Picto Diary - 6,7,8 July 2015 - 2015 Multistrada
Above: Beethoven Music Festival, Park City, UT. Chamber Music in the Park. 06 July 2015.
Behind musicians, at front right, can be seen 'Cake and Maui. TIMDT is visible on picture border at right.
Rain kept many away. But, sidling up close to the musicians under the canope made the listening experience more real as we could easily see expressions of musicians as well as the intricate movements of their music-craft.
Above: 2015 Ducati Multistrada. 07 July 2015.
Aaron's prize.
Added enduro package: skid plate, radiator protection, protection bars, and auxiliary lighting.
Got it through TIMDT by downsizing fleet. Gave up 2011 Ducati Diavel Carbon, 2009 Royal Enfield, and 2010 Ducati Multistrada. Give up three... get one. Down two. Two other bikes. 2005 BMW K1200 LT, and 2012 BMW R800 GS.
TIMDT struggled to try to find a reason not to like this purchase... but, considering the fleet downsize, what could she say?
Above: Z, Grr, and Roy. Bombay Palace Restaurant. Salt Lake City, 07 July 2015.
Above: Gil Miller, Managing Partner, Rocky Mountain Advisory, LLC, speaks to La Societe Deux Magots (LSDM). Wasatch Bagel, Park City, UT. 08 July 2015.
Hat tip: Jake Taylor. (UT asst. Attorney General, Financial Crimes, seated to Gil Miller left in image)
Background:
Raised in SoCal.
Grew up in a family of dentists.
Remain avid Dodger fan.
At 18 came to Utah to attend BYU. Got Accounting Degree.
Joined KPMG, who later merged with Price Waterhouse/Coopers.
First case was a Ponzi case.
2010 formed own firm, Rocky Mountain Advisory, based in Salt Lake City.
Note: The Bishop noted that a BYU accounting degree is a virtual ticket into a job in a Big Four accounting firm. The BYU accounting degree is ranked routinely one of the top three, often no. 1, accounting degrees in the nation.
The Bishop noted that his Dad, Weldon J. Taylor, was dean of BYU's college of business from 1960 to 1975 and laid the foundation for much of the success BYU's business school enjoys today.
Take-Aways
Dentists are at the top the list of those groups investing in fraud schemes.
Basic definition of Ponzi scheme: Pay out early investors from funds provided by new investors.
As a Ponzi operator, every transaction you do in a Ponzi scheme, you are further insolvent.
If someone is selling you a product, its OK to listen and make your buy or not buy assessment using whatever judgement you want to apply. If someone is selling you a "structure," run like crazy.
In any investment, always make sure you get a statement from a third party and not the person that solicits your investment.
Most Ponzi operators have a gambling problem. Oddly, many of them invest in other Ponzi schemes themselves. They are under pressure. They need a high return to keep their scam operating so they seek high returning, risky investments.
Our firm is hired by attorneys to provide advice in criminal fraud cases; by the US government (SEC) to act as receiver in civil and criminal fraud cases; by the state government to act as bankruptcy trustee in resolution of criminal/civil fraud cases; by the state to act as expert witness in criminal fraud cases.
Ponzi schemes thrive where there are affinity groups. Bernie Madoff's investors were primarily Jewish. Utah has high concentration of Ponzi schemes made up of LDS investors.
Well known Utah Ponzi: Ogden man. Val Southwick. He picked the wrong court. He could have been tried by the Feds, where, if convicted, he would have had a max 10 year prison sentence. He chose a state trial. He was convicted and will spend the rest of his life in Gunnison (UT state white collar pen). The state, Utah, is tougher on convicted Ponzi schemers than the Feds.
Q and A
LSDM; Salt Lake Organizing Committee (SLOC)?
GM: We were hired by the Welch, Johnson defense on that one. SLOC CFO had been turned by the Fed prosecutors to testify against Welch and Johnson. Was the key witness.
An intern in our office discovered that SLOC CFO had handled senior management travel and other expenses on his credit card. On making out his expense report he reported ticket purchases, but, not refunds for canceled trips. .
We provided this info to Welch/Johnson attorney who brought up the matter when CFO was on witness stand at trial. Judged called a recess. CFO came back on stand with public defender standing behind him. All subsequent questions were answered: "I take the Fifth."
The Fed case against Welch/Johnson, thus fell apart and the case was dropped.
I tell BYU and U of U accounting students, using this case as an example, that even the lowliest employee, like the intern in the case of Welch/Johnson, can have a big impact on the outcome of a large fraud case.
Also, in a civil case, trial procedures, discovery etc. mean that both defense and prosecution know everything that will be brought up at trial in advance. But, in criminal cases, its the "wild, wild, West." Welch/Johnson attorneys were not obligated to inform Federal prosecutors pre-trial of the actions of their key witness against Welch/Johnson. Bombshell revelation at trial of SLOC CFO's own actions, ruined the Fed's case against Welch/Johnson.
LSDM: Madoff had help?
GM: Undoubtedly. Ponzi operators usually hire "not so bright" accountants and lawyers... then overpay them. Eventually, the less able lawyers and the accountants figure out they're abetting fraud, but now they're hooked, knowing that they'll never be able to earn as much money with a legit client.
I don't call Ponzi investors victims. They're investors. Most people know that you can't sustain a 9% return year over year... in real life.
LSDM: Wendell Jackson in the Fountain Green, UT multi million dollar Ponzi. How does that happen in a sleepy place like Sanpete County, UT?
GM: In the mid 90's Wendell began investing in apartment complexes. He sought investors, using, first his "affinity contacts" in Sanpete County. He promised a 5% return. How can he do this? Typically investors in a program to improve and then flip residential and commercial properties must wait for the property to sell before the investment is paid out. Also, Jackson had a 51% ownership in the partnership, leaving the limited partners a 49% share. Investors could have never been paid out even had Jackson waited for property sales to pay out investors.
LSDM: Does intent need to be established be for a "Ponzi" is prosecuted?
GM: There is something called "Ponzi presumption," which means intent does not have to be proven.
Thank-you.
LSDM thanks Gil Miller for his interesting and informative presentation today.
La Societe Deux Magots (LSDM) is a non-partisan ROMEO (retired old men eating out) group which meets daily, at 7:00 AM at Wasatch Bagel in Park City, UT. LSDM members are the rightful intellectual heirs of a group of authors (Hemingway, Sartre, Camus, deBouvoir) who met daily at Cafe Deux Magots, in Paris, France in the 1930's.)
Addendum:
Above: Tortoise. Galapagos. 08 July 2015.
Image sent by Montage.
Above: The Archbishop with trout caught near Pagosa Springs, CO. 08 July 2015.
Archbishop says: "Catch and release."
Hopefully people understand that a herpetologist has nothing do do with herpes :-)
Nathans,
Massapeaqua, NY
In today's America? Are you kidding?