Showing posts sorted by relevance for query rolls royce silver. Sort by date Show all posts
Showing posts sorted by relevance for query rolls royce silver. Sort by date Show all posts

Thursday, July 28, 2011

The Most Valuable Automobile in the World

A Rolls-Royce Motor Car, of course.

Rolls-Royce 40/50HP Silver Ghost, 1907
Rolls-Royce 40/50HP Silver Ghost, 1907

From the Rolls-Royce Owners Club:

Ambassador Extraordinary

A History of "The Silver Ghost"
Reprinted from "Queste", The Rolls-Royce Magazine, 1990
In 1907 The Silver Ghost was built specifically to publicise the new Rolls-Royce 40/50 h.p. six-cylinder model and in doing so established the Rolls-Royce reputation for reliability and engineering excellence. In this article, reproduced from Queste with kind permission of Rolls-Royce Motor Cars Ltd, Warren Allport traces the history of the most famous Veteran motor car, which since returning to Rolls-Royce in 1948 continued its ambassadorial role.
The 40/50 models exhibited at the 1906 Olympia Motor Show had attracted much Interest and favourable comment. Managing Director Claude Johnson saw that excellent though the new model was, it needed to be brought to a wider public if the newly floated Rolls-Royce Ltd was to succeed. Proper production of the 40/50 h.p. at Cooke Street, Manchester had not started until early 1907 after all the effort of preparing the first four motor cars for Olympia and the Paris show which followed. The fifth chassis was numbered 60544 - for some reason 60543 was never built.

Claude Johnson selected the 12th chassis, 60551, on the short 135 inch wheelbase as his publicity vehicle and ordered a semi-Roi des Belges open body from Barker & Co. on March 6th 1907. It was specified that the coachwork would be painted silver and that upholstery would be in green leather. Lamps and other external fittings were to be silver plated. Price of the body was �110-14-0 and the chassis retailed at �950 plus �7-l0s for the aluminium dashboard fitted as an alternative to the usual polished teak.

It was a striking ensemble and Claude Johnson, who had an Edwardian penchant for naming cars, called it The Silver Ghost by virtue of its appearance and 'extraordinary stealthiness'. The name was carried on a special repousse' plaque on the scuttle. Although after the arrival of the 40/50 h.p. New Phantom in 1925 earlier 40/50 h.p. models were known as Silver Ghosts to avoid confusion, there was only one motor car entitled to the name - 60551, registered AX-201.

Factory records preserved by the Sir Henry Royce Memorial Foundation show that the chassis was tested for 80 miles by chief tester Eric Platford and was despatched by "road, Mr Johnson" on April 13th 1907. Back in London no time was lost in arranging trial runs for the Press and The Autocar of April 20th recorded: "The running of this car at slow speeds is the smoothest thing we have ever experienced, while for silence the motor beneath the bonnet might be a silent sewing machine..." On the day that report appeared the first private customer - William Arkright of Chesterfield - took delivery of a 40/50 h.p., 60544. None of the earlier 40/50 h.p. chassis was sold until 1908.

On May 3rd, 60551 was driven to Bexhill then north to Glasgow, accompanied from Hatfield by a White steam car, both cars being under RAC observation. They went on to cover the tough route proposed for the 1907 Scottish Reliability Trial before returning to London. Between May 3rd and 14th The Silver Ghost completed 2,000 miles under official observation, recording a best fuel consumption of 23 mpg for one section. On the route north Claude Johnson had driven the 518� miles to Glasgow using third and fourth gears only. At the conclusion of the trial, performance was measured on Bexhill track - there was a 20mph overall speed limit - with 54.94 mph recorded in the direct third gear, in which 3.4 mph was possible. Such flexibility was important to Edwardian motorists, many of whom were incapable of changing gear on the move. Apart from punctures, adjustments during the twelve days had amounted to only 1 hour 28 minutes....MUCH MORE
From Cars at Large:
...The Silver Ghost got its name because it was largely unpainted, revealing it polished aluminum body, and was 'quiet as a ghost,' a often noted sentiment by passer-byers who were amazed by who silent the car was. The name became so famous, in fact, that every Rolls-Royce 40/50 came to include the tag 'Silver Ghost' despite the fact that there is only one real Silver Ghost.

The history of the car is intriguing beyond its important reliability trials. After completing those tests, the car was purchased by an employee of Rolls-Royce who drove the car a subsequent 500,000 miles before returning the car to the factory for 'minor servicing.' Unfortunately, he died while the car was in the shop, but his family decided to donate the car to the Rolls-Royce company. The car recently changed hands, but not on its own, as part of the break-up of Rolls-Royce and Bentley following the 1998 fiasco that took place between BMW and VW. In the end, the VW, the owner of Bentley, ended up with the car but displays the car at many Rolls-Royce events.

As for the value of this famous car, lets just say VW claims that it is insured for somewhere north of $50 million.*

Let's see, sold used for £750 in 1908. My UK inflation calculator only goes up to 2009:

£58,100.00 using the retail price index
£305,000.00 using average earnings

Or going the other way around, the USD exchange rate was fixed at $4.80.
So $3600 x 23 (U.S. CPI lowball) = $82,800.
To $50 million.
A nice ride and a fine investment.

*Wikipedia says it is valued at $57 million.

Saturday, December 11, 2021

"The oldest known surviving Rolls-Royce in the World, The 1904 Paris Salon and 1905 Olympia Motor Exhibition Display Car"

Yesterday's quote from Henry Royce reminded me of this cute little guy.

Although far from being the most valuable Rolls-Royce*, in the development of the motor car it is an important machine.

From Bonhams:

https://images1.bonhams.com/image?src=Images/live/2007-09/21/7543577-1-1.jpg&width=640&height=480&autosizefit=1

Registration no. U 44
Chassis no. 20154

Footnotes

It was a significant meeting in the Midland Hotel, Manchester, on 4th May 1904. The Hon. Charles Stewart Rolls had travelled to Manchester by train with his business associate and fellow pioneer motorist, Henry Edmunds, for a meeting with Mr Frederick Henry Royce who arrived from his Cooke Street offices, off Stretford Road, Manchester. The significance of that meeting cannot possibly have been perceived by either party, however the outcome was that the names of Rolls and Royce would forever be linked and fall into common parlance, not only in the motoring world but in the field of aviation. Here was the start of a legend where those two names became synonymous with superlative quality in so many spheres.

Both major parties to that meeting knew each other well by repute and no doubt fully anticipated the potential benefits for each of them should agreement be reached for Royce to manufacture motor cars to be sold exclusively by Rolls. The Hon. Charles Stewart Rolls and Mr Frederick Henry Royce sat at the same table with a strong mutual respect, both giants within their peer group and yet from totally different backgrounds.

Charles Stewart Rolls was born into a privileged background on 27 August 1877, the youngest son of Lord and Lady Llangattock whose family seat was The Hendre at Llangattock in Monmouthshire, on the English/Welsh border. The family had substantial property interests in London and Monmouthshire, participating actively in civic duties within Monmouthshire. Lord Llangattock represented that county as Member of Parliament between 1880 and 1885 and was raised to the peerage in 1892. Displaying an early engineering bent and a fascination with electricity in particular, young Charles Stewart Rolls went up to Trinity College Cambridge in 1895, studying electrical and mechanical engineering. Among his many interests while at Cambridge he was to captain the University Cycle Racing Team and, as a young student at Trinity, must have been the envy of his fellow students when he returned from a Paris trip in October 1896, the owner of a 3 3/4hp Peugeot Phaeton. Thus began a compelling fascination with the motor car, young Rolls becoming a Committee Member of the newly formed Automobile Club of Great Britain and Ireland, actively participating in motor tours and races and later, in 1904, briefly holding the World Land Speed Record mounted on a 100hp Mors. Rolls recognised fully the potential of the new-fangled motor car, passionately proclaiming its virtues at every available opportunity and in high places. He was a driving force in instigating and organising the One Thousand Miles Trial held in 1900 which brought the motor car to greater prominence. Rolls himself participated in that event, being a Gold Medal winner and winning the Speed Trials part of that event, held at Welbeck Abbey, on his 12hp Panhard-Levassor at a speed of 37.63mph.

