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A scheme


HHAYD
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Matt Brock, an average citizen, sat in his office desk in his house. He was reading a Silverman Sachs' investment advertisement and it promised significant returns. 25% return on investment, and even though it seemed a little suspicious, his financial investment adviser/management company, Wilrate, convinced him that Silverman Sachs' investment is legit.


What Matt Brock didn't realize was that Wilrate and many other investment adviser/management companies were secretly controlled by a puppet master, Silverman Sachs.


What he also didn't realize was that Silverman Sachs' investment scheme was a house of cards, and it would soon collapse.

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25 years ago:

"You scored a 14 on the ACT?! Are you serious?! Your brother Jake just scored a 36 on it only a month ago!" Greg Sachs screamed as Austin Sachs winced in fear.

"Your GPA is a mediocre 2.6! Your siblings all have 4.0 GPA! How could you do so poorly in school while they do so well?! You're nothing but a hopeless lazy idiot!" Greg continued to fume.

After about 20 minutes of hearing his father angrily rant, Greg locked himself in his room and thought to himself privately. His family alienated him, his past three girlfriends dumped him in a span of one year and his friends, also with above 3.7 GPA, had broke off their friendship with him.

There was one thing that none of his siblings and friends couldn't do.

Generate thousands and thousands of dollars with ease. None of them, including his parents, knew about his activity in the stock market. If he couldn't succeed academically, he would beat them financially.

He then walked out of his bedroom, smiling.

---------------------------------------------------------------------------------------------------------------
Present day, at Austin's office in Silverman Sachs' HQ:

Austin was cooking up a new plan to make himself even more wealthy. The current heavy investment in the stock market was no longer cutting it. He needed to bring in more cash. Then something struck him.

He immediately started to scribble on a piece of paper. A group of clients would send him money after promising them large investment returns. They would then spread the word by mouth and bring in new clients. The new clients would also send him money, but he would use it to pay the old clients' investment returns and use the rest of the money to enrich his company and himself. His company's reputation as an excellent investment company would help him significantly in attracting new clients.

It couldn't go wrong, as long as he had a constant fresh source of money.

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In Farwe Investment:

"This company is making a killing! Why can't you build a calculating program that can match his investment returns?" Jake Farwe asked, the president of the investment company. "Silverman Sachs' investment returns and the companies they claim they invested in contradict. My teams ran the numbers repeatedly and even the most optimist results only achieved about 12% returns, far below SS's advertised 25% returns." George Quike replied, the lead programmer of Farwe Investment's famous investment number crunching calculation program. "Certainly you can outdo Silverman Sachs." Jake replied.

"No, I can't, not even with thousands of programmers with IQs in the triple digits, billions of dollars of funding and an ultra super computer. Either Silverman Sachs is filled with geniuses that are extremely lucky, or their investment is a !@#$@#$ fraud. In fact, we might be looking at the early stages of a Ponzi scheme."



But Jake wouldn't listen. Despite George's protests, he would invest $2.6 billion into Silverman Sachs. Not only Jake would never see the money again, but he also indirectly helped Austin Sachs in emptying other people's pockets.

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[b]In Calgari...[/b]

"Do you think the Don will like it?"

"I don't know yet, but I have this feeling he might be open to it."

Two figures dressed in dark suits topped with dark fedora hats were walking through a hallway toward a door, their polished shoes trodding over the carpeted room.

Reaching the door, the two figures looked at each other before nodding as one of them reached out and grasped a doorknob and turned it. Opening the door, they saw that several figures were in there already along with the Don. They turned their heads to look at them.

The silence that followed was awkward as one of the two figures cleared his throat before stroding over to the Don's desk.

"Don Tattalgia, we have--" One of them began to speak before he was cut off.

"You are speaking about Silverman Sachs, am I correct." The Don's voice, commandering in nature, echoed from his chair. The last part was less a question than it was an actual statement.

The man who had spoken first remained silent as he nodded.

