Conversations with ChatGPT In this article, the author discusses the conversation she had with ChatGPT regarding Bitcoin and Ponzi schemes. This question has been around nearly as long as Bitcoin itself (without the Charles Ponzi qualifier). How could I have a conversation with Charles Ponzi? Perhaps ChatGPT has ingested enough material about the historical figure to do it for me. I initiated a new conversation with ChatGPT and asked, “Is Bitcoin a Ponzi scheme?” The short answer it gave was no and the model provided some reasons but they are boring. I then responded, “Give me more specific answers designed…
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Utilizing Data Analytics to Investigate Ponzi Schemes This article examines how data analytics combined with other forensic accounting tools can help investigators uncover how investors in both traditional and newer types of Ponzi schemes were victimized, and how data can be compiled to locate stolen assets and create an analytical report that aids regulators and in legal proceedings focused on recovering funds or determining investor losses. Introduction It is widely recognized that deceiving investors is the bread-and-butter of a Ponzi scheme.[1] However, the term “investors” often conjures images of Shark Tank or Wall Street, and this is far from the…
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Spotting Internal Fraud Schemes To identify whether an organization is vulnerable or has been a victim of fraudulent behavior, it is critical to spot common warning signs of internal fraud schemes. The first step is knowing where to look. The company’s general ledger (GL) is a good place to start. It is a book that can tell stories of fraud, manipulation, and betrayal. Unfortunately, few know how to read the signs. While investigators, attorneys, and auditors tend to analyze the reports generated from the GL and track and monitor payment and revenue information within the GL, they often overlook a…
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Briefing on Criminal Fraud Economic Loss Calculations One of the more exciting and challenging parts of our profession is learning about our judicial system. Professionals whose practice involves economic loss calculations should consider educating themselves on the similarities and differences between “actual” and “intended” losses prior to providing expert testimony or offering an opinion. In my research, I came across a publication titled PRIMER Loss Calculations Under §2B1.1.(b)(1) (United States Sentencing Commission, February 2019). I recommend anyone interested in this topic to take the time to read the publication in detail. The purpose of this QuickRead is to educate interested…
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About a decade ago, Harriet and Jeffrey Taniyama went in search of a financial planner “just to make sure we were headed in the right direction” with respect to retirement, Harriet Taniyama says. The one they found, a former FINRA-licensed advisor named Christopher Dougherty in San Diego, persuaded them that they not only had enough money to retire but also to invest in his own ventures, including an organic farm and a real estate business. To read the full article in Financial Planning, click: ‘We Were Just Conned,’ Client Says of Advisor’s Alleged $8M Ponzi Scheme.
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A self-styled “Money Doctor” who promoted his services on a Christian radio station penned a self-help guide to “share the benefits of putting Christ back in the center of our personal spending habits.” In pitches to clients, the ex-advisor allegedly promised guaranteed risk-free returns of five to eight percent per year. To read the full article in Financial Planning, click: Author of ‘Jesus Christ, Money Master’ Charged in $19.6M Ponzi Scheme, SEC Says.
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The SEC has charged an advisor and his wholly-owned RIA firm with operating a nearly $5-million Ponzi scheme that defrauded scores of investors over almost a decade, according to the regulator’s complaint filed in federal court. To read the full article in Financial Planning, click: SEC Accuses Advisor of $5M Ponzi Scheme.
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The owner of a retirement planning firm cheated dozens of investors out of $3.8 million in two related scams that included a Ponzi scheme and fraudulent stock offerings targeting elderly retirees, the SEC says. To read the full article in FinancialPlanning, click: $3.8M Ponzi Scheme Funded Spa Treatment, Maids, Church Tithes: SEC.