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Posts Tagged ‘crime

“Making money is art”*…

 

art and money

 

In 2005, an unusual painting appeared on the website of the New Orleans Auction Gallery, a small operation headquartered on the banks of the Mississippi River. Twenty-six inches tall and 18 and a half inches wide, the painting depicted Christ in Renaissance-era robes, one hand raised in benediction, the other cupping a diaphanous sphere. “After Leonardo da Vinci (Italian 1452–1519),” read the description. “Christ Salvator Mundi. Oil on cradled panel.”

Among the people to click on the listing for Lot 664 was a Rockland County art speculator named Alexander Parish. Parish has spent his entire career in the art world, first as an assistant, later as an adviser to a major European gallery, and now as what’s known as a picker — a dealer who purchases art from minor auction houses and antiques sales and resells it to wealthy clients at a profit. “A major part of what I do,” Parish told me, “is educated gambling. You get a good feeling about a piece of art, and you place a bet that you know more about it than the auctioneer does.”

Parish felt very good about Lot 664. In fact, although he had only a few postage-stamp-size JPEGS to work with, he thought he might be looking at a piece by a student of Leonardo’s — perhaps the Milanese painter Bernardino Luini. That same afternoon, he sent a link to his friend Robert Simon, the owner of an old-master gallery on the Upper East Side, who has a doctorate in art history from Columbia University with a specialty in the art of the Renaissance.

“My first reaction was that it was a very intriguing painting,” Simon recalled. As he knew, the original Salvator Mundi, painted by Leonardo around 1500, possibly for the French king Louis XII, had been one of da Vinci’s most copied works — dozens of replicas hang in museums around the world, but the original had been lost to history. It seemed possible that another period copy dating to the Renaissance would exist. Simon and Parish agreed to invest in the painting together, with a bid ceiling of $10,000; Parish would handle the bidding via phone. “My memory of the auction is that I just sat there waiting for the price to go up,” Parish said. “But it became apparent that no one else was interested.” His winning bid came in at $1,000.

Today, of course, the contents of Lot 664 are worth far more than that: The picture has since sold once for $127.5 million and again, in a record-setting auction at Christie’s, for close to half a billion dollars…

davinci-restored.w460.h575

Find out how to turn a $1,000 art-auction pickup into a $450 million masterpiece: “The Invention of the ‘Salvator Mundi’.”

* Andy Warhol

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As we appreciate appreciation, we might recall that it was on this date in 1934 that a team of FBI agents went toe to toe with John Dillinger, Baby Face Nelson, and their gang.  The lawmen tried to capture the outlaws at their temporary hide-out, the Little Bohemia Lodge (in northern Wisconsin)

As the agents approached the lodge, the owner’s dogs began to bark. Since the dogs barked incessantly, their warning was ignored by the gang. A few minutes later, a car approached the agents. Thinking that the gangsters were inside, they opened fire in an attempt to shoot out the tires. Shooting high, which often happens when firing on full auto, they hit all of the occupants of the car, and killed one of them. To make matters worse, they had the wrong guys. Dillinger and his crew were still inside the lodge.

Barking dogs you can ignore, but submachine-gun fire will get your attention every time. Dillinger and the boys heard the shots and knew that the heat was on. They opened fire on the agents from the lodge. After throwing some hot lead at the G-men, the gang bolted for the door. Dillinger and two of his guys turned one way and made a clean getaway. Nelson turned the other way, and wound up at a nearby house in a car with the owner of the lodge and a neighbor.

A car containing two of the FBI agents and a local constable approached Nelson. Nelson pointed his gun at them, and ordered them out of the car. When they complied, Nelson shot all three of them. Agent W. Carter Baum was killed; Agent J. C. Newman and local constable Carl Christensen were injured.

The final tally: two dead (one lawman and one innocent bystander), four injured (two lawmen and two bystanders), no gangsters in custody.  [source]

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Little Bohemia Lodge

 

Written by LW

April 22, 2019 at 1:01 am

“Whoever fights monsters should see to it that in the process he does not become a monster”*…

 

kleptocracy

 

When the U.S.S.R. collapsed, Washington bet on the global spread of democratic capitalist values—and lost…

Much of the rest of the world wanted to shout for joy about the trajectory of history, and how it pointed in the direction of free markets and liberal democracy. [CIA Moscow station chief Richard] Palmer’s account of events in Russia, however, was pure bummer. In the fall of 1999, he testified before a congressional committee to disabuse members of Congress of their optimism and to warn them of what was to come.

