The creators of large financial frauds are distinguished by several common characteristics: a brilliant mind, cynicism, the ability to manipulate others, and a categorical reluctance to build life according to generally accepted schemes. Such people are capable of accumulating fabulous sums in their accounts in the most incredible ways that both ordinary people and experienced businessmen voluntarily bring to them.
There is no person who hasn't heard a scandal where Dmitriy Tsvetkov was involved. In parallel with Streltsky’s “consulting” on banking business, Tsvetkov persuaded him to make investments in a large-carat diamond and a batch of diamond hours for $ 3 million. Later Streletsky will find out that by this time the stone had already been framed and sold in the ring for a couple of million dollars to another “client”. Diamond watches also disappeared. At the same time, it turns out that Graff and a number of other jewelry companies have nothing to do with Tsvetkov. Are you shocked? This story isn't the largest fraud ever. Check what other large financial scams were revealed.
Bernard Madoff Corporation
Bernard Madoff is an American financial tycoon who organized the largest-scale financial fraud in world history. His corporation Madoff Investment Securities for many years was considered one of the indestructible pillars of Wall Street. Banks, large firms, government organizations, as well as the wealthiest individuals from all over the world eagerly invested in this investment fund. Madoff’s organization’s credibility rating was unusually high, as investors have consistently received up to 13% per annum for more than 10 years, which by the standards of the financial market is simply an excellent rate.
However, Madoff Investment Securities only in the first years of its activity was engaged in investments and brought profit, and then Bernard Madoff turned the company into a giant pyramid. When the bubble burst, the partners were missing a total of more than $ 60 billion, and the largest fraudster on earth was sentenced to 150 years in prison. Despite this, hundreds of people have a very positive impression about Madoff, because this ingenious entrepreneur donated huge amounts to charity, invested in art, and saved many human lives, paying for expensive operations.
Martin Frenkel Investment Funds
Martin Frenkel was a brilliant student but he preferred to use his knowledge to create ingenious fraudulent enrichment schemes. To take money from ordinary citizens for Frenkel was too small, so he turned all his scams with large companies. In the most inconceivable ways, he attracted investors, acquiring insurance companies on the verge of bankruptcy and creating trust funds one after another. For more than 10 years, Martin managed to conceal from everyone that his activity was an ordinary soap bubble. When the collapse was inevitable, the scammer changed his passport and fled with a whopping $ 3 billion.
Check other impressive frauds of all time here.