Post by fastwalker on Jul 26, 2005 12:32:00 GMT -5
Okay, seems everyone and I do mean everyone, from the most respected posters to the newest, have made their most inner thoughts known in a public forum, regarding the following possible issue. Rather than beat around the bush about the following subject matter, I think a viable scenario discussion relevant to the issue needs to be opened, if for nothing more than to at least take a “LOOK” at what everyone is thinking, without all the ranting and ravings....lol
Say what you want, with regards to this post. But , if you say that the thought has never crossed your mind, then I believe you are either exceedingly naive, or just plain ignorant of life and people in general.
Personally, I have my own opinion on the matter, but I will refrain from offering it, especially after reading Dr. D’s most recent post. I’m simply interested, at this point in keeping the CMKX experience alive and real, while also illuminating the possibilities of what may have transpired to date, given the activities and or lack thereof relevant to CMKX / UC.
I have authored various post in order to maintain and share a possible equilibrium regarding the matter, at least I've repeatedly stated my perspective as a concerned, yet faithful shareholder.
But, as is often the case, I fear that any positive message of hope based on realism that I had intended to convey, was essentially misplaced, or trampled on by the “theories” brigade, whose life long mission it seems, is to create chaos to suit their own flawed egos.
Don’t mistakenly assume I am opposed to the many outstanding posts authored by Dr. D or others who have a real interest to clarify many of the often complex issues and refocus the shareholders, on the ”possible” positive scenario, as they sees it, based of course on their experience. I do enjoy reading all of those posts.
I respect his and to some extent, they others regarding their thoughts and efforts to maintain a positive outlook on our situation. I will continue to accept their collective thoughts. But only to the point for assessing the CMKX situation, realsitically and not as a means to validate or remove my concerns.
So where am I headed with this? I simply want to visit that arena of realism, in which things are, for better or worse are actualized.
After all, many around the boards are hinting at the subject, but won’t openly express their concerns, basically I believe this failure is out of their blind adherence to the “GROUPTHINK” mentality.
If you wonder what I’m referring to, just refer to my post on it, or not, I don’t really care.
The question many have asked in the form of variously posed questions, boils down to simply this….is CMKX a fraud? Have we been scammed?
Given my professional background and experience as an investigator of white collar crimes, I will refrain from adding my “professional” opinion and or thoughts on the subject.
Not out of fear of being labeled a basher, but simply to leave the summation of what is posted herein, to the individual reader’s own perception.
I will say that I have repeatedly stated my position which is very simple....I accepted CMKX has a basic loss, until such time as UC proves otherwise.
Therefore, I won’t and I trust that the reader won't get too exercised over my failure to blindly follow those high visions of hope, that CMKX will benefit us soon,in spite of data and activity which suggest we should re-think our position.
Enough personal commentary, lets get on with some realistic DD…..
The Black's Law, American College, and Random House dictionaries along with various court citations define FRAUD as:
A perversion of the truth to induce a person to part with something valuable belonging to them using false or misleading representations.
What intent / elements are used in Law to define Fraud?
Elements of fraud which make it actionable are: a false representation of a past or present fact by the defendant, a plaintiff action based upon reliance of that representation and damages suffered by a plaintiff from the reliance of the misrepresentation
So in the real world, what does that mean? It basically means, without legalize terminology that when a high degree of conditions point a pervasive accumulation of evidence indicating deception, a wise and prudent person can and will perceive that information as meaning the trappings of fraud are present.
What do I mean by a “wise and prudent” person’s belief standard? Well by that I mean when chance and or other activities are viewed that preclude an events occurance by “chance,”what is left are the facts of the matter to be considered.
A somewhat more comprehensive explanation would be found in this definition….
"Anything calculated to deceive, whether by a single act or combination, by suppression of truth, or suggestion of what is false, whether it be direct falsehood or an innuendo, by speech or silence, word of mouth, or look or gesture.
Take for example the case …Delahanty v. First National Bank, NA, 318 Pa. Super. 90, 464 A.2d 1243,1251,”
….."includes all surprise, trick, cunning, dissembling, and any unfair way by which another is cheated." ….Johnson v. McDonald, 170 Okl. 117, 39 P.2d 150
Now before you start jumping up and running around with your hair on fire…..consider the logic here that I adhere to…..”Fraud is most often a crime but can also be a issue of excusable error in a civil matter but this is determined by the fact pattern and available evidence.”
