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Showing posts from February, 2010

First Jury Trial in Federal Corruption Probe Based on Informant Solomon Dwek Convicts Beldini: Are Some Defendants Living on Hope?


Recently, the former Jersey City Deputy Mayor Leona Beldini was convicted on two of six felony counts in what is known as a “split verdict,” based on the testimony of government informant Solomon Dwek. She was the first person to go on trial as a result of a massive federal sting operation targeting political corruption and money laundering that resulted in the arrest of 44 persons last summer. Beldini was found guilty of accepting bribes, but was acquitted on the more serious charges of extortion and extortion conspiracy.

Some attorneys are trying to spin the Beldini split verdict as a problem for government prosecutors in future trials related to this massive corruption and money laundering probe. However, the split verdict in the Beldini case presents no substantive problem for the government and raises false hopes for some Defendants who may actually be guilty but are willing to take their chances in a criminal trial, as I will describe below.

In interviews with the Assoc…

Open Memo to Medifast Board Chairman Bradley T. MacDonald and Chief Executive and CFO Michael S. McDevitt: Grow Some Hair on Your Chest


To Bradley T. MacDonald and Michael S. McDevitt:

You both need to grow some hair on your chests and stop acting like whining cry babies to investors, securities regulators, and now, the federal courts. Yesterday, Medifast (NYSE: MED) and Bradley T. MacDonald filed a multi-million dollar lawsuit alleging defamation by Fraud Discovery Institute, its co-founder Barry Minkow, pyramid scheme expert Robert L. FitzPatrick, acclaimed forensic accountant and book author Tracy Coenen, best-selling author and former investigative journalist William Lobdell (who now writes for iBusiness Reporting, a blog funded by Fraud Discovery), and an anonymous Yahoo massage board poster (download lawsuit here and here).
Like your complaints to investors and securities regulators, your lawsuit fails to provide a detailed and credible substantive line-by-line rebuttal of serious allegations of improprieties concerning Medifast's business model, marketing practices, and financial disclosures made in r…

The Mentality of White Collar Criminals: Providing Insight on "Connect with Mark Kelley"

In the aftermath of Ponzi schemer Earl Jones sentencing today to 11 years years in prison, I was asked to provide insight on the mentality of white collar criminals on Canadian Broadcasting Corporation's (CBC) "Connect with Mark Kelley." It does "take one to know one."

Video link to watch interview

Video link to watch entire segment

Written by:

Sam E. Antar

Convicted felon, former CPA, and former Crazy Eddie CFO

My Reporting of a Financial Statement Manipulation Scheme at is Vindicated by Latest Company Announcement

Updated:This evening (NASDAQ: OSTK) announced that the company is restating all financial reports from 2008 to Q3 2009 as a result of material violations of Generally Accepted Accounting Principles (GAAP) and other SEC disclosure rules. This announcement vindicates my reporting of a financial statement manipulation scheme by and its unprincipled management team, led by CEO Patrick M. Byrne.How it all startedIn October 2008, restated its financial reports from Q1 2003 to Q2 2008 due to customer refund and credit errors. However, the October 2008 restatement did not include corrections arising from underbilled offsetting costs and reimbursements that were already earned from its fulfillment partners during those same corresponding periods, less a reasonable estimate of uncollectable amounts. In other words, should have gone back and corrected or restated its financial reports to reflect income already earned from offsetting costs a…

Open Letter to the Securities and Exchange Commission (Part 7): Why and David Chidester Parted Ways

UpdatedTo the Securities and Exchange Commission:I believe that it is no coincidence that David Chidester left (NASDAQ: OSTK) while KPMG continues to audit its financial reports amid your ongoing investigation of the company and a day after Roddy Boyd's damaging article was published in The Big Money. Recently, both CEO Patrick M. Byrne and former CFO David K. Chidester refused to comment to the Salt Lake Tribune and company President Jonathan E. Johnson gave evasive and misleading answers to them about Chidester's departure from the company. As an eleven year veteran of the company, David Chidester knows where the "dead bodies" are to be found in's continuous failure to issue financial reports in compliance with Generally Accepted Accounting Principles (GAAP) and other SEC disclosure rules. claims that David Chidester and the company parted ways by "mutual agreement." I believe that their so-called "mutual…