American officialdom, Palmer believed, had badly misjudged Russia. Washington had placed its faith in the new regime’s elites; it took them at their word when they professed their commitment to democratic capitalism. But Palmer had seen up close how the world’s growing interconnectedness—and global finance in particular—could be deployed for ill. During the Cold War, the KGB had developed an expert understanding of the banking byways of the West, and spymasters had become adept at dispensing cash to agents abroad. That proficiency facilitated the amassing of new fortunes. In the dying days of the U.S.S.R., Palmer had watched as his old adversaries in Soviet intelligence shoveled billions from the state treasury into private accounts across Europe and the U.S. It was one of history’s greatest heists.

Washington told itself a comforting story that minimized the importance of this outbreak of kleptomania: These were criminal outliers and rogue profiteers rushing to exploit the weakness of the new state. This narrative infuriated Palmer. He wanted to shake Congress into recognizing that the thieves were the very elites who presided over every corner of the system…

The United States, Palmer made clear, had allowed itself to become an accomplice in this plunder. His assessment was unsparing. The West could have turned away this stolen cash; it could have stanched the outflow to shell companies and tax havens. Instead, Western banks waved Russian loot into their vaults. Palmer’s anger was intended to provoke a bout of introspection—and to fuel anxiety about the risk that rising kleptocracy posed to the West itself. After all, the Russians would have a strong interest in protecting their relocated assets. They would want to shield this wealth from moralizing American politicians who might clamor to seize it. Eighteen years before Special Counsel Robert Mueller began his investigation into foreign interference in a U.S. election, Palmer warned Congress about Russian “political donations to U.S. politicians and political parties to obtain influence.” What was at stake could well be systemic contagion: Russian values might infect and then weaken the moral defense systems of American politics and business.

This unillusioned spook was a prophet, and he spoke out at a hinge moment in the history of global corruption…

This was capital flight on an unprecedented scale, and mere prologue to an era of rampant theft. When the Berkeley economist Gabriel Zucman studied the problem in 2015, he found that 52 percent of Russia’s wealth resided outside the country.

The collapse of communism in the other post-Soviet states, along with China’s turn toward capitalism, only added to the kleptocratic fortunes that were hustled abroad for secret safekeeping. Officials around the world have always looted their countries’ coffers and accumulated bribes. But the globalization of banking made the export of their ill-gotten money far more convenient than it had been—which, of course, inspired more theft. By one estimate, more than $1 trillion now exits the world’s developing countries each year in the forms of laundered money and evaded taxes.

An amazing amount of the illicit cash is being solicited and handled by Americans– by banks, lawyers, real estate developers actively conspiring with he mobsters. dictators, and oligarchs whose money they are hiding in anonymized investments.

The defining document of our era is the Supreme Court’s Citizens United decision in 2010. The ruling didn’t just legalize anonymous expenditures on political campaigns. It redefined our very idea of what constitutes corruption, limiting it to its most blatant forms: the bribe and the explicit quid pro quo. Justice Anthony Kennedy’s majority opinion crystallized an ever more prevalent ethos of indifference—the collective shrug in response to tax avoidance by the rich and by large corporations, the yawn that now greets the millions in dark money spent by invisible billionaires to influence elections.

In other words, the United States has legitimized a political economy of shadows, and it has done so right in step with a global boom in people hoping to escape into the shadows.

American collusion with kleptocracy comes at a terrible cost for the rest of the world. All of the stolen money, all of those evaded tax dollars sunk into Central Park penthouses and Nevada shell companies, might otherwise fund health care and infrastructure. (A report from the anti-poverty group One has argued that 3.6 million deaths each year can be attributed to this sort of resource siphoning.) Thievery tramples the possibilities of workable markets and credible democracy. It fuels suspicions that the whole idea of liberal capitalism is a hypocritical sham: While the world is plundered, self-righteous Americans get rich off their complicity with the crooks.

The Founders were concerned that venality would become standard procedure, and it has. Long before suspicion mounted about the loyalties of Donald Trump, large swaths of the American elite—lawyers, lobbyists, real-estate brokers, politicians in state capitals who enabled the creation of shell companies—had already proved themselves to be reliable servants of a rapacious global plutocracy. Richard Palmer was right: The looting elites of the former Soviet Union were far from rogue profiteers. They augured a kleptocratic habit that would soon become widespread. One bitter truth about the Russia scandal is that by the time Vladimir Putin attempted to influence the shape of our country, it was already bending in the direction of his.

Read Franklin Foer’s important report in full at: “Russian-Style Kleptocracy Is Infiltrating America.”

