Raising start-up capital is a tough job even in good economic times. These days, with credit so scarce, it can seem nearly impossible. Unfortunately, when entrepreneurs want to get things done “in the worst way,” they sometimes run out of patience and do just that. Raising capital in 21st century America is a bit like taking a road trip across Iraq. The road is strewn with booby traps. Continue reading
Many Americans think of stock fraud as a one-way street in which a seller tricks buyers by overstating the value of equity or debt. The reality is, fraud cuts both ways. Lying low is just as fraudulent as lying high. Senator Chuck Schumer (D-NY, pic right) should know. He is a member of the Senate Banking Committee and represents America’s financial capital.
Yet, evidence suggests that when Senator Schumer triggered the collapse of IndyMac Bancorp back in July, he may have been trying to manipulate downward the company’s value on behalf of campaign contributors who were looking to buy. If true, Schumer could be prosecuted or sued for securities fraud.