It’s a little depressing that there are so many Ponzi schemes to report. The bright spot I suppose is that the Securities and Exchange Commission is on the case. This week the SEC charged Moises Pacheco, Advanced Money Management, Inc. (AMM), and Business Development & Consulting Co. (BD&C) with fraudulently raising $14.7 million from more than 200 investors over a 3½-year period. According to the SEC’s complaint, Pacheco told investors that he had developed a lucrative investment strategy involving the purchase and sale of covered call options, and that the hedge funds exclusively relied upon this strategy to generate trading profits ranging from 30 percent to 48 percent per year. In reality, Pacheco did not generate the returns... [Read more]

This will be my last post on Bizzia – at least for now.  I’m so grateful to all the readers, especially those who have left thoughtful and thought provoking comments. And I’m also thankful to b5Media for the opportunity to write in such good company. Writing on Corporate Finance here on Bizzia (and Accounting Solver before that) for the past several months has been a great experience. I’ve especially enjoyed sharing the financial fraud schemes, which sadly, are far more numerous than I realized. If you’re interested in keeping up with the latest cases, you can check in periodically with the SEC news page.   Miranda Marquit, who also writes Yielding Wealthhere on Bizzia, has graciously agreed to take over... [Read more]

The American Institute of Public Accountants reported this week that 47 percent of small- to medium-sized CPA firms believe the economy will begin to recover in the fourth quarter of 2009. Ten percent of firms believe the economy is already improving. This comes from the 2009 CPA Firm Top Issues Survey. “The majority of CPAs in small- and mid-size firms counsel businesses on financial matters, so it is encouraging that they believe recent signs of economic improvement will continue,” said James Metzler, AICPA vice president for small firm interests. The CPA firms surveyed reported that the biggest issues confronting them as a result of the economic crisis are strains on accounts receivable and revenue reductions because of client attrition... [Read more]

The Supreme Court today confirmed that our nation’s fair lending laws should be vigorously enforced by all levels of government. Today in Cuomo v. Clearing House Association, the Court rejected federal regulators’ and national banks’ attempts to prevent states from enforcing their own fair lending laws. The Court’s ruling permits states to step up their efforts to curb discrimination in sub-prime lending markets, and is especially timely given that predatory lending has exacerbated the impact of the current economic crisis on minority communities. “As the Court clearly recognized, this is a time when more — not less — enforcement of fair lending laws is essential,” said John Payton, LDF President... [Read more]

Perot Systems Corporation announced today that its Fairfax, Virginia-based Government Services Business Unit, won the re-compete for the performance-based contract with the Centers for Disease Control and Prevention (CDC) valued at over $119 million. Perot Systems will provide a wide range of infrastructure support to the CDC’s Information Technology Services Office nationally and internationally. Perot Systems Government Services subsidiary QSS Group, Inc. has been the incumbent contractor for these services since 2004. “This is a cornerstone win for us in the public health market. We are honored to continue to serve the CDC in support of its critical missions. It is a testament to our strong delivery team and capability to provide... [Read more]