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Showing posts from September, 2007

Overstock.com vs. Gradient and Rocker Part 1: Patrick Byrne and his Three Stooges

Last week, Reuters reported that the California Supreme Court threw out a motion to dismiss Overstock.com's lawsuit against Gradient Analytics and Rocker Partners. The process of discovery by the litigants on both sides will now begin. Information provided in the discovery process will be open to scrutiny by both sides and the public as well. Patrick Byrne probably believes that he can pull a "rabbit out of a hat" through discovery even though questions have arisen as to the credibility of his three main witnesses - former Gradient employees who have signed sworn declarations aka affidavits alleging wrongdoing by Gradient and its customer, Rocker Partners.As investigative journalist and blogger Gary Weiss has pointed out:If Byrne is aware of the Pandora's Box he has opened, it would surprise me. The man is so deluded and detached from reality that I doubt that he has the wits to contemplate the consequences of anything he does.Such as, for instance, being hacked to p…

Overstock.com CEO Patrick Byrne and his Black Ops

Recently, the O-Smear blog has provided evidence that Judd Bagley, the Director of Communications at Overstock.com, is actually running a "black ops" operation on behalf of Patrick Byrne, CEO of Overstock.com. My blog and other blogs have detailed Patrick Byrne's war waged against his critics and perceived enemies. Patrick Byrne has conducted a despicable smear campaign that includes the use of intimidation, threats, harrasment, blackmail, and anti-Semitism in his efforts to silence his critics and further his agendas.According to the O-Smear blog, Judd Bagley has a hard drive on his home computer labeled "back ops." In addition, certain edits made to antisocialmedia.net smear web site, once run anonymously by Bagley for Byrne, were made from Overstock.com's computer servers. Many of Bagley's activities in furtherance of Patrick Byrne's "back ops" occurred during normal week day business offic hours. Judd Bagley has posted anonymous messag…

Advice from a convicted felon: How the government investigates and prosecutes white collar criminal cases

I am often asked by people attending my many free fraud presentations about the conduct of government white collar crime investigations. In almost every securities fraud, there is a hierarchy of criminals, which I will call:The big fish (usually the CEO)The middle fish (usually middle managers)The smallest fish (usually non management personnel)The government works its way up the criminal hierarchy to get to the biggest fishThe government attempts to flip the smallest fish to get to the biggest fish. The investigators usually attempt to use the testimony of the smallest fish to work their way up the ladder to the middle fish and than use the middle fish to catch the biggest fish. The government uses the smallest fish to turn in the middle fish and the middle fish to turn in the biggest fish. Each level of fish is used as bait by the government to reel in the next higher level of fish.The government would much rather deep fry the biggest fish than either the middle fish or the smallest…