Although his generous allowance enabled him to indulge his passions, Rolls had greater ambitions and in 1902 established his own motor business, utilising to the full his MA degree in mechanical engineering and applied sciences obtained that year, along with considerable business acumen....

....MUCH MORE

Sold for £ 3,521,500 (US$ 4,650,913) inc. premium

Among Bonhams' upcoming auctions: "Collections: Including: The Contents of Stanley House, The Estate of the Late John Schaeffer, The Estate of the Late Dame Diana Rigg / December 14, 2021 10:00 AM GMT" 

And some of the automobiles being offered online, most auctions close December 13 - 17.
*The Most Valuable Automobile in the World
A Rolls-Royce Motor Car, of course.

Rolls-Royce 40/50HP Silver Ghost, 1907
Rolls-Royce 40/50HP Silver Ghost, 1907

From the Rolls-Royce Owners Club....
 
At the time this was posted, July 2011, the headline was true based on insured value, $57 million.
For vehicles sold at auction the three highest prices are all Ferrari's, $35.7 to $48.4 million.

Wednesday, August 28, 2013

How Do You Value Value?

What is the most valuable automobile in the world?

I bring this up because of a post at FT Alphaville: "What is the value of unique?".
Izabella intro's with a quick sketch of StarTrek NG's Data and his uniquity.
She follows up with:
...But it’s the uniqueness factor which really is worth some consideration at this point, due to the break-neck speed at which the art of copying is now progressing.

Tyler Cowen, for example, linked to a story this week about a new 3D copying technology which is being used by the Van Gogh museum. It suggests that the differentiating line between a reproduction and an original is getting ever smaller. The positive side-effect being the greater ubiquity of beautiful objects in the world:
Each reproduction is priced £22,000 – somewhat more than the cost of a postcard or poster. But the museum is hoping to increase access to pictures which, if they were sold, would go for tens of millions of pounds to Russian oligarchs or American billionaires.
Cowen is skeptical that he can be fooled by the technology. Yet even if that is the case for now, it does seem unlikely that the technology won’t improve with time. Some time soon it is highly likely that the naked eye will no longer be able to differentiate between reproductions and originals, and that the only way to know for sure which is which will be to carbon date or test the materials microscopically....MORE
Which reminded me of a few stories.
In July a Mercedes W196 established the auction world record, selling for $30 million which included a 12% commission for the auctioneer,  Bonham's.
A couple weeks ago a Ferrari  NART Spyder was auctioned at $27.5 million establishing U.S. and Ferrari auction records.

Then there are the private sales. The current world record price for a car is $35 million for a Ferrari 250 GT sold to Craig McCaw in 2012 which topped the $32 million paid for a 250 GT earlier that year.

There is another 1962 250 GT currently on offer at the UK's Ed Classics for $41 million.

My best guess at the most valuable?
In 2011 we posted "The Most Valuable Automobile in the World" which is insured for $57 million.
What is it?

A Rolls-Royce Motor Car, of course.

Here's Chassis no. 60551, registered AX 201:

http://www.autoportal.hr/slike/2010/6393/03_15a.jpg

I highlight the plate number because you if you look you will see this car in locations around the world. The owners are Bentley (Volkswagen) rather the expected Rolls-Royce (BMW) and Bentley runs the car as a goodwill ambassador, it is the Forrest Gump of the collector car world. This is the Silver Ghost.

And how does this tie in to Izabella's post?
There is another Rolls-Royce, AX198:

http://carpictures.us/wp-content/uploads/2013/01/1923-Rolls-Royce-40-50-HP-Silver-Ghost-AX-201-Roi-de-Belges-Recreation.jpg

which is a recreation of AX201.

The auctioneer, RM Auctions, described the vehicle in 2010:
- Extraordinary eight-year recreation of the Barker Roi-de-Belges, the famed first Silver Ghost
- 1923 chassis with circa-1913 Barker Cabriolet de Ville body
- One of only 10 known “PK” Silver Ghost chassis in existence today
So here you have a car, a Rolls-Royce, a PK, very, very rare in its own right and when it went up for auction it sold for, drumroll please:


£168,000

Not quite $57 million.

Izabella goes on to say:
...Of course, if you can convince more people to agree that your version is the best version, this can give your object superior value.

But, at its heart, this is an unstable sort of value, for it’s based on fad and cult-like, or even bubble-like, social responses and confidence tricks. It’s value that can evaporate as soon as the will and belief of the crowd is distracted by something else, or as soon as someone can tell a better narrative. Which is why the value of objects and resources which hold little utility, such as gold, tulips and art, are entirely mood-related. Their value, at best, is best explained by the Emperor’s New Clothes effect as well as boom and bust behaviour....
And I'm hard pressed to disagree.
I do wish to hell that I had been aware of the 2010 auction, that seems like value.

With either car though I'm sure that the old slogan is still true:
"The quality remains long after the price is forgotten." 
-Sir Henry Royce

Saturday, October 17, 2020

"Mechanical Elephant: The cult of Rolls-Royce in India"

If you are going to join a cult this looks like one to consider.

 From Road & Track:

When flamboyance met bespoke luxury, the amazing happened.

https://hips.hearstapps.com/roa.h-cdn.co/assets/cm/14/47/546b278046780_-_0127phantom-lg.jpg?crop=1xw:1.0xh;center,top&resize=768:*

Dawn breaks in Hyderabad, and workers head out to collect the city's garbage in a fleet of Rolls-Royce sedans. 900 miles away in Jamnagar, a Phantom II, painted pink to match its owner's favorite slippers, coasts along the beach. There's a 20/30 Sedanca de Ville floating through the streets of Travancore, too, and it's got a miniature stool molded into its floor so that a "dwarf" can massage the passenger's legs.

Welcome to prewar India, where aristocrats engage in a lavish game of one-upmanship using the Rolls-Royce cars as fodder.

At the turn of the 20th century, India was under colonial British rule and divided into several hundred city-states, many led by native royal patriarchs called Maharajas. These men were rich, powerful, and obsessed with the pageantry of luxury. But in a time when automobiles were less reliable than weather reports, the most exclusive cars were ones that didn't break down.

Keen on cracking into the Indian market, a suave British businessman named Frank Norbury schemed a dramatic demonstration of engineering prowess in 1907 using his Rolls-Royce 40/50 hp: He threw out the Silver Ghost's toolkit, locked its hood shut, and drove 620 miles through Ghat mountain passes from Bombay to Kolhapur. The Maharaja of Gwalior was smitten; he had to own that motorcar....

https://hips.hearstapps.com/roa.h-cdn.co/assets/cm/14/47/546b2781efe2f_-_0134phantomii-lg.jpg?crop=1xw:1.0xh;center,top&resize=768:*

....MUCH MORE

 And more next week.

Monday, July 15, 2024

The Ambani-Merchant Wedding Cost How MUCH???!!!

From Vanity Fair, July 15:

Inside the $600 Million Ambani Wedding: Jewels, Stars, and the Party to End All Parties
The eye-popping celebrations from July 12 to 14 included a red carpet, Hollywood and Bollywood royalty, actual royalty, and some names that will surprise you. 

There are weddings, and then there’s the Ambani wedding, the lavish series of events that has unspooled party by unbelievable pre-wedding party over the last several months and culminated this weekend with the union of Anant Ambani, the youngest son of super-billionaire Mukesh Ambani, and his new wife, pharmaceutical heir Radhika Merchant in Mumbai.

