Move Over Bernie Madoff...

[FOTD]

You're getting bumped by the biggest Ponzi scheme ever!

Energy investment firm busted for big Ponzi scheme
http://www.marketwatch.com/story/energy-investment-firm-busted-for-big-ponzi-scheme

By Steve Gelsi
NEW YORK (MarketWatch) -- Federal authorities have cracked down on an alleged $485 billion Ponzi scheme holding investments in the oil and gas business, with Provident Royalties LLC now facing a suit filed late Tuesday in Texas by the U.S. Securities and Exchange Commission. A federal judge agreed to freeze assets of the company, which holds oil and gas interests, working interest and royalty interest in oil and gas properties in the U.S. Three principals of the firm, Paul Melbye, Brendan Coughlin and Henry Harrison, were named in the suit. The SEC charged the scheme drew in 7,700 investors told to expect yearly returns of up to 18%. Beginning in 2006, Provident began offering limited partnership interests or preferred stock to the public through a number of broker-dealers nationwide. Provident filed for Chapter 11 bankruptcy protection on June 22.

Wonder how many of these need to come out before 'Conservatives' finally realize that Corporations, and the people that run them, cannot be trusted and MUST be tightly regulated?

[Conan71]

Wonder how many of these need to come out before 'Conservatives' finally realize that Corporations, and the people that run them, cannot be trusted and MUST be tightly regulated?

Great, I hear your complaint and can see some validity with what you are saying.  What's your solution?  Specifically, what sort of regulations would ensure that investors cannot be screwed like this?  How do you apply the regs and how do you police it without making it impossible for the average investor to participate?  Should the government be expected to provide protection for every "investment" whether that be as insurance to make investors whole or partial remuneration or via creating a larger bureaucracy to inspect and enforce regs?  Can you do that without violating basic rights to privacy that citizens have?

How about a little common sense and less greed on the part of investors instead of making the rest of the taxpayers pay for a tighter system of regs?  I'm smart enough to know if someone offers me 18% annual return, I'm prepared to lose my arse.  The lower the promised return, the safer the investment.  A bigger muddled bureaucracy doesn't seem to me to be very good insurance against more of these schemes popping up.

Please explain in detail, not song lyrics, what sort of mechanism would be effective and appropriate.

[FOTD]

Great, I hear your complaint and can see some validity with what you are saying.  What's your solution?  Specifically, what sort of regulations would ensure that investors cannot be screwed like this?  How do you apply the regs and how do you police it without making it impossible for the average investor to participate?  Should the government be expected to provide protection for every "investment" whether that be as insurance to make investors whole or partial remuneration or via creating a larger bureaucracy to inspect and enforce regs?  Can you do that without violating basic rights to privacy that citizens have?

How about a little common sense and less greed on the part of investors instead of making the rest of the taxpayers pay for a tighter system of regs?  I'm smart enough to know if someone offers me 18% annual return, I'm prepared to lose my arse.  The lower the promised return, the safer the investment.  A bigger muddled bureaucracy doesn't seem to me to be very good insurance against more of these schemes popping up.

Please explain in detail, not song lyrics, what sort of mechanism would be effective and appropriate.

Expand the sec....put belts and suspenders on filings and on documentation. Stiffer requirements for starting up investment programs. Constant filings.Constant oversite. Kind of what a safe bank does to protect itself from a lousy borrower. What? You prefer lazy government?

[cannon_fodder]

Private companies will always be more sophisticated than the government and in total much, much larger.  What these people did is already against the law and they were caught.  Since it is impossible to have a government official run each company, and even if they did they could still be clueless, enforcement is the best we can do.

Sarbanes-Oxely has done much more harm than good to the US economy.  We tightened regulation to be among the most strict in the world and lost hundreds of thousands of financial jobs in the process, and we still have scandals popping.   I'm all for regulation that mandates a transparent and fair marketplace, but I'm starting to doubt if our government is capable of doing so without killing the marketplace they are trying to protect.

[FOTD]

Private companies will always be more sophisticated than the government and in total much, much larger.  What these people did is already against the law and they were caught.  Since it is impossible to have a government official run each company{SAY WHAT!?}, and even if they did they could still be clueless, enforcement is the best we can do.

Sarbanes-Oxely has done much more harm than good to the US economy.  We tightened regulation to be among the most strict in the world and lost hundreds of thousands of financial jobs in the process, and we still have scandals popping.   I'm all for regulation that mandates a transparent and fair marketplace, but I'm starting to doubt if our government is capable of doing so without killing the marketplace they are trying to protect.

