Sam Israel had a problem. The investors in his hedge fund, Bayou Capital, were expecting spectacular returns. Sam himself had spent years proclaiming the fund's brilliant results. In reality, Sam had been marking his own homework, publishing fraudulent accounts and using these to lure in new investors.
What to do? Well, the logical thing of course: wait around for an extraordinary profitable streak, and in the meantime keep up the ruse...
We're bringing you an episode of Cautionary Tales with Tim Harford. This episode was recorded live at the Bristol Festival of Economics and studies three incredible investment scams. How do pyramid and ponzi schemes snowball out of control, flattening victim and fraudster alike?
For a full list of sources, see the show notes at timharford.com.
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A chapter from Jane Marie’s forthcoming book. Preorder at jane-marie.com.
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The Dream listeners called in to share their own experiences with life coaches: the good, the bad and the absurd.
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Sarah Edmonson publicly left NXIVM, a life coaching MLM made famous by the HBO documentary, The Vow, in 2017 shortly after being branded with the founder's initials. Jane and Sarah sit down to discuss the fine line between coaching and culting. Sarah and her husband, Nippy Ames, host the podcast A Little Bit Culty.
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Days after the debut of this season, Jessie Lee Ward, who was featured in episodes one and nine, passed away after a short battle with cancer. Jane reconnects with Erin Bies to discuss her former friend’s legacy and talks with Death Coach, Megan Carmichael, about what to make of death when you had a complicated relationship with the person who has passed on.
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