The celebrations from July 12 to 14 included a red carpet for attendees to walk, spotlighting the Hollywood, Bollywood, political, business, and tech luminaries invited to the wedding. Guests at the wedding, which cost a reported $600 million, included Indian prime minister Narendra Modi, John Cena, Priyanka Chopra Jonas and Nick Jonas, Nicky Hilton Rothschild and James Rothschild, former U.K. prime ministers Boris Johnson and Tony Blair, stylist Law Roach, designer Prabal Gurung, Kim Kardashian and Khloé Kardashian, former U.S. Secretary of State John Kerry, and many more, with a reported crowd of some 2,000 guests. It was an A-list cast worthy of a Hollywood production, evidenced by the fact that the Kardashians brought their own camera crew to document their trip for their eponymous show, as Kim revealed in her Instagram Stories.

At pre-wedding events throughout 2024, stars such as Rihanna, Justin Bieber, Akon, Katy Perry, Pitbull, Andrea Bocelli, and the Backstreet Boys performed for guests. The weekend of the wedding itself, headliners such as Adele, Drake, and Lana Del Rey were rumored, but guests danced to a more internationally-focused lineup of entertainment: Luis Fonsi performed “Despacito,” K’Naan offered up his hit song “Waving Flag,” Afrobeats star Rema got the crowd going, and Bhangra musician Sukhbir also took the stage.

The details and grandeur of the wedding are expected to set trends for celebrations “for decades to come,” insiders told Vanity Fair. Bride Radhika told Vogue that her new mother-in-law, Nita Ambani, was “the CEO of the wedding, as I like to say. “It was Nita’s commitment and vision that brought our entire celebration to life.” Nita was assisted by daughter Isha Ambani and daughter-in-law Shloka Ambani....

....MUCH MORE

The Hindustan Times has a couple dozen sidebar stories including:

Ambani wedding: Ever wondered what guests have been gifting Anant Ambani, Radhika Merchant? We have the answer!  

Shloka Mehta's 450-carat diamond necklace with gigantic hearts is the talk of the town as US influencer shares details

The groomsmen got watches. From Tatler Asia, July 14:

Anant Ambani’s watches and jewellery: From Audemars Piguet gifts to bespoke Cartier brooches  

Billionaire heir Anant Ambani dazzled with million-dollar timepieces and bespoke jewellery at his star-studded nuptials and gave Audemars Piguet watches worth US$240,000 each as gifts to his groomsmen

Have you ever heard of a wedding gift so extravagant that it costs more than the GDP of a small nation? That’s exactly what happened at Anant Ambani and Radhika Merchant’s recent nuptials, where he gifted his groomsmen Audemars Piguet watches worth approximately US$240,000 each.

The limited-edition timepieces from the Royal Oak Perpetual Calendar series, known as the Luminary Edition, were presented to 25 high-profile guests. Among the lucky recipients were Bollywood superstars Shah Rukh Khan and Ranveer Singh, as well as close friends Shikhar and Veer Pahariya. These watches feature a 41 mm 18-karat pink gold case with a sapphire crystal back and a pink gold dial with a Grande Tapisserie pattern.

As for Anant Ambani himself, he showcased an impressive array of timepieces throughout the festivities. Tatler takes a closer look at the groom’s choicest collection of watches and jewellery....

....MUCH MORE

Flashing back on pre-partition India:

"Mechanical Elephant: The cult of Rolls-Royce in India"
If you are going to join a cult this looks like one to consider.  From Road & Track:

When flamboyance met bespoke luxury, the amazing happened.

https://hips.hearstapps.com/roa.h-cdn.co/assets/cm/14/47/546b278046780_-_0127phantom-lg.jpg?crop=1xw:1.0xh;center,top&resize=768:*

Dawn breaks in Hyderabad, and workers head out to collect the city's garbage in a fleet of Rolls-Royce sedans. 900 miles away in Jamnagar, a Phantom II, painted pink to match its owner's favorite slippers, coasts along the beach. There's a 20/30 Sedanca de Ville floating through the streets of Travancore, too, and it's got a miniature stool molded into its floor so that a "dwarf" can massage the passenger's legs.

Welcome to prewar India, where aristocrats engage in a lavish game of one-upmanship using the Rolls-Royce cars as fodder.

At the turn of the 20th century, India was under colonial British rule and divided into several hundred city-states, many led by native royal patriarchs called Maharajas. These men were rich, powerful, and obsessed with the pageantry of luxury. But in a time when automobiles were less reliable than weather reports, the most exclusive cars were ones that didn't break down.

Keen on cracking into the Indian market, a suave British businessman named Frank Norbury schemed a dramatic demonstration of engineering prowess in 1907 using his Rolls-Royce 40/50 hp: He threw out the Silver Ghost's toolkit, locked its hood shut, and drove 620 miles through Ghat mountain passes from Bombay to Kolhapur. The Maharaja of Gwalior was smitten; he had to own that motorcar....

https://hips.hearstapps.com/roa.h-cdn.co/assets/cm/14/47/546b2781efe2f_-_0134phantomii-lg.jpg?crop=1xw:1.0xh;center,top&resize=768:*

....MUCH MORE

Thursday, February 14, 2013

Malcolm Gladwell: The Ketchup Conundrum (HNZ; BRK.b)

From Gladwell.com:

TASTE TECHNOLOGIES
THE KETCHUP CONUNDRUM
Mustard now comes in dozens of varieties.Why has ketchup stayed the same?
Ketchup triggers, in equal measure, all five of the fundamental tastes; one food theorist calls it “the Esperanto of cuisine.”

Many years ago, one mustard dominated the supermarket shelves: French’s. It came in a plastic bottle. People used it on hot dogs and bologna. It was a yellow mustard, made from ground white mustard seed with turmeric and vinegar, which gave it a mild, slightly metallic taste. If you looked hard in the grocery store, you might find something in the specialty-foods section called Grey Poupon, which was Dijon mustard, made from the more pungent brown mustard seed. In the early seventies, Grey Poupon was no more than a hundred-thousand-dollar-a-year business. Few people knew what it was

or how it tasted, or had any particular desire for an alternative to French’s or the runner-up,Gulden’s. Then one day the Heublein Company, which owned Grey Poupon, discovered something remarkable: if you gave people a mustard taste test, a significant number had only to try Grey Poupon once to switch from yellow mustard. In the food world that almost never happens; even among the most successful food brands, only about one in a hundred have that kind of conversion rate. Grey Poupon was magic.

So Heublein put Grey Poupon in a bigger glass jar, with an enamelled label and enough of a whiff of Frenchness to make it seem as if it were still being made in Europe (it was made in Hartford, Connecticut, from Canadian mustard seed and white wine). The company ran tasteful print ads in upscale food magazines. They put the mustard in little foil packets and distributed them with airplane meals—which was a brand-new idea at the time.

Then they hired the Manhattan ad agency Lowe Marschalk to do something, on a modest budget, for television. The agency came back with an idea: A Rolls-Royce is driving down a country road. There’s a man in the back seat in a suit with a plate of beef on a silver tray. He nods to the chauffeur, who opens the glove compartment. Then comes what is known in the business as the “reveal.” The chauffeur hands back a jar of Grey Poupon. Another Rolls-Royce pulls up alongside.A man leans his head out the window.

“Pardon me.Would you have any Grey Poupon?”...
...MUCH MORE (8 page PDF)

HT: Value Investing World

Wednesday, September 11, 2013

Are collectibles good long-term investments? "The Investment Performance of Emotional Assets"

On Monday we posted a short bit on collectibles, riffing off a Quartz piece:
Cars, coins and stamps are now more profitable luxuries than art, wine and jewelry (there's an ETF for that)

Which we got timestamped just before Izabella Kaminska had three FT Alphaville posts:
A classic car bubble?
The art of myth-making
The growing scarcity of scarce markets
Addressing respectively 1) the Knight Frank luxury investment index; 2) the intangibles that go into valuation with a look at contango in the market for water from the Grotto of Massabielle in the Sanctuary of Our Lady of Lourdes, France and 3) a meta-analysis of the attributes of markets in non-standardized goods.

She is such a show off.

So today we visit with Elroy Dimson, one of the few economists I've ever come across who has the market feel of a trader and the soul of a poet intellectual chops to be the Chairman of the Strategy Council for the Norwegian Government Pension Fund, you know, the big one.