* Friedrich Nietzsche

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As we get down with Diogenes, we might recall that it was on this date in 1866 that Jesse James robbed his first bank, in Liberty, Mo.  James and his crew (a remnant of his Civil War service in the Confederate guerrilla outfit known as Quantrill’s Raiders) are believed to have targeted the bank because it was owned by abolitionist Republican former militia officers.

220px-Jesse_james_portrait source

 

Written by LW

February 13, 2019 at 1:01 am

“The world is full of obvious things which nobody by any chance ever observes”*…

 

crime-perceptions

 

There’s a persistent belief across America that crime is on the rise.

Since the late 1980s, Gallup has been polling people on their perception of crime in the United States, and consistently, the majority of respondents indicate that they see crime as becoming more prevalent. As well, a recent poll showed that more than two-thirds of Americans feel that today’s youth are less safe from crime and harm than the previous generation.

Even the highest ranking members of the government have been suggesting that the country is in the throes of a crime wave:

We have a crime problem. […] this is a dangerous permanent trend that places the health and safety of the American people at risk. (then-Attorney General Jeff Sessions)

Is crime actually more prevalent in society?… crime rate data from the FBI shows a very different reality…

More on a phenomenon that would simply be bemusing if it weren’t driving both personal and governmental action: “The Crime Rate Perception Gap.”

* Sherlock Holmes, in Arthur Conan Doyle’s The Hound of the Baskervilles

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As we triple-lock our doors, we might recall that it was on this date in 1976 that Sesame Street aired episode #847, featuring Margaret Hamilton reprising her role as the Wicked Witch of the West from the 1939 film The Wizard of Oz.  It scared children so badly that the episode has never been re-aired. (This, after she had appeared as herself in three episodes of Mister Rogers’ Neighborhood, between 1975 and 1976– because Fred Rogers wanted his young viewers to recognize the Wicked Witch was just a character and not something to fear.)

220px-Sesame_Street_Margaret_Hamilton_Oscar_The_Grouch_1976 source

 

“A firm’s income statement may be likened to a bikini- what it reveals is interesting but what it conceals is vital”*…

 

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A recent (Roughly) Daily noted (by way of a quote from James Surowiecki) that “the challenge for capitalism is that the things that breed trust also breed the environment for fraud.”  A painful recent example was, the failure of credit ratings agencies honestly to assess the risk of derivatives being traded against home mortgages, which contributed mightily to the crash that occasioned The Great Recession.

But, as Richard Brooks argues, there’s a bigger and more pervasive problem still lurking:  accountancy used to be boring – and safe.  Today it’s neither.  Have the ‘big four’ firms become too cosy with the system they’re supposed to be keeping in check?  Are we in for Enron all over again, only this time on the financial system-wide basis?

The demise of sound accounting became a critical cause of the early 21st-century financial crisis. Auditing limited companies, made mandatory in Britain around a hundred years earlier, was intended as a check on the so-called “principal/agent problem” inherent in the corporate form of business. As Adam Smith once pointed out, “managers of other people’s money” could not be trusted to be as prudent with it as they were with their own. When late-20th-century bankers began gambling with eye-watering amounts of other people’s money, good accounting became more important than ever. But the bean counters now had more commercial priorities and – with limited liability of their own – less fear for the consequences of failure. “Negligence and profusion,” as Smith foretold, duly ensued.

After the fall of Lehman Brothers brought economies to their knees in 2008, it was apparent that Ernst & Young’s audits of that bank had been all but worthless. Similar failures on the other side of the Atlantic proved that balance sheets everywhere were full of dross signed off as gold. The chairman of HBOS, arguably Britain’s most dubious lender of the boom years, explained to a subsequent parliamentary enquiry: “I met alone with the auditors – the two main partners – at least once a year, and, in our meeting, they could air anything that they found difficult. Although we had interesting discussions – they were very helpful about the business – there were never any issues raised.”

This insouciance typified the state auditing had reached. Subsequent investigations showed that rank-and-file auditors at KPMG had indeed questioned how much the bank was setting aside for losses. But such unhelpful matters were not something for the senior partners to bother about when their firm was pocketing handsome consulting income – £45m on top of its £56m audit fees over about seven years – and the junior bean counters’ concerns were not followed up by their superiors.

Half a century earlier, economist JK Galbraith had ended his landmark history of the 1929 Great Crash by warning of the reluctance of “men of business” to speak up “if it means disturbance of orderly business and convenience in the present”. (In this, he thought, “at least equally with communism, lies the threat to capitalism”.) Galbraith could have been prophesying accountancy a few decades later, now led by men of business rather than watchdogs of business…

A chilling, but important report: “The financial scandal no one is talking about.”