"Yes, sir. You see, we have--"

Tattalgia interjected once again. "I know what you are going to say, Paul Guiliano, and that Silverman Sachs seem to be a profitable investment that could potentially generate profit, power, and influence for the Tattalgia Family." Don Tattalgia spoke in a steady voice, his face never changing.

Paul Guiliano, looking at Tattalgia's demeanor, couldn't help but get the feeling that the Don looked for a instant like Don Vito Corleone, who was the head of the Corleone Family, who controlled Nadrink.

"That, and Silverman Sachs is located in the Midwest Republic." Another voice to Guiliano's left said. Bruno Tattalgia snorted a bit as a derisive smirk crossed his lips slightly as he leaned on a wall. "But the Midwest Republic is headed by incompetent fools, and Silverman Sachs will provide us a surefire way to assert dominance not only over that corporation, but also over the Republic itself."

"Surely, the Midwest Protectorate isn't enough?" Guiliano's partner, Joseph Silva, asked. Bruno laughed.

"Nothing is enough for this Family! The sky's the limit, Jose!" Bruno began to gush before his father raised a hand, quickly silencing him.

"Bruno, enough." Tattalgia said, a slight frown caressing his face. "This is not the time to discuss dominance or takeovers. In this operation, we are merely expanding the scopes and options of this Family, that's all."

"So, what do you suggest we do?" Paul spoke up, curiosity in his voice.

"We invest." Tattalgia replied. "We invest money in it. After all, it seems like a solid organization, and one that has the potential to generate profits for it. But as we must not be too careless with our money in such an endeavor -- after all, you must take into account risks associated with such endeavors -- we will begin to invest $1 million, and go from there."

"$1 million? You sure about that?" Jose spoke up in turn. Bruno smirked.

"Of course, it will be enough. It would provide us a good headstart over the other Families in this country, especially the Corleone Family. Of course, I personally don't mind Vito, but I absolutely cant stand that !@#$%^& of his son, Sonny. He--"

"Bruno." Tattalgia said, a hint of an irritated growl in his tone. Bruno took the hint, pouting a little as he leaned against the wall, crossing his arms.

Turning to Paul and Jose, Tattalgia continued. "Go and invest $1 million into Silverman Sachs. Send our representatives to meet with them to discuss our investment. But keep it discreet. You understand me?"

The two men nodded. "Understood!"

Paul and Jose would duly send representatives to the Midwest Republic and enter into talks with Silverman Sachs officials, posing as legitimate businessmen.

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In Chicago, in the Chicago Mafia's HQ's meeting room:


"25% investment return... 25% return rate..." Ralph Ryan stammered, the president of the Mafia.

"I think it's too good to be true. Look at all of the other investment options, they have only single digit returns, except for the junk bonds." Brune Wake replied, the vice president.

"It wouldn't hurt if we dipped two million into it. If it turns out to be a scam, we'll beat the money out of them." Greg Huiwer boasted, the director of the financial team.

"We can't just walk up to Silverman Sachs and say, [i]"Yeah, we want to invest two million, and oh, we're the Chicago Mafia."[/i] They would soil their pants and flee." Brune warned.

"Obviously we use our legitimate businesses to invest. What kind of an idiot would do that?" Greg laughed.

"Hmmm..." Ralph mumbled to himself.

------------------------------------------------------
Four years ago:

"Well !@#$, some of our friends in EnFu busted us, canceled our investment and I wouldn't be surprised if they called the cops on us!" Greg yelled as he read the email sent from EnFu's legal team.

"Maybe, if you idiots did even a half-baked job at disguising our investment using our legitimate businesses, we wouldn't have to bribe some of their workers, and THEY WOULDN'T HAVE BUSTED US!" Ralph screamed.

"Already tried that! How the hell are they not going to be suspicious when two dozens of seemly small businesses pool a total of 300 million worth of investment?!" Greg shot back.

"You invested how much?! I TOLD YOU ONE !@#$@#$ MILLION, NOT 3, NOT 30, NOT 300 YOU DIP!@#$! Goddammit, I'm going to have to give Fred a nightmare when I call him up to organize an operation to bring our money back!"

