The latest victims in the fraud world? Deaf people and professional golfers. This week, some interesting details about new fraud allegations surfaced. CNBC reported that the SEC stopped an alleged Ponzi scheme by Billions Coupons, a firm in Hawaii that raised more than $4.4 million from deaf investors. Billions Coupons reportedly raised the cash by holding investment seminars for investors who were deaf, and then the firm’s CEO pocketed the profits.
In the immortal words of Will Ferrell-as-ex-President George W. Bush, there’s a new “strategery” to promote literacy among financial institutions. Today Congresswoman Eddie Bernice Johnson (D-TX) introduced the National Financial Literacy Act of 2009, which gives incentives to financial institutions, small businesses and corporations to provide financial education to their customers and employees.
Um, isn’t it more than a little late for this? As they take in unprecedented amounts of government bailout money, most financial institution honchos these days aren’t concerned with educating their customers or employees on the markets. Nope, they’re more concerned with cashing those obscene bonus checks, firing up their private jets, or maybe doing a little interior decorating on the company’s dollar.
Good luck and godspeed, Congresswoman Johnson.
CNBC reported that big spender, wannabe interior designer and former CEO of Merrill Lynch John Thain will reimburse Bank of America for his $1.2 million office renovation, paid for with company money. In a memo to Merrill employees, Thain also defended reports of accelerated bonus payments before the closing of Merrill’s sale to Bank of America.
“Our 2008 discretionary bonus pool was 41% lower than 2007. The size of the pool, its composition and the timing of the payments for both the cash and stock were all determined together with Bank of America and approved by our Management Development and Compensation Committee and our Board,” he said.
Want more proof of some Wall Street titans’ greed and lack of responsibility during the financial meltdown? Check out this story detailing the decorating habits of former Merrill Lynch CEO John Thain, who resigned from Bank of America today. Merrill Lynch agreed to be sold to Bank of America at the end of last year in the wake of the financial sector crisis.
The Daily Beast reported that Thain spent a total of $1.22 million in company money to trick out his office with, among other things, an $87,000 area rug and a $35,000 “commode on legs.” (more…)
