FRAUD IN THE MARKETS: Why It Happens and How to Fight It

Fraud and corruption have always been components of American culture. However, as statistics and the personal experiences of many Americans confirm, fraud, corruption, and ethical misconduct was not as prevalent in the 1970s and early 1980s as it is now.  From the fraud-driven destruction of a $100 billion company like Enron and the theft of $65 billion through a one-man Ponzi scheme, to the demise of a Wall Street icon like Bear Stearns at the hands of two rogue hedge fund managers, these earth-shattering incidents were practically unheard of until the late 1980s. Now John Wiley & Sons is releasing FRAUD IN THE MARKETS: Why It Happens and How to Fight It (John Wiley & Sons; $39.95; March 2010), a dramatic look at fraud's role in the financial markets, and how readers can protect themselves. The book looks back at the late 1970s and early 1980s as the early stages of what would become the perfect storm of the 2000s. It was the period of unmitigated financial abuse by a contingent of moral misfits who abused deregulation of the S&L industry to steal $150 billion of depositor and investor funds. A period of corporate raiding, dismantling, dissolving, and divesting. Not illegal or particularly unethical, but fuel for the demise of Wall Street decorum and the ascent of personal avarice that some would say culminated in the financial crisis of 2007–2008.

Written from an insider’s perspective, this new book reveals the critical role fraud played in the global financial crisis. Shedding light on the reckless conduct of the former senior executives at major Wall Street firms such as Lehman Brothers, Bear Stearns, Merrill Lynch and others just before their collapse, FRAUD IN THE MARKETS shows how the culture of "anything goes" on Wall Street fueled the innovation of exotic but deadly asset-backed securities.  Looking back at the most dramatic economic and business headlines in recent memory, readers will find revealing discussion of:

• The fraudulent lending practices that engulfed the US mortgage industry
• The deceptive marketing of asset-backed securities
• The fraud culture and the untold secrets of flagrant lawlessness in the executive suites of major financial institutions
• Reform, re-regulation, and the persistence of fraud
• The real estate bubble and bust
• The makings of a meltdown
• A road map to prevent similar disasters from recurring  

John Bogle, the revered founder and long-time CEO of the Vanguard Group of Mutual Funds, explains the shift this way: “Unchecked market forces overwhelmed traditional standards of professional conduct, developed over centuries. We’ve moved from a society in which ‘there are some things that one simply does not do’ to one in which ‘if every- one else is doing it, I can too.’ Business ethics and professional standards were lost in the shuffle.” FRAUD IN THE MARKETS offers forward-looking advice, with practical guidelines for protecting readers from various forms of fraud that were found to have played a role in the current economic and financial crisis.   

ABOUT THE AUTHOR:

Peter D. Goldmann (Ridgefield, CT), is founder and President of White-Collar Crime 101 LLC, the parent company of FraudAware and publisher of the monthly newsletter, White-Collar Crime Fighter. Peter has been the Publisher and Editor of White-Collar Crime Fighter for over 12 years and is recognized as a leading expert in the areas of fraud detection, prevention, investigation and training. He has written numerous articles on practical approaches to fraud prevention and detection for, among others, Internal Auditor, Investor's Business Daily, The Fraud Examiner and Bottom Line/Personal.  He speaks at events sponsored by the Association of Certified Fraud Examiners, The International Association of Financial Crime Investigators, National White-Collar Crime Center and numerous industry trade associations. He also is a member of the Editorial Advisory Board of the Association of Certified Fraud Examiners.   

FRAUD IN THE MARKETS

Why It Happens and How to Fight It

Published by John Wiley & Sons, Inc.

Publication date: March 2010

$39.95; Hardcover; 272 pages; ISBN: 978-0-470-50789-6 

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