How Many Bayous Are Out There?

Discussion in 'Wall St. News' started by Choad, Sep 17, 2005.

  1. Choad

    Choad

    Another interesting article over on NYT about the Bayou fraud:

    http://www.nytimes.com/2005/09/17/b...age&adxnnlx=1126966437-3i6qqjaELTXsj+ASpSNQrQ

    I wonder how many more of these will show up soon? Sure there are always these frauds around, but I suspect there will be far more than "usual" show up in the next couple years.

    How many self-styled "super traders" or wannabees have entered the hedgie biz the last 5 years? Those that survived the naz collapse, are probably getting slowly drained by the lower volatility markets.

    The "super trader" ego of these guys will just not let them fail, or at least *seem* like failures. They want to keep the celeb lifestyle and all the toys.

    So I bet there are plenty of these schlubs busily faking up audits and statements to partners and investors. They just know that *soon*, all their problems will be solved.

    Yeah, they'll get all the money back and everything will be fine...
     
  2. nkhoi

    nkhoi Moderator

    "In March, Mr. Israel entered into an agreement with Lewis Malouf, a managing director of Bayou as well as a principal of Charles Financial, according to court documents, to invest the $100 million in bank instruments that would supposedly yield $7.1 billion over 10 years. The money was given to Karl Johnson, who was going to invest the money for Mr. Malouf. Neither Mr. Malouf nor Mr. Johnson returned calls seeking comment..."

    Charles Financial, next?
     
  3. That's a hell of a lot of yield. I guess every hedgie makes this big returns. Wonder who loses? Oh yeah, Bayou is one. :D
     
  4. SteveD

    SteveD

    All of these guys are just scam artist. Better story in WSJ. Moving money around and executing phony deals with the likes of "Charles Financial", LOL.

    I very seldom trust anyone who is the president of his own company.

    See it all the time on TV. Charles B. Smith, President of the Charles B. Smith Company speaking on his investing style and his opinion of the debt market as it relates to Greenspan.s retirement, LOL. Might as well listen to a guy in a bar.

    I like guys that are actually employed (PAID) by some company that I know. I may now agree with them but there opinion is sought and paid for by someone.

    SteveD