Guys' Point of View

Life and business perspectives told from a Guy's point of view!


Showing posts with label Crime. Show all posts

Business History: Martha Chopping Her Salad  

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An iconic image: Martha trying "to focus on my salad"
on national TV in the midst of her insider trading allegations

Remember the wave of business scandal the plagued many of the powerful and well-known American companies only a few years ago? Yes, as everyone knows, this wave of scandal even touched an iconic person that caught many people by surprise and caused a national sensation in the process: Martha Stewart. If anyone has leaped into the annals of global culture by making the largest impact on the way people live, cook, decorate, and entertain, then Martha Stewart is certainly somewhere toward the very top of the list. But do you remember that on this day in 2002, Martha made that famous clenched-face appearance on the cooking segment of CBS's The Early Morning Show? Martha grimly chopped cabbage with an enormous knife during that segment while host Jane Clayson ambushed and angered her with questions about her alleged insider trading of ImClone stock. It was very apparent that Martha did have a sour side and showed it in front of the camera (all the rumors about Martha's nasty iron side that had circulated for years before was now confirmed). To read more about that memorable TV event, click here.

Yes - as many people predicted - Martha made a quick and highly successful comeback after her prison sentence ended in early 2005. However, only three years after the fact, it is rumored by many experts that Martha and the lifestyle she advocates is past prime and seems to be slowly fading toward black. A good clue to this is the stock in her company. Have you looked at shares of Martha Stewart Living Omnimedia lately? The price per share has significantly dropped over the past year. Could this be the beginning of possibly another end for Martha? Can she survive another comeback? I guess the jury is still out on that one!

As a business student, the Martha Stewart company is a fascinating study in how one woman became a modern day alchemist by turning cookies and decorating into serious cash - all from the comforts of her own home. Martha is definitely the legendary and iconic entrepreneur. As a Guy, however, when it comes to decorating and cooking, I can find better deals by stopping by my local Big Lots and Wal-Mart stores. Sorry Martha!

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Crushing The Big Guy's: Mortgage Justice  

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Former investment bank Bear Stearns hedge fund managers
Ralph Cioffi (left) and Michael Tannin

I guess that you heard the news about the two former Bear Stearns hedge fund managers who are among the first to take the perp-walk to court for the huge sub-prime collapse. Cioffi and Tannin (pictured above) were indicted by a federal grand jury in Brooklyn on Thursday. At 7AM Thursday morning, Cioffi was arrested at his suburban home in Tenafly, NJ, while Tannin was given the cuffs at his Manhattan apartment. These men face charges of conspiracy, wire fraud, and securities fraud in trying to cover up the collapse of two major Bear Stearns hedge-funds back in the summer of 2007.

Many people feel their collapse was the first sign of the sub-prime crisis that would ravage Wall Street and the economy for months. According to a Bloomberg article which broke the news, justice is on the way:

The two men were charged with misleading investors about the health of two Bear Stearns hedge funds whose implosion ignited the subprime mortgage crisis. Cioffi was also charged with insider trading in the indictment, which cites a series of e-mails between the two men. They face as much as 20 years in prison if convicted of the most serious charges.

I'd be seriously surprised if they got 20 years, but who knows, maybe they'll get hyped up as scapegoats for all the country's economic woes?

The U.S. Justice Department is on a roll today though, as they've also announced they have, to date, charged 400 people with crimes relating to mortgage fraud in the sub-prime crisis. These charges are a result of victims being scammed out of over $1 billion in predatory lending and foreclosure rip-offs. No one is safe today as the lucky 400 include real estate agents, lawyers, lenders, appraisers and even some speculative borrowers.Bloomberg news sure is busy today with the big arrest reports:

FBI Director Robert Mueller and Deputy Attorney General Mark Filip will announce the national crackdown, dubbed Operation Malicious Mortgage, this afternoon in Washington. Nearly 300 people have been arrested thus far in cities ranging from Chicago to Dallas to Miami, department officials said.

