Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (4311)	10/3/1999 2:15:00 PM
From: TideGlider	Read Replies (1) \| Respond to of 7056

OT True. They could find out. Maybe they will. Good for all to read the following. It can happen in nearly any circumstance. wsba.org Clips Other affinity frauds have included investments in silver, gold, second mortgages,promissory notes and real estate. Balance Sheet Fraud. A subspecies of securities fraud. Promoters and/or corporate managers raise or prop up stock prices by overstating assets or understating liabilities. Classic examples include the Homestake Oil swindle of the 1960s, in which Homestake raised its stock price tenfold by claiming as assets thousands of small Kansas and Oklahoma oil wells. The company's auditors certified the balance sheet after counting the wells, most of which were actually repainted irrigation pipes, not oil wells. In a more recent example, Bonneville Pacific Corporation officers and insiders — mainly former business school professors — took more than $60 million in fees, salaries and side deals out of the alternative energy company, cooking the books by failing to record liabilities and booking phantom profits on insider transactions. This type of case normally requires extended study and discovery, and a good forensic accounting expert. Collateral Frauds. These are frauds perpetrated on creditors business operators who obtain loans based on phony or over-pledged collateral, which can include everything from overstated inventories to frozen-fish warehouse receipts. A close cousin to stock balance sheet frauds and real estate flips. TG