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Showing posts from April, 2010

Are InterOil's Auditors Capable of Finding Fraud in Plain Sight?

Fraud Discovery Institute (co-founded by convicted felon turned fraud buster Barry Minkow) is putting PricewaterhouseCoopers (PwC), InterOil's (NYSE: IOC) auditors, on notice that they must look out for possible fraud by the company as required by Statement of Auditing Standards No. 99. Fraud Discovery released a video to provide a road map to PwC "in an attempt to give investors clearer picture of the inside workings of the controversial company." Minkow believes that InterOil is "a financial crime in progress." In addition, former LA Times investigative reporter William Lobdell, who now writes for Fraud Discovery's iBusiness Reporting blog, issued a report detailing a "troubling pattern of behavior" by InterOil since its founding in 1997.




However, I am skeptical about PwC's capability to find any fraud at InterOil based on my prior experience with them as the auditors of Overstock.com (NASDAQ: OSTK) another scam company investigated in this …

The Real Reason Behind Danny DeVito’s Crazy Eddie Movie Project Meltdown from Eddie Antar’s Cousin and Criminal CFO Sam E. Antar

Updated: 05/03/10 at 12:08 AM on Bottom of Post: Added Blog Reactions

In an exclusive interview with Mike Fleming from Deadline New York, Producer and Director Danny DeVito whines about how problems in obtaining Eddie Antar's life rights essentially sunk his Crazy Eddie movie project. However, Danny DeVito does not tell the whole story to Mike Fleming.

Apparently, Danny DeVito wanted to do a story that glamorized Eddie Antar and portray him as some sort of misguided hero. As the other "main character" in our frauds, I will have no part of any production that is sympathetic to any character, including myself, for our heinous cold-blooded crimes.

In addition, DeVito has made a series of troubling comments to the press about how he apparently tried to side step defrauded thousands of investors who are owed hundreds of millions of dollars in civil judgments, while clearly showing his sympathy to Eddie Antar.

We deserve to rot in hell for our unforgivable crimes

Over the last …

New Movie: Shia Labeouf Helps Thomas Belesis from John Thomas Financial Pump InterOil

IFC Media Project put out a movie clip about actor Shia Labeouf's role in helping John Thomas Financial CEO Thomas Belesis pump InterOil (NYSE: IOC) stock. This blog and others are featured in the video. Link to video here or view video below:




According to IFC Media Project:
How not to get played when playing the market -- the Shia LaBeouf Story! When Oliver Stone went looking for a new co-star for his sequel to Wall Street, he found fresh-faced Transformers' star Shia LaBeouf. Shia trained for his role by shadowing Wall Street power brokers at John Thomas Financial.

But now, Shia's gone nutty for the stock market game and some critics -- with their own agendas -- have alleged that John Thomas may be using Shia to meet their own ends... The following are links to all websites shown in this clip -- please read and digest this information with a critical eye:

Business Insider: Shia LeBeouf's Stock Picks: Buy IOC, Oil And Apple, And Short Gold

Dealbreaker: Shia LaBeouf Tur…

Goldman Sachs Tells More Bull to Investors

The consequences of lies and deceit are far worse than the consequences of truth and disclosure. I learned that lesson the hard way, as I fought a losing battle against Richard E. Simpson, who was the lead counsel for the Securities and Exchange Commission in its successful battle against certain criminal members of the Antar family than ran Crazy Eddie. Veteran top gun SEC attorney Richard Simpson, known as a relentless "pit bull" back in the Crazy Eddie days is now lead counsel for the SEC in its lawsuit alleging fraud by Goldman Sachs (NYSE: GS) and Fabrice Tourre. Like me, Goldman Sachs and Fabrice Tourre will have to learn that lesson the hard way through litigation.

During the company's recent conference call, Goldman Sachs tried to counter allegations made by the SEC in its complaint filed last Friday. However, the company did not deny certain key allegations made in the SEC complaint, specifically that marketing materials distributed to investors omitted any ref…

Should the SEC Investigate Medifast Like It's Investigating Pre-Paid Legal?

Fraud Discovery Institute and its sister website iBusiness Reporting delivered duo salvos against Medifast (NYSE: MED) today releasing reports questioning the company's financial disclosures about its Take Shape for Life division which is responsible for Medifast's recent growth in revenues and profits. In addition, Medifast announced that it was replacing its auditors who came under fire by Minkow and this blog in June 2009, when we suggested that Medifast replace them because of their poor track record as detailed in reports issued by the Public Company Accounting Oversight Board.

Both Fraud Discovery Institute co-founder Barry Minkow, a convicted felon with a long track record of fraud busting and iBusiness Reporting reporter William Lobdell who is a former LA Times investigative reporter have publicly disclosed holding short positions in Medifast securities. I do research for Fraud Discovery on InterOil and I do not own any securities in InterOil, Medifast, or Pre-Paid Leg…

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 …