Too Good To Be True

Moving into the manor this week is R. Allen Stanford. He'll be bunking with the manor's first resident, Bernie Madoff. They have a lot in common and should get along just fine.

Like Madoff, Stanford is accused of bilking investors of billions. His toll is expected to be around $8 billion dollars affecting as many as 50,000 investors. His modus operandi was promising investors impossible returns. It would seem that there really are things that are too good to be true.

What is interesting about the Stanford case is that there may be a lot of collateral damage. Not from the investor list, but with whom Stanford could call associates. Apparently, Mr. Stanford has some contacts with Washington and it will be interesting to see who gets some heat for any possible association. Already mentioned are several campaigns, including Obama's presidential campaign, John McCain and fellow Texan John Cornyn, among others. I wonder if any of them are potential future residents. Stewart Parnell needs a roommate.

Also under scrutiny is the Securities and Exchange Commission (SEC) who apparently allowed Stanford to continue to operate even though he was high on their list to scrutinize and that they (the SEC) only stepped up an investigation after the Madoff story came to light.

The FBI finally found Stanford serving him court papers that declare the SEC suing him for perpetrating a "massive and continuing fraud". Why the 239th richest American (worth $2.2B), who is a distant relative to the founder of Stanford University, would defraud that many people is beyond me, but he still sounds like the perfect new resident to our little hall of shame.

SL

Miscreant Manor MonTuesday

It took all of five minutes of research to find enough on this despicable human being for a post.

The short story. He's a scumbag. He ran a peanut company, but couldn't see past his profit to take the appropriate steps to maintain quality standards. Because of this, salmonella found a home in his products. He was informed about it. He couldn't risk his profits so he shipped the product anyway.

His quotes:
"I go thru this about once a week. ... I will hold my breath .......... again,"

"We need to discuss this ... the time lapse, besides the cost is costing us huge $$$$$..."

"Mr. Chairman and members of the committee, on advice of my counsel, I respectfully decline to answer your questions based on the protections afforded me under the U.S. Constitution."

The toll:

9 dead
600 sick
and, last week, his company filed for bankruptcy protection.

I can't wait until I can add "indictment" to the list.

He's a perfect find to add to the list of manor residents.

Here are some dishonorable mentions that just didn't have enough scumbaggery to get into the house:

1) Luzerne Co., PA judges Mark Ciaverella and Michael Conahan
2) NY Yankee Alex Rodriguez
3) Bradenton, FL Dad Of The Year Mark A. Belanger

SL

Miscreant Manor

A few posts ago, I blogged about Bernie Madoff. I referred to him as a scumbag and I stand by that post. Since that post I've seen a lot of wacky stuff in the news. These wacky news stories range from people succumbing to unbridled greed to just plain lack of common sense.

Now, the truth of the matter is that I don't judge these people because they gave into temptation. I do that daily. I give into my anger and lash out at Angie or I give into my selfishness and act accordingly. I completely understand that we are human, flawed and sinful. I am not above that.

However, there really must be a special place in hell reserved for those that are just plain depraved. Madoff may be one of them. There is such a huge difference from defrauding a couple of wealthy investors of a couple of millions of dollars to ripping off a ton of people of $50 BILLION.

The question to me is one of scale. To me, there is a huge difference between a CEO of a company “cooking the books” to make his personal stock portfolio more valuable and Stewart Parnell. If you don't know who Stewart Parnell is, you will. He will be the focus of my first “Miscreant Manor” post. I will summarize the account of Mr. Parnell and how his greed has been responsible for the nine recent salmonella deaths in the United States. With that post, Mr. Parnell will join Bernie as the first two residents of the manor.

I feel compelled to spew off on these scumbags, er...miscreants. Whatever you want to call them, they are examples of what is worst in humanity. I have such a visceral (non-Christian) response to these people as I read their stories. I hope my posts help get you angry, too - angry at the unbridled greed that seems to be so pervasive in our society. I am all for corporations being successful and earning profits. I should be, I work for one. However, I truly believe that these corporations have a responsibility to the community and profits, although a primary objective should never be realized at the detriment of mankind.

Therefore, I present to you, “Miscreant Manor Mondays” (selected as the name of these entries instead of “Scumbag of the Week.”). Bernie Madoff already lives there and we’ll add a new occupant every week as warrants.

These people and their stories should get you really pissed off.

SL

Separated at Birth...

...Bernard Madoff and Sesame Street's Count Dracula.

Bernie Madoff may or may not be news in your household, but he may go down in history as one of finances biggest scumbags - in a year of monumental scumbags.

He is responsible for perhaps the largest Ponzi scheme ever committed. That's not newsworthy. What is notable, is that we all now know what a "Ponzi scheme" is...

A Ponzi scheme is anytime a supposed investment pays earlier investors with newer investors money. Ultimately, there is no profit being made by the scheme. The scheme is inherently unstable and guaranteed to fail. The scheme is named after Charles Ponzi who perpetrated the first notable one in 1920. To me, it is a perfect example of the greed that seems to have taken over wall street and big business. How may billions do you need? Wouldn't a single billion suffice? For good 'ole Bernie, it seems that $50B wasn't quite enough.

So, as authorities dig into this some more, the victims are lining up. One has committed suicide after learning of $1.5B in losses. My beloved Mets are involved, as the owner (Fred Wilpon) may have had as much as $300M invested. Countless others will surface.

As I type this, the inauguration is on television. I am feeling an overwhelming sense of pride that this country has elected a black man as president. My cynical side didn't believe it could happen. I feel the hope and the energy that his presidency is causing. I think his politics are crap, but it is about hope right now.

And frankly, with bailouts surrounding us, necessitated by unbridled greed and general "scumbaggery", a little hope is a good thing right now.

Just watch out for the individuals pictured above...they'll both suck you dry.

SL