Control Fraud Act

Example(s):
- when a Trusted Administrator sells their stocks based on events that they have control in.
- Bernard Madoff's Ponzi Scheme.
- …
Counter-Example(s):
- Corporate Tax Fraud.
- when a National Leader use their position to embezzle public funds.
See: Company, Corporation, State (Polity), Bank Regulator, Ponzi Scheme, Kleptocracy.

References

(Wikipedia, 2016) ⇒ http://wikipedia.org/wiki/control_fraud#Examples Retrieved:2016-3-9.
- An example would be when an insolvent company publishes accounts showing massive profits. This will cause the stock to rise beyond its actual value, and those exercising the control fraud will cash in their stocks before the reality is known by others. ^[1] Additionally, companies can lobby for changes to weaken the law or accompanying regulation. This can be particularly effective with large campaign contributors like Charles Keating, who with other control frauds in the United States League of Savings Institutions, was able to get his own people placed on the board of the primary regulatory agency, the Federal Home Loan Bank Board (FHLBB). With the assistance of people like Speaker of the House Jim Wright and the Keating Five, he was able to convert Lincoln Savings and Loan Association into a Ponzi scheme, making millions for himself, while suppressing the investigative and regulatory functions of the FHLBB. Eventually, the Ponzi collapsed, as all Ponzis must, but with a massive cost to the taxpayers and unsecured investors.
  Control fraud can also occur in a political situation, for example by the leader of a country who can use their position to embezzle public funds and turn the country into a kleptocracy.
  Examples of control fraud include Enron, the savings and loan crisis, and Ponzi schemes such as that of Bernard Madoff.

(Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Control_fraud Retrieved:2014-5-12.
- Control fraud occurs when a trusted person in a high position of responsibility in a company, corporation, or state subverts the organization and engages in extensive fraud for personal gain. The term Control fraud was coined by William K. Black to refer both to the acts of fraud and to the individuals who commit them.

(Black, 2005) ⇒ William K. Black. (2005). “The Best Way to Rob a Bank is to Own One: How Corporate Executives and Politicians Looted the S\&L Industry." University of Texas Press. ISBN:9780292754188
- QUOTE: Black uses the latest advances in criminology and economics to develop a theory of why “control fraud” - looting a company for personal profit - tends to occur in waves that make financial markets deeply inefficient. …
  … Throughout the book, Black drives home the larger point that control fraud is a major, ongoing threat in business that requires active, independent regulators to contain it.