"Even if I invested one million, you would've have to send in a team to extract the money anyways!"

"But we could've used our legit businesses as cover until we get a larger one rolling!"

"But we needed to invest large, now! Their stock's return rates and stability are far superior to any other stocks!"


TV:[i] EnFu's stock prices have plunged by about $20 today as demands for answers regarding their questionable balance sheet heat up...[/i]


"You were saying Greg?" Ralph unusually calmly asked.

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In Silverman Sachs HQ:

"Two Noverian businessmen had arrived in the lobby and asked if they could invest one million." Austin's secretary informed.

"They didn't schedule this?" Austin asked.

"I'm afraid not."

"Ugh, I'm busy, tell Thomston Nays to handle the two Noverian businessmen."

"Yes sir."

------------------------------------------------------------
10 minutes later:

Thomston entered the lobby. It was quite spacious, had marbled floor, marble/glass paneled walls and a four story tall marble/silver painted ceiling. Thomston was a newbie deal broker for Silverman Sachs and only had two years of experience, though he was quite competent in his job.

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In Silverman Sachs HQ:

"The SERC sent an investigator, he's waiting in the lobby." Austin's secretary informed.

"I'll deal with him." Austin replied as he exited his office and headed straight for the elevators.

In the lobby, Moore Tyri was patiently waiting. He was a newbie as it was his very first assignment to inspect a company, someone that SERC shouldn't have sent to investigate a company that might be involved in a Ponzi scheme.

Austin and Moore greeted each other as they walked to the elevator. Austin offered to be Moore's tour guide and invited to him to lunch, which Moore gladly accepted. When Moore asked how the company was generating a 25% return rate on the investments, Austin replied that their investment strategy was proprietary and confidential, though is highly successful.

Both would be lies. There was no investment strategy.

SERC would later report that Silverman Sachs' investment was legitimate all based on a single newbie investigator's opinion and would not investigate further. A very fatal mistake.

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The two Noverian businessmen smiled as they saw a figure heading toward. Must be a high-ranking business official or something. Just another sucker to be duped into their plan.

"Hello, sir. An honor to meet with you. Name's Paul Guiliano." Paul greeted, a smile on his face. Jose did the same, shaking hands with Nays. "Joseph Silva." He greeted.

"Pardon us for being direct, but is there a place you can take us so we could discuss business?" Paul inquired.

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"Yes, follow me. Our meeting room will be 1256B." Thomston nervously replied. He then led the two Noverian businessmen to the elevator and pressed the 12th floor button. After a few minutes later of waiting for the elevator and in the elevator, the three men entered the small yet well-designed meeting room.

It had a single round table, four chairs, two potted plants and a large window to the outside with shades.

"Please take a seat. What brings you two here today?" Thomston asked.

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In Silverman Sachs HQ, meeting room 1206A:

"Let me get this straight, you are the representative of Welson Corporation?" Frew Tiqu asked.

"Yes, that is true." Jake Ryan

Frew spun around an turned on the TV with the remote controller...



[i]Welson Corporation has been indicted for its numerous connections with the Chicago Mafia and is due to appear in court in November 5th...[/i]

When Frew turned around to face the Welson Corporation's representative, Jake was already gone.

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[quote name='HHAYD' timestamp='1315010880' post='2793287']
"Yes, follow me. Our meeting room will be 1256B." Thomston nervously replied. He then led the two Noverian businessmen to the elevator and pressed the 12th floor button. After a few minutes later of waiting for the elevator and in the elevator, the three men entered the small yet well-designed meeting room.

It had a single round table, four chairs, two potted plants and a large window to the outside with shades.

"Please take a seat. What brings you two here today?" Thomston asked.
[/quote]

OOC: Forgot about this, sorry.

IC:

"We would like to invest $1 million in Silverman Sachs." Paul spoke once he and Jose took their seats. "We feel Silverman Sachs would be a good business venue to invest in, and we are staking a part in that."

