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Showing posts from March, 2009

Barry Minkow's Report on Speedway Motorsports Details Troubling Disclosures and Raises Serious Concerns

The Fraud Discovery Instititute (FDI) led by my close friend convicted felon, turned fraud fighter, Barry Minkow has issued a new report entitled, "Ten Red Flags for Fraud at Speedway Motorsports, Inc. (NYSE: TRK)." Minkow started a new website called SpeedScamMotorSports.com and posted a You Tube Video to explain details of his investigative report. According to FDI's report, "There are plenty of signs pointing to fraud and mismanagement at this company [Speedway Motorsports]." The report goes on to list ten red flags (download here). FDI latest report focuses on inconsistent and contradictory disclosures by management and the company. It also carefully scrutinizes related party transactions and certain stock pledges that I will describe in more detail below.Minkow has publicly disclosed that he owns put options in Speedway Motorsports and almost always holds a short position in companies that he investigates.Minkow's latest report, follows up on a backgro…

To Grant Thornton, New Auditors for Overstock.com

To Grant Thornton (new auditors for Overstock.com):When Crazy Eddie was gearing up to go public, many of the top accounting firms clamored for our business. Some accounting firms passed on taking us as a client (smart move) and others continued to compete for our business (dumb move).Unfortunately, Main Hurdman, now KPMG, won our business. That decision cost them many years of litigation and close to $50 million in damages paid to investors. At KPMG, many careers were ruined by our crimes.The accounting profession never seems to learn the following lesson from previous follies that happen time and time again:Know who you are dealing with and if the potential client does not pass the smell test, pass on their business.I wish that I can wish you luck with your new client. However, I cannot wish you luck because you apparently ignored the basic "smell test" in evaluating Overstock.com as a potential client.Recently, Overstock.com (NASDAQ: OSTK) announced that it “dismissed” Pri…

Understanding the Mind of Bernie Madoff

Understanding the mind of Bernie Madoff and how to prevent similar frauds from happening again.
Convicted felon David Alexander and I are inteviewed by Alexis Glick on the Fox Business Channel "Money for Breakfast" show. Part 1:What's going through Bernie Madoff's mind while committing fraud.



Part 2:What can be done to prevent schemes like Madoff from happening again.



My other comments on Bernie Madoff and preventing similar crimes from happening again:Conde Nast Portfolio - Preventing the Next Bernie Madoff by Gary WeissBreaking Madoff News - What Makes Bernie Madoff Tick: Inside the Criminal Mind of Sammy Antar by Deborah Strober

Cityfile New York - A Few Words from a Fellow Fraudster by Remy SternWritten by:Sam E. Antar (former Crazy Eddie CFO and a convicted felon)