Re:Newegg is being sued for engaging in massive fraud
by PrgsvThgt on Monday October 23, 2017 @02:08PM
(#15535441)
This sounds similar to check "kiting" [link]https://en.wikipedia.org/wiki/Check_kiting , that was popular before electronic checking transactions made it nearly impossible. "Kiting" was the art of having multiple checking accounts and passing ever-increasing amounts of money, from one account to the other. In the old days, it took a couple of days to process checks, especially when the back accounts resided in distinct federal reserve regions (which means the checks would physically traverse the federal reserve banks... which took days for delivery).
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Re:Newegg is being sued for engaging in massive fraud
by CodeWriter23 on Monday October 23, 2017 @03:54PM
(#15536409)
It sounds to me like the Crazy Eddie scam from the late eighties. While securing financing from Wall Street, Crazy Eddie took the bankers on tours of its various warehouses in New York. And had workers populate the next warehouse to be visited with inventory from one of the already visited locations, making their inventory physically apppear to be 2-3x as large as it was in reality. Enough to make the valuation lies told by their books look true.
Re:Newegg is being sued for engaging in massive fraud
by fjsolwmv on Monday October 23, 2017 @07:02PM
(#15537649)
That was only a small fraction of Crazy Eddie's fraud schemes.
Re:Newegg is being sued for engaging in massive fraud
by rjeli on Tuesday October 24, 2017 @05:32AM
(#15540350)
can’t mention Crazy Eddie without linking whitecollarfraud: https://whitecollarfraud.com/crazy-eddie/