Sarbanes has done harm only in their ineffective ability to hold tough standards in place. Our regulation is not among the most strict in the world. Quite the opposite. Financial scandals have been pointed out to the government that turns around and ignores the red flag waving patriots. Perhaps, the government needs to be less political and more business like?

[Conan71]

Perhaps, the government needs to be less political and more business like?

If gov't could operate in a vacuum it might be able to be less political.

Figure out how to keep the various parasites from influencing our lawmakers with "contributions".

[rhymnrzn]

Wow, 485 billion dollars, when divided by the value of the livelyhood of them comprising the bottom, equals I wonder just how many lives swallowed up whole.  Everyone reaps what they sow, but this value is not indicated according to deceitful or perverted balances.

Without justifying too much traffic, so the buyers do not get all crazed, and the sellers all upset while they cooperate in the same, now might be the time to root out these weeds and thorns sucking the life out of the life-providing garden, and get on with deflating these excessive and worldly gluts (they already have more than the eye could desire, yet, the eye is never satisfied with seeing), and inflate and fortify the structure of the poor: restore to them their pledge and their right.  For asmuch as that be slacked, and for the rich to serve their own turns, judgements, and standards: they serve their own belly.  The same measure they oppose all men with, the same measure shall they be dealt with: and more abundantly may it be, kindness for kindness, or stripes for hardness of heart.

Jeremiah 34:14

At the end of seven years let ye go every man his brother an Hebrew, which hath been sold unto thee; and when he hath served thee six years, thou shalt let him go free from thee: but your fathers hearkened not unto me, neither inclined their ear. (15)  And ye were now turned, and had done right in my sight, in proclaiming liberty every man to his neighbour; and ye had made a covenant before me in the house which is called by my name: (16)  But ye turned and polluted my name, and caused every man his servant, and every man his handmaid, whom he had set at liberty at their pleasure, to return, and brought them into subjection, to be unto you for servants and for handmaids. (17)  Therefore thus saith the LORD; Ye have not hearkened unto me, in proclaiming liberty, every one to his brother, and every man to his neighbour: behold, I proclaim a liberty for you, saith the LORD, to the sword, to the pestilence, and to the famine; and I will make you to be removed into all the kingdoms of the earth.

[FOTD]

Wow, 485 billion dollars, when divided by the value of the livelyhood of them comprising the bottom, equals I wonder just how many lives swallowed up whole.  Everyone reaps what they sow, but this value is not indicated according to deceitful or perverted balances.

Without justifying too much traffic, so the buyers do not get all crazed, and the sellers all upset while they cooperate in the same, now might be the time to root out these weeds and thorns sucking the life out of the life-providing garden, and get on with deflating these excessive and worldly gluts (they already have more than the eye could desire, yet, the eye is never satisfied with seeing), and inflate and fortify the structure of the poor: restore to them their pledge and their right.  For asmuch as that be slacked, and for the rich to serve their own turns, judgements, and standards: they serve their own belly.  The same measure they oppose all men with, the same measure shall they be dealt with: and more abundantly may it be, kindness for kindness, or stripes for hardness of heart.

Jeremiah 34:14

Jeezus....and youze guys thought FOTD was cryptic and odd.

[rhymnrzn]

Jeezus....and youze guys thought FOTD was cryptic and odd.

Since when is a blunt statement cryptic?  what is odd about the only sober and kind way to entreat the people, and redeem the time?  The Lord Jesus and Word of God is the drug instead of every purge.  But thanks be to God for your zeal and what you do get right, mister!

[Townsend]

Since when is a blunt statement cryptic?  what is odd about the only sober and kind way to entreat the people, and redeem the time?  The Lord Jesus and Word of God is the drug instead of every purge.  But thanks be to God for your zeal and what you do get right, mister!

oooooooooooooooowaaaaaaaaaaaaaaaaaaaaaaaaaaaaaahhhhhhhhhhhhhhhh?

[FOTD]

Since when is a blunt statement cryptic?  what is odd about the only sober and kind way to entreat the people, and redeem the time?  The Lord Jesus and Word of God is the drug instead of every purge.  But thanks be to God for your zeal and what you do get right, mister!

It's meester!

[Conan71]

Jeebus bucking cripes!!!  Turn that thing off!!!

[Hoss]

Jeebus frakking cripes!!!  Turn that thing off!!!

"Ohhh, my freakin' head!  I'm so' wasted!"