International Law

The Business of Justifying Bribes

Posted on February 20, 2009
Image via WikipediaEconomists should find bribery fascinating.  Bribes perform a neat trick: they make expensive goods more in demand, or what economists call goods with high income elasticity.  Characterisically of that profession, the only goods economists identify they call "luxury goods"...

Ponzi Schemes and Gatekeepers

Posted on February 20, 2009
Image by Getty Images via DaylifeAttorneys are often called gatekeepers. "Classical gatekeeping theory introduced by Prof. Reinier Kraakman in his seminal article (Gatekeepers: Anatomy of a Third Party Enforcement Strategy, 2 J.L. Econ. & Org. 53 (1986))...

Government and Network Effects

Posted on February 19, 2009
Interesting omission by Milton Friedman, who makes a series of reasonable points, but a ghastly omission when talking about Henry Ford. Friedman claims that no good has ever come from government planning, and then gives the example of Henry Ford. Very good, but who built the roads for the cars to travel on? Be nice to see a little bit of historical understanding of the role of central planning and the creation of network effects...

Something for Nothing

Posted on February 19, 2009
"A few individuals would hurry to his office immediately to collect their money. But others would take their time, convinced by the mere fact that they had a one cent postcard that they had made a 50% return on their investment." Charles Ponz.Related articles by Zemantapostcard literature (russelldavies...

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William L. Walters charged by SEC for running Ponzi scheme

Posted on February 18, 2009
Image via WikipediaFrom the SEC Press Release on the Walters Ponzi.The United States Securities and Exchange Commission announced that it has filed securities fraud and other charges against former registered representative, William L. Walters, formerly of Lone Tree, Colorado for operating a Ponzi scheme promising annual returns ranging from 20% to 40%...

Franchisee Voice Now Online

Posted on February 18, 2009
Image via WikipediaThe American Association of Franchisees and Dealers recently announced its newsletter, The Franchisee Voice, will now be published exclusively online at http://www.thefranchiseevoice.com. The publication had previously been a quarterly, hard copy newsletter mailed out to AAFD members...

How to Choose a Franchise Broker

Posted on February 18, 2009
Image via WikipediaMark Kaplan, writing at Bestfranchiseinformation.com, has an article about the good, the bad and the downright ugly about franchise brokers."If you're looking into Franchising, surely you've tripped over the countless Franchise Broker Companies that are in business to match you with a Franchise...

Medifast a Madoff?

Posted on February 18, 2009
Image via WikipediaThe Maryland Daily Record reports that the shares of Medifast took a nose dive after Barry Minkow issued a 29 page fraud report complied by Robert L. FitzPatrick."A report out Tuesday alleging the fastest-growing segment of diet food maker Medifast Inc...

Killer Pre Investment Due Diligence

Posted on February 18, 2009
Image via WikipediaRichard Solomon, writing at his website, Franchise Remedies, has a useful article about some of the problems with pre purchase investigation for prospective franchisees."The hoards of potential investors with access to over $ 500,000, coming out of downsizing companies and merger resulting reductions of work forces, have brought sharp practitioners to the small business opportunities field...

Is Sbarro Struggling?

Posted on February 17, 2009
Image via WikipediaSbarro was picked as one of Yahoo's 15 Companies that might not survive, and a there is this follow up in QSR about Sbarro."Under normal circumstances, Sbarro's heavy emphasis on mall locations makes perfect sense. "They're really well-situated to be in a mall," says Robert Welcher, president and CEO of Restaurant Consultants Inc...

Why Money Sitting is the Sidelines

Posted on February 17, 2009
Image via WikipediaLike most intellectuals, my understanding of the economists' concept of hoarding and recession is predicated by Paul Krugman's discussion of the Washington D.C. baby co-op, the Sweeney's co-op, that issued scrip to its babysitters for payment, and then ran into some problems...

Another Life Destroyed by Castaldi

Posted on February 17, 2009
Image via WikipediaFrom a commentator:First of all, I want to say that I am a VICTIM of this lying, cheating, manipulative man, Frank Castaldi. I personally know a dozen people who are also victims. My life is now destoyed because of him and I wish nothing but horrible things to happen to him...

The Proliferation of Ponzi and Pyramid Schemes - Don't Miss this Talk

Posted on February 17, 2009
Image via WikipediaLook for this talk tomorrow at Voice America, with Robert L. FitzPatrick discussing Ponzi and Pyramid schemes.Voice America, the world's premiere web radio network, announces the appearance of international fraud expert Robert L. Fitzpatrick, exclusively on the highly acclaimed ZenBiz Radio Show on Wednesday Feb...

P&G's Mr Clean Carwash Franchise

Posted on February 17, 2009
Image via WikipediaLance Winslow has an excellent article on the Protcer and Gamble incursion into franchising.  The concept doesn't impress him, for reason that have nothing to do with the involvement of Jim Amos.Here is the beginning of his article...

SEC Charges Stanford Financial

Posted on February 17, 2009
Image via WikipediaFrom the SEC Press Release on the Stanford Ponzi scheme.The Securities and Exchange Commission today charged Robert Allen Stanford and three of his companies for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an $8 billion CD program...

