there are no holds barred look at the global financial headlines kaiser reports. and good afternoon welcome to prime interest i'm terry and boring and i'm bobby english to get the headline. one percent means the ninety nine percent our favorite one percent heard jamie diamond just this clip close some troubling news j.p. morgan has set aside additional six point eight billion dollars to deal with future fines and lawsuits so that puts them on track to take over bank of america when it comes to legal problems in the too big to fail arena according to j.p. morgan's filing the justice department is no investigating them on six count them six separate counts will heads roll likely so sleep well mr diamond and to one of those investigations and volved. that it is not just j.p. morgan several of the top banks are hiring children of senior chinese officials to

help them develop relationships in the region commonly known as princelings that the security and exchange commission is looking into how these hiring practices can help banks win business there is however nothing illegal about hiring princelings in general but getting back to the main point what about the ninety nine percent a new offshoot of the occupy movement called occupied money cooperative is now in the banking business they'll be selling prepaid debit cards to those who might not currently have a bank could code and these won't be the card the action kind of cards with monthly fees that amount to well over one hundred dollars a year these are expected to be much lower but is anybody asking why occupy is getting into the banking business in the first place we do and just a moment i will profile be occupied money cooperative but then bob will interview a self-confessed fraudster a crazy eddie's sam antara on how this relates to the payment system. and here's what's in your prime interest.

do you know why there's a glass case around the visitor's gallery at the new york stock exchange well the gallery closed after nine eleven but in the one nine hundred sixty s. a group of young and colorful activists held a demonstration at the stock exchange that led to in closing the balcony an attempt to crash the stark market these activists began throwing fistfuls of money off the gallery balcony raining dollar bills on the traders below the youth international party or the europeans as they like to be called was a radical anti-establishment group that swept the nation's attention with their wild demonstrations one of the founders jerry rubin however eventually grew out of

the u.b. movement and injured into what the europeans considered the dark side he went on to become a successful investment banker and was accused by his former get these as a sell out and through the year two thousand and eleven and we have the birth of the occupy movement a new age anti-establishment group was inspired by the arab spring the movement occupied over six hundred communities in the u.s. in eighty two countries across the planet one of the most famous demonstrations was occupy wall street which was born out of the frustrations of the bailouts all the bankers got a bailout millions were left unemployed and left to suffer from the poor economy occupy wall street branded the slogan we are the ninety nine percent and occupied zuccotti park until forcefully removed now just two years later the occupied money cooperative is enjoying the very end the street they demise banking and first on their list is a prepaid debit card in industry with a history. a predatory practices and. so let's profile this co-op and try to find

out what they're all about the occupied money cooperative was founded by a group of experienced financial professionals who met through an occupy wall street working group they are said to be fed up with business as usual and committed to creating positive change the board members include a former british diplomat and whistleblower cornell law professor former financial engineer and former bankers their mission is to offer high value transparent and low cost financial services to everyone including the thirty million. they just launched a round of fund raising and are accepting members at this time but why would an occupy group want to start a financial institution. here is what one of the board members carne ross told stephen colbert are. part of a working group that's been trying to set up an occupy bank that would actually replace the banking system and i know this because i believe and i think the other group members who include

a lot of wall street people dissidents from the system that you can touch you reform the current system you can look to washington posable you to reform the current system therefore you've got to set up an alternative system that would be better that's the theory of change that we have. so similar to a credit union this alternative banking system will be owned and controlled by its members but i'm like a credit union anyone will be able to join the co-op is in no way will function like a bank they will not take deposits or offer loans and in occupy fashion the members will have no responsibilities or fees the only requirement is an active occupied card and members can choose whether they want to be active or not but if they are not taking deposits and they allow anyone to join for free i would possibly work with the cats well there is a one time ninety nine cent fee for the card but that's it it's pretty competitive compared to other prepaid debit cards most cards come with this start up fees as high as ten dollars and monthly fees between three and seven dollars some cards

even assessed fees when you add money to it or talk with the line service operator . so while the co-op has no association as a bank the occupied card will be offered to through a bank allowing it to be at the i.c. insured insurance that protects your deposits but again the co-op will not collect deposits just the bank the card is offered through additionally it is the same integrated and will be accepted anywhere visa is but the co-op excels does not have an agreement with visa. so while the occupy cart is pushed as non-establishment they have in some form or another a stablished a way to make sure it's universally accepted by the establishment. of the moment the bank somebody sitting pretty they don't think the occupiers going to really change things they just see it as a kind of demonstration on the street below and they're looking down from the skyscrapers feeling pretty comfortable but if we actually set up an alternative bank people flock to it because it's actually better it's cheaper it's fair it's reaches out to the poor everybody who has a dip and i count there is

