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CHINESE TYCOON SENTENCED TO DEATH FOR PONZI-SCHEME PDF Print E-mail

Image A Chinese high court recently upheld a death sentence of Wu Ying, a 31 year old tycoon accused of running a 380 million yuan ($60 million) Ponzi-scheme.  Once ranked as China's 6th richest woman, Wu Ying was found guilty of what is technically known as "fraudulent fundraising" for Behnse Holding Group which she headed.  Wu Ying allegedly collected 770 million yuan from investors with promises of 80% returns.  The capital was supposed to have been invested in trading companies, hotels and real estate developments but instead she used it to pay off debts on her personal assets, including cars and personal real estate holdings.  In her defense, Wu Ying's lawyers claims that the funds were provided her personal friends and not the general public.  The public has also complained that Wu Ying's true crime is not in bilking the public but in implicating corrupt government officials during the investigation.  The public has also claimed a double standard in how government officials are treated under the law versus average citizens and that she is being used as a scapegoat.  According to the Wall Street Journal, "At the heart of the issue is a feature of China's death penalty system that allows for sentences to be reduced to life in prison if convicts go two years without committing another crime.  Nearly three quarters of officials condemned to die get their sentences reduced, compared to just 20 to 30 percent of ordinary prisoners" (http://on.wsj.com/wzyoIg).   

 
VIDEO: Donte Whitner on Pierre Thomas PDF Print E-mail

After getting stretched out by Saints Pierre Thomas, Donte Whitner begs his teammates "Please don't let my mama come out on this field!"

 
MULLETT: SEC Exec. Undermined $7B Ponzi Scheme Inquiry PDF Print E-mail
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Former SEC official, Spencer Barasch, is expected to be fined $50,000 and banned from appearing in front of the SEC for a period of 6 months for his inappropriate role in the Allen Stanford Ponzi Scheme investigation.  Mr. Barasch was the former head other enforcement division of the SEC's Fort Worth, TX office.  He left the SEC in 2005 and is now a partner at the law firm of Andrews Kurth in Dallas.   The Stanford Ponzi scheme was actually uncovered in 1997 by a team of investigators from the SEC's Forth Worth office.  From 1997 to 2005 investigators made a total of four investigations into Stanford's business model and found it to be fraudulent, yet the SEC decided not to pursue the investigations further or bring charges.  It was later discovered that on multiple occasions Mr. Barasch played a significant role in quashing the investigation.  Barasch may have been financially motivated to end the investigation against what he saw as a potential client.  According to the Wall Street Journal, "After Mr. Barasch left the SEC for private practice, he sought repeatedly to get permission from the SEC to represent Mr. Stanford ... Mr. Barasch represented Mr. Stanford briefly in 2006 before he was informed by the SEC Ethics Office that iw as improper for him to do so" (http://goo.gl/6IJC5).  It was not until Bernie Madoff disclosed his $50 billion Ponzi scheme to authorities in December 2009 that the SEC took the Stanford case.  In 2010 Stanford's $7.2 billion Ponzi scheme was eventually uncovered (http://clicky.me/stanford).  In hindsight, Barasch's visions of a financial windfall was merely a mirage.  Not only was he not allowed to represent Stanford but Stanford's eventual lawyer tried to beg off of the case due to Stanford's inability to pay his legal bills. 
 
SHOCK EXCHANGE IN KOREA PDF Print E-mail

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DMZ Separating the two Koreas
In 2000 I worked on the acquisition of a Korean investment trust company - Project Joseun.  Whenever I worked abroad I took the time to visit the country's landmarks and other areas that helped me understand the country's culture and history.  My Korean trip was no different.  I visited the palaces, the famed open-market trading and shopping areas and attended presentations on the Korean War.  After Japan capitulated in World War II in 1945, the Soviet Union was occupying the northern part of Korea and the United States the southern part.  The peninsula was divided down the middle along the 38th parallel and separate countries established.  North Korea came under communist rule and South Korea under capitalist rule.  When I heard this story recanted I was literally in a state of shock.  The presentation also mentioned that in the aftermath of the Korean War a three mile buffer called the demilitarized zone ("DMZ") was created to separate the two countries.  I decided to take a visit and look over into North Korea.  What I saw instead was the "soul of Kim Jong-Il."

 
LEBRON DOES "PLAXICO END ZONE DANCE" PDF Print E-mail

In a touch football game amongst NBA players, Lebron takes an interception to the house and does his version of the Stevie Johnson TD celebration mocking Plaxico Burress' shooting incident.  One good turn deserves another . . . Plaxico could mock Lebron by not playing in the fourth quarter.

