In some countries, authorities don't recognize Gordon's credentials as court-appointed receiver and therefore the owner of the former Bramson companies. Gordon hopes to recover the lion's share of the money by early 1998. Then it can be distributed to the claimants. This technique of establishing receiverships in other countries in order to recover assets for fraudulent insurers has been so successful in the Bramson case that it is becoming a model that other states are considering, according to an NAIC spokeswoman. If a fraud is ongoing, financial statements can be an effective weapon.
Companies can rent assets to improve their financial statements.
However, if the monthly rental fee is not paid, those assets are at risk because the rental agreement becomes null and void. Another way to create the illusion of wealth is to issue stock in a private company, then trade it among a group of people, selling it on paper for a higher price each time it is traded. When the stock price reaches a high enough level, it can be listed as a company asset, Vaules said. That stock also can be rented to someone else through a brokerage account. Yet another way to acquire a worthless asset is to obtain a lease or option to buy some property, then get a cooperative appraiser to say there is gold in the ground, estimate the amount and value it based on the current market price, Vaules said.