Who is Gptmodel.com?

Posted on February 16, 2009
/* I keep google adsense on this blog because I like to chart either the SEC or FTC against some websites using Alexa. Yes, I know that Alex has its serious problems, but I generally find that if a website is getting more traffic than the regulator, either the SEC or FTC, it is a sign of fraud...

Free Products and Services from Intuit

Posted on February 16, 2009
This seemed an interesting article, I haven't checked it out, but Intuit claims to be offering free services and products to small business."We often hear how small business drives the American economy, that it creates 90 percent of new jobs in the U...

FTC wants more control over interactive ads

Posted on February 16, 2009
Image via Wikipedia"Since the 1990's, the Federal Trade Commission and its staff have engaged in investigations, law enforcement, studies, and other policy developments to protect consumer privacy in the online environment.The FTC's work in this area is part of its broader, longstanding program to address privacy concerns in both the online and offline markets...

How Disruptive an Innovation is Kindle?

Posted on February 16, 2009
Image via CrunchBaseBob Sutton writing at his website wonders about how disruptive the Kindle technology is.  Here are his thoughts, after seeing more of his associate sales on Amazon be Kindle books."The new forthcoming version of the Amazon Kindle has got pretty good reviews...

Madoff and Ponzi

Posted on February 13, 2009
Image via WikipediaHere is an interesting discussion between Michelle Singletary and Martin Zuckoff, who wrote an biography of Charles Ponzi."To help readers better understand the Bernard L. Madoff case, and to keep others from falling victim, Michelle wrote that she chose this book because "Zuckoff doesn't glorify or crucify Ponzi...

15 Amazing Scam Artists' Tricks

Posted on February 13, 2009
Image via WikipediaJack Payne, the previous editor of Business Opportunities Digest, which undoubtedly exposed him to a great deal of fraud, has a great 15 step con trick essay, and I want to highlight two of his observations:"1. Shoot for only a small, initial amount of up-front money...

Felix Salmon on Stanford

Posted on February 13, 2009
Image via WikipediaFelix Salmon, at Portfolio, has been busy blasting away at Alan Stanford and his alleged misdeeds, talking about a recent magazine cover."The interview is well worth reading, especially the bits where Stanford congratulates himself on his investment philosophy...

Is Killer Due Diligence Affordable for Franchisees?

Posted on February 12, 2009
Image via WikipediaFascinating story developing over at Blue Mau Mau about the price and effectiveness at what is called "killer due diligence" for prospective franchisees.  One claim is that effective due diligence costs too much for the ordinary bloke - only the rich can afford the luxury...

Amos Lawsuits

Posted on February 12, 2009
http___pacer.uspciuscourtsgov_download_mw1930-154940.pdf US Federal lawsuits for Jim Amos.

Are You a Trade Show Activist?

Posted on February 12, 2009
Image via WikipediaThe Canadian Franchise Association is holding one of their franchise trade shows. Les Stewart is looking for someone to join him, attend the show and1. Slip a digital camera in their jacket, record a few clips, use free edit software,and create and post YouTube video (I've already reserved a FranchiseFool channel, btw) 2...

Why Cannot We have Better Franchise Reporters?

Posted on February 12, 2009
Image by NatalieMaynor via FlickrHere is just a poorly researched story, about Jim Amos and his litigation history, written over at Car Wash, by the editor Kate Carr."According to the Feb. 5 article in the Blue Mau Mau, Amos has a "history of litigation" with I Can't Believe It's Yogurt and Sona Medspa and his name "creates numerous strong reactions from self-declared franchise owners on the franchise blogosphere...

Tricky Franchisor Lawyer Clauses

Posted on February 11, 2009
Image by &_yo via FlickrVery interesting thread at Blue Mau Mau about the relationship between due diligence and renewal rights of a franchisee."While in the abstract the notion that a franchuisee who was able to pony up hundreds of thousands of dollars to buy into a franchise should not need consumer contract protections may sound pausible, this is typically not what happens to many people...

Proctor & Gamble Succeed in Car Washing Franchising?

Posted on February 11, 2009
Image via WikipediaMichael Garner, writing at Blue Mau Mau, wonders about P&G's entry in franchising.As reported in the WSJ, to jump-start plans for a nationwide chain of Mr. Clean Car Wash franchises, P&G in December acquired the franchise assets of Atlanta-based Carnett's Car Wash, which has 14 locations...

Cohmad Madoff Feeder Fund may be De-Registered

Posted on February 11, 2009
Image by Getty Images via DaylifeReuters reports on the Cohmad feed fund to Madoff, and Massachusetts Secretary of State William Galvin's novel and aggressive approach to scrutinize the middlemen more closely, in particular Cohmad and Robert Jaffe, and others...

Affinity Fraud: Pastors Must Stop Bringing Wolves

Posted on February 11, 2009
Cover via AmazonRichard O. Jones, writing at Black Voices News, has some good advice about affinity fraud."Affinity fraud includes investment frauds that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups...

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