 
VIDEO: Stevie Johnson, Bloomberg go H.A.M. on Plaxico PDF Print E-mail

In Sunday's game between the Buffalo Bills and New York Jets, Bill wide receiver Stevie Johnson does his Plaxico "gunshot wound" impersonation.  The media went H.A.M. on Johnson for his tasteless, selfish act.  However, that same media was oddly silent when Mayor Michael Bloomberg tried to profit politically from Plaxico's mishap two years ago.

 

 

 
MULLET > Darren Rovell Contemplates How Sandusky/PSU Could Have Survived Scandal PDF Print E-mail

CNBC's Darren Rovell took to Twitter to explain how (i) victims of sexual assault do not always come forward, but sometimes would rather put the past behind them and (ii) how if the 2002 victim had not come forward Sandusky / PSU could have survived the recent scandal.  That could only mean one thing --- the victims of Sandusky's sexual assault must be black and poor.  If the victims had been the kids of his colleagues at CNBC no way in the world would Rovell have contemplated how Sandusky / PSU could have gotten off.  After all, Sandusky chose his victims for a reason --- he never thought they would come forward.  Below is Rovell's Twitter message.

 
WHAT DID HAYNESWORTH DO THIS TIME? Skins Lose to Lowly Dolphins PDF Print E-mail

Albeeeeeerrrrttttt! Last season all you heard from the Washington Redskins camp was "Albert Haynesworth did this.  Albert Haynesworth did that."  I am a huge Skins fan and told people that Haynesworth and Donovan McNabb were the only playmakers the Skins had.  Instead of embracing them, new coach Mike Shanahan did everything in his power to alienate them.  Instead of designing a defense around Haynesworth and letting him "do what he do" and beat his man to the ball carrier / quarterback, knucklehead goes with a 3-4 defense where he proposed that Haynesworth clog up the middle.  Every week Shanahan was seemingly throwing Haynesworth under the bus and using him as a smokescreen for the Skins woeful performance and his inability to coach.  Never missing an opportunity to demonize an black man in order to get ratings and website hits, the media rode Haynesworth mercilessly while co-signing Shanahan.  After starting the season 3-1, the Haynesworth-less Skins have since lossed five in a row, including a trouncing by the hapless Dolphins.  This all begs the question  --- "WHAT DID HAYNESWORTH DO THIS TIME?" 

 
NBA LOCKOUT: (Michael Milken Voice) "Take The Deal!" PDF Print E-mail

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Milken Makes His Worst Trade
The NBA owners and Commissioner Stern have given the NBA Players ultimatim after ultimatum to sign a collective bargaining agreement and get back to work.  One of the proposals on the table featured a 50/50 split of basketball related income ("BRI") between the owners and the players.  The owners have chirped that the next proposal would only be worse - BRI of 47%, salary roll-backs and unguaranteed contracts.  Should the players make this "trade" or not?  For answers, one could look to insider trading case against Michael Milken, one of the most astute traders in the history of Wall Street.  In the late 80s Milken was under investigation for insider-trading and racketeering charges.  Federal authorities had considered accepting a guilty plea to a single felony, as presented by Milken's lawyers.  After dragging his feet on the plea deal and having his co-workers testify against him, the single plea deal was dropped as being too favorable to Milken. 

 
OBAMA GETS HIS "NUCKY THOMPSON" ON PDF Print E-mail

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Playing both sides?
In the premier of Season Two of the HBO hit Boardwalk Empire the "Hooded Knights" attack Chalky White, leaving four dead and six injured.  It is unclear if the attack is revenge for Chalky cutting off the finger of a Knight's  member last season or if they intend to takeover his bootlegging operations.  To quell the situation Nucky Thompson, mayor of Atlantic City, engages in an act of duplicitousness.  He reminds the African American community that he has "always considered the members of the colored community his friends and equals and that neither he, Sherriff Thompson will rest until these hooded cowards are brought to justice."  He then tells the white community that "noone need fear for their safety, or the safety of their wives, children or property in the face of the obsteporous negro."

It appears that President Obama has borrowed a page from Thompson.  A few weeks ago he visited New York in the hopes of raising campaign funds from Wall Street firms.  However, many of the firms that received bail out money from the Bush and Obama administrations three years ago did not show up.  Warren Buffett of Berkshire Hathaway was the only Wall Street representative of note to back the president.  A few weeks later at an East Room news conference, President Obama praised the Occupy Wall Street protests with the following statement:

 
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