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I am a convicted felon and a former CPA. As the criminal CFO of Crazy Eddie, I helped Eddie Antar and other family members mastermind one of the largest securities frauds uncovered during the 1980s. My responsibilities at Crazy Eddie included skimming, money laundering, insurance fraud, securities fraud, and a host of other criminal activities too long to list here.

We committed our crimes at Crazy Eddie for fun and profit and simply because we could. We had no empathy whatsoever for our victims. During my sixteen years at Crazy Eddie and two years spent covering up our crimes after being terminated from the company, I never had a single conversation with any of my co-conspirators about morality or the suffering of our victims. Our conversations focused solely on the successful cold-blooded execution of our crimes.

After two years of fighting government investigations and civil litigation by destroying evidence, engaging in witness tampering, and committing perjury under oath, I decided to cooperate with the government and lawyers representing victims of my crimes. I was the main witness in the Crazy Eddie criminal trial prosecuted by US Attorney’s Office in Newark, NJ, civil trial prosecuted by the Securities and Exchange Commission, and civil litigation brought against us by our victims.

I did not cooperate with the government and victims because of any sense of morality or remorse for my crimes. I simply cooperated with them to avoid a long prison sentence and reduce potential monetary penalties. If my crimes had remained undetected and the government did not seek to prosecute me, I'd still be doing crime today.

I pled guilty to three felonies: conspiracy to commit securities fraud, conspiracy to commit mail and wire fraud, and obstruction of justice. I was sentenced to only six-months of house arrest, 1,200 hours of community service, and paid approximately $10,000 in fines. In my settlement with the Securities and Exchange Commission, I agreed to a lifetime ban from being an officer or director of a public company and paid $20,000 of disgorgement for losses that I avoided by selling my Crazy Eddie stock at inflated prices. In my settlement with the victims of my crimes, I avoided all civil liability.

Apologies for my crimes are irrelevant. Apologies do not undo the losses suffered by the victims of my crimes. I do not seek or want forgiveness for my crimes from my victims or society.

There is a saying, "It takes one to know one."
Teaching at Stanford University

Today, I am a forensic accountant. My primary work focuses on identifying and investigating public companies engaged in securities fraud by performing an in-depth (deep-dive) forensic analysis. In addition, I advise law enforcement agencies and professionals about white-collar crime and trains them to catch the crooks. My clients include government agencies, law firms, accounting firms, independent investment research firms, hedge funds, public companies, and other organizations.

My blog investigates white-collar crime, securities fraud, accounting irregularities, corruption, and other related topics. Material from his blog has been used in investigations by the Securities and Exchange Commission and in class action lawsuits filed against certain public companies for improper accounting practices. Accounting irregularities investigated here are referred to appropriate government agencies as a whistleblower.

In December 2008, my blog was recommended by the Journal of Accountancy. In August 2009, I testified as an expert witness on corruption for the New Jersey State Assembly Republican Policy Committee. In June 2012, The Huffington Post named me one of the 25 most feared financial reporters in America.

My views on white-collar crime are frequently quoted in the print news media, online news media, TV media, professional journals, books, and blogs. I have appeared on CNBC, Fox News, Fox Business Channel, Canadian Broadcasting Corporation, Canadian Business News Network, National Public Radio's Planet Money, Progressive Radio Network, Reuters TV, RT News, and other media outlets to give insights on white-collar crime. My articles have been published by Business Insider, CNBC, Newsweek, Seeking Alpha, TalkMarkets, and other publications.

Written by:

Sam E. Antar

© Copyright by Sam E. Antar. All rights reserved.

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

Suggested Reading: Overstock.com Hatchet Man Judd Bagley's Downward Spiral: Junkie, Confessed Criminal, Admitted Adulterer by Sam Antar (here), and Closing the File on a Criminal and Junkie Named Judd Bagley by Gary Weiss (here)

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 commen…

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…