a member that would actually be a better bank. some a question at the occupy money co-op is another jerry rubin of the get b.'s profiting from the very industry they protested against other speculate this could be a move to get more people on the electronic payment system or transactions are more easily tracked and recorded but for just ninety nine cents a looks like a good deal if you want to check out the co-op yourself and you can sign up on their website at occupy cooperative dot com and you can follow me on twitter at perry and r.t. . so proclaim fraudster is their mentors back on prime interest now he's

a former chief financial officer of crazy eddie that was a new york appliance retailer that engage in massive accounting fraud here's a clip from one of their famously crazy commercials. you'll save money like never before during crazy crazy every day you say oh well the guaranteed lowest price not anything and everything and all entertainment shop around to get the lowest price you can find then go to crazy how do you know we don't. well sam cook the books but today we're going to talk about the payment system and the potential for fraud and we're going to tie it. all into the latest occupied movement to get into banking. good to see you buddy thank you for having me on again all right we've been talking about ruben did ruben sell out when he became an investment banker and is the occupy movement itself selling out by getting into prepaid debit cards you know when i was a criminal had a mentor his name was dawn his name was michael corleone he said we're both part of the same apocrypha but never think it applies to my family yes i do believe that

they had that this is one step towards joining the mainstream and you know as a criminal i believed that as a criminal my my my bank of preference was mattresses ceilings and pillow cases now looks like looks like now that the wall street movement is the occupy wall street movement is now going into the mainstream and taking their money out of their mattresses pillowcases and putting their money into a debit card so is this just really a ploy to get the unbanked and under bank those are people without bank accounts into the banking system itself yes i believe it is you know if they don't want to be part of the same a proxy stay out of the banking system show your protest that way protest is not supposed to be convenient it's supposed to be inconvenient yes so if they don't like what's going on don't put their money they have but now it's just an enticement but it's called incrementalism get them into the banking system a little bit at a time do you think we're heading into a cashless society and that just makes it more easy for the government to track

everything so are we going into this cashless society as we speak. yes we are and that's why as a criminal my bank of my bank of preference was always mattresses and dropsy holdings and what are the what are the implications for fraud in all of this the implications well first of all if you put people into the banking system you're going to be able to monitor their transactions so in a way it's an anti-fraud measure well let's take a little bit of a leap across the street from zuccotti to greenwich connecticut we've got stevie cohen in the news sac capital what do you say about that insider trading are we going to see a criminal indictment on stevie himself i don't know but there's this there's a few people have been indicted like matthew martoma michael steinberg people high up in stevie's organization you know there's an old saying i learned when i was a criminal the only currency you have left or indicted is information and if the big fish don't fry the small fish will fry and if and if and if these guys get

convicted in their cases this guy steinberg and martoma some of the other little fish and stevie don't fry well these guys will fry the government will make an example out of them to send a message that if you don't cooperate you will pay and you will pay double or triple does that send a message to just prosecute the corporation so why are we why is the government going after the corporation and not these big fish. because you can put the corporation in the choir room and from dating for three weeks. listen they should prosecute. prosecuting the corporation has no effect other than raising money for the government in fact it's like a tax on fraud you know you commit a fraud the government. prosecute the corporation the corporation pays a fine it's a tax on floor with the government has to do is put people that are in charge of these corporations in prison prosecute them and try to put them in prison but unfortunately only the little guys payables tree right and one of the things that

you've mentioned before those putting people in prison is not necessarily a deterrent. no but it keeps him off the streets and i agree it's not necessarily the tyrant but you know something is still has to be accountability and responsibility for your poisons i mean no criminal finds god because another criminal goes to jail but at least a criminal that goes to jail is unable to commit for other crimes while they were in was one of one of the interest they learn a lesson i hope so one of the interesting things about balance sheet their new disclosure requirements basically they have to they have to disclose their gross exposure so they had about fifteen billion invest at one time in their gross exposure was forty five billion three times that is this kind of trance piri transparency going to help the hedge fund industry. spare and see always helps everybody capitalism requires transparency the more information that's out there the more helpful in this to invest is that you the long or short so are you in favor of more regulations of hedge funds i mean hedge funds don't even really warrant the proximate cause of the financial panic of two thousand and eight. i

think anything that increases transparency and he regulation that increases transparency is good ok and what about redemptions now we're seeing a lock up stevie cohen might not be able to give his investors or money back for some period of time do you think this casts a dark cloud or something on the entire industry now well stevie collins is a special case because i would ask he is a special case so i don't think it puts a dock lap ok what we're going to do in a minute is get into the idea of auditory rotation and that's where different partners have to circulate and they are exchanged out within an audit in for him and i'm going to ask you about that right after the break so we'll be back more with cement our in just a moment and later i will do all our tea producer rachel curious courage yes over the occupy movement and the syntax so it seems states are raking in blanks for vices.

the city.