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"We won't disappoint you, but before you can start investing in Silverman Sachs, I will need your company's name, address, telephone number, email and what market is your company involved in." Thomston replied after pausing for a few seconds to take in what Paul just spoke.

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[quote name='HHAYD' timestamp='1315681272' post='2798227']
"We won't disappoint you, but before you can start investing in Silverman Sachs, I will need your company's name, address, telephone number, email and what market is your company involved in." Thomston replied after pausing for a few seconds to take in what Paul just spoke.
[/quote]

Paul got out a notepad and scribbled down the company's name, address, telephone number, email, and market on it. He then passed it on to Thomston.

"Here are the information that you need regarding our company." Jose stated.

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[quote name='JEDCJT' timestamp='1315787168' post='2798940']
Paul got out a notepad and scribbled down the company's name, address, telephone number, email, and market on it. He then passed it on to Thomston.

"Here are the information that you need regarding our company." Jose stated.
[/quote]
"Thank you for doing business with us. I'll forward the note to my superiors and see if they will accept your investment. They might request another meeting. I hope we can meet again sometime." Thomston smiled as he quickly scribbled the information a typical financial paper's blank spaces before extending his hand out for a handshake.

---------------------------------------------
Meanwhile...

Austin carefully read three emails that were sent from his family members, both of his parents and one of his sisters.

They wanted to invest a total of about $150,000 into Silverman Sachs.

He smiled as he replied to their emails, stating that he would accept their investments.

Little did his family members and friends know that Austin was more than happy to steal money from them. He was a man of no morals.

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The dough was rolling in. At least half of dozen of banks and investment companies poured nearly $6 billion into his investment, and another dozen were deciding if they should jump onto the bandwagon as well. The timing was perfect, as Ponzi Schemes were always vicious money munchers. Had they waited another month to pour the money, his investment would've collapsed as soon as two of his now-former clients pulled out their investment to keep their less profitable investments afloat.

----------------------------------------------------------
[quote]
To: Matt Ells
From: George Quike

It has come to my attention that Silverman Sachs had promised their clients 25% investment return rate. Despite dozens of different ways of attempting to recreate his figures, even the most optimistic results reported less than 13% return rate. I fear that Silverman Sachs maybe pulling a Ponzi Scheme, especially considering the fact that they managed to deliver consist return returns despite the fluctuating financial market and every other investment businesses delivered lower and more inconsistent returns.

The other possibility is that they somehow have the world's largest group of the smartest and luckiest math geniuses, which I would apologize for wasting your time.

Nevertheless, I have attached a 50 page document with this email detailing how Silverman Sachs' returns seem illogical.
[/quote]

A few weeks later:

[quote]
To: George Quike
From: Matt Ells

I have looked through the document and it seems that Silverman Sachs's investment returns make sense. We have sent an investigator three months ago and he reported that nothing illegal is going on. I thank you for bringing this to my attention, but I'm afraid Silverman Sachs is not pulling a Ponzi Scheme.
[/quote]


"You got to be !@#$ting me..." George muttered as he started at the computer screen, trying to comprehend why SERC couldn't spot Silverman Sachs' obvious Ponzi Scheme.

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Thomston smiled back as he shook their hands.

He had no idea what kind of a mess Silverman Sachs would get itself into when its "investment" comes crashing down like a house of cards.

--------------------------------------------------------------------
Few minutes later:

As the two Noverian "businessmen" walked through the lobby to head back home, about $20 million was plunged into Silverman Sachs via internet by the Chicago Mafia. Austin Sach had approved the massive money transfer to Silverman Sachs' account.

Two mafias, one-third of Midwest Republic's financial businesses, an "investment" with a ticking time bomb, the stage was set. All it needed was a catalyst to cause chaos.

