Bitcoin Site Silk Road Indictments

Our correspondent Andreas Frank writes:  Prominent bitcoin entrepreneur Charlie Shrem has been indicted by a federal grand jury in New York on charges of funneling cash to the illicit online marketplace Silk Road.

Shrem, known as one of the digital currency’s most visible promoters, is accused of conspiring with a Florida man, Robert Faiella, to sell more than $1 million in bitcoins to the users of Silk Road despite knowing that it would be spent on illegal uses like drug trafficking

The indictment came after plea bargaining talks with federal prosecutors in Manhattan ended. Shrem, the former vice chairman of the Bitcoin Foundation, and Robert Faiella, who the U.S. said operated an underground Bitcoin exchange called “BTCKing,” are accused of engaging in a scheme to sell Bitcoins to users of Silk Road for illegal purchases.

Shrem, who was also the chief executive officer of a Bitcoin exchange company called BitInstant, and Faiella were first arrested in January and have been free on bond. They’re charged with two counts of operating an unlicensed money transmitting business, money laundering conspiracy and willfully failing to file suspicious activity reports with banking authorities, according to the indictment.

The case is the latest to be brought by Manhattan U.S. Attorney Preet Bharara’s office stemming from a probe of Silk Road, a sprawling and anonymous black market bazaar. Ross William Ulbricht was charged in October with running Silk Road under the alias “Dread Pirate Roberts,” and in December, Bharara charged three more former Silk Road employees with helping run the website. All have pleaded not guilty.

Shrem and Faiella face as long as 20 years in prison if convicted of the most serious charge of conspiracy.

Bitcoins

Is Art a Good Investment?

It depends who paints the painting.  The artist or his impersonator.

The United States has indicted a forger and his accomplices for fraud and evasion of taxes.  The hundred year old Knoedler Gallery in New York closed as part of this disclosure.  One humorous piece of the proceedings is the statement that the artists copied — Jackson Pollock, Mark Rothko and Barnett Newman, were easy to copy.

“The defendants earned more than $33 million from the scheme to create and sell the Fake Works. To conceal the illegal nature and origin of the proceeds from the scheme, Jose Carlos Bergantinos Diaz and Jesus Angel Bergantinos Diaz, the defendants, and Rosales worked together to launder the proceeds by transferring the proceeds through foreign and domestic bank accounts that they controlled.

In addition, as set forth below, to increase the amount of proceeds he kept from the unlawful scheme, Jose Carlos Bergantinos Diaz, the defendant, unlawfully impeded and obstructed the Internal Revenue Service (‘IRS’) by hiding millions of dollars in his unlawful income from the IRS and by knowingly failing to report the existence of the foreign bank accounts that he controlled or maintained an interest in, as required by law.

Finally, in an effort to hide his role in the unlawful scheme, Pei Shen Qian, the defendant, lied to agents of the Federal Bureau of Investigation about his role in the fraud. In particular, during an interview with FBI agents investigating the scheme, Qian falsely claimed, among other things, that he did not recognize Rosales’s name; that Qian was unfamiliar with the names of certain artists (including artists whose names Qian had repeatedly and fraudulently signed on paintings QIAN created, in order to trick purchasers into believing those artists had created the paintings); and that Qian had never attempted to create paintings mimicking the style of certain abstract expressionist artists.”

Is it or Isn't It?

Do You Have to Earn Less to Get a Husband?

Peggy Drexler reports:   Despite the fact that Republicans recently voted down the Paycheck Fairness Act (for the third time), no one dares to argue in favor of gender-based salary discrimination.

No one, that is, except for “pro-family” activist Phyllis Schlafly, who has made a long career of telling women their place is in the home. In case you’re not familiar with Schlafly, she’s a veteran right-wing activist and founder 44 years ago of the Eagle Forum, a conservative interest group that, among other things, opposes abortion, vaccines and working mothers.  Schlafly thinks widening the wage gap is good and that the entire institution of marriage depends on men continuing to earn more than women.

Providing women with equal pay for equal work, she wrote, would lower their chances of finding a “suitable mate,” since, as Schlafly argues, women prefer to marry men who earn more than they do while men prefer to marry women who earn less.

But do they? Or is it that neither gender has had very many choices to the contrary?

Talking about the salary gap between partners is the least romantic thing in marriages. But the truth is that women have long married men who earned more than they did for one main reason: Men have long earned more than women.

It’s not about desire. It’s about numbers. Schlafly says that “men don’t have the same preference for a higher-earning mate.” Maybe that’s because until very recently, the chances that men meet higher-earning women were pretty rare. They still are.

Schlafly doesn’t stop there, though.

She argues that beyond the case for “saving marriage,” women don’t actually deserve equal pay because they “work fewer hours per day, per week, per year.”