pretty much in the field that block you won't find it here if you're looking for relevant stories you need perspectives on top of my scans. we are back with sam and tara former c.f.o. of crazy eddie sam how are you

a good find that you were just talking about or as kind of getting into auditor rotation can you explain why this is an important principle while the people are proposing is that companies rotate what it is every several years to get a fresh set of eyes on the books and records of the company. the audit profession is opposing it and public corporations management of public corporations from a criminal point of view we hate uncertainty so what rotation would make a criminals job much harder but as a practical point of view when you look at the big four accounting firms where most of the with most of the rotation would be i mean they they they constantly fail that what it inspection reports conducted by the p.c.l. be at stake like ernst and young fifty one what it's one thing thought errors in fifty one of what it's forty eight percent there what it's with deficient based upon the two thousand and twelve reports with with or does like that you know it's

easy to be a criminal so even if you rotate firms you rotate. being a rotating amongst among incompetent accounting firms right it's. certainly access to the revolving door and in a special way just like to be it was created in order to protect the securities industry is it doing its job it's not doing enough of its job ok because let's put it last last year the big four accounting firms failed twenty five to fifty percent of their audience so had any of them been sanctioned haven't even got out of business haven't even lost customers but people still rely on their financial statements what it's are not really what it's there just compliance reviews investors have a false impression that it's protect them but they don't so who's protects people. who protects people is skepticism skepticism not only financial information skepticism of people that certifies financial information well we certainly have

a lot of skepticism on our show and we appreciate having you on talking about this let me get to the nature of criminal fraud can you explain what went down with you personally a crazy crazy because this is a fascinating story well let me just give you the nature of criminal fraud or. from a small story picture a guy at a bar trying to pick up a girl what is he doing to get to first base he charm sarah to increase or comp level because he's a creepy to get to first base while the criminal is no different than the guy at the bar acceptance trial of trying to get into the girl's pants white collar criminals trying to get into the pocketbook it's all about sean if you if you're a creep nobody's going to believe you lie so you've got to get people to like you to believe your lies is a criminal crazy eddie's how's the gentle kind criminal i always thought would a smile instead of a gun and i believe you were shuffling some stuff around your warehouses how did you actually go about conducting the fraud at that time. is very very simple it's

called distraction. we would have cute females always working with our what it is so that they would never look where they were supposed to be looking charming member and roaming them but never underestimate cleavage as far as a point of distraction to the male what it is and how in the 1980's most of what it is we young males and single and how did they actually catch you. they did it my cousin eddie had a problem he couldn't keep a zipper shut so eventually his ex-wife instituted a lawsuit against them and that's when the proverbial s.-h. hit the fan and what have you done since and i know that you're a consultant can you talk about what you do for a living on the opposite side i work with class action law firms i work with accounting firms i work with the federal government i teach about white collar crime and also help conduct forensic accounting investigations especially whistleblower cases today yeah and you have joined. us from the point if you

could do you have any companies that you're looking at right now who's in your sights we've got less than a minute here i've previously written about green mountain coffee have no further comment on green mountain coffee and other companies i just can't talk about because of confidentiality agreements and anything but what do you think about the future of our accounting system where are we going. we're going. for crime we're going to be going now the principles based counting rather than rules based accounting principles based accounting means unprincipled management using using their principals to produce financial numbers this movement from gap to r.s. is going to make crime easy and unfortunately it looks like the jobs act which is finally being implemented is going to make it quite a bit easier for companies that's a license to steal all even get me started on that ok we all got it but i would love the jobs act i love the jobs act to go back and it will definitely get into that next thank you for joining me this is sam and tara former c.f.o.

of crazy. joining me is or to producer rachel curious courteous as it goes it's going pretty well let's go to our first topic and we're going to follow up on occupy wall street bank card story what do you think about the financial services cooperate to idea deal. to me this illuminates something really fascinating about what occupy wall street was or what it was intended to do a lot of people say that occupy wall street is a failure look right now there are no occupy wall street legislators in congress there are no people currently occupying our parks and things like that but to me what this points to is the occupy wall street was more of kind of a networking event for the ninety nine percent people got together and said hey

you're interested in in housing you're interested in foreclosure awesome let's start off homes you're interested in strengthening the volcker rule so let's start out your part of it as you see you know and i think that this points to people interested in starting a monetary cooperative realizing it and it took time right i mean two years out we're finally seeing this scheme roll out but the people who said i mean i'm using scheme in the least a derogatory way but to me i think that it speaks to the fact that occupy wall street brought together a lot of people who were like minded and have since been working on things like for instance rolling to believe is another example of people from occupy wall street getting together tell me what this ruling just as you're so willing to believe is a way to forgive at this point it's medical debt right so what happens is it's essentially a crowd sourcing ok yet they haven't moved to mortgage debt yet at this point it's just medical debt which as you know is the number one cause of bankruptcy in the country and essentially what happens is you were i would give five dollars or something and then the ruling to believe would buy the debt for pennies on the

