Good Intentions, Bad Outcomes: How Following Orders Can be the Wrong Choice
Round tripping is a common fraud scheme used to inflate earnings, and even large-scale public companies have been accused of engaging in this scheme. Years ago, Time Warner (formerly AOL) agreed to pay a $300 million fine due to round tripping transactions. Time Warner was “effectively funding its own online advertising revenue by giving the counterparties the means to pay for advertising that they would not otherwise have purchased.”
Caption: Dean Lewis describes feeder funds.