In his spare time he is part of the hot new boy band Dimson, Marsh and Staunton who do the Global Investment Returns Yearbook for Credit Suisse.

Via the Social Science Research Network:

 The Investment Performance of Emotional Assets
 Elroy Dimson
London Business School; University of Cambridge - Judge Business School

Christophe Spaenjers
HEC Paris - Finance Department

September 2, 2013

Risk and Uncertainty in the Art World, Forthcoming

Abstract:     
We assess the long-term financial returns from high-quality collectible real assets, and review the unique risks that are associated with such investments. Over the period 1900-2012, art, stamps, and musical instruments (violins) have appreciated at an average annual rate of 6.4%-6.9% in nominal terms, or 2.4%-2.8% in real terms. Despite the similarity in long-term returns, short-term trends can vary substantially across these different types of emotional assets. Collectibles have enjoyed higher average returns than government bonds, bills, and gold. However, it is important to recognize the quantitative importance of transaction costs in collectibles markets. In addition, price volatility is larger than is suggested by conventional measures of risk, and these assets are also exposed to fluctuating tastes and potential frauds. Yet, despite the large costs and many pitfalls, investment in emotional assets can pay off, because of the non-financial yield they provide. 

Free download (19 page PDF)

Professor Dimson is not a newbie when it comes to collectible markets, in one of his papers:
Ex post: The investment performance of collectible stamps
Elroy Dimson and Christophe Spaenjers
he looks at returns based on Bill Gross' $100 million collection.

Speaking of not being a newbie to the subject, a couple weeks ago Ms Kaminska preceeded the three posts linked above with a deep dive into the scarcity/abundance questions raised by advances in mechanical reproduction and 3D copying and how the answers to those questions intersect via pricing while touching on the metaphysical, almost spiritual regard some people have for provenance and authenticity:
What is the value of unique?
and which reminded me of the most valuable automobile in the world, a Rolls-Royce motorcar, insured for $57 million, and another Roller which sold for £168,000. I leave it to you to decide which is the better value.
See: "How Do You Value Value?":

http://www.autoportal.hr/slike/2010/6393/03_15a.jpg

and

http://carpictures.us/wp-content/uploads/2013/01/1923-Rolls-Royce-40-50-HP-Silver-Ghost-AX-201-Roi-de-Belges-Recreation.jpg

In "What is the value of unique?" Izabella goes on to say:
...Of course, if you can convince more people to agree that your version is the best version, this can give your object superior value.

But, at its heart, this is an unstable sort of value, for it’s based on fad and cult-like, or even bubble-like, social responses and confidence tricks. It’s value that can evaporate as soon as the will and belief of the crowd is distracted by something else, or as soon as someone can tell a better narrative. Which is why the value of objects and resources which hold little utility, such as gold, tulips and art, are entirely mood-related. Their value, at best, is best explained by the Emperor’s New Clothes effect as well as boom and bust behaviour....
Which is about as close to Dimson's title, "...Emotional Assets", as you're going to find and which ties this post into a nice little package.

Monday, October 30, 2017

Manafort Indictment: I Should Have Been Long Antique Rugs Instead Of Stripper Poles

Usually these guys go in for stripper poles. So you try to have some inventory should they ever cross your path. But noooo....

From 2013's "How to Spot a Hedge Fund Fraudster":
Bombast. In my experience they are all bombastic.
And stripper poles. You would not believe the number of stripper poles that crooks collect....

...Some of the varlets who have graced our pages:
More Strip Clubs, Private Jets and Ponzis
...“Credit card and bank records show that Martin spent more than $1 million at a strip club and restaurants, nearly $1 million at elite hotels and another $1 million renting flight time on private jets,” prosecutors said.  “He purchased a fleet of luxury vehicles, donated hundreds of thousands of dollars to celebrity charity events, and hired personal security guards to accompany him in public.”...
The Dénouement: Perpetrator of $190 Million Minneapolis Foreign Exchange Ponzi Scheme Sentenced
...According to court documents made public, Cook purchased a Rolls Royce Silver Spur, a Maserati Quattroporte, a Hummer H2, a Jaguar S-Type, a Mercedes-Benz, a heavily customized Audi S8, a 60-foot houseboat (complete with a brass stripper pole), an island in Canada and a two-person submarine....
The Stripper and the Ponzi Schemer
A Holly Golightly for the Stripper-Embezzlement Age...
 

And today's story, from Emptywheel: 

Paul Manafort Indicted for Laundering 50 Times as Much Through Rugs as Through Household Labor
One of the nifty things Robert Mueller did with his indictment of Paul Manafort was to lay out all the extravagances he used to launder his money into the US. The most amazing was his $1M antique rug bill.
https://www.emptywheel.net/wp-content/uploads/2017/10/Screen-Shot-2017-10-30-at-9.15.14-AM.png
Mueller also listed $1.4 million laundered through two different clothing stores.
Compare that with the mere $20,000 Manafort spent on the people who clear his NY property.
https://www.emptywheel.net/wp-content/uploads/2017/10/Screen-Shot-2017-10-30-at-9.24.32-AM.png
Admittedly, Manafort appears to have redone his Hamptons and FL properties routinely to launder more money. But it basically means he shorted his staff while spending big on magic carpets.
Which will make Trump’s efforts to give rich shits like Manafort more tax benefits this week even more difficult.

The money laundering through luxury goods isn’t the key crime in Manafort’s indictment. That has to do with serving as an unregistered foreign agent with regards to work from 2012. Importantly, that means Mueller got to point to Tony Podesta’s corruption prominently as one of these two unnamed firms.
The allegation is that by having one Republican and one Democratic lobbyist firm to do the work of pro-Russian Ukrainians, Manafort hid what was really going on.

Just as interesting, Mueller slapped a false statements charge onto the failure to report being a foreign agent, tied to these claims (they carry onto a second page)....
...MORE

Thursday, August 29, 2013

How to Spot a Hedge Fund Fraudster

Bombast. In my experience they are all bombastic.
And stripper poles. You would not believe the number of stripper poles that crooks collect.
From Santangels Review:
This is a great article from Alpha magazine. They seem to have spotted a live “hedge fund” fraud.  The article, written by Amanda Cantrell, does an excellent job laying out the various red flags that led them to believe this hedge fund was not real. From my studies of SEC and court filings of convicted hedge fund fraud cases (here, here and here), it seems like the same handful of due diligence checks would lead one to run away from any of these frauds before even meeting the manager or studying their strategy. They are (in no particular order):
7.Something “odd” (For example, the fund in the Alpha article was supposedly managing $4.6 billion, but was accepting investments of a minimum of $30,000)...MORE
Some of the varlets who have graced our pages:
More Strip Clubs, Private Jets and Ponzis
...“Credit card and bank records show that Martin spent more than $1 million at a strip club and restaurants, nearly $1 million at elite hotels and another $1 million renting flight time on private jets,” prosecutors said.  “He purchased a fleet of luxury vehicles, donated hundreds of thousands of dollars to celebrity charity events, and hired personal security guards to accompany him in public.”...
The Dénouement: Perpetrator of $190 Million Minneapolis Foreign Exchange Ponzi Scheme Sentenced
...According to court documents made public, Cook purchased a Rolls Royce Silver Spur, a Maserati Quattroporte, a Hummer H2, a Jaguar S-Type, a Mercedes-Benz, a heavily customized Audi S8, a 60-foot houseboat (complete with a brass stripper pole), an island in Canada and a two-person submarine....
The Stripper and the Ponzi Schemer
A Holly Golightly for the Stripper-Embezzlement Age

Finally, no strippers but pretty funny.

Planktos Highlights Real Ocean/Climate Crises & Responds to Recent Misinformation Campaigns
But first, one of my favorite examples of a stock scam (I told you, I have a morbid fascination with the underbelly of the markets, it's like watching the lions approach the wildebeest at the watering hole, you don't want to see it but you can't look away):

...Peter Uttley, Equisure's chairman and a former Lloyds of London executive, took control of the company this week, assuming the chief executive post....

