Colleen Cross's Blog, page 9

Greed

Greed can be a powerful motivator for some people, and sometimes it gets out of control. When it turns into fraud, forensic accountants get involved.

Following the money can also lead you to the fraudster. Today I'm talking about greed over at Sandra Nikolai's blog. Check it out at http://sandranikolaiauthor.blogspot.com/

Greed is also the underlying theme of the second book in the Katerina Carter series, Game Theory.  It will be released in Fall 2012. If you haven't already read book #1, Exit Strategy, check it out at Amazon, BN or Kobo online, or at any book retailer.

Paperback:



Kindle:
Amazon.com
Amazon UK
Sony
Kobo
Nook
Smashwords
Apple iBooks: on iTunes under Books/Mysteries & Thrillers

Rare Sighting

This post isn't about fraud or writing. Instead, it's about something else that's special.

We've had some rare sightings in the Lower Mainland recently.  No, I'm not talking a celebrity sighting on Vancouver's Robson Street. No, this is far more special: Snowy Owls!

These large (60 cm/24 inches) arctic owls rarely venture this far south, unless in search of food. This year, dozens and dozens of Snowy Owls have been hanging out here at Boundary Bay. I'm sure the eagles are less than happy about that!

Apparently the owls eat lemmings up north, and head south when there's not enough to eat. Either the lemmings are gone, or there's just too much snow.  Down here they'll just have to settle for mice.

That got me thinking - where did all the lemmings go? According to Wikipedia, lemming mass suicide is a myth.  Their population numbers follow a boom and bust cycle, and any mass exodus is probably related to food shortages. In turn, their predators, the Snowy Owls visit us.

This is the first time in about six years they've come this far south.  It's a cycle that repeats itself every four years or so.  I wonder if they feel like they're on vacation?

Exit Strategy Settings - New Westminster

New Westminster, Canada is part of the Greater Vancouver area. It's the oldest city in the area, founded in the 1850's. It's also the original capital of the province of British Columbia, Canada, before the capital moved across the water to Victoria in 1866. New Westminster is also where Kat and Jace live, in Exit Strategy - Katerina Carter Suspense Series Book One.

Verna Beechy's old Victorian house is located in the Queens Park area of New Westminster.  You won't find the house on any street, or in the City's Heritage Register, because it's a composite of the many fine historical houses in the area.

New West is a wonderful community. It's really a small town surrounded by all the amenities of a big city. If you get the chance, visit New West and watch the tugs along the Fraser River from Westminster Quay, stroll  through the beautiful neighborhoods, or sign up for the annual Heritage Homes tour and tea in the spring.

Colleen Cross lives and writes in New Westminster, BC.  Find her books here:

Paperback:



Kindle:
Amazon.com
Amazon UK
Sony
Kobo
Nook
Smashwords
Apple iBooks: on iTunes under Books/Mysteries & Thrillers

Exit Strategy - Win a Signed Copy!

Only a few more days to win a signed copy of Exit Strategy on Goodreads.com!

Just like in the book, time is running out!

In Exit Strategy, Katerina Carter races against time to recover Liberty Diamond Mines missing billions and the CFO who stole it. Trouble is, CEO Susan Sullivan expects her to find the money and the CFO, all without reporting the crime.

Kat's fraud investigation uncovers much more than missing money: a massive blood diamond laundering scheme is underway at Liberty's Mystic Lake Mine. Then two key Liberty insiders are murdered and it appears Kat is next in line. Unless she steers the investigation in another direction. One that allows the real criminals to walk free.

Just when Kat makes the connection to organized crime she is framed for the murders, and must find the killer to clear her name and get the money back. Her career and Liberty's survival depend on it. So does her life.

Click on the Goodreads link below to enter. Good luck!

You can also download a sample or buy the paperback/ebook at Amazon.com here.
The ebook is a steal at $3.99, and just a click away at all ebook retailers including:
Amazon UK
Kobo
Barnes & Noble
Smashwords
iTunes


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Goodreads Book Giveaway Exit Strategy by Colleen Cross Giveaway ends February 29, 2012.
See the giveaway details at Goodreads. Enter to win

Exit Strategy Book Launch

Here are some photos from my Exit Strategy book launch. It was held at The Heritage Grill, in New Westminster, BC, Canada. As you can see from the photos, a great time was had by all.

