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> A control fraud will often obtain "investments that have no readily ascertainable market value", and then shop for appraisers that will assign unrealistically
by somedangedname 10y ago
> A control fraud will often obtain "investments that have no readily ascertainable market value", and then shop for appraisers that will assign unrealistically high values and auditing firms that will bless the fraudulent accounting statements.
A whole new way to think about startup acquisitions!
- nickpsecurity 10y agoGreat observation. Im going to have to think more on this.
- ianai 10y agoUnfortunately, estimating future value is fundamental to the nature of all start ups. Of course it's often going to be wrong. The difference here is Wellsfargo has been around for ever. Their market value should be mature, stable, and reliable by comparison.
- ptaipale 10y agoMoreover, the business they are in is such that you shouldn't expect to see hockey stick type growth predictions. Sometimes it happens that a company has been around for a hundred years but then enters a new business and sees phenomenal growth. That is reasonable. For Wells Fargo's operation, no.
- ianai 10y agoThere's always that possibility to buck the trend, but they certainly didn't.