A must read for everyone who wants to know something about the SEC, short sellers and fraud.
Mr. Sauer gives you a detailed look about some major fraud cases and accountancy scams. He gives also an good insight how government regulators respond to these illegal activities. All this from personal experience.
The SEC's highest profile cases like: ACLN, Lernaut & Hauspie, AremisSoft, Overstock (NASDAQ:OSTK), NovaStar (NFI), and Fairfax Financial Holdings (OTCQB:FRFHF) are told in an understandable way. He also delivers a good defense for short selling.
Short-sellers like Rocker Partners fulfill an important economic and ethical function to expose the dark side of company management, to discover frauds. Most of us want to believe that companies are doing the right thing, but unfortunately it is not always the case.
Short sellers represent an important self-correcting mechanism, because regulators don’t have the resources (manpower and knowledge) to face major problems like fraud.
This book provides a unique look at the whole spectrum of forces and events that led directly to financial tragedy and continue to wreak havoc.