Don't you think that "Operation Malicious Mortgage" is a cool name? We've waited a long time for some action from the government, but it's still too early to tell if this is an adequate response to make up for everything that went down in sub-prime. It seems like a decent start, anyway.

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Business History: They Finally Get Al Capone  

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Al Capone
Patron Saint of American Crime

Now here is an unforgettable moment in the annals of American crime and business history. On this day in 1931, notorious and legendary mobster Al Capone was indicted on 5,000 counts of prohibition and perjury - only 32 years old at the time. "I own the police" was Capone's frequent boast, and up until his conviction it seemed true. In October of the same year, Capone was found guilty of evading $231,000 in income taxes, sentenced to 11 years in prison, and thus his career as a mobster was over.

Capone's sentence was shortened to six and a half years (for being on his "best" behavior). When he finally got out of Alcatraz, Capone was too sick to carry on his life of crime like he did for many years before his conviction and returned to Miami in 1939. Public Enemy Number One, ravaged by syphilis, died of cardiac arrest on January 25, 1947, just a week after his 48th birthday. In the end, it tool federal, state, and local authorities to end Capone's reign as America's foremost underworld boss.

Al Capone, who was also known as “Scarface,” led a crime scene that was dedicated to the smuggling and stealing of liquor and other illegal activities during the Prohibition Era of the 1920s and 1930s. Born in Brooklyn, New York, Capone moved to Chicago and became the boss of the criminal organization known as the Chicago Outfit.

Now for a neat fact....did you know that Capone had business cards that read, "Alphonse Capone, Second Hand Furniture Dealer, 2222 S. Wabash?" Not that is publicity in disguise!


If you like to read more about the subject, here is a nifty website that I came across regarding the recent unveiling of Capone's income tax invasion investigation. Regardless of his tax and other personal troubles, Al Capone was a shrewd businessman. He will always be remembered for both the business success of his criminal operation as well as for the violent way it was built. Not the best legacy to leave history, but a legacy nonetheless.

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Great Moments In Art Theft History - Part Two  

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Art theft is an ancient and complicated crime. When you look at some of the most famous cases of art thefts in history, you see thoroughly planned operations that involve art dealers, art fakers, mobsters, ransoms, and millions of dollars. As you may remember from my first post, I talked about the theft of Munch’s “The Scream” and “Madonna” paintings in 2004. Fortunately, the Oslo Police Force recovered these paintings in excellent condition in May 2006. Like the theft of Munch’s paintings, individual art thefts tend to be even more daring and spectacular.

Another story – probably the most famous case of art theft – involves one of the most famous paintings in the world and one of the most famous artists in history as a suspect. The Mona Lisa was stolen from the Louvre in 1911. Created in 1503, Leonardo da Vinci's oil-on-poplar-wood masterpiece of a woman with an "enigmatic smile" continues to be hailed as one of the greatest works of art ever produced. The painting was known only to a few art buffs in 1911 and lay almost hidden in an obscure corner in the Louvre.

On Monday, August 21, 1911, the Mona Lisa was stolen from the Louvre museum in Paris. Vincenzo Peruggio (left), an Italian tradesman, hid out in a small room in the Louvre, France, waiting for people to leave and the museum to close. The Italian stayed there all Sunday night, and on Monday morning crept out, took the Mona Lisa off the wall, removed it from its frame and calmly walked outside with the world’s most famous painting (the museum was closed on Monday). He later told police he just wanted to restore the masterpiece to its rightful home – Italy – where Leonardo da Vinci painted it.

Museum staff took a day to even notice the painting was missing. Many thought the museum’s photographer had taken it up to his studio to record. When it was noticed missing, police closed the Louvre for a week to investigate. Many people were questioned about the theft – from museum employees to people who worked or lived nearby. Perhaps somebody might have seen someone acting "suspiciously?" The police even questioned the great artist Pablo Picasso, who was 29 years old at the time. Picasso had previously bought two stone sculptures from a friend named Pieret. Pieret had actually stolen these pieces from the Louvre months before the Mona Lisa was stolen. Picasso thought that perhaps his friend might have also stolen the Mona Lisa.

