Accounting shenanigans: Herbalife, multi-tier marketing, pyramid schemes and Zynga
US Treasury Secretary Jacob Lew says after February 7 he will have to start using emergency measures to avoid a default on US national debt. How can the US avoid looking like the world’s largest banana republic? Then, convicted fraudster and white-collar criminal expert Sam Antar talks about dodgy accounting, fraud and Ponzi schemes. He looks in particular at Herbalife, accused of being a pyramid scheme by hedge fund manager Bill Ackman, as well as other multi-tier marketing companies. Erin Ade and Francine speak about the lack of interest in accounting fraud, about accounting irregularities at Zynga, and the shift in investigative resources toward easier-to-explain cases like insider trading and Ponzi schemes. In the Big Deal, Erin and Edward Harrison discuss the positives and the negatives surrounding trade, free trade agreements and, specifically, the North America Free Trade Agreement.