She goes on saying that women “place a much higher value on pleasant working conditions: a clean, comfortable, air-conditioned office with congenial co-workers” — as if A/C and friends to eat lunch with were not things that men like as well.

She also ignores the reality that professional men and women do not receive equal treatment or consideration in the workplace. Women earn less than men.  Although Schlafly proposes that the best way to empower women is to make job prospects better for men, that only works — if it works at all — for women who are able, or want, to marry.

She also says, “Suppose the pay gap between men and women were magically eliminated. If that happened, simple arithmetic suggests that half of women would be unable to find what they regard as a suitable mate.” That is, the more men that out-earn women, the more men there are from which those women might choose.

Reducing opportunity and financial independence for women does not empower them. In fact, the result is quite the opposite.

Of course, Schlafly’s latest manifesto isn’t about making logical arguments. She has long been known for courting controversy with her anti-feminism, anti-liberalism, anti-equal rights advocacy — it’s no surprise that she’d latch onto equal pay to further her own platform.

The truth is that a more likely deterrent to marriage is the higher tax burdens that married couples face. Under current tax codes, two-wage earning couples face higher taxes if they marry. This might be tolerable for middle class couples but is less so for those who earn less.

Economically speaking, there’s greater incentive for young couples of modest means to forgo marriage entirely in favor of what Schlafly might regard as (gasp!) living in sin. Schlafly’s message is immensely disempowering for women, but what else would we come to expect from a woman who has made a career of telling women that their place is at home?

Perhaps more importantly, Schlafly’s just got the whole “what women want” thing all wrong. Studies show that women are increasingly marrying men who are less educated and earn less.   Could it be that these women are just taking what they can get? Or could it be that there’s a new norm in town?

Rich Woman

Is India the New China?

Mercedes to assemble in India:  German luxury car maker Mercedes Benz on Thursday announced commencement of assembly of the S-Class sedan in India and has slashed the car’s price by `18 lakh to enhance its position in the country.
The locally produced top-end model S 500 will be priced at `1.39 crore (ex-showroom, Delhi) and will be rolled out from the manufacturing facility in Chakan, Pune, Mercedes-Benz India said in a statement, adding that this strategic move will help to cater to the increasing demand.

UK-based construction gear maker JCB will relocate its compaction equipment production unit to India, closing down its Gatersleben site in Germany.
The move is aimed at strengthening the company’s foothold in emerging markets.
“JCB has decided that, by the end of June 2014, production of all VM Compactors and two larger VM Tandem Rollers will relocate to JCB’s factory in Pune, India,” the company said in a statement.
JC Bamford Excavators (JCB) CEO Graeme Macdonald said: “The decision to relocate production of compaction equipment to factories in the UK and India is right for our business. Demand for compaction equipment has shifted tow-ards emerging markets and manufacturing smaller models in the UK and larger equipment in India is in our customers’ best interests, especially in light of our recent investments in new compaction products.”
He added that this will improve the competitiveness of JCB in the compaction sector and also create a far more sustainable position on which the company can build as it grows the business in the future.

Mercedes

For Women: More Powerful, Less Likeable?

Jack Zenger and Joseph Folkman writing in the Harvard Business Review:

A businesswoman has a conversation with her five-year-old daughter. “What if I told you that as Mommy does better at work, fewer people like me. But when Daddy does better at work, more people like him. What would you say?” She expected her child to say, “Well thatʼs really unfair, Mom.” But what she said instead was, “Well then, Mommy, I would be less successful at work so more people will like me.”

In a recent interview,  Facebook COO Sheryl Sandberg recounted this story to underscore the importance of a body of research that she cites in her book Lean In indicating “that success and likability are positively correlated for men and negatively correlated for women.”

We share Sandbergʼs disappointment in this young girlʼs response. We too would like to see women lean in further. And we share her view that barriers, both external and self-imposed, stand in the way. But our work with leadership development and 360-degree assessments does not confirm that a likability penalty as women rise to the top is one of those barriers. While, certainly, some individual women may find themselves disliked as they move up the organization, our aggregate data show the opposite is more common — that male leaders are perceived more negatively as they rise, whereas women generally maintain their popularity throughout their entire careers.

Hereʼs how we came to this conclusion. Taking items from our 360-degree feedback instrument such as “Do you stay in touch with issues and concerns of individuals in the work group?” and “How well do you balance getting results with a concern for othersʼ needs?” we created a likability index. (For a detailed explanation of how it was created and to take the quiz yourself, go to our website. (http://zengerfolkman.force.com/likabilityquiz) ) We then analyzed a group of 9,500 male and 5,000 female leaders who participated in our programs in the past three years. Using our scale, we compared their level in the organization with how well liked they were by their bosses, peers, and direct reports. On average, 10 people assessed each leader.

Likeability

 Likability and success actually go together remarkably well for women. Parents can accurately and unhesitatingly tell their daughters, “Aspire for positions of power and influence, and when you get promoted, it is totally your choice whether you act in a way that will have people continue to like you or not.”