...Uttley said in the press release that his chairman role had been a "passive" one, but he now plans an active reorganization of the company, whose reputation has been stained by allegations that it is a scam insurance operation....

...In an unusually emotional statement to the press, sent from an Equisure board meeting Friday in London, Uttley told his version of events over the summer, which eventually led to the delisting of Equisure shares on the American Stock Exchange.

"The simple truth was consumed in the belly of deception, but now has been vomited for the world to see," Uttley began.

He then proceeded to tell a story of three men, whom he described as "liars," "cheats," and "scallywags," who worked with law enforcement officials and the press to spread false rumors about the company with the intent of buying Equisure out at 50 cents a share, a tiny fraction of the stock's trading price of $15, before AMEX suspended trading Aug. 1.

Isn't that damn fine bloviating? It's hard to research but I think Uttley et. al. got away with $100 mil....

Friday, February 13, 2015

"Fraud Charges For Phony NYC Hedge Fund Manager Who Faked Own Death"

From Barron's Focus On Funds:
It’s hard to be a successful hedge fund manager.

Turns out that it’s even harder to pretend to be one, steal money and then fake your own death. At least if you want to get away with it.

The Securities and Exchange Commission late on Friday charged a New York City man with fraud, claiming that he stole money from investors under the guise of running a $100 million hedge fund.
Regulators said Moazzam “Mark” Malik raised nearly $850,000 from investors and then used that cash as his personal ATM. The SEC claims Malik never invested more than about $90,000 of that money in what he marketed as “a privately held Global Investment Management firm dedicated to the individuals and institutions around the world.” Doesn’t sound fishy at all....MORE
“By pretending to be a successful hedge fund manager, Malik conned investors into bankrolling his lavish lifestyle,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office.  “Besides luxury travel, dining, and jewelry, investor funds paid for Malik’s continuing education courses at Harvard and his subscription to a matrimonial matching website.”
This guy is obviously a punk.
See, for example, "How to Spot a Hedge Fund Fraudster":
Bombast. In my experience they are all bombastic.
And stripper poles. You would not believe the number of stripper poles that crooks collect.
From Santangels Review....
Some of the varlets who have graced our pages:
More Strip Clubs, Private Jets and Ponzis
 
The Dénouement: Perpetrator of $190 Million Minneapolis Foreign Exchange Ponzi Scheme Sentenced

...According to court documents made public, Cook purchased a Rolls Royce Silver Spur, a Maserati Quattroporte, a Hummer H2, a Jaguar S-Type, a Mercedes-Benz, a heavily customized Audi S8, a 60-foot houseboat (complete with a brass stripper pole), an island in Canada and a two-person submarine....

Thursday, June 20, 2013

Phi Scamma Jamma: Was Kleiner, Perkins-backed Fisker Automotive a Fraud?

We glommed on to one aspect of the fundraising that stunk to high Heaven. Other folks, Katie Fehrenbacher at GigaOm and a few of the writers at Greentech Media also saw it, links below.

From Reuters:
Danish designer Henrik Fisker knows how to style a sexy car. Among his works is the BMW Z8, driven by James Bond in "The World Is Not Enough," where the sleek roadster gets sliced in two by a helicopter armed with giant saws.

Fisker's latest piece of rolling sculpture is the comely Fisker Karma hybrid sports sedan — and it may meet an equally ugly end.

The Dane's startup, Fisker Automotive, hasn't built a car in nearly a year. It fired most of its workforce, hired bankruptcy advisers and is seeking a buyer. Co-founder Henrik Fisker resigned in mid-March in a dispute with some of the directors. And despite raising $1.4 billion in private and public funds since its founding in 2007, the company is out of cash. For months, key investors have been footing the car maker's day-to-day expenses to keep it alive in diminished form.

An examination of the company's rise and fall reveals Fisker's finances started to unravel as early as June 2011, when the U.S. Department of Energy cut off access to taxpayer-funded loans — a fact that wasn't publicly acknowledged by Fisker for nine months.

That and other troubling information remained unknown by many of Fisker's private-sector investors, who put $525 million into the company from May 2011 through August 2012, attracted by rosy sales forecasts and assurances the company valued itself at nearly $2 billion....MORE
...Henrik Fisker and co-founder Koehler were pulling down handsome salaries — $600,000-$700,000 a year, according to several sources familiar with Fisker's executive compensation — even after the company began laying off hundreds of employees in late 2011 and early 2012.

Considerable sums were used to burnish the image of the company as well as Henrik himself.

In May 2011, the company co-sponsored a pre-race grand prix party aboard a 146-foot yacht moored in the Monte Carlo harbor. Guests drank glasses of champagne served with flecks of gold. Clad in a dark pinstripe suit and open-neck white shirt, Henrik Fisker navigated a crowd that included Prince Albert of Monaco, whom he described as the inspiration for the Karma. The next day, Fisker took the prince for a ride on the race course in a prototype Karma....
That last bit is so typical of fraudsters and their style over substance approach to the world, it is in fact one tell that can tip you before the authorities freeze the bank accounts. See for example "More Strip Clubs, Private Jets and Ponzis":
...Sept. 2010The Dénouement: Perpetrator of $190 Million Minneapolis Foreign Exchange Ponzi Scheme Sentenced
...According to court documents made public, Cook purchased a Rolls Royce Silver Spur, a Maserati Quattroporte, a Hummer H2, a Jaguar S-Type, a Mercedes-Benz, a heavily customized Audi S8, a 60-foot houseboat (complete with a brass stripper pole), an island in Canada and a two-person submarine...
Another tell was one of the fundraisers. From November 2012:

Phi Scamma Jamma: Late Stage VC Investor Advanced Equities Shutting Down (Bloom; Fisker etc.)
That's a wrap.
These guys would do middle-of-the-alphabet rounds (H-round, N-round etc.) that the Sand Hill Road crowd owned at 1/20th the valuation. They invested private placement style for accrediteds, giving the original VC's a nice bump in valuation while the AE principals got to act like they were in with the in crowd.
We were dubious as far back as 2008.
After the principals were hit with attention-getting fines, the last straw came when they were ordered to make a recission offer to some of their Fisker investors.
Recissions are brutal for that type of operator, they are not ordered when investors are making money hand-over-fist and tend to be accepted rather quickly by the investor and/or their counsel....
Also:
May 21, 2010
The Company you Keep: "Bloom, Fisker and Serious Materials Raising Cash from Advanced Equities"
 Aug 19, 2008 
Venture Capital: "Garbage In..
March 13, 2012
Al Gore (and Kleiner) no Score? Advanced Equities Execs Under SEC Investigation for 2009 Private Placement

HT on the latest to GigaOm:
The commenters on Katie's piece seem to be a bunch of Fisker investors who may have believed too much.
Like any group of zealots whose forecasts didn't pan out they don't question their messiahs or their own beliefs but rather concoct us/them conspiracy theories and entrench even deeper into their delusion and denial.
As Spock would say: "Fascinating".

Here's a site search for "Advanced Equities" at Greentech.

A couple weeks ago we saw "Napoli Bern Ripka Shkolnik, LLP Files Complaint Alleging That Investors Were Misled Concerning Advanced Equities Private Placements" and "Zamansky & Associates LLC Announces The Filing Of A FINRA Arbitration Against Advanced Equities Inc. And Its Officers Dwight Badger And Keith Daubenspeck" so there may be more to come.

Wednesday, September 8, 2010

The Dénouement: Perpetrator of $190 Million Minneapolis Foreign Exchange Ponzi Scheme Sentenced

We spotted this one back in 2007. I'll re-post after the jump.
From WCCO Television:
Former Minneapolis money manager was sentenced to 25 years in prison for taking $190 million from his investors in a Ponzi scheme.

Trevor Cook was sentenced in a packed courtroom Tuesday morning. He pleaded guilty to one count of fraud and one count of tax evasion back in April. Cook is 37 and won't likely be eligible for parole until he's almost 60.