Fearful of the implications and bad publicity, Picasso had the sculptures given to a local newspaper in order for their return to the museum. Picasso wished to remain anonymous, but someone gave his name to the police. After an interrogation, the police concluded that Picasso knew nothing about the theft of the Mona Lisa. Interestingly enough, the police also called in Peruggio. He had worked at the Louvre 10 months prior to the theft, placing the museum’s masterpieces behind glass. However, police released him, allegedly because he’d appeared too calm to have anything to do with the crime.

In the Autumn of 1913, two years after the Mona Lisa was stolen, a well-known antique dealer, Alfredo Geri, innocently placed an ad in several Italian newspapers which stated that he was "a buyer at good prices of art objects of every sort." Soon after he placed the ad, Geri received a letter dated November 29, 1913, that stated the writer was in possession of the stolen Mona Lisa. The letter had a post office box in Paris as a return address and had been signed only as "Leonardo." Though Geri thought he was dealing with someone who had a copy rather than the real Mona Lisa, he contacted Commendatore Giovanni Poggi, museum director of the Uffizi Museum in Florence, Italy. Together, they decided that Geri would write a letter in return saying that he would need to see the painting before he could offer a price.

Another letter came almost immediately asking Geri to go to Paris to see the painting. Geri replied, stating that he could not go to Paris, but, instead, arranged for "Leonardo" to meet him in Milan on December 22. On December 10, 1913, an Italian man with a mustache appeared at Geri's sales office in Florence. After waiting for other customers to leave, the stranger told Geri that he was Leonardo Vincenzo and that he had the Mona Lisa back in his hotel room. Leonardo stated that he wanted a half million lire for the painting (around $100,000 at that time). Leonardo explained that he had stolen the painting in order to restore to Italy what had been stolen from it by Napoleon. Thus, Leonardo made the stipulation that the Mona Lisa was to be hung at the Uffizi and never given back to France. However, this point was wrong because, in fact, Leonardo himself had sold the portrait to the French king Francis I in 1516 for 4,000 gold thalers, a top price even back then.

With some quick, clear thinking, Geri agreed to the price but said the director of the Uffizi would want to see the painting before agreeing to hang it in the museum. Leonardo then suggested they meet in his hotel room the next day. Upon his leaving, Geri contacted the police and the Uffizi. The following day, Geri and Poggi appeared at Leonardo's hotel room. Leonardo pulled out a wooden trunk. After opening the trunk, Leonardo pulled out a pair of underwear, some old shoes, and a shirt. Then Leonardo removed a false bottom -- and there lay the Mona Lisa. Geri and the museum director noticed and recognized the Louvre seal on the back of the painting. This was obviously the real Mona Lisa. The museum director said that he would need to compare the painting with other works by Leonardo da Vinci. They then walked out with the painting. Leonardo Vincenzo, whose real name was Vincenzo Peruggio, was arrested.

Allegedly, an Argentinean con artist named Eduardo de Valfierno convinced Vincenzo to steal the Mona Lisa. Valfierno "commissioned the French art forger Yves Chaudron to make copies of the painting so he could sell them as the missing original," leaving the real Mona Lisa in Vincenzo's care because it wasn't needed for the con. Vincenzo, however, claimed that he stole the painting so he could restore it to its proper home, Italy.

The story of the caper was actually much simpler than many had theorized. Vincenzo Peruggio, born in Italy, had worked in Paris at the Louvre in 1908. Still known by many of the guards, Peruggio had walked into the museum, noticed the Salon Carré empty, grabbed the Mona Lisa, went to the staircase, removed the painting from its frame, and walked out of the museum with the Mona Lisa under his painters smock. Peruggio hadn't had a plan to dispose of the painting; his only goal was to return it to Italy.