As I stated earlier, I am simply presenting data for the reader….to that end, consider this….Essentially, fraud refers to intentional misrepresentation of financial information by one or more individual among the management, employees or third parties. It involves the use of deception to obtain an illegal financial advantage.
Fraud may involve:
• Manipulation, falsification or alteration of records or documents.
• Misappropriation/ misapplication of assets.
• Suppression or omission of the effects of transactions from records or documents.
• Recording of transaction without substances.
• Misapplication of accounting policies.
Also it is important to understand and recognize the basic elements of fraud , which is summarized as follows:
• There must be at least two parties to the fraud, namely the perpetrator and the party who was or could
have been harmed by the fraud, otherwise known as the victim;
• A material omission or false representation must be made knowingly by the perpetrator;
• There must be intent by the perpetrator that the false representation be acted upon by the victim;
• The victim must have the legal right to reply on the representation;
Regardless as to what your opinion is regarding CMKX, it stands to reason that we should all be have an understanding of, and approach matter s involving money from a “Fraud Awareness” position By that I means the situation / conditions that will indicate the trappings of or refer to fraud, in simplistic terms as an action where there is a loss of a valuable resource resulting from a false representation made knowingly, without belief in its truth.
Dealing with fraud on a “white collar” level, we see that many ingenious methods have been devised and used to deprive another of property or money by guile, deception or other unfair means. One is the manipulation of the “books.” Which is why, International Standard of Auditing treats fraud as an intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage.
When viewed from the perspective indicated by the “Pedro Revelations,” we see what appears on the surface, as the trappings indicated by the International Standard of Auditing. Which can be further extrapolated as ….
“A legal concept, which involves acts of deceit, trickery, concealment, or breach of confidence that are used to gain some unfair or dishonest advantage; an unlawful interaction between two entities, where one party intentionally deceives the other through the means of false representation in order to gain illicit and unjust advantage.
Fraud, as it is commonly understood today, means dishonesty in the form of an intentional deception or a willful misrepresentation of a material fact.
Note this is an intended act and not one created as a result of accident. In other words, it’s plain and simple….Lying, which as we know is the willful telling of an untruth, or cheating, to effect a gaining of an unfair or unjust advantage over another. I have used this term in many situations to further define the word fraud because both that and dishonesty denote intention or willingness to deceive.”
Why is it necessary to define Fraud? Essentially, to eliminate chance, where chance indicates events are accidental and not initiated by design. Besides, intentional fraud in the business world refers to intentional misrepresentation of financial information by one or more individual among the management, employees or third parties. It involves the use of deception to obtain an illegal financial advantage….ummmmmmm!
Do we need an understanding of fraud to recognize it? Yes, that would be very beneficial. But only if as the reader of the information, you actually use it in an end user connotation, in place of emotionally charged thinking.
Some of the most typical fraud scenarios follows:
• Bribery is the giving, receiving, offering or soliciting of any “thing of value” in order to influence a person in the performance of, or failure to perform, his / her duties.
• False Statements and False Claims occur whenever a person knowingly and willfully falsifies a material fact or makes a false or fictitious representation or files a false or fictitious claim that results in economic or financial loss to the person to whom the false representation has been made.
• Embezzlement is the fraudulent conversion of personal property by a person in possession of that property where the possession was obtained pursuant to a trust relationship. Examples of means to conceal embezzlement are the use of kiting or lapping scheme.
• Kiting occurs when a person withdraws cash from a bank on checks deposited by a person for which the cash has not yet been collected by the bank. To conceal the fraud, the person continuously writes checks against non-existent account balances (“kites” checks from bank to bank).
• Lapping occurs when a person steals cash from payment of accounts receivable, and continuously uses cash from other payments of accounts receivables to conceal the initial theft (“laps” two consecutive accounts).
• Conflict of Interest occurs when a person has an undisclosed economic or personal interest in a transaction that adversely affects that person’s employer.
• Phantom Contractor is a non-existent company whose invoice is submitted for payment by a person involved in the purchase process.
• Purchases for Personal Use. A person may purchase items intended for personal use or may make excess purchases of items needed, some of which are then diverted to personal use.