Oil and Money in Indian Elections

Sanjay Bohra reports:  Former BJP leader Jaswant Singh, who rebelled against the party to contest Lok Sabha election from Barmer, has claimed that Rajasthan chief minister Vasundhara Raje was instrumental in the party’s decision to deny him the ticket.  Ms Raje, according to many people in Rajasthan, did it so out of personal animosity between the two leaders. However, others think the decision was part of big change in the BJP’s social engineering under its prime ministerial candidate Narendra Modi to shift banking on traditional Rajput, Bania, Brahmin votebanks to OBCs. Thus, Ms Raje chose Col. Sonaram as he belongs to the most influential political OBC community in Rajasthan.

The battle between Mr Jaswant Singh and Col. Sonaram or Ms Raje is not about winning the Lok Sabha election. The once sleepy town of Barmer is now buzzing with economic activities thanks to oil and gas discovery a decade ago. Big bucks followed as demand for real estate boomed and the discovery was followed by an announcement that a refinery would be set up in the area.
Just to put things in perspective, the Rajasthan government receives approximately `5,000 crores per annum in sales tax and royalty from the sale of crude oil.

Politicians have purchased land in anticipation of a refinery being built. Land acquisition was a big issue during the Assembly elections, in which Col. Sonaram was a key player as he had opposed the Rajasthan government’s move to shift refinery site from Lilala to Pachpadra. The land in Lilala was to be acquired from farmers, who demanded `1 crore per bigha for land that had no takers a few years ago and was available dirt cheap. If refinery shifts to Pachpadra, it means those who bought hundreds of acres in Lilala, in anticipation of a refinery being built there, now stand to lose big bucks. Besides, who wouldn’t like to control the flow of money through various contracts?

Barmer, India

College Debt Greater than Credit Card Debt in US

Eizabeth  Warren’s bill to penetrate the dilemma of college debt did not survive debate in the US Senate.  Senate Majority Leader Harry Reid will try to bring it up again.   The bottom line in Warren’s argument and President Obama’s is that the massive student debt held by Americans is slowly economic growth and is fundamentally unfair.

As to the economic issue, there is no question that recent graduates crippled by the burden of student debt, live at their parents’ home instead of renting or buying their own homes, do not buy cars, and keep their expenses to a minimum.  Freed from at least a portion of their debt, they would probably contribute to the nation’s growth by buying more.

It is also true that other groups are given advantages students are not.  Banks in TARP, subsidies to banks represented by Federal Deposit Insurance, and corporate tax advantages are among the obvious skews to that industry.

While real questions about who should go to a four year college and on to professional education, and who should be trained in two year colleges for available work remain, and are often too politically charged in America to even be debated, something is very wrong if college debt exceeds credit card debt in the US.

Student Loan Debt

 

 

 

State Senator Arrested for Involvement in Arms Trafficking

Well-known California democrat legislator Leland Yee was indicted along with 28 others for various crimes, including corruptions and conspiring to traffic in firearms, local authorities reported.

The Senator, who until recently was running to become the democrat candidate for the election of California Secretary of State, was accused by a San Francisco Grand Jury last Friday, April 4.

Leland Yee was arrested along with 28 others on Wednesday, March 26 in series of raids carried out by different agencies led by the FBI, accused of accepting bribes and corruption, among other charges, and is linked with the delivery of at least $42,800 dollars in campaign contributions an FBI agent gave to one of his assistants.

Besides these accusations, the democrat Senator has been accused of participating in official acts in exchange for $70,000 which were given to him by undercover FBI agents.

Yee, who is 65 years old, plead not guilty to these accusations and was set free after bail was set at $500,000 dollars; however, if he’s found guilty, he might face a sentence of over 100 years in prison and over half a million dollars in fines.

After the accusations against Senator Yee were revealed, various representatives of the Democratic Party in California have asked him to resign, according to a series of emails sent to Reuters.

Rhys Williams, spokesman of democrat leader Darrel Steinberg wrote that “Senator Steinberg renews his demand for Senator Yee to resign, and to resign immediately.”

The California State Senator, who was suspended with pay since he was arrested, is the third California legislator to be arrested in 2014.

Democrat legislators Ron Calderon and Rod Wright, accused in two different charges of accepting bribes, corruption, money laundering and other charges, have severely damaged the organization of their party in California, which has lost two thirds of the legislative majority in the Senate in a single electoral year.

Lee will plea that he was entrapped by the FBI.

FBI Entrapment?

 

In US Women’s Equal Pay Day

In US jobs, women have to work fifteen months to make what men make in twelve.  President Obama signed an executive order permitting employees to discuss their pay with their colleagues. Hopefully they can then act.  The executive order only applies to companies doing business with the government.

Equal Pay?