The Heritage Grill was wonderful - great location, food and drink. It was also a nice place to be while it poured rain outside. Lots of local New Westminster people dropped by.


Tony, winner of the draw for the Katerina Carter prize pack!




Exit Strategy - a fast, suspenseful read!
Debra, Margaret, Anne, Rachel & Colleen having fun!Thanks to everyone who attended and made the launch of my debut thriller such a success!  You're definitely invited back for the next one.

Crime Writer Spotlight - Robin Spano

Robin Spano joins us for this month's Crime Writer spotlight. She is the author of the Clare Vengel Undercover Novels. Today she talks about money and personal values...

Money fascinates me. How people spend it, how they hoard it,how they'll manipulate things to get a bit more in their own wallet – it's oneof the most revealing tells about a person's character.
I was at a crime writing conference where two agents were invited.
There was a cocktail party with a cash bar. Agent #1 rolledhis eyes when he was asked to pay for his drink, flashed his badge to thebartender like the hotel employee was supposed to know the conference washosting him. He was annoyed that he'd have to wait for the manager's permissionto charge the drink to the host. He said, "Oh, don't worry about it then. I'llhave water."
Later in the hotel bar, Agent #2 was in a much easierposition to have her drinks bought for her. But when the waiter asked if she'dlike to charge her bar tab to her room, she said, "No, this is an expensiveScotch, I don't want the conference to have to pay for it."
Who would I trust with my career? The one who's not petty,not thinking of herself first, but takes an overview of the situation and makesa call based on what she sees as fair.
In fiction, I use similar scenarios to portray character.
In Dead Politician Society, a university professor isextremely cheap, unable to part with his money though he has more than enoughfor his bachelor needs. As the novel moves forward, he starts making awkwardgestures of generosity. For me, this a clear sign that he's opening up,starting to think about other people than himself.
In Death Plays Poker, money is at the heart of the story.Poker is all about cold, hard cash. Different players want it for differentreasons – security, status, lifestyle, independence – but they're all in thegame to win money. Some are even willing to cheat in order to line theirpockets quicker, at the expense of their friends and colleagues. The climax ofthe novel wouldn't work if money was not a central theme.
It used to bother me how money-conscious most people are. Ifelt it subtracted from the human experience, distracted us from experiencing theearth and each other as fully as we otherwise could. But over time I'mrealizing that materialism is part of humans' social nature – if not dollarsand euros and yuan, we'd be just as obsessed with livestock and spices andgems.
We each have a unique and complex relationship with money.So as a writer crafting character, money is one of my favorite tools.

For more about Robin, visit her website at www.robinspano.com, or find her on twitter at @robin_spano.  You can also check out her books on Amazon.

Famous Frauds - Galleon Group

Galleon Group imploded in 2009 after allegations that it's billionaire founder and head, Raj Rajaratnam, used insider information to profit from trades in stock.

It turns out that some of the fund's double digit returns were a result of insider trading. Rajaratnam relied on a wide network of tipsters for non-public knowledge, allowing him to make a fortune for both his funds and himself. This insider knowledge included everything from advance knowledge of Warren Buffet's purchases to inside information on Intel and IBM.

Rajaratnam founded the Galleon Group, a New York hedge fund that was, for a time, the biggest hedge fund in the world.  The fund was liquidated after his arrest as investors demanded their money back.

He was sentenced to 11 years in prison and ordered to pay millions in restitution. While it is the longest prison sentence ever given for insider trading, I'm not sure it really is adequate for the scope of the crime.

To date, Rajaratnam's is the largest insider-trading ring ever uncovered, and the impact is significant. The insider trades resulted in losses for other investors as they either over-paid or under-profited from trading with Galleon. Not only that, but the sheer magnitude of Galleon's trades impacted prices other investors paid for the those same stocks in the stock market.