• Split Purchases. Contracts are split into two or more segments to circumvent the procurement authority limitations, and thus to avoid competitive bidding. This may involve bribery from the contractor to a person of the other party.
• Collusive Bidding, Price Fixing or Bid Rigging. Groups of prospective contractors for a contract form an agreement or arrangement, to eliminate or limit competition. This agreement may also involve bribery.
• Progress Payment Fraud. The contractor requests progress payments based on falsified information submitted to the other party.
• Over or under invoicing. Occurs when there is deliberate misstatement of the invoice value as compared with goods or services received or supplied.
• Extortion is the use of authority to secure unlawful pecuniary gain or advantage.
• Nepotism and Favoritism unlawful use of public office to favor relatives and friends.
• Loss of Revenue on account of tax or duty evasion can include different situations where revenue due to the government is not received or paid.
• Unfair Recruitment favoritism exercised in the process of recruitment for unlawful gain.
• Computer Fraud is any fraudulent behavior connected with computerization by which a person intends to gain a dishonest advantage. For instance, salami-slicing is a computer fraud where fractions of interest calculations are transferred to a personal account.
Okay. By the same token, we also need to address, or at least look at the most likely scenario involving the act of fraud. Notice I didn’t indicate a “suspected” case of fraud. Courts deal in facts and allegations can be made regarding fraud, but ultimately allegations must be supported by facts, if they are to be considered as valid and have merit in a court of law.
Usually cases of fraud result in “LITIGATION / LAWSUIT,” which is best defined as ….
A civil action brought before a court in order to recover a right, obtain damages for an injury, obtain an injunction to prevent an injury, or obtain a declaratory judgment to prevent future legal disputes. It usually involves dispute resolution of private law issues between individuals, business entities or non-profit organizations.
To further illuminate this topic, I would suggest the following, a very interesting blog Law site…. lawprofessors.typepad.com/whitecollarcrime_blog/
So in closing, as I stated in my opening remarks, information is presented here for your edification. You review and make your own decision as to where we are regarding CMKX.
We have extensive DD, thanks to many of us who have taken the time to discover and follow data and then post that information on CMKX. So because that perspective has been exhaustively researched and displayed, I won't add it her, but instead provide this post as yet another source of DD open for everyones personal interpretation, as in FWIW…
Take Care
fw
Say what you want, with regards to this post. But , if you say that the thought has never crossed your mind, then I believe you are either exceedingly naive, or just plain ignorant of life and people in general.
Personally, I have my own opinion on the matter, but I will refrain from offering it, especially after reading Dr. D’s most recent post. I’m simply interested, at this point in keeping the CMKX experience alive and real, while also illuminating the possibilities of what may have transpired to date, given the activities and or lack thereof relevant to CMKX / UC.
I have authored various post in order to maintain and share a possible equilibrium regarding the matter, at least I've repeatedly stated my perspective as a concerned, yet faithful shareholder.
But, as is often the case, I fear that any positive message of hope based on realism that I had intended to convey, was essentially misplaced, or trampled on by the “theories” brigade, whose life long mission it seems, is to create chaos to suit their own flawed egos.
Don’t mistakenly assume I am opposed to the many outstanding posts authored by Dr. D or others who have a real interest to clarify many of the often complex issues and refocus the shareholders, on the ”possible” positive scenario, as they sees it, based of course on their experience. I do enjoy reading all of those posts.
I respect his and to some extent, they others regarding their thoughts and efforts to maintain a positive outlook on our situation. I will continue to accept their collective thoughts. But only to the point for assessing the CMKX situation, realsitically and not as a means to validate or remove my concerns.
So where am I headed with this? I simply want to visit that arena of realism, in which things are, for better or worse are actualized.
After all, many around the boards are hinting at the subject, but won’t openly express their concerns, basically I believe this failure is out of their blind adherence to the “GROUPTHINK” mentality.
If you wonder what I’m referring to, just refer to my post on it, or not, I don’t really care.
The question many have asked in the form of variously posed questions, boils down to simply this….is CMKX a fraud? Have we been scammed?
Given my professional background and experience as an investigator of white collar crimes, I will refrain from adding my “professional” opinion and or thoughts on the subject.