* Burton G. Malkiel

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As we count beans, we might recall that it was on this date in 1873 that Samuel Clemens (the author known as Mark Twain) received a U.S. patent, his second, for a self-pasting scrapbook (No. 140,245).  His creation used a dried adhesive on its pages so that users need only moisten a page in order to attach pictures.

In 1871, Clemens had scored his first patent, for “an Improvement in Adjustable and Detachable Straps for Garments”–an adjustable strap that could be used to tighten shirts at the waist that was later used on women’s corsets, and is considered by many to be the precursor of the adjustable bra strap.  He earned his third patent in 1875 for a history trivia game,“Mark Twain’s Memory-Builder Game.”

 source

 

Written by LW

June 24, 2018 at 1:01 am

“The challenge for capitalism is that the things that breed trust also breed the environment for fraud”*…

 

 source

WannaCry, a computer virus that encrypts data and demands a ransom to unscramble it, hit thousands of computers in May, causing several hospitals in Britain to close their doors. Hardly a week now goes by without a large company admitting that its systems have been breached: Yahoo recently confessed that 1bn accounts had been compromised in an attack in 2013. Cyber-attacks are a scourge of modern life, but their history goes back further than you might expect.

The world’s first national data network was constructed in France during the 1790s. It was a mechanical telegraph system, consisting of chains of towers, each of which had a system of movable wooden arms on top. Different configurations of these arms corresponded to letters, numbers and other characters. Operators in each tower would adjust the arms to match the configuration of an adjacent tower, observed through a telescope, causing sequences of characters to ripple along the line. Messages could now be sent much faster than letters, whizzing from one end of France to the other in minutes. The network was reserved for government use but in 1834 two bankers, François and Joseph Blanc, devised a way to subvert it to their own ends…

Nearly two centuries ago, France was hit by the world’s first cyber-attack.  With a nod to Isaiah Berlin**, Tom Standage argues that it holds lessons for us today: “The crooked timber of humanity.”

* James Surowiecki

** Berlin’s title was a reference to a quote from Kant: “Out of the crooked timber of humanity, no straight thing was ever made.”

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As we learn from history, we might recall that it was on this date in 1858 that two ships, the Niagara and the Agamemnon headed out from Keyham Dockyard in England to begin work on what would become the first operational Transatlantic cable, as previous attempts at laying a Transatlantic cable had failed.  Designed for telegraph operation, the cable run was completed on August 5th; and the first test message was sent on August 12th.

The Niagara at work

source

 

Written by LW

June 10, 2018 at 1:01 am

“Nobody owns life, but anyone who can pick up a frying pan owns death”*…

 

The kitchen is well equipped and stocked. There’s a stove, a refrigerator full of food, a table with a rolling pin and a bowl, and a sink with Ivory soap. The wall calendar, featuring with a sailing ship, says it’s April 1944. But there’s something else: Every item is miniature, hand-crafted, and a doll lies on the floor, apparently dead, cause unknown.

This is one of Frances Glessner Lee’s Nutshell Studies of Unexplained Death, a series of 1/12-scale dioramas based on real-life criminal investigation cases. They were used—and continue to be studied even today—to train investigators in the art of evidence gathering, meticulous documentation, and keen observation. And they were created by one of the most unlikely and influential figures in crime scene forensics…

From “The Grim Crime-Scene Dollhouses Made by the ‘Mother of Forensics’,” which prompts a look back at (R)D’s earlier visit with Ms. Glessner:

 source

Frances Glessner Lee (1878-1962) was a millionaire heiress and Chicago society dame with a very unusual hobby for a woman raised according to the strictest standards of nineteenth century domestic life: investigating murder. And she did this through a most unexpected medium: dollhouse-like dioramas. Glessner Lee grew up home-schooled and well-protected in the fortress-like Glessner House, designed by renown American architect H.H. Richardson, but she was introduced to the fields of homicide investigation and forensic science by her brother’s friend, George Magrath, who later became a medical examiner and professor of pathology at Harvard Medical School. Instantly captivated by the nascent pursuit, she became one of its most influential advocates. In 1936, she endowed the Department of Legal Medicine at Harvard and made subsequent gifts to establish chaired professorships and seminars in homicide investigation. But that’s not all…

