Stanley Goldblum
Goldblum
Frankenstein of Fraud Stanley Goldblum was a genius, but only to an extent. Much like many of the other cases we’ve studied, Goldblum got too greedy. In order to increase is profits more and more, Goldblum and Levin created more fake policies as well as created bonds. Equity Funding fraud was created by Goldblum. This is where he gave life insurance to 64,000 fake policyholders, and eventually “killed” some of his phony holders to help keep the $2 billion fraud alive. Gordon McCormick originally came up with the packaging life insurance and mutual funds in the same program. The basis begins with a customer choosing a life insurance and mutual fund policy and use the fund’s proceed to pay the premiums on the life insurance. Any excess from the amount paid on the insurance would become profit. Upon coming up with this idea, McCormick contacted Goldblum and began him with a shell company called Tongor to help repay a loan. Goldblum became earning more than his wife’s family business and became protégé to McCormick. McCormick was satisfied with how Goldblum was doing so much so that they became partners and went public. He and others head the company until after five years, only two remained. But within those five years, the company was determined to always make their quota and being to record future profits on their books. As you can imagine, it began to create unrealistic estimates which required more fictitious polices to be written. They also personally put on aprons and created over $25 million in fake bonds. After only five years, two original partners remained. The partners continued to buy each other out as some would back out or drink too much or other reasons. Eventually the Goldblum was all that remained after a mudslide had killed his partner. He took sole control of the company. Upon taking over of the company, earnings soared due to the fictitious policies. He would use a computer mainframe and have detailed files stored containing
Frankenstein of Fraud Stanley Goldblum was a genius, but only to an extent. Much like many of the other cases we’ve studied, Goldblum got too greedy. In order to increase is profits more and more, Goldblum and Levin created more fake policies as well as created bonds. Equity Funding fraud was created by Goldblum. This is where he gave life insurance to 64,000 fake policyholders, and eventually “killed” some of his phony holders to help keep the $2 billion fraud alive. Gordon McCormick originally came up with the packaging life insurance and mutual funds in the same program. The basis begins with a customer choosing a life insurance and mutual fund policy and use the fund’s proceed to pay the premiums on the life insurance. Any excess from the amount paid on the insurance would become profit. Upon coming up with this idea, McCormick contacted Goldblum and began him with a shell company called Tongor to help repay a loan. Goldblum became earning more than his wife’s family business and became protégé to McCormick. McCormick was satisfied with how Goldblum was doing so much so that they became partners and went public. He and others head the company until after five years, only two remained. But within those five years, the company was determined to always make their quota and being to record future profits on their books. As you can imagine, it began to create unrealistic estimates which required more fictitious polices to be written. They also personally put on aprons and created over $25 million in fake bonds. After only five years, two original partners remained. The partners continued to buy each other out as some would back out or drink too much or other reasons. Eventually the Goldblum was all that remained after a mudslide had killed his partner. He took sole control of the company. Upon taking over of the company, earnings soared due to the fictitious policies. He would use a computer mainframe and have detailed files stored containing