Not out of fear of being labeled a basher, but simply to leave the summation of what is posted herein, to the individual reader’s own perception.
I will say that I have repeatedly stated my position which is very simple....I accepted CMKX has a basic loss, until such time as UC proves otherwise.
Therefore, I won’t and I trust that the reader won't get too exercised over my failure to blindly follow those high visions of hope, that CMKX will benefit us soon,in spite of data and activity which suggest we should re-think our position.
Enough personal commentary, lets get on with some realistic DD…..
The Black's Law, American College, and Random House dictionaries along with various court citations define FRAUD as:
A perversion of the truth to induce a person to part with something valuable belonging to them using false or misleading representations.
What intent / elements are used in Law to define Fraud?
Elements of fraud which make it actionable are: a false representation of a past or present fact by the defendant, a plaintiff action based upon reliance of that representation and damages suffered by a plaintiff from the reliance of the misrepresentation
So in the real world, what does that mean? It basically means, without legalize terminology that when a high degree of conditions point a pervasive accumulation of evidence indicating deception, a wise and prudent person can and will perceive that information as meaning the trappings of fraud are present.
What do I mean by a “wise and prudent” person’s belief standard? Well by that I mean when chance and or other activities are viewed that preclude an events occurance by “chance,”what is left are the facts of the matter to be considered.
A somewhat more comprehensive explanation would be found in this definition….
"Anything calculated to deceive, whether by a single act or combination, by suppression of truth, or suggestion of what is false, whether it be direct falsehood or an innuendo, by speech or silence, word of mouth, or look or gesture.
Take for example the case …Delahanty v. First National Bank, NA, 318 Pa. Super. 90, 464 A.2d 1243,1251,”
….."includes all surprise, trick, cunning, dissembling, and any unfair way by which another is cheated." ….Johnson v. McDonald, 170 Okl. 117, 39 P.2d 150
Now before you start jumping up and running around with your hair on fire…..consider the logic here that I adhere to…..”Fraud is most often a crime but can also be a issue of excusable error in a civil matter but this is determined by the fact pattern and available evidence.”
As I stated earlier, I am simply presenting data for the reader….to that end, consider this….Essentially, fraud refers to intentional misrepresentation of financial information by one or more individual among the management, employees or third parties. It involves the use of deception to obtain an illegal financial advantage.
Fraud may involve:
• Manipulation, falsification or alteration of records or documents.
• Misappropriation/ misapplication of assets.
• Suppression or omission of the effects of transactions from records or documents.
• Recording of transaction without substances.
• Misapplication of accounting policies.
Also it is important to understand and recognize the basic elements of fraud , which is summarized as follows:
• There must be at least two parties to the fraud, namely the perpetrator and the party who was or could
have been harmed by the fraud, otherwise known as the victim;
• A material omission or false representation must be made knowingly by the perpetrator;
• There must be intent by the perpetrator that the false representation be acted upon by the victim;
• The victim must have the legal right to reply on the representation;
Regardless as to what your opinion is regarding CMKX, it stands to reason that we should all be have an understanding of, and approach matter s involving money from a “Fraud Awareness” position By that I means the situation / conditions that will indicate the trappings of or refer to fraud, in simplistic terms as an action where there is a loss of a valuable resource resulting from a false representation made knowingly, without belief in its truth.
Dealing with fraud on a “white collar” level, we see that many ingenious methods have been devised and used to deprive another of property or money by guile, deception or other unfair means. One is the manipulation of the “books.” Which is why, International Standard of Auditing treats fraud as an intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage.
When viewed from the perspective indicated by the “Pedro Revelations,” we see what appears on the surface, as the trappings indicated by the International Standard of Auditing. Which can be further extrapolated as ….
“A legal concept, which involves acts of deceit, trickery, concealment, or breach of confidence that are used to gain some unfair or dishonest advantage; an unlawful interaction between two entities, where one party intentionally deceives the other through the means of false representation in order to gain illicit and unjust advantage.
Fraud, as it is commonly understood today, means dishonesty in the form of an intentional deception or a willful misrepresentation of a material fact.
Note this is an intended act and not one created as a result of accident. In other words, it’s plain and simple….Lying, which as we know is the willful telling of an untruth, or cheating, to effect a gaining of an unfair or unjust advantage over another. I have used this term in many situations to further define the word fraud because both that and dishonesty denote intention or willingness to deceive.”
