Step One: Don't ask questions.
Step Two: Wire $100 million to outside bank account.
Step Three: Repeat as necessary.
Sixty Minutesran a terrific segment about Marc Dreier yesterday. He masterminded a Ponzi Scheme that totaled $400 million and funded his once powerful law firm on Park Avenue (now defunct). If you haven't seen the report, take a look. It's worth watching.
A few of Dreier's charades fall into that hallmark category of financial scandalsyou can't make this stuff up. He describes one hedge fund that invested $100 million, even though it performed virtually no due diligence. His explanation:
The more money you look for, the fewer questions people ask sometimes.
Elliott Associates, the fund that invested $100 million, was not alone. Here is a list of the other gods of Greenwich, hat tip to Wall Street Folly, that took financial hits. Among them is Paulson Co., which almost seems like poetic justice in the wake of the Abacus CDOs.
- Paulson Co
- Elliott Associates
- Davidson, Kempner
- Baupost
- DellaCamera
- Sandell Asset Management
- Fortress Capital or Fortress Investment Group
- Perella Weinberg
- Eton Park
- GSO
- Meyer Venture Partners
- Concordia Partners
- Enterprise Fund Ltd
- Archery
- MEA Properties
- Four Winds
- Bennington
- Novatar
- Verition
- Berdon LLP
- Whippoorwill
- Bell Canada
- Ontario Teachers Pension fund
The New York Times describes my novels as “money porn,” “a red-hot franchise,” and “glittery thrillers about fiscal malfeasance.” Through fiction I explore the dark side of money and the motivations of those who have it, want more, and will steamroll anybody who gets in their way.