The sentencing judge considered Rajaratnam's generous contributions to charity as a mitigating factor in the sentencing.  That begs the question - was it really his money to contribute? More likely, it came from the ill-gotten gains from his insider trades.

Read more about fraud and forensic accounting at http://colleencross.com
Colleen is the author of Exit Strategy, a Katerina Carter suspense thriller available at Amazon.com here or Amazon.co.uk here.

National Crime Writing Blog

Head on over to the Crime Writers of Canada National Crime Writing Blog. My guest blog this month is about how a few unfortunate victims met their demise.  Money is often the motive for murder and forensic accountants often play a key role in tracing the money at the root of a crime.

The Crime Writers of Canada is the national professional association for mystery and crime writers in Canada.  The CWC website is a great place to find information on your favorite authors' new releases or latest events. Or, if you're looking for a new Canadian author to read, check it out.  You'll find some great "criminal" minds at work!

Book Launch Friday February 17th, 2012

You're Invited to my Book Launch Bash at The Heritage Grill in New Westminster





I'm celebrating the launch of Exit Strategy, book #1 in the Katerina Carter suspense series. I hope you'll stop by.  I'll have books available for sale and signing.  At the launch I will also be drawing for a special Kat Carter prize pack - so don't forget to enter!

Exit Strategy is set in Greater Vancouver.  Some of the places you'll recognize right away, but I'll bet there are some you didn't even know existed!

The book launch is from 6-9 p.m in the back room of the Heritage Grill.  It's in the heart of downtown New Westminster on Columbia Street, just a few steps from the Columbia Skytrain station.

Hope to see you there!

The Heritage Grill
447 Columbia Street
New Westminster BC

Exit Strategy is also available here:

Amazon.com
Amazon UK
Sony
Kobo
Nook
Smashwords
Apple iBooks: on iTunes under Books/Mysteries & Thrillers


www.colleencross.com

Insider Trading - Raj Rajaratnam and Galleon

Is insider trading really a victimless crime? That was the argument of defense counsel for Raj Rajaratnam, founder and former head of the Galleon Group. The billionaire was convicted of securities fraud and conspiracy, then sentenced in October 2011 to 11 years in prison. He was ordered to pay close to $100 million in restitution. In my view, that's just a small fraction of the total loss to the economy overall.

The Galleon Group closed in 2011 as a result of the fraud. At the time, Galleon was the biggest, most successful hedge fund in history.  How much of that was due to investing acumen, vs. exploiting insider knowledge?

Lawyers at Rajaratnam's sentencing hearing argued that insider trading should not be judged similarly to Ponzi schemes and other frauds, since insider trading is a "victim-less crime".  Their rationale was that sheer volume of these transactions made unwinding them and assessing the damages impossible.  Therefore, if the individual victims' losses could not be identified, it was "victim-less."

Just because we can't trace all the money doesn't mean there are no victims.  I'd argue that the impact of insider trading is more far-reaching than a Ponzi scheme, with many more victims.

Every stock market transaction has a buyer and a seller. Rajaratnam's insider information allowed him to buy or sell stock, knowing the insider information was not reflected in the price he paid.  That meant he bought at a discount, or sold at a premium. The other parties may not have bought or sold if they were privy to the same information. They either overpaid for their purchases, or sold too cheaply.

Those people on the other side of Galleon's trades are victims.  Many of them were people like you or me, retail investors who got stung. But there are many more victims.  When large hedge funds like Galleon buy or sell, they also move the markets in one direction or another, simply due to the sheer size of their trades.  That means everyone else in the market is also potentially over-paying or under-selling. The result? Money that might have otherwise been spent in other sectors of the economy, or saved, is instead lost in the stock market.

If anyone tells you insider trading is relatively victim-less compared to Ponzi schemes, don't believe it. In future posts I'll talk more about Galleon and hedge funds in general.

Read more about fraud and forensic accounting at http://colleencross.com
Colleen is the author of Exit Strategy, a Katerina Carter suspense thriller available at Amazon.com here or Amazon.co.uk here.