The Con Men ePub eBook: A history of financial fraud and the lessons you can learn (Financial Times Series)

A history of financial fraud that includes topics such as the motives and methods of fraudsters, when and why frauds happen, how old scams can be repackaged, and the types of financial product that become vehicles for fraud. Cover......Page 1 Contents......Page 8 About the author......Page 12 Acknowledgements......Page 14 Introduction......Page 16 Part One A brief but efficient history of trickery......Page 20 Bernie Madoff......Page 22 Allen Stanford......Page 24 Could you have spotted a problem?......Page 26 Lessons from the past......Page 28 If you can’t trust the analysts and the auditors, who can you trust?......Page 32 Chapter 2 Our touching need for confidence......Page 34 Insider trading......Page 36 Ivan Boesky and Dennis Levine......Page 37 Robert Vesco......Page 41 Plus ça change .........Page 47 Ponzi and ‘Pump and Dump’ schemes......Page 52 The SEC and Bernard Madoff......Page 59 Further SEC investigations......Page 62 Some frauds just never go away......Page 67 Part Two Let’s go to work: the confidence men in action......Page 70 Chapter 4 Sharks or maniacs?......Page 72 Are some financial fraudsters psychopaths?......Page 74 Routine activity theory......Page 78 Nigerian scams – a different type of fraudster altogether?......Page 80 The problem with plausibility......Page 83 Offshore jurisdictions......Page 86 Good old boys......Page 88 Making sense of Stanford......Page 98 Chapter 6 Shamanagement: financial wizardry to create paper profits......Page 102 The Olympus scandal......Page 103 The man who became the ‘Man from Del Monte’......Page 107 Investors versus business shamans......Page 114 Part Three Why we get the swindlers we deserve......Page 116 Chapter 7 Some deadly sins of investment: trusting false prophets, investing for the Apocalypse and the money illusion......Page 118 Selling the sizzle, not the steak......Page 119 Gold bugs: waiting for Armageddon......Page 123 The money illusion......Page 126 You can fool some of the people all of the time .........Page 129 Chapter 8 Moral hazard in the system......Page 132 The LIBOR scandal......Page 135 The swindling of Jefferson County, Alabama......Page 137 Surviving the banks......Page 141 Chapter 9 Due negligence: failing to do the analysis......Page 144 Harry Markopolos and Bernie Madoff......Page 149 A word on funds and funds of funds......Page 151 Due diligence always matters......Page 153 Part Four How to avoid being swindled......Page 156 Chapter 10 Funds are not all the same!......Page 158 The Bayou hedge fund fraud......Page 164 Avoiding hedge fund fraud......Page 166 Chapter 11 All the books are cooked: the trouble with company accounts......Page 170 Corporate governance from the investor’s point of view......Page 171 Company accounts......Page 174 Crazy Eddie......Page 177 Enron......Page 181 Investors and accounts......Page 187 Chapter 12 Safer strategies......Page 190 The first line of defence against fraud......Page 192 Lower your expectations......Page 195 Asset allocation......Page 198 Afterword......Page 202 Further reading......Page 208 Index......Page 214 Financial fraud, whether large or small is a persistent feature of the financial markets. If you scratch the surface of the investment world you'll find a continuous stream of major financial scandals which are almost unbelievable in the sheer scale of their subterfuge. The Con Men shines a spotlight on some of these gargantuan frauds from the last 25 years. It questions how these men did it, why they did it, how there were able to get away with it, proposes strategies and tactics so that the reader can avoid being swindled. The full text downloaded to your computer With eBooks you can: search for key concepts, words and phrases make highlights and notes as you study share your notes with friends eBooks are downloaded to your computer and accessible either offline through the Bookshelf (available as a free download), available online and also via the iPad and Android apps. Upon purchase, you'll gain instant access to this eBook. Time limit The eBooks products do not have an expiry date. You will continue to access your digital ebook products whilst you have your Bookshelf installed.

Financial fraud, whether large or small is a persistent feature of the financial markets. If you scratch the surface of the investment world you’ll find a continuous stream of major financial scandals which are almost unbelievable in the sheer scale of their subterfuge.

The Con Men shines a spotlight on some of these gargantuan frauds from the last 25 years. It questions how these men did it, why they did it, how there were able to get away with it, proposes strategies and tactics so that the reader can avoid being swindled.

The horror stories -- Our touching need for confidence -- Shiny new inventions and old tricks -- Sharks or maniacs? -- Yielding to temptation : the Allen Stanford story -- Shamanagement : financial wizardry to create paper profits -- Some deadly sins of investment : trusting false prophets, investing for the apocalypse and the money illusion -- Moral hazard in the system -- Due negligence: failing to do the analysis -- Funds are not all the same! -- All the books are cooked : the trouble with company accounts -- Safer strategies