U.S. District Judge James Rosenbaum called Cook's scheme "a wretched, tawdry, cheap crime." Judge Rosenbaum also said to Cook, "You found vulnerable victims and then lied to them repeatedly."

In April, Cook admitted that he lied and misled investors as he continued to pay himself millions of dollars in commissions. He also lied on his taxes. In 2008, he reported income of $100,000 when his actual income was more than $5 million.

Cook lured many of his investors with meetings at the historic Van Dusen Mansion in Minneapolis. He purchased it for $2.8 million in 2007 and decorated it lavishly.

According to court documents made public, Cook purchased a Rolls Royce Silver Spur, a Maserati Quattroporte, a Hummer H2, a Jaguar S-Type, a Mercedes-Benz, a heavily customized Audi S8, a 60-foot houseboat (complete with a brass stripper pole), an island in Canada and a two-person submarine....MORE 
From the St. Paul Pioneer Press:
Apple Valley Ponzi schemer is behind bars -- but millions still missing
From the Minneapolis StarTribune:
Trevor Cook's loot turns up -- at Mall of America
In the stash in a mall locker: gold and platinum coins, millions of Iraqi dinars and Turkish lira. 
At long last, the government has solved the mystery of Trevor Cook's missing Iraqi dinars.
Since last summer, when Cook's $190 million Ponzi scheme collapsed, investors have pestered investigators about rumors that Cook had hidden millions of dinars, Turkish lira and gold and platinum coins.

A court-appointed receiver looked diligently for the money through crawl spaces and cubby holes at the Van Dusen mansion in Minneapolis, where Cook had his offices until the Ponzi scheme imploded last year. Searches of Cook's Apple Valley home, his island in Canada and elsewhere found no dinars.
A security guard finally found most of the missing loot during a routine locker search last month -- at the Mall of America.

The guard came across it July 24 in a black duffel bag stuffed into East Locker No. 1316, according to a sworn statement filed Friday in federal court by John Tschida, a criminal investigator with the IRS.

On Wednesday, the IRS obtained a warrant to seize 113 gold coins, eight platinum coins, 5,652,150 Iraqi dinars, 18,750,000 Turkish lira and small sums of Chinese, Canadian and Dominican currencies. It's unclear how much the money may be worth, but sources say it probably adds up to at least $100,000. At most, it's a small fraction of the millions lost by Cook's investors. One online currency converter put the value of the Iraqi dinars at about $4,800....MORE

That's a bit short of $190 mil..

From our July 5, 2007 post "Magical Markets, Enron and GE and a New Word":
I was looking for Alt/Renewable energy ideas a couple nights ago when I found a story in a middle-market newspaper that had a sentence in it that is now the front-runner for funniest line of the month:
"We protect against all losses through hedging"
Here's the set-up. Some forex guys just bought a $3 mil. historic mansion to run their business out of. They're doing some smaller scale Yen carry-trade "arbitrage" (retail min. $50K). They borrow from the BOJ at 1/2 point and say they invest at 5%. Looking at the yield curve, you have to go out seven years to get 4.99%. Borrow short-term, lend long-term.


Then they gear it up 2.7 times and are showing their investors 12% "risk free". At that point in the story I started laughing so hard my eyes were watering.

Right now the 30-day treasury yield is 4.51%. That is the risk-free rate of return. That's the number you plug into your slide-rule to do options pricing.

If someone is offering you greater than 4.51% at 1:00 pm EDT on 5Jul07 you are, by definition, taking on risk. Period.

Now don't get me wrong, risk is good. Risk allows you to die with a garage full of stuff. Like a helicopter. In the garage. On your yacht. There was one with a 3000 square foot master suite offered on ebay last year for $168 million.

The second problem with the story is: the minute you use leverage you no longer have an arbitrage. You might still have a really, really good hedge, a six-sigma hedge; but it's not an arbitrage. Remember that wonderful term of the eighties "Risk Arbitrage"?
Only one of the words was accurate.

There are three types of people who would say "We protect against all losses through hedging"

1. A fool-they don't even understand the game.

2. A moron-they may have some nifty swaps and other derivatives to hedge against the one and two standard deviation event risk, but what about the 3,4 and 5 SD risks? Last night I heard a farmer in Kansas say "We had our last once-in-a-hundred-year flood in '86". Now that guy understands, I'd bet he knows more about markets than the folks at LTCM

I'm sure the forex guys have the currency risk covered, they may even have something to cover a magnitude 9.5 Tokyo earthquake. But what if your counter-party had physical exposure you didn't even think of? Maybe their bullion vault was on the fault-line. There's no Force Majeure, only insolvency.

3. A liar.

The guys I traded with as a pup would right now be figuring out how they'd like to furnish the historic mansion in a middle-market-newspaper town that they just took from the 1, 2 or 3 above, forex guys....

...I forgot to mention the "journalist" who wrote the carry-trade story was touted as being "the author of more than 20 books on business and investing".
The mansion recently sold for $1.55 million.
Here are some pics of the house. It looks like a nice pile of stones, if you're into the Richardsonian Romanesque thing:
Colliers Turley Martin Tucker













Friday, December 16, 2016

How to Spot a Hedge Fund Fraudster

A repost from August 2013:

Bombast. In my experience they are all bombastic.
And stripper poles.
You would not believe the number of stripper poles that crooks collect.

Via Santangels Review:
This is a great article from Alpha magazine. They seem to have spotted a live “hedge fund” fraud.  The article, written by Amanda Cantrell, does an excellent job laying out the various red flags that led them to believe this hedge fund was not real. From my studies of SEC and court filings of convicted hedge fund fraud cases (here, here and here), it seems like the same handful of due diligence checks would lead one to run away from any of these frauds before even meeting the manager or studying their strategy. They are (in no particular order):
7.Something “odd” (For example, the fund in the Alpha article was supposedly managing $4.6 billion, but was accepting investments of a minimum of $30,000)...MORE
Some of the varlets who have graced our pages:

More Strip Clubs, Private Jets and Ponzis
...“Credit card and bank records show that Martin spent more than $1 million at a strip club and restaurants, nearly $1 million at elite hotels and another $1 million renting flight time on private jets,” prosecutors said.  “He purchased a fleet of luxury vehicles, donated hundreds of thousands of dollars to celebrity charity events, and hired personal security guards to accompany him in public.”...
The Dénouement: Perpetrator of $190 Million Foreign Exchange Ponzi Scheme Sentenced
...According to court documents made public, Cook purchased a Rolls Royce Silver Spur, a Maserati Quattroporte, a Hummer H2, a Jaguar S-Type, a Mercedes-Benz, a heavily customized Audi S8, a 60-foot houseboat (complete with a brass stripper pole), an island in Canada and a two-person submarine....
The Stripper and the Ponzi Schemer
A Holly Golightly for the Stripper-Embezzlement Age

Finally, no strippers but pretty funny.

Planktos Highlights Real Ocean/Climate Crises & Responds to Recent Misinformation Campaigns
But first, one of my favorite examples of a stock scam (I told you, I have a morbid fascination with the underbelly of the markets, it's like watching the lions approach the wildebeest at the watering hole, you don't want to see it but you can't look away):
...Peter Uttley, Equisure's chairman and a former Lloyds of London executive, took control of the company this week, assuming the chief executive post....

...Uttley said in the press release that his chairman role had been a "passive" one, but he now plans an active reorganization of the company, whose reputation has been stained by allegations that it is a scam insurance operation....
...In an unusually emotional statement to the press, sent from an Equisure board meeting Friday in London, Uttley told his version of events over the summer, which eventually led to the delisting of Equisure shares on the American Stock Exchange.
"The simple truth was consumed in the belly of deception, but now has been vomited for the world to see," Uttley began.
He then proceeded to tell a story of three men, whom he described as "liars," "cheats," and "scallywags," who worked with law enforcement officials and the press to spread false rumors about the company with the intent of buying Equisure out at 50 cents a share, a tiny fraction of the stock's trading price of $15, before AMEX suspended trading Aug. 1.
Isn't that damn fine bloviating? It's hard to research but I think Uttley et. al. got away with $100 mil....

