January 1998 Topics
Capper, Confabulation, Kashrut Fraud, Reverse Mortgage Fee Scam, Sacred Cow, Sail Under False Colors, Scapegoat, Scienter, and Spam
 

To deceive their prey, pirates display the flag of a friendly country or merchant company.
 

Capper
A fast-talking accomplice to a confidence game artist. A capper attracts victims to a confidence game that may involve gambling, prostitution, false insurance claims, or other illegal activity. A capper may win a lot of money in a gambling game in order to attract more players. In an insurance scam, a capper may direct victims to particular physicians or attorneys. (See Bandit Tow Truck Driver)
Jay Robert Nash, Dictionary of Crime, Paragon House, New York, 1992, p. 57.
 

Confabulation
Talking and filling in memory gaps with fictitious events. The speaker or witness accepts the falsifications as correct.
Webster’s Encyclopedic Unabridged Dictionary of the English Language, Gramercy Books, New York, 1989, p. 307.
 

Kashrut Fraud
Kashrut (or kashruth) is the body of dietary laws prescribed for Jews. Most restaurants in Israel obtain a kashrut license so they will not lose the business of observant Jews. Kosher restaurants have to keep diary and meat products separate, do not use pork or shrimp, and submit to visits by rabbinical inspectors. To avoid the costly and lengthy license process, some restaurants obtain homemade or counterfeit certificates. About 5,000 complaints a year are investigated by the rabbinate’s Kashrut Fraud Division.
“Kosher Hot Line Invites Complaints,” Associated Press, AOL News, November 6, 1997.
Image: www.ottmall.com/ maimonides/thrust.html
 

Reverse Mortgage Fee Scam
A reverse mortgage allows older people to borrow against the equity in their home, receiving monthly payments or lump-sum payments for medical expenses, home repairs, and other living expenses. Fraudsters offering estate-planning services charge the elderly a fee for applying for a reverse mortgage. Their fee is as high as 10% of the loan amount. The fee is unnecessary because the loan application with instructions is available at no cost from the Department of Housing and Urban Development.
“House OK’s Mortgage Scam Bill,” Associated Press, AOL News, November 13, 1997.
 

Sacred Cow
An idea, person, group, or institution considered exempt from questioning or even justified criticism. They may be popular, held in high esteem, or protected for other reasons. However, when an opportunity exists to commit fraud, even a scared cow and its supporters might take advantage of the situation. (In India, Hindus believe cows are sacred and protected. Even among castes that are not vegetarian, beef is not eaten.)
Webster’s Encyclopedic Unabridged Dictionary of the English Language, Gramercy Books, New York, 1989, p. 1259.
 

Sail Under False Colors
To misrepresent oneself deliberately. This maritime scheme has been rampant since ancient times. It still occurs in parts of the Pacific Ocean. In order to deceive their prey, pirates would display the flag of a friendly country or merchant company to lure their victims close enough to be captured. Drug and weapon smugglers fly false colors to reduce suspicion.
Christine Ammer, Have a Nice Day - No Problem!, Plume, New York, 1992, p. 316.
 

Scapegoat
A person or group made to bear the blame for others or suffer in their place. In the Old Testament of the Bible, a priest would confess or lay all the sins of the people on a live goat’s head and release the goat into the wilderness.
American Heritage Dictionary of the English Language, Houghton Mifflin Company, Boston, 1980, p. 1159.
 

Scienter
Knowledge of a falsity. The defendant had previous knowledge of the facts which led to, or caused, injury to another party. An accountant may be held liable for disseminating false statements. Acting with reckless regard for the truth.
Black’s Law Dictionary, Fifth Edition, West Publishing Co., St. Paul, Minnesota, 1979, p. 1207.
 

Spam
Mass delivered, unsolicited commercial e-mail. Spam includes unrequested and unwanted advertisements for everything from illegal pyramid schemes to pornography. The messages annoy computer users by tying up computer processing, using false return addresses, or mimicking legitimate business. The Federal Trade Commission conducted hearings on unsolicited commercial e-mail and reaffirmed its commitment to stamp out fraudulent practices. Some Internet Service Providers (ISPs) check incoming messages for nonexistent return addresses (pinging). Computer users adopted the word Spam, which is a trademark for canned loaf meat, commonly available in World War II.
“Spam, Spam, Spam, Spam,” AOL News, August 21, 1997.
Photo: Hormel Foods Corporation
 

ã Copyright 1998 Larry C. Adams.
All rights reserved.
 

Order the book - Fraud In Other Words
 Magazine Article Archive
Fraud Dictionary
Free update service