Author Topic: PSA: Don't swipe recklessly for others  (Read 252838 times)

Offline joey89

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Re: PSA: Don't swipe recklessly for others
« Reply #2295 on: February 23, 2019, 10:17:48 PM »
Someone doing 15k in profit every six weeks for a few years could be out 500k and still come out ahead....
Unless there is undeclared income and then the IRS will want its share. Additionally by Madoff those that came out ahead were required to return their profits to the victims.

Offline cmey

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Re: PSA: Don't swipe recklessly for others
« Reply #2296 on: February 23, 2019, 10:20:26 PM »
Explain please

15k worth of points every six weeks = $120k a year. Some were doing this over five years. That’s over $500k profit...

Offline PSA

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Re: PSA: Don't swipe recklessly for others
« Reply #2297 on: February 23, 2019, 10:25:26 PM »
This is what makes the whole thing even scarier to me. It sounds like there was a secondary market for credits card swipes. Were the credit card swipes being bundled and sold down the line, like in the secondary mortgage market?  If that is true the  credit cards funds could have ended up anywhere; floundering businesses, hard money lenders, etc. making things that much more complicated to unravel.
.
No. They weren't. Was all used for his actual business or paying his vendors

Offline knowitall

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Re: PSA: Don't swipe recklessly for others
« Reply #2298 on: February 23, 2019, 10:27:03 PM »
Unless there is undeclared income and then the IRS will want its share. Additionally by Madoff those that came out ahead were required to return their profits to the victims.
https://www.bloomberg.com/graphics/2018-recovering-madoff-money/

Offline joey89

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Re: PSA: Don't swipe recklessly for others
« Reply #2299 on: February 23, 2019, 10:42:00 PM »
https://www.bloomberg.com/graphics/2018-recovering-madoff-money/
Iirc the Wilpons (owners of the Mets) were required to pay back a large amount of money which led to them being unable to properly run the Mets and they had to sell equity to raise funds.

« Last Edit: February 23, 2019, 10:56:04 PM by joey89 »

Offline coralsnake

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Re: PSA: Don't swipe recklessly for others
« Reply #2300 on: February 23, 2019, 10:49:37 PM »
Iirc the Wilsons (owners of the Mets) were required to pay back a large amount of money which led to them being unable to properly run the Mets and they had to sell equity to raise funds.

Wilson from Dennis the Menace or Cast Away?
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Offline joey89

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Re: PSA: Don't swipe recklessly for others
« Reply #2301 on: February 23, 2019, 10:55:39 PM »
Wilson from Dennis the Menace or Cast Away?
Auto correct from Wilpons, sorry

Offline coralsnake

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Re: PSA: Don't swipe recklessly for others
« Reply #2302 on: February 23, 2019, 10:57:54 PM »
Auto correct from Wilpons, sorry
Lets be fair- they weren’t properly running the Mets before Madoff either.
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Offline joey89

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Re: PSA: Don't swipe recklessly for others
« Reply #2303 on: February 23, 2019, 11:03:09 PM »
Lets be fair- they weren’t properly running the Mets before Madoff either.
True
But look at that drop in payroll

Offline joey89

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Re: PSA: Don't swipe recklessly for others
« Reply #2304 on: February 23, 2019, 11:32:26 PM »
Haven't decided yet on the right course of action
It’s probably best to discuss this with a competent lawyer before you take a step you might regret

Offline chevron

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Re: PSA: Don't swipe recklessly for others
« Reply #2305 on: February 23, 2019, 11:47:18 PM »
I know many huge frum highly profitable legit businesses in e-commerce etc.

Many if not most, bring in outside controllers, CFO, operations manager etc..

It's easy to build a business, it's hard to grow it in a healthy legal way.

Offline bobthebuilder

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Re: PSA: Don't swipe recklessly for others
« Reply #2306 on: February 23, 2019, 11:48:57 PM »
My opinion on the matter is, once Sterling went down, anyone that had money/CC charges with these other companies freeked out and demanded their money back. When everyone wants money, the quarter runs out, and the ride is over. Most businesses have debt, but they dont expect to have to pay it down overnight. Regardless, if its too god to be true, it aint. I pity the poor souls that are stuck in a  big pile of doodoo, but it was their own fault for blindly "lending" thousands to someone without any regard to consistences.

Offline S209

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Re: PSA: Don't swipe recklessly for others
« Reply #2307 on: February 23, 2019, 11:53:25 PM »
15k worth of points every six weeks = $120k a year. Some were doing this over five years. That’s over $500k profit...
Agreed, technically you’re right, assuming it was a 6 week cycle and people were having the same amount swiped each time and netting 2-3%, after a few years they would automatically have a net gain even if they’d lose the full principal (people were in this for more than 5years). OTOH they spent that money as they got it (these guys were probably living paycheck-to-paycheck, and by paycheck i mean points sold) and are now left holding the bag with that massive amount due.

Unless there is undeclared income and then the IRS will want its share. Additionally by Madoff those that came out ahead were required to return their profits to the victims.
You’re right about Madoff but this is hardly the same situation- here the “profits” came from a third party, not as a “return on investment” by the fund.

All that said, I’m SURE the vast majority of victims are out most of their money, although the % they earned until now probably(hopefully) offset a decent amount.
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Offline S209

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Re: PSA: Don't swipe recklessly for others
« Reply #2308 on: February 23, 2019, 11:54:33 PM »
My opinion on the matter is, once Sterling went down, anyone that had money/CC charges with these other companies freeked out and demanded their money back. When everyone wants money, the quarter runs out, and the ride is over. Most businesses have debt, but they dont expect to have to pay it down overnight. Regardless, if its too god to be true, it aint. I pity the poor souls that are stuck in a  big pile of doodoo, but it was their own fault for blindly "lending" thousands to someone without any regard to consistences.
Victim blaming
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Offline bobthebuilder

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Re: PSA: Don't swipe recklessly for others
« Reply #2309 on: February 23, 2019, 11:57:02 PM »
Victim blaming
Absolutely. Are you suggesting they were smart "investors"?