More brazen than Madoff? (pg. 4)

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Roger Parloff, senior editor

In November, while prosecutors continued investigating, Dreier offered Fortress $33 million worth of phony notes purportedly issued by Canada's BCE and backed by the Ontario Teachers Pension Plan. The Fortress agent insisted on meeting with pension-plan representatives in person. Gamely, Dreier devised a pretense for meeting the plan's general counsel, Michael Padfield, at its Toronto headquarters on Dec. 2, according to accounts in the Toronto-based Globe and Mail and National Post newspapers. There the two men exchanged business cards. Afterward Dreier waited near the reception area until the Fortress representative arrived. Dreier quickly ushered him into a back conference room, introduced himself as Padfield, and handed him Padfield's card - the same one Padfield had just handed Dreier minutes earlier. Dreier's conduct was sufficiently suspicious that, after the meeting, the Fortress representative asked the receptionist if that had really been Padfield. He was told no, the man was a visitor. The police were called, and they arrested Dreier that day.

Dreier made bail, but on returning to New York he was taken into custody at the airport and booked for securities and wire fraud.

***

There is an unfortunate optical illusion - a variant on the Doppler effect - that besets all frauds. It's unfortunate, because it has the effect of exacerbating the pecuniary losses that fraud victims endure, by unfairly leaving them, like many rape victims, irrationally ashamed of themselves.

The Doppler principle we posit holds that as a victim approaches a swindler, he sees nothing but green lights. But as soon as he realizes that his money is gone, he spins around and beholds, as if by magic, bright red flags as far as the eye can see.  To top of page

Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET
Index Last Change % Change
Dow 30,996.98 -179.03 -0.57%
Nasdaq 13,543.06 12.15 0.09%
S&P 500 3,841.47 -11.60 -0.30%
Treasuries 1.09 -0.02 -1.62%
Data as of 5:25am ET
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Sponsors
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.