Every so often, when time and the environment take their toll, my wife goes shopping for a new purse. Although she avoids heavily labeled items, she is occasionally tempted by the rows of fake Prada, Louis Vuitton, and Gucci purses offered by our local sidewalk-based merchant. While designers might disagree, my wife (like many others) sees cheap bags as a harmless bit of fun, a little bit of playful fake prestige that she can pick up for less than the price of a steak.
Last year, however, a Canadian con artist was accused of expanding the repertoire of imitation Guccis, offering fake stock options in the the Gucci Group. Claiming that he was a member of the Gucci board and was tasked with creating an influx of cash, Timothy Khan sold over $7 million in nonexistent Gucci stock in 1995. By 1996, the investor who had purchased the counterfeit stock was demanding that Khan sell it. Offering a variety of excuses, backed up by a variety of seemingly official documents, Khan held on to the investor's money for a further eleven years. On March 19, Khan pled guilty to two counts of securities fraud and wire fraud. Each count carries a maximum sentence of twenty years in jail, and Khan's sentencing is set for June and will be held in Manhattan federal court.
Suddenly, a $20 knockoff purse doesn't seem like such a big deal!
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Reader Comments (Page 1 of 1)
3-27-2008 @ 3:42PM
william lindblad said...
When there is money around - there will ALWAYS be someone looking for an easy way to get it. Blog on the yesterday regarding a Tiffany & co/Ebay lawsuit. Con/scam artists have been around since day one, back to the days of barter. At present, it's like a hoard of locusts, perhaps a modern version of a biblical plague and nothing is sacred. P.T. Barnum summed it up right - sucker born every minute.
When it comes to greed over caution - greed wins, hands down. The current economic situation attests to this statement.
3-27-2008 @ 7:52PM
Bruce Watson said...
Will-
Oddly enough, I was thinking the same thing. The mysterious investor was clearly trying to get a quasi-legal, unethical break, and it blew up in his face. I think he got what he deserved.