Wednesday, February 8, 2012

More Strip Clubs, Private Jets and Ponzis

Why is it that every story about fraudsters has something like this in the story?
From Patrick Pretty.com (covering Ponzi schemes and internet crime):
...“Credit card and bank records show that Martin spent more than $1 million at a strip club and restaurants, nearly $1 million at elite hotels and another $1 million renting flight time on private jets,” prosecutors said.  “He purchased a fleet of luxury vehicles, donated hundreds of thousands of dollars to celebrity charity events, and hired personal security guards to accompany him in public.”...
See also:
Sept. 2010
The Dénouement: Perpetrator of $190 Million Minneapolis Foreign Exchange Ponzi Scheme Sentenced
...According to court documents made public, Cook purchased a Rolls Royce Silver Spur, a Maserati Quattroporte, a Hummer H2, a Jaguar S-Type, a Mercedes-Benz, a heavily customized Audi S8, a 60-foot houseboat (complete with a brass stripper pole), an island in Canada and a two-person submarine...
Sept. 2011
The Stripper and the Ponzi Schemer
A Holly Golightly for the Stripper-Embezzlement Age

Wednesday, December 23, 2015

Biofuel Booty: Christie’s to Sell Seized Photo Collection Valued At $15 Million

At least it wasn't stripper poles.*
Back in 2013 we had a couple posts on RINS but Alphaville went deeper into the 2300% move.**

From The Art Newspaper:

Christie’s to sell 2,000 photographs seized by US government in biodiesel fraud
Collection valued at more than $15m was used to launder money, Attorney’s Office says

Christie’s to sell 2,000 photographs seized by US government in biodiesel fraud
A highlight of the collection is Gustave Le Gray's 1856-57 albumen print Bateaux quittant le port du Havre (navires de la flotte de Napoleon III), est $300,000-$500,000. Photo: Christie's Images LTD 2015
In 2013, the US Attorney’s Office in Newark, New Jersey, filed an action seeking the forfeiture of a 2,000-strong collection of photographs valued at more than $15m. The works had been bought by Philip Rivkin, the owner of the Houston-based company Green Diesel, who this June pleaded guilty for his role in a massive biodiesel fraud scheme. The Attorney’s Office says the photographs were bought using the proceeds of the fraud, allegedly to launder the money. The US government has now consigned the confiscated works to Christie’s, which will sell them in a series of themed auctions in New York starting 17 February 2016.

Among the works are prize examples by 19th- and 20th-century photographers such as Alfred Stieglitz, Paul Strand, Edward Weston, Edward Steichen, Man Ray, Henri Cartier-Bresson, and Josef Sudek. A highlight fr om the first sale is a rare 1856-57 albumen print by Gustav Le Gray, Bateaux quittant le port du Havre (navires de la flotte de Napoléon III), which shows the French emperor’s fleet leaving port. According to media reports at the time, the work set a world record for the artist in 2011 when it was bought by a Texas oil magnate for €917,000 at the auction house Rouillac in Vendôme, outside Paris. Christie’s is offering it with an estimate of $300,000 to $500,000.  

Christie’s auctions will start with a special live evening sale on 17 February, as well as morning and afternoon sales the next day; online-only sales will then run through the rest of the year. Each auction will be themed around a subject, such as America the Beautiful, or focus on certain photographers. Rivkin is known to have owned a number of works by Weston, for example, so another highlight of the first sale is his Shell (1927, printed around 1930), which is signed, dated and numbered “24-50”. It carries an estimate of $250,000-$350,000.

Rivkin’s company Green Diesel billed itself as a biodiesel producer, but the Attorney’s Office says it did not generate any actual fuel. It did however sell renewable energy credits (as required under the Clean Air Act) to companies such as Shell, BP, Citgo and Exxon that turned out to be invalid, resulting in losses of more than $78m. Months after agents from the Environmental Protection Agency visited the Green Diesel facility in 2011, Rivkin and his family left the US for Spain, according to court documents. Soon after, Rivkin had his art collection moved to a warehouse in New Jersey and then New York, wh ere it was seized before it could be shipped to Spain....MORE
*From 2013's "How to Spot a Hedge Fund Fraudster":
Bombast. In my experience they are all bombastic.
And stripper poles. You would not believe the number of stripper poles that crooks collect....

...Some of the varlets who have graced our pages:
More Strip Clubs, Private Jets and Ponzis
...“Credit card and bank records show that Martin spent more than $1 million at a strip club and restaurants, nearly $1 million at elite hotels and another $1 million renting flight time on private jets,” prosecutors said.  “He purchased a fleet of luxury vehicles, donated hundreds of thousands of dollars to celebrity charity events, and hired personal security guards to accompany him in public.”...
The Dénouement: Perpetrator of $190 Million Minneapolis Foreign Exchange Ponzi Scheme Sentenced
...According to court documents made public, Cook purchased a Rolls Royce Silver Spur, a Maserati Quattroporte, a Hummer H2, a Jaguar S-Type, a Mercedes-Benz, a heavily customized Audi S8, a 60-foot houseboat (complete with a brass stripper pole), an island in Canada and a two-person submarine....
The Stripper and the Ponzi Schemer
A Holly Golightly for the Stripper-Embezzlement Age...

**We went with the cringe-inducing headline "Ethanol: 'Oh, the RINsanity!'" while Izabella had the more normal sounding "Of Bitcoins and RINs" with a recapitulation this year: "Of crude bottoms and Rins".

Friday, September 21, 2018

"Ponzi scheme unraveled by feds used CLOs of consumer portfolios"

A quick keyword search of the 47 page SEC complaint makes no mention of strippers, strip clubs or stripper poles. Highly irregular behavior in Ponzis.* These guys are sick.
There is a picture of a nice Bugatti Veyron though so maybe they still have some Ponzi cred.

From MarketWatch, Sept. 21:
Three men indicted this week for allegedly running a complex half-fake, half-real Ponzi scheme used the promise of high returns from buying, selling and collecting collateralized subprime and defaulted consumer loan portfolios to defraud doctors, lawyers, accountants and small business owners of more than $364 million, according to indictments filed by the U.S. Attorney for Maryland district.

At a joint news conference held by the Securities and Exchange Commission and the Department of Justice, FBI special agent in charge Gordon Johnson said the fraud was uncovered based on a tip.
“Most of these investors are just learning that they have been victimized,” U.S. Attorney Robert Hur said at the conference. “The effects of this kind of fraud can be devastating. We urge anyone who thinks they may be a victim to contact the FBI.”

A collateralized loan obligation purchases pools of bank loans made to individuals and businesses. CLOs raise funds received by issuing of debt and equity to acquire diverse portfolios of loans.

From at least 2013, Kevin Merrill, Jay Ledford and Cameron Jezierski, along with six affiliated companies also named as defendants, allegedly peddled the CLO scheme to investor groups, investment funds and special purpose vehicles organized by investors in Dallas, Chicago, Maryland, and Colorado, as well as from individuals. More than $90 million was invested by over 200 individual investors, approximately $52 million by family offices, and nearly $203 million by feeder funds, largely made up of groups of individuals.

The SEC alleged Merrill and Ledford spent more than $10.2 million on at least 25 high-end cars, $330,000 for a 7-carat diamond ring, $168,000 for a 23-carat diamond bracelet, millions of dollars on luxury homes, and $100,000 to a private fitness club.

Lance Wade, who represents Kevin Merrill, did not respond to a request for comment. Attorneys for the other two men were not listed in court filings.

The defendants offered and sold various forms of securities to the investors with the promise of significant investment returns from a mix of real and fake buying and selling of consumer dept portfolios— generally auto, credit card, and student loan debt—that is often sold in portfolios made up of thousands of individual debtors’ accounts.

