FILING FAILURE FALLOUT (global swindle by mob-infested Lancer hedge)

NY POST ^ | December 8, 2003 | CHRISTOPHER BYRON

[Liz]

A couple of stock ownership reports hit the in basket at the Securities and Exchange Commission last week, and together they serve as a handy reminder of just how deep the corruption on Wall Street really runs - and how completely inept the feds are proving to be in weeding it out.

[Liz]

(Lancer precipitated a)......10-digit global swindle in which investors were suckered out of more than $1 billion on claims of high double-digit returns from a portfolio of "small-cap growth stocks."

Last we heard, Lancer's Swindler-in-Chief, Michael Lauer, was still on the run....probably lolling in style on his luxury yacht moored off the coast of some tropic isle while sucking up Jose Cuervo Especial Gold tequila margaritas like there's no tomorrow.

[PeterPrinciple]

All these centralized swindles should drive people toward local investment but I doubt it will.

I can still remember local mutual insurance companies etc. Does anyone remember how to create these organization or has the regulations imposed made them impossible?

[Liz]

All these centralized swindles should drive people toward local investment but I doubt it will. I can still remember local mutual insurance companies etc. Does anyone remember how to create these organization or have the regulations imposed made them impossible?

Let's throw it out for discussion.

[ken5050]

Peter might be confused, or more accurately, perhaps, misspoke..mutual insurance companies are relics...they can't raise money by issuing stock, hence they can't compete for capital, and insurance is above all things a capital intensive field..that's why all the large mutual insurance companies have already, or are in the process of, de-mutualizing...if Peter is talkign about a "local" mutual fund..that's a different story..mutaal funds are expensive to start, and need a millions to beome profitable. However, if you want to focus on "local" companies as investment choices..you can easily start an investment club...a few friends can start, throwing in a few bucks seed money, and small monthly additions...and you can decide to focus on "local companies"...which are usually micro-cap or small cap...remember, something like 90-95% of all US companies do not have any institutional research coverage..so there are great opportunities out there to discover undervalued and/or growth companies....

[PeterPrinciple]

Peter might be confused,

Maybe..........

But there was a time when things weren't so centralized. What was it about the times that encouraged local mutual insurance companies and local investments?

There is nothing inherently evil about large consolidated business and government, investment/risk mechanisms........If you have a good benevolent king it works but.....

I am more of a fan of local, diversified investments, insurance and government. Yes, we have fraud on that level too but it is a little more accountable in some ways.

The market/government has has a long history of consolidating then diversifying as a reaction to consolidating and consolidating as a reaction to diversifying. Neither is perfect and both depend on clear morals of what is right and wrong, not just what feels right.

I guess my question is how do we get a lot of this back to a local level so that fraud such as in the article is more accountable.

Is it a lie that you have to have millions of dollars to do these things? I believe there are several Christian "mutual sharing" of health expense organizations.

[ex-snook]

Hey Liz back to you.

The job of the PWC auditors was, among other things, to see to it that the fund actually owned the stocks it claimed to own, and that the shares were really worth what was stated on the books. But it is absurd to think the auditors in fact did any such thing. "

I doubt if too much reliance can be placed on the opinions of external auditors with today's time and fee constraints. This has to change.

It has been a while for me but auditors are first to understand the client's accounting system and then examine the client's system of internal control (how they detect and prevent errors). If auditors determine that this is lacking (no separation of duties, etc) they should do more extensive verification.

I sure would like to see PWC evaluation of internal control in this instance to see what they relied upon in setting their audit program.

[expatpat]

Yes, it beats me why we need auditors at all. If they can't do a proper job on keeping companies honest, they are of no use whatever.

[Grampa Dave]

Well, it is time for Price Waterhouse to go the way of the dodo. I wonder how many Arthur Andersen crooks they hired after AA dodoized itself with Enron?

[Liz]

I wonder how many Arthur Andersen crooks (PW) hired after AA dodoized itself with Enron?

Heheh. Good point. The AA-types had to go do the dirty auditing somewhere.

Heck, the only other jobs they were offered were used car salesmen.

[Liz]

I sure would like to see PWC evaluation of internal control.....to see what they relied upon in setting their audit program.

And so would the SEC.

[Grampa Dave]

Now you have insulted used car salespeople.

I'm sure tha most of AA's potential felons ended up in corporations like Disney and feel right at home.

[Liz]

Lancer's Swindler-in-Chief, Michael Lauer.....still on the run....probably lolling in style on his luxury yacht moored off the coast of some tropic isle while sucking up Jose Cuervo Especial Gold tequila margaritas like there's no tomorrow.

[Liz]

Now you have insulted used car salespeople.

My apologies to used car salesmen. Their dishonesties are trivial compared to the auditing "geniuses."

[Liz]

The market/government has has a long history of consolidating then diversifying as a reaction to consolidating and consolidating as a reaction to diversifying. Neither is perfect and both depend on clear morals of what is right and wrong, not just what feels right.

We are witnessing the devastating effects of liberalism which has infected our culture through depraved Hollywarped messages in movies, TV, music, and especially in our schools to get to the children.

It is a utilitarian-based ideology that devalues life----the "non-judgemental" culture devoid of oppobrium against wrongdoing. Sicko liberals get off on moral relativity that obliterates the clear line between right and wrong. How else could the conniving Clintons and their acolytes have gotten away with all their crimes?

The hidden agenda of the religio-phobic P'Phood, ACLU, People For the American Way, etc, despite their high-sounding, convoluted legal arguments intend to decimate all references to morality b/c in their small, inferior, insular minds, morality equates to dreaded sectarian religious beliefs.

How very successful they have been.

Everyday we witness the shocking outcome of liberalism's depraved moral relativity agenda as we experience the unimaginable crimes and the collapse of a once-thriving culture's moral underpinnings....particularly in visible insitutions expected to hold the moral line.....business and government.

[PeterPrinciple]

So.........what do we do about it?

[Liz]

What to do? What to do.

Give me a sec and I'll come up with something.

[meenie]

When you have funny money you have funny business. I would like to refer you to the party responsible for our methods of auditing. This organization sets the standards which the rest of the business world should pattern itself after. The afore mentioned organization is called the United States government.

When a deficit trust fund like the SS is listed as an asset because of the phony bonds it doesn't hold, you can visualize the incentive that has given to some of our more imaginative creative financiers. Sad to say, it is impossible for small mutuals or credit unions to operate in this climate of corruption in our monetary system.

[ken5050]

Hi guy.....I didn't mean "confused" in a negative sense..but wasn't sure if you were "confusing" investment companies ( mutual funds ) with insurance companies..though in this era of deregulation, there's no real difference...Localized health insurance companies, be in Christian-oriented, or your average HMO, are different from anny other kind of insurance, becacuse the key concept in insurance, be it, auto, fire, homeowners, is diversification..to spread the risk geographically...