Why is it necessary to define Fraud? Essentially, to eliminate chance, where chance indicates events are accidental and not initiated by design. Besides, intentional fraud in the business world refers to intentional misrepresentation of financial information by one or more individual among the management, employees or third parties. It involves the use of deception to obtain an illegal financial advantage….ummmmmmm!
Do we need an understanding of fraud to recognize it? Yes, that would be very beneficial. But only if as the reader of the information, you actually use it in an end user connotation, in place of emotionally charged thinking.
Some of the most typical fraud scenarios follows:
• Bribery is the giving, receiving, offering or soliciting of any “thing of value” in order to influence a person in the performance of, or failure to perform, his / her duties.
• False Statements and False Claims occur whenever a person knowingly and willfully falsifies a material fact or makes a false or fictitious representation or files a false or fictitious claim that results in economic or financial loss to the person to whom the false representation has been made.
• Embezzlement is the fraudulent conversion of personal property by a person in possession of that property where the possession was obtained pursuant to a trust relationship. Examples of means to conceal embezzlement are the use of kiting or lapping scheme.
• Kiting occurs when a person withdraws cash from a bank on checks deposited by a person for which the cash has not yet been collected by the bank. To conceal the fraud, the person continuously writes checks against non-existent account balances (“kites” checks from bank to bank).
• Lapping occurs when a person steals cash from payment of accounts receivable, and continuously uses cash from other payments of accounts receivables to conceal the initial theft (“laps” two consecutive accounts).
• Conflict of Interest occurs when a person has an undisclosed economic or personal interest in a transaction that adversely affects that person’s employer.
• Phantom Contractor is a non-existent company whose invoice is submitted for payment by a person involved in the purchase process.
• Purchases for Personal Use. A person may purchase items intended for personal use or may make excess purchases of items needed, some of which are then diverted to personal use.
• Split Purchases. Contracts are split into two or more segments to circumvent the procurement authority limitations, and thus to avoid competitive bidding. This may involve bribery from the contractor to a person of the other party.
• Collusive Bidding, Price Fixing or Bid Rigging. Groups of prospective contractors for a contract form an agreement or arrangement, to eliminate or limit competition. This agreement may also involve bribery.
• Progress Payment Fraud. The contractor requests progress payments based on falsified information submitted to the other party.
• Over or under invoicing. Occurs when there is deliberate misstatement of the invoice value as compared with goods or services received or supplied.
• Extortion is the use of authority to secure unlawful pecuniary gain or advantage.
• Nepotism and Favoritism unlawful use of public office to favor relatives and friends.
• Loss of Revenue on account of tax or duty evasion can include different situations where revenue due to the government is not received or paid.
• Unfair Recruitment favoritism exercised in the process of recruitment for unlawful gain.
• Computer Fraud is any fraudulent behavior connected with computerization by which a person intends to gain a dishonest advantage. For instance, salami-slicing is a computer fraud where fractions of interest calculations are transferred to a personal account.
Okay. By the same token, we also need to address, or at least look at the most likely scenario involving the act of fraud. Notice I didn’t indicate a “suspected” case of fraud. Courts deal in facts and allegations can be made regarding fraud, but ultimately allegations must be supported by facts, if they are to be considered as valid and have merit in a court of law.
Usually cases of fraud result in “LITIGATION / LAWSUIT,” which is best defined as ….
A civil action brought before a court in order to recover a right, obtain damages for an injury, obtain an injunction to prevent an injury, or obtain a declaratory judgment to prevent future legal disputes. It usually involves dispute resolution of private law issues between individuals, business entities or non-profit organizations.
To further illuminate this topic, I would suggest the following, a very interesting blog Law site…. lawprofessors.typepad.com/whitecollarcrime_blog/
So in closing, as I stated in my opening remarks, information is presented here for your edification. You review and make your own decision as to where we are regarding CMKX.
We have extensive DD, thanks to many of us who have taken the time to discover and follow data and then post that information on CMKX. So because that perspective has been exhaustively researched and displayed, I won't add it her, but instead provide this post as yet another source of DD open for everyones personal interpretation, as in FWIW…
Take Care
fw