Daniel M. Portnov, counsel at the Law Office of Sara Kropf PLLC, told MarketWatch, “Consumer debt has replaced residential mortgages (RMBS) as this decade’s hot securitized investment vehicle and certainly caught the notice of feeder fund and family office investors trying to outpace the market.”

During the time they were allegedly operating the fraud, they did sometimes actually purchase, service, and sell a limited amount of real consumer debt. They also made payments to investors of approximately $197 million, but most of that money was just money received from other investors, according to the SEC’s complaint.

The actual business and the payments were used to support the fabrication of much more fake activity that could deceive investors into believing that their investments were generating a return. As a result, the SEC’s complaint says, “many unsuspecting investors were victimized repeatedly and referred other prospective investors” to the defendants.

The trio’s securities offerings included $1.5 million raised by Ledford beginning in 2014 using one of the indicted companies, Riverwalk Financial Corporation, which he controlled. Ledford filed a Form D with the SEC, a form of securities offering which is exempt from typical registration requirements....MUCH MORE
*Manafort Indictment: I Should Have Been Long Antique Rugs Instead Of Stripper Poles
Usually these guys go in for stripper poles. So you try to have some inventory should they ever cross your path. But noooo....

From 2013's "How to Spot a Hedge Fund Fraudster":
Bombast. In my experience they are all bombastic.
And stripper poles. You would not believe the number of stripper poles that crooks collect....

...Some of the varlets who have graced our pages:
More Strip Clubs, Private Jets and Ponzis
...“Credit card and bank records show that Martin spent more than $1 million at a strip club and restaurants, nearly $1 million at elite hotels and another $1 million renting flight time on private jets,” prosecutors said.  “He purchased a fleet of luxury vehicles, donated hundreds of thousands of dollars to celebrity charity events, and hired personal security guards to accompany him in public.”...
The Dénouement: Perpetrator of $190 Million Minneapolis Foreign Exchange Ponzi Scheme Sentenced
...According to court documents made public, Cook purchased a Rolls Royce Silver Spur, a Maserati Quattroporte, a Hummer H2, a Jaguar S-Type, a Mercedes-Benz, a heavily customized Audi S8, a 60-foot houseboat (complete with a brass stripper pole), an island in Canada and a two-person submarine....
The Stripper and the Ponzi Schemer
A Holly Golightly for the Stripper-Embezzlement Age...

Thursday, May 4, 2017

"Is This the Most Valuable Car in the World?"

The vehicle we tout as the world's most valuable is a 1907 Rolls-Royce:

Here's the motorcar that was first called the Silver Ghost, registration no. AX 201, now insured for £50m.


https://upload.wikimedia.org/wikipedia/commons/a/a2/Rolls-Royce_Silver_Ghost_at_Centenary.jpg

However this is based on the insurance valuation, it never traded hands at that price. Should the Ferrari sell at auction near the top end of the estimate it would take the title.

From Bloomberg:
With the death of Atlanta flea-market magnate Preston Henn, a vintage Ferrari is poised to test the $100 million mark.
https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iqDGQgBSqOiA/v0/1200x759.jpg
One of the most coveted cars in the world lost its driver this week when Atlanta millionaire Preston Henn, a flea-market magnate and racing aficionado, died at age 86.

Make no mistake, the 1964 Ferrari 275 GTB/C Speciale could well be the Ferrari, the most rare and storied specimen from a brand built on scarcity and lore. It may also be the world’s first car to break the $100 million mark, provided it finds its way to the auction block. 

What is it, mechanically?
Critically, the 275 GTB was designed by Pininfarina, the Italian firm responsible for the bodywork on some of the most coveted Ferraris and Alfa Romeos. When it went into production, Ferrari had recently restructured as a public corporation. For the first time, cars for the road and weekend warrior drivers were no longer solely seen as a way to finance racing teams. Today, cherry versions of the 275 GTB are valued at about $2.4 million.
https://assets.bwbx.io/images/users/iqjWHBFdfxIU/ioyjiubsymmM/v1/800x-1.png
A few of these machines, however, were built for racing and stamped with a “C”—for “Competizione”—and "Speciale" (lest one think it common). Closer in lineage to the GTO Ferraris that took Europe's racetracks by storm in the early 1960s, the "special" 275 GTBs had thinner body panels and a more spindly infrastructure, a metal diet that trimmed 300 pounds in all. Its engine was mounted lower in the body for better handling. With six carburetors, one for every two cylinders, the car produced 330 horsepower. At the time, that was forza with a capital F....MORE  
In 2014 a 1964 Ferrari 275 GTB/C Speciale by Scaglietti was hammered down by RM Auctions/Sotheby's for  $26,400,000:

 

A couple of 250 GTO's have sold for more; Stirling Moss' 1962 sold for $38,115,000 while a 1963 was reportedly sold in a private transaction for $52 million.

Saturday, August 8, 2026

Barry Diller Tells Some Stories

From one of the internet's tiny treasures, Delancy Place, August 7:

Saturday Night Fever and Grease 

Today's selection -- from Who Knew by Barry Diller. As the chairman and CEO of Paramount Pictures, Barry Diller championed little-known John Travolta and the unorthodox Saturday Night Fever in 1977: 

“Then, two months later, we opened Saturday Night Fever. All of us inside the company loved the little movie we'd made, and with hubris we decided to preview it for the industry at the grand Chinese Theatre on Hollywood Boulevard thinking that if we were standing this tall behind it everyone would take notice. At five of eight, the place was practically empty. Our old-time head of publicity came over to where I was sitting and whispered in my ear, ‘Travolta's the problem; he's a television person. You don't put a television person in a movie. The kid just doesn't put asses in seats.’ Well, not old Hollywood asses. But two weeks later we opened the movie, and there were vast lines around the block at every theater across America. Television execs and a television star had broken into the movies. We were on our way. The next year, 1978, we went from last place to first among all the major studios. And we would stay number one for the next seven years. Miracle of miracles.

“The most emotional moment for me, the most personal from those beleaguered Paramount beginnings, came after Variety headlined in big black type blazoned across its front page, SATURDAY NIGHT FEVER # 1 IN 17TH WEEK.

“A package arrived for me from the forty-second floor. Charlie Bluhdorn had the article encased in a silver frame. On it, he had handwritten the message ‘No one but no one deserves this more than you.’

“I still keep it close.

“It was a shock surprise to the industry, this solid hit from nowhere, but it was emblematic of how we were changing how movies got made. Kevin McCormick, a young producer working for Robert Stigwood, saw Nik Cohn's New York magazine article ‘Tribal Rites of the New Saturday Night’ and bought it. That article became the loose basis for Saturday Night Fever. We heard about it, thought it was simply a great and original concept, and started to develop it–no stars, no pedigree, no package, no nothing–just a good idea.

“Dealing with Stigwood was a movie in itself. He was a British music impresario who'd worked with the Beatles and then the Bee Gees. He'd never made a movie, but had great instincts and was beyond a world-class promoter. In his early forties then, he was so pickled in alcohol he looked more like a lobster claw than any human being I've ever seen. He had that skinny, long, bright-red English face, and he lived a kind of grand life at a time when people were not really living grand lives. It wasn't good enough to rent a car in Los Angeles. He had his Rolls-Royce flown over.

“I never thought Stigwood had any real sense of how to ground-produce anything, but he had the shrewdest instincts about talent and promotion. He was prickly and one of those people you wanted to talk to as early in the morning as possible. As the day wore on, particularly as the evening wore on, he was subject to late-night rages. He would drunkenly call me at ten p.m., eleven, midnight, and then two in the morning. We'd have these deranged conversations, and the more he went on, the more his anger and paranoia deepened. I finally banned him from calling me at night. But thank the gods he came to us, and thank the gods we took him in with all his excesses. Before he inserted himself into Saturday Night Fever it had nothing to do with the Bee Gees. As the film developed, its internal rhythm called out for a great music score, and right there was the intersection of the Bee Gees and John Travolta, and out came that historic disco dance scene, just like the uptown and upmarket ones I was separately experiencing at the just-opened Studio 54....

....MUCH MORE