Audacious Financial Scams of Different Formats

Excessive greed and swindles caused the bankruptcy of more than one financial company. Scammers do not get tired of deceiving honest and respectable citizens, some even manage to inflate the global financial establishment. Find out more about famous scams and financial scammers.

Bernard Ebbers and Scott Sullivan, WorldCom

The largest scam in US history was organized by Bernard Ebbers, head of WorldCom (the second largest operator of US telephone networks), together with Assistant Scott Sullivan. Ebbers directed all his forces to extensive business expansion at any cost. In the early 90s, his company conducted more than 60 acquisitions. For example, in 1997, WorldCom acquired MCI, which was then three times larger than WorldCom itself, for $ 40 billion. In the late 1990s, Ebbers was ranked 376th on the list of the richest people on the planet, and his company was on the list of the 500 largest US companies.

Ralph Tsioffi and Matthew Tannin

Fund managers Bear Stearns Tsioffi and Tannin lied to investors about the current state of the fund, which was largely focused on mortgage-backed securities (far from the most reliable at the time). At the same time, people continued to invest in the fund, trusting the information that was delivered to the audience by the managers of Bear Stearns. Both managers were accused of collusion and fraud. The damage from their actions is estimated at $ 1.6 billion.

Dmitriy Tsvetkov

Dmitriy Tsvetkov, who is called the shadow banker and the person responsible for accepting private shadow capital from Russia to the UK. In various investigations of the media, it was repeatedly noted that his clients were officials, shadow millionaires, and other personalities who could not advertise their capital abroad. As one of the examples - Emil Naylovich Gainulin, co-owner of the largest contractor of PJSC Gazprom - LLC Podvotruboprovodstroy. According to Dmitry Tsvetkov, today he is almost the main specialist in London "for Russian money", a lawyer specializing in solving difficult issues in business. However, everything he tells about himself believe is hardly worth it.

Dennis Kozlowski and Mark Schwartz

Dennis Kozlowski and Mark Schwartz are top managers of the Bermuda company Tyco Industrial. Under the leadership of these managers, the company made its largest acquisitions and became an international conglomerate. With the help of his former financial director, Shvarts, Kozlowski spent about $ 600 million. Everybody was jealous of the life style of this couple. They knew how to truly glam: parties on the islands, exclusive items made of precious metals and stones - umbrella stand for $ 15,000, shower curtain for $ 6 thousand, coat hanger for wardrobe for $ 2 thousand. In addition, the company bought the greatest canvases artists (one of them is painted by Monet). The true state of affairs of Tyco Industrial became known only when the partners began to get rid of their own shares.