This post brought to you by Deep Capture Blog. All opinions are 100% mine.
We all know that folks can manipulate companies in such a way as to loot them of their value and push them into bankruptcy. Lord knows that the Enron scandal shows just how that sort of manipulation can occur. But such looting of corporations happens much more frequently than the average person realizes, according to Overstock.com CEO Patrick Byrne.
Byrne begins by focusing on a 2006 case, United States vs. Milberg Weiss Bershad Schulman. What happened in that case? A crooked law firm targeted companies that were teetering on the edge financially. Once they found shill investors in the companies, the firm filed lawsuits that resulted in huge payments to the law firm as a result of securities fraud class action suits filed by their injured "investors" -- and then the firm gave kickbacks to the "injured plaintiffs". In other words, they were engaged in a stock market manipulation scheme for profit. But how did how did Milberg Weiss Bershad Schulman know that a company was in such dire financial straits? That's easy -- the "bust out" pattern.
A “bust out” in the vernacular of organized crime is when a business is systematically looted of value. An inside man leverages the business assets, moves cash out of the business in seemingly legitimate transactions, and causes the business to enter a financial death spiral. Those on the outside will then act on their knowledge to milk even more from the company, perhaps in a manner akin to that used by Milberg Weiss Bershad Schulman.
Byrne does not stop there. he points to connections between terrorists and the subprime mortgage fraud that devastated our economy not too many years ago. He also points out global bust out patterns. In the end, he seeks more regulation of economic markets and activities in order to protect America's national security from bust out attacks and other financial shenanigans that are nothing less than economic warfare
Well, enough of me telling you about the video -- watch what Patrick Byrne has to say yourself and then comment on it!