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The Weakest Link

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Thomas N. Morgan

Thread Starter
Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Remember the Tony DeAngelis Salad Oil Swindle of 1965? In that case, American Express loaned millions of dollars, based on "warehouse receipts" of the amount of soybean and other oils that was reported to a man standing on the ground, who wrote down what the man up on the ladder yelled down to him. AMEX then sold the loans to banks. It was learned that the storage tanks contained mostly seawater. After it was all over, 51 banks had been bilked out of $175,000,000.

The whole fraud ultimately rested on loans based on assets that were not there. Do we see a similarity today?
 

JT1974

Senior Member
Joined
Dec 16, 2006
Professional Status
Certified General Appraiser
State
Wisconsin
$175,000,000? Holy Cow that's a LOT of salad oil!!!!!
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Silver in the 70's Seems we just move from one thing to another & each time it becomes bigger cause more get involved. & this one has more of an affect on more people than any in the past therefore CRASH~!! ????????
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
The scam above is commonplace in the oil fields. A mullet (sucker) is taken to an oil tank battery. You climb the stairs and they open the top port. Black oil lies right below the top of the tank. WOW...3000 bbl. of oil. But they forget. Oil floats. A foot deep, its saltwater. Water that has to be disposed of, often for as much as $2 a bbl...100 bbl of oil and 9900 bbl of water.. I recall one where the scammer pulled signs off a small field he had and place them on a better lease he didn't own and showed them off as his, then replaced the signs later that day.
billy Sol Estes did the same thing with soybean oil or cotton seed oil
 
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