Glessner Lee, rather than using her well cultivated domestic skills to throw lavish parties for debutantes, tycoons, and other society types, subverted the notions typically enforced upon a woman of her standing by hosting elaborate dinners for investigators who would share with her, in sometimes gory detail, the intricacies of their profession. Glessner Lee oversaw every detail of these dinners herself, down to the menu and floral arrangements. She could probably tell you which wine goes best with discussion about a strangled corpse found in a bathroom. But the matronly Glessner Lee — who may have been the inspiration for Angela Lansbury’s character in “Murder She Wrote”– wanted to do more to help train investigators. She wanted to create a new tool for them…

In her conversations with police officers, scholars and scientists, she came to understand that through careful observation and evaluation of a crime scene, evidence can reveal what transpired within that space. The physical traces of a crime, the clues, the vestiges of a transgressive moment, have a limited lifespan, however, and can be lost or accidentally corrupted. If a crime scene were properly studied, the truth would ultimately be revealed.

To help her investigator friends learn to assess evidence and apply deductive reasoning,  to help them “find the truth in a nutshell,” Frances Glessner Lee created what she called “The Nutshell Studies of Unexplained Death,”  a series of lovingly crafted dioramas at the scale of one inch to one foot, each one a fully furnished picturesque scene of domesticity with one glaringly subversive element: a dead body…

These miniature crime scenes were representations of actual cases, assembled through police reports and court records to depict the crime as it happened and the scene as it was discovered. They were pure objective recreations. The design of each dollhouse, however, was Glessner Lee’s own invention and revealed her own predilections and biases formed while growing up in a palatial, meticulously appointed home. She makes certain assumptions about taste and lifestyle of low-income families, and her dioramas of their apartments are garishly decorated with, as Miller notes, “nostalgic,” and “often tawdry” furnishings.

Investigators had to learn how to search a room and identify important evidence to construct speculative narratives that would explain the crime and identify the criminal.  Glessner Lee’s models helped them develop and practice specific methods –geometric search patterns or zones, for example– to complete an analysis of a crime scene. “The forensic investigator,” Miller writes, “takes on the tedious task of sorting through the detritus of domestic life gone awry….the investigator claims a specific identity and an agenda: to interrogate a space and its objects through meticulous visual analysis”…

Read the full story at “How a Chicago Heiress Trained Homicide Detectives With an Unusual Tool: Dollhouses.”

* William S. Burroughs

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As we re-enact the crime, we might send elegantly-designed birthday greetings to Sir Christopher Wren; he was born in this date (O.S.) in 1632.  One of the most highly acclaimed English architects in history, he was given responsibility for rebuilding 52 churches in the City of London after the Great Fire in 1666, including what is regarded as his masterpiece, St Paul’s Cathedral, on Ludgate Hill, completed in 1710; his other works include the Royal Naval College, Greenwich, and the south front of Hampton Court Palace, and the Wren Building, the main building at the College of William and Mary in Virginia.

Educated in Latin and Aristotelian physics at Oxford, Wren was also a notable anatomist, astronomer, geometer, and mathematician-physicist. He was a founder of the Royal Society (and its president 1680–82).

 source

 

Written by LW

October 20, 2017 at 1:01 am

“Whoever said crime doesn’t pay is an idiot. It pays great, which is why there is so much of it.”*…

 

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Low-level criminals in the US make an average of $900 per week, according to an estimate published in the academic journal Criminology.

So, people who commit small crimes, like robberies, forge checks, and deal drugs, are making more money per week than the average US worker ($885).

Low-level criminals are also making more money per week than high school dropouts ($504) and college dropouts ($756).

That might be in part because wage growth (in the formal economy) is so sluggish in the US, even though unemployment is low, at 4.4%. Wages grew only 2.5% between mid-2016 and mid-2017. While some analysts would expect it to be growing at 3.5%

More at Quartz Index.

* Jay Crownover

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As we sigh from the straight and narrow, we might send well-organized birthday greetings to Joseph Michael “Joe Cargo” Valachi; he was born on this date in 1904.  A member of Lucky Luciano’s mob family from the 1930s through the 1950s, Valachi was primarily involved in rackets and gambling– until his racketeering conviction in 1959, for which he was sentenced to 15 years in a federal prison.

Valachi attained his notoriety– and historical significance in 1963, when he was the star witness in a government inquiry into the Mob (the McClelland Committee).  He provided the Committee with graphic details of Mob life, and named six New York are Crime families.  The first member of the Italian-American Mafia to publicly acknowledge its existence, he is credited with popularization of the term “Cosa Nostra.”

After returning to prison, Valachi teamed with appointed writer Peter Maas to craft his memoirs, The Valachi Papers, which were published in 1968.

Valachi testifying

source

 

Written by LW

September 22, 2017 at 1:01 am

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