SEC wanted to stick it to Goldman Sachs and Fabrice Tourre, the Executive Director of Goldman Sachs International, who is also a defendant in the complaint. While the SEC as a practice does inform target companies and individuals of an impending enforcement action, it does not always tell them exactly when such an action will be filed.

Apparently, the SEC filed its lawsuit without giving Goldman Sachs the heads up that it was planning to file it that day. Business Insider observed that Goldman Sachs was clearly unprepared to respond to the complaint as news of the lawsuit dominated the headlines all day. Goldman issued a short denial around noon and issued an extensive denial late in the afternoon, after most people had …

Overstock.com CEO Patrick Byrne Sleeps With a Gun

In numerous blog posts in the past, and in widespread media coverage, evidence has accumulated for years that Overstock.com CEO (NASDAQ: OSTK) Patrick Byrne has shown signs of being mentally unbalanced and paranoid.

Byrne has blamed his company's financial woes on an unnamed "Sith Lord." He hired paid goons to stalk his real and imagined adversaries and to write lengthy conspiracy theories on the Internet. Byrne has close ties with Bo Gritz. The Anti-Defamation League lists Bo Gritz as a far-right extremist with “extensive connections to both white supremacists and anti-government groups and leaders.”

Patrick Byrne's infamous temper tantrums when he doesn’t get want he wants are well documented too. He made obscene and misogynistic comments to a female reporter. He suggested that she gave “blowjobs” to Goldman Sachs traders. He suggested that a male reporter “Sucks It Likes He’s Paying the Rent.” An independent research analyst was told that “You deserve to be whippe…

Nature's Sunshine Products, Willbros Group, Cal Dive International, and BSQUARE Violate S.E.C. Rules on Calculating EBITDA

Nature’s Sunshine Products (NASDAQ: NATR), Willbros Group (NYSE: WG), Cal Dive International (NYSE: DVR), and BSQUARE (NASDAQ: BSQR) have recently issued earnings reports which include a calculation of EBITDA (earnings before interest, taxes, depreciation, and amortization) that apparently does not comply with Securities and Exchange Commission interpretations for Regulation G governing such non-GAAP financial measures. In each case, their erroneous EBITDA calculations have enabled them to significantly distort their financial performance by erroneously reporting a positive EBITDA, when they should have reported a negative EBITDA in the latest quarter.

How EBITDA is supposed to be calculated under Regulation G

According to the S.E.C. Compliance & Disclosure Interpretations, EBITDA is defined under Regulation G as net income (not operating income) before net interest, taxes, depreciation, and amortization. See below:

Question 103.01Question: Exchange Act Release No. 47226 describes E…

InterOil, John Thomas Financial, and Clarion Finanz: Anatomy of a Stock Market Manipulation Scheme

In this blog post, I will provide evidence of what I believe is a stock market manipulation scheme involving InterOil (NYSE: IOC), John Thomas Financial, and Clarion Finanz AG. I believe that InterOil with the assistance of Clarion Finanz concealed John Thomas Financial’s involvement in helping it raise $95 million through a private placement of convertible debt securities.

Clarion Finanz acted as a buffer between InterOil and John Thomas Financial to help InterOil hide John Thomas Financial's role in raising funds. Afterwards, InterOil filed false and misleading reports with the Securities and Exchange Commission in an effort to conceal John Thomas Financial’s role in helping the company raise $95 million in convertible debt.

Carl Caserta, who in 1991 was barred by the Securities and Exchange Commission from “association with any broker, dealer, or investment advisor” played a role in helping InterOil use John Thomas Financial to obtain funds from investors. InterOil, John Thoma…

Class Action Complaint against Amedisys uses Sarbanes-Oxley Act Corporate Governance Provisions to Battle Alleged Corporate Malfeasance

Updated at bottom of article

Last week, Pomerantz Haudek Grossman & Gross LLP filed a class action lawsuit against Amedisys (NASDAQ: AMED) charging the company, its CEO William F. Borne and its CFO Dale E. Redman with securities fraud.  In the next few days, Bernstein Liebhard LLP and Finkelstein Thompson LLP filed similar class action lawsuits against the company. The lawsuits allege that Amedisys abused Medicare's reimbursement system for at-home therapy care based on a compelling analysis of company revenues in an April 27 Wall Street Journal article.

In addition, the lawsuits innovatively utilize a provision under Section 406 of the Sarbanes-Oxley Act 2002 which provides a back-door way for investors to force ethical corporate governance and sue public companies for malfeasance. That provision requires Senior Financial Officers, such as the CEO and CFO of public companies, to abide by a strict code of ethics which broadly defines corporate malfeasance and effectively makes…