Saturday, September 27, 2003
The Pigeon Drop
Jeb Bush's Boiler Room Bucket Shop Operation
A pigeon drop involves a con game in which a mark is convinced by con man #1 to turn over his own funds in order to secure a share of "found" money. The mark agrees to invest a portion of his own funds to secure the share of the "found" money. This security payment is paid to an "attorney" or "money manager" who will oversee a profitable return of a portion of the "found" money to the mark. The "money manager" is actually a second con artist who is complicit in the scam. The mark of course, after turning over his funds to the "money manager", receives an envelope full of worthless paper for his troubles. The "money manager" and accomplice vanish with the marks security down payment.
For more on Liberty Partners and the buyout of Edison Schools Inc. see:
Further details from:
The American Federation of Teachers
Additional comment and discussion via: Tom Spencer at HNN and Atrios at Eschaton.
A pigeon drop involves a con game in which a mark is convinced by con man #1 to turn over his own funds in order to secure a share of "found" money. The mark agrees to invest a portion of his own funds to secure the share of the "found" money. This security payment is paid to an "attorney" or "money manager" who will oversee a profitable return of a portion of the "found" money to the mark. The "money manager" is actually a second con artist who is complicit in the scam. The mark of course, after turning over his funds to the "money manager", receives an envelope full of worthless paper for his troubles. The "money manager" and accomplice vanish with the marks security down payment.
"So, you start a company to privatize education and take on the teachers unions. Your company fails miserably both in terms of the market and academic success. Then after you've hollowed the company out to cover your other bad debts friendly pols come along to bail you out with a couple hundred million from the teachers' (and other public employees') pension fund. I love symmetry." - Josh Marshall commenting on this Edison/Liberty Partners swindle.
For more on Liberty Partners and the buyout of Edison Schools Inc. see:
State fund buys school operator
Florida's state pension fund is investing $174-million in a controversial for-profit school management company.
Through one of its money managers, Liberty Partners, the pension fund has agreed to buy out the shareholders of Edison Schools Inc., taking the New York company private.
In effect, the fund that provides for the retirement pensions of Florida teachers and other public employees will own a company that has played a leading role in privatizing school management. - By Helen Huntley, Times Personal Finance Editor, Published September 25, 2003
Further details from:
The American Federation of Teachers
Additional comment and discussion via: Tom Spencer at HNN and Atrios at Eschaton.
