Bond Fraud

Here is an interesting article about municipal bond fraud.

From 1998 until 2006, Murphy allegedly conspired with CDR Financial Products to increase the number of and profitability of investment agreements and municipal finance contracts that went to the bank, according to the indictment. Murphy won auctions for the investment contracts after other banks submitted intentionally losing bids, the government said.

12 comments ↓

#1 Justin on 07.22.12 at 11:59 am

Fixed government bidding processes?

To quote Casablanca I’m “shocked, shocked”.

Until I look at the gop trying to tell the defense department they need a bigger budget for government military contracting while pretending to care about balancing the budget. What is it about an extra 200 billion annually Ryan is looking for?

I’m shocked, shocked.

#2 Testor15 on 07.22.12 at 12:27 pm

This is some of what bothers about the secret nature of the bond sales for the TIF, EC and other strange financing ‘needs’. We keep borrowing money and ‘investing’ without an actual income stream to support them. We keep betting on the come.

#3 Justin on 07.22.12 at 12:38 pm

This is one person in the muni business. I know plenty of trustworthy bankers in that business.

Since we are the second rated for government fraud potential and second in actual convictions of fraud per capita amongst public employees it is good to be diligent. I’m a lot more worried about the state level though.

#4 Pathloss on 07.22.12 at 3:25 pm

Look right in your own city. There was not a competitive bid process for the events center. Money from the bonds is coming in and being spent on other city play prettys. 110 million is hardly a third of what it costs to build an events center. It’s a guise to float bonds and jeopardize city credit worthiness.

#5 Pathloss on 07.22.12 at 3:30 pm

Investors ran into muni’s to escape bond corruption. What’s happened is the same crooks developed a muni scheme. Municipal bonds are the next federal bailout. Everyone but investors will get reimbursed. Brokerages (especially) will profit. 30 major cities are involved. If you give politicians money, they’ll take 10% and spend the rest on monkey crappers.

#6 l3wis on 07.22.12 at 5:17 pm

“Money from the bonds is coming in and being spent on other city play prettys. ”

Exactly. And that is what worries me about our debt ceiling being only $116 million dollars away. Heck, Munson spent that in his last 4 years in office. We shouldn’t be borrowing money for things that are not needs (like monkey spas and bunny hills).

#7 Justin on 07.22.12 at 6:00 pm

I think you will agree with me that a downtown monkey spa is a great idea but it would be a waste of money in any other location.

#8 Bond Perilous on 07.23.12 at 11:14 pm

A monkey spa is probably more financially sustainable at the Arena though. You know, economies of scale and all…

#9 Bond Perilous on 07.23.12 at 11:18 pm

You’re right though…A downtown location would have a greater economic impact. Billions!

#10 Justin on 07.24.12 at 3:03 am

Says the guy who claimed half a billion in capital would come into downtown if it were built there.

#11 Bond Perilous on 07.24.12 at 1:52 pm

I guess we’re not ready to share a laugh together. Too bad.

#12 Justin on 07.24.12 at 11:24 pm

I’m open to it.

I have no hate for anybody here because I disagree with you.

Pardon me for not thinking that was funny though.

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