The public went wild at the news of finding the Mona Lisa. The painting was displayed throughout Italy before it was returned to France on December 30, 1913. Police and museum curators were less interested in why the painting was stolen and were relieved just to have found it in reasonable condition. Peruggio was sentenced to a year and two weeks in prison for the theft, a surprisingly brief term considering the magnitude of the crime. Since its theft, great effort has been made to ensure the masterpiece is never stolen again.

Great Moments In Art Theft History - Part One  

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Great Moments in Art Theft History - Part One

Art theft is a looming criminal enterprise and has been so for centuries – particularly with antiquities. Art is indisputably a sacrosanct form of communication and expression to many people and when great works of art are stolen, it is a significant loss on both a financial as well as a cultural and historical level. Art theft is no longer just an elitist crime funded by unscrupulous collectors, but has become a billion dollar industry linked to drugs cartels and illicit arms dealing, but has become one of the largest criminal activities in the world. Although, thieves have often targeted famous paintings, an increasing trend of brazen thefts sees paintings stolen not just for profit but also as a type of trophy robbery to impress others. Stolen art can also be used as a bargaining chip between crime syndicates. In the world of art crime, there are two basic types of thefts. First, there is theft with intent to sell on the open market and typically, these stolen artworks are recovered a decade or so after its disappearance. Secondly, there is theft commissioned by wealthy private individuals who want to keep them in their secret vaults – and these types of thefts are much harder to solve.


In the news as recently as August 2004, a great art heist occurred in the country of Norway when Edvard Munch's famous 1893 work, The Scream (at left), was stolen by masked and armed robbers from the Munch Museum while terrified tourists watched in broad daylight. Edvard Munch, who was Norway’s best-known artist, is credited as a pioneer in the 20th century Expressionist movement in art, died at the age of 81 in 1944. In case you are not familiar with this famous painting, The Scream, in which there are four versions of this well-known work, depicts an anguished and ghostly figure who appears to be screaming or shielding his ears from a scream against the background of a red sunset – a symbol of despair and alienation. After World War II, perhaps no other artwork mirrored the alienation and isolation of modern-day life than Munch’s The Scream.


In this famous crime heist, two masked thieves pulled The Scream as well as another painting, Madonna (at left), off the wall as stunned visitors watched. The stolen Madonna, perhaps the second best known image by Munch, was painted between 1893-1894, and depicts an erotic Madonna with a blood-red halo in a dark, swirling aura. Munch later produced woodcut lithographs with a similar depiction. Although security cameras were in place at the museum, the art thieves wore black hoods like bank robbers – thus disguising them thoroughly from identification. Representatives from the Munch Museum said that both The Scream and Madonna paintings were among its most valuable art assets – and selling figures for both paintings at auction range anywhere between $20 -100 million dollars. The getaway car and picture frames were found by Oslo police hours later after the heist. It’s the second time that a version of Munch’s painting had been stolen. Another version of The Scream was taken from Oslo’s National Gallery in February 1994, but was successfully recovered three months later.

Fortunately, this great art heist turned out to have a happy conclusion. As of August of this year, Oslo Police officials recovered both The Scream and Madonna paintings in better-than-expected condition. The paintings were recovered following the conviction of three suspects in the case in May 2006, an international police hunt and the offer of a nearly $300,000 reward by the City of Oslo, which owns the artworks. Since the 2004 thefts, the Munch Museum has undergone a huge security upgrade.

Thefts of art or artifacts from museums, while not exactly commonplace, are common enough to warrant rather high level security for museum collections including bulletproof glass display cases, fingerprint I.D. access for behind the scene storage rooms, and, of course, on-site security guards. Museums not only keep track of objects that have been stolen from their exhibits and store rooms, they have started to report art thefts to international databases, such as the Art Loss Register - which has offices in the United Kingdom, the United States, and Germany. Databases like the Art Loss Register allow auction houses and museums to explore whether or not an object has been reported as stolen before they send it to auction or attempt to purchase it or accept it for donation.

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