dollar off. these companies that are selling it so the what some people really eminent domain. in a sense except that these things are very much for sale on the market or rather than sell them to a debt collector who's going to hound people and hound people who perhaps three percent of the people that they're counting the actually get money and. you believe does it send a letter saying congratulations you're deaf it's been forgiven have a great day well one of the things i found interesting about the occupy movement was when they started talking about h up to you which is high frequency trading and a tobin tax in other words it seemed early on that there were influences outside of the group that were kind of co-opting them and i i do wish them the best on a lot of their viewpoints but it seems a little bit strange what's going on here so let's get to our second topic this is the syntax so in two thousand and eleven sticks collected more than fifty billion dollars an alcohol smoking and gambling taxes what do you what's going on here the vice taxes i mean i don't i don't i don't even know what it would have been what's

going on here i mean states realize that it's a good way to make and some states charge three dollars and fifty cents for you know tax for cigarettes and others charge fifty cents all it does is encourage black markets i don't know if all it does is encourage black market that's pretty that's a pretty intense claim to make i know a lot of people i mean anecdotally speaking i know people who live in new york city who have quit smoking or at least severely decrease their number of smoking because they don't want to shell out eleven dollars for a cigarette and you know you don't have friends like you who are importing their cigarettes from armenia or wherever i'm talking about they go over the state line to new jersey or some other new jersey you cigarettes are pretty expensive ok all you have to do is cross he said it would be d.c. in virginia right it's expensive to buy you have to do is go across the border for the express purpose of buying cigarettes and you're engaged in black majority of those who are interesting to me the much more interesting criticism of these vice texas is the fact that they're very progressive right it's a fact it's on everyone but it affects people with lower socio economic status significantly more than it affects higher income people for instance gambling

a big argument made on behalf of gambling it's a you know this. this is money that's going to schools this is money that's going back to the communities you were doing for and so did coming from that community in the first place yes but there's a difference because if you want to buy a state lottery ticket if you want to waste your money on gambling or make some money on gambling you have the option to go into the lottery booth or whatever it is if you want to buy cigarettes this is something completely different because you can why because there's a legal issue it's breaking the law versus it's voluntary versus cooperated i don't know i mean do you mean because secrets are addictive that by the let's say i start smoking cigarettes when they cost five bucks and then the rates are ten dollars and i'm so co-opted my by my addiction at that time that i can't quit that's the only sort of co-option that i care coersion that i would see but i want my point is you can't buy them elsewhere legally and we're exhausting this point so i'm going to move on to a subject that's near and dear to you which is nicolas cage. because it was a prerequisite to your appearance for we've been questioning whether the occupy

movement is getting watered down and we have a quote from ethan hawke on reddit about the national treasure actor he's the only actor since marlon brando that's actually done anything new with the art of acting if i could a race is bottom half bad movies and only keep its top half movies he would blow everyone else out of the water he's put a little too much water in his beer but he is still one of the great actors of our time why is he watered down because he's still performing we can't show it here but i i very much suggest to everyone watching to go to nicholas cage losing his bleep on you tube and you will see exactly why this guy totally change will performances but my question for you because as this regards to business yes if you're doing something entirely new right as i would argue nicolas cage's doing that acting how does that affect i mean if you can if you water it down does that affect the rest of what you're doing i wish i could answer a question but we don't have any more time if you want to weigh in on today's show be sure to like us on facebook at facebook dot com slash prime interest you can follow curious underscored occurs you can follow me of course i thank you for

joining me today. today we occupied on prime interest first we learned how to operate occupy a bank card with the occupied money cooperative but in the co-op a cop out to get everyone in visas database then we learned that the princelings are senior chinese officials children they're occupying this week the big banks in china and sam and to our occupied are said to tell us how he feels about fraud in our financial system finally the radical rachael's set up some bob for the ninety nine percent in the daily deal well thanks for watching come back tomorrow from all of us that prime interest i'm carrying boring have

a great night. a little worse you're the only one of the. radio guys. i want. to give you never seen anything like.

wealthy british soil. is no time to write. down the. markets why not. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune in to conjure reports on our. news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations rule today.

in egypt the government crackdown on pro-democracy protesters shows no sign of slowing with the death toll closing in on one thousand people while clashes continue with the egyptian port that may soon free former president hosni mubarak more on the new developments up ahead. and we may soon have a sentence handed down for bradley manning the army whistleblower faces a potential of ninety years in prison for leaking government data to wiki leaks both the prosecution and defense made their final arguments today more from fort meade coming up. plus a secret international trade deal is nearing completion the transpacific partnership is the proposed trade deal dealing with twelve different.