---------------------------------------------------------------------
About a year later:

The Midwest Republic economy was becoming unstable again. Kingston Bank had dug itself too deep into subprime loans and facing a massively decreasing income, it pulled out nearly $600 million out of Silverman Sachs to keep itself afloat. Midwest Commercial Investment became paranoid after one of its multi-hundred million dollars investment crashed and burned epically, it started to yank its dollars out of almost all of its investments left and right, including about $800 million out of SS. Various investors and other banks/investment firms were also being cautious or needed money to keep their failing investments from crashing, and so they pulled out a combined total of about $900 million from SS. All of this occurred within matters of days.

Austin was unaware of the inevitable crisis. Despite the massive pullout of funds, he wasn't concerned. Besides, some investment firms and independent investors were pouring more money into his company because it seemed to be the only investment that isn't wreaked or creaking. What he failed to realize was that amount of money put into his company was not enough to keep it afloat for long.

His company, ironically, had became lazy with its accounting after becoming drunk with money and gradually declined in the quality of the managers, and was overloaded with the massive amount of funding being sloshed around. Warnings eventually came out within a few weeks of the massive fund pullouts. A few investors were informed by their banks that Silverman Sachs had bounced some checks and therefore, the banks couldn't transfer the funds.

When Austin received notifications that his company had bounced a few checks and some calls from his investors ranging from curious to anger, he was surprised. As he attempted to investigate what happened, more calls from his clients arrived as more checks were bounced.

It wouldn't take long for the media to publish the financial wreak, already at least four media companies had investigative journalists working on it...

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"What's wrong with Austin? He hasn't left his office for nearly two days except for bathroom runs and he also refused all of the calls" his secretary asked.

"I don't know. Maybe he's stressed out about how we bounced some checks?" her friend replied.


Austin wasn't just stressed out, he was a basket case when he realized how screwed up SS's finances were. Something that would drive away many investors as many of them would find it absurd that an investment company wasn't able to keep track of its accounting, assuming they didn't know such investment company was running a Ponzi scheme. As he roughly crunched and pieced together the numbers, he slowly came to a horrifying realization.

His clients had invested over 20 billion dollars into his investment.

His company had less than $100,000 left in its bank account, just enough to keep his business running for one or two more days. Small wonders why their bank, Great Lakes Bank, was refusing to honor their multi-million dollar withdraws.

He decided to leave the building and get out of the country before the media gets hold of the story. He had over a hundred million in his personal bank account so he can permanently retire and stay in hiding.


Then the phone rang. He picked it up

"Mr. Sachs?" his secretary asked.

"Tell them I'm busy." he growled.

"It's the Finance Journal and Midwest Republic News. They have been asking to speak to you." she replied.

[i]"Oh, !@#$..."[/i]

------------------------------------------------------------------
Midwest Republic News:

Silverman Sachs, one of Midwest Republic's largest investment firms, has bounced hundreds of checks worth dozens of million dollars this week while attempting to transfer funds to its clients that were withdrawing money. It is not known why SS has bounced such large amount of checks in a short amount of time. Silverman Sachs has refused to comment on the story.

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Few hours later:

"What do you mean Mr. Sachs is gone? We need him now!" Proctar Witman, Austin's right-handed man and vice-president of Silverman Sachs.

"I'm sorry sir, but I saw him left the office a few hours ago. He only told me that there was an emergency." Austin's secretary replied.

"Did you try to call him? He won't pick up his phone."

"I tried as well."

Proctar left in a hurry to continue to look for Austin. Too bad for him that Austin had already left the city.

---------------------------------------------
Midwest Republic News (two days later):

Silverman Sachs has filed for bankruptcy after bouncing thousands of withdraw checks that were meant for their clients. Its president, Austin Sachs, was confirmed missing since two days ago and no witnesses has stepped forward to help the police in tracking him down.

Interestingly, George Quike, a former employee of Farwe Investment (which has gone bankrupt only hours after SS went down), accused SERC of turning blind-eye to SS's inconsistencies in its investments and claimed that he attempted to assist the SERC in spotting the trouble. He also claimed that the reason why SS crashed so suddenly was because it wasn't operating an investment, it was operating a massive Ponzi scheme.

The SERC is currently looking into the sudden fall of SS, but has yet to comment, especially on Mr. Quike's claims.

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