4 Bold Business Scams (And Why They Failed Miserably)

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Starting a legitimate business is hard, boring work. There's paperwork to fill out, employees to hire, and all sorts of other drudgery, not to mention the biggest hurdle of all: providing a product or service for which customers are willing to pay. In all likelihood, it would be much easier to just stumble upon some clever scam to line your pockets. Or so it would seem. As many aspiring scam artists quickly learn, when a business scam fails, it tends to fail in rather grand fashion. Just ask any of these four teams of not-so-smooth operators.

A Corny Sea Story

Xenothemis and Hegestratos may not have been the world's first white-collar criminals, but they were certainly noteworthy for their incompetence. In 360 B.C, the pair stumbled upon what seemed like a killer plan to make some quick cash. Shipping was extremely risky at the time, and boats went down at sea with alarming frequency. To exploit this uncertainty, Xenothemis and Hegestratos devised a plan in which they would receive a cash advance to ship a load of corn from Syracuse to Athens. Due to the dangers associated with shipping, the buyer would take on full risk if the shipment didn't make it to Athens, so if the boat sank Xenothemis and Hegestratos could keep their cash.

Instead of loading the ship with expensive corn, the conniving pair made a plan to sail an empty ship out to sea for a few days, then sink it and escape in lifeboats. Since the boat itself was insured, this plot seemed airtight, and the potential profit was great. Unfortunately, though, the boat's other passengers allegedly caught wind of the scheme during the attempting scuttling of the ship. These passengers were understandably a bit peeved at Hegestratos' attempts to drown them for his own financial gain. Hegestratos panicked and jumped overboard, at which point he drowned. Unable to sink the ship by himself, Xenothemis had to sail on to the port, at which point the buyer, Protos, wanted to know why his shipload of corn was empty. A legal battle followed, and although the verdict has been lost by history, it's safe to say that the late Hegestratos regretted the scam.

When Friday Went Black

Despite his prowess as a general, Ulysses S. Grant's presidency didn't go so smoothly. Ones of its most notable scandals occurred in 1869, when a group of speculators upended the U.S gold market.

The plan started when financier James Fisk and robber baron Jay Gould formed a group of speculators with the goal of cornering the gold market, which would give the group the ability to manipulate the price. Of course, one can only corner the market if there's a fixed quantity of gold available. Otherwise, the government could just sell large quantities of gold, and the cornering effort would be an expensive failure. In an effort to avoid this fate, Gould and Fisk brought President Grant's brother-in-law Abel Corbin into their fold. Using Corbin's influence to get an audience with the President, the pair would argue to Grant that selling gold was a terrible idea that the government should avoid at all costs. The wily pair also used their influence at the White House to secure a position as assistant treasurer of the United States for Daniel Butterfield, who would warn them if the government started to sell gold.

With their connections in place, Fisk and Gould started buying up gold in September 1869, quickly driving the price of gold up by around 30%. Once Grant and his advisors got wise to the situation, though, the government quickly sold off $4 million in gold to break the corner, effectively killing the inflated prices on September 24th. As investors scrambled to get rid of their overpriced gold, the price plummeted sharply, and many involved in the scam lost huge amounts of money. Fisk and Gould managed to avoid big losses due to their connections in the treasury, but what would be known as Black Friday didn't earn them a huge windfall—and significantly harmed the American economy.

Bad Moves

If you've ever hired movers, you know it can be pretty pricey. Erik Deri, the founder of Woodinville, WA-based Nationwide Moving Systems, understood that most movers were expensive, so he drummed up business by offering super-cheap quotes to frugal clients. The customers were ecstatic to find a mover who could get their belongings to a new home so cheaply.

That is, until the price went up. Deri's movers would load the company's vans with all of a customer's worldly belongings, then a foreman would inform the client that they'd have to pay an inflated price to actually get their stuff to their new digs. The price hikes weren't small, either; one man's estimate stated he could move for $3,000 but was later revised to $16,000 after loading. According to authorities, if customers balked at these demands, the movers would threaten to unload their boxes and furniture into the street"¦and then charge them an unloading fee. If things got really sticky, Nationwide's trucks could just take off with all of the clients' possessions. Deri supposedly paid cash bonuses to employees who successfully strong-armed customers into forking over the premiums.

In the end, though, Deri learned that you can't scam that many customers and hope to get away with it. In 2005 he was found guilty of 27 counts of extortion and one count of conspiracy to commit wire fraud and extortion. Three of his accomplices were also convicted in connection with the moving racket. Deri was sentenced to seven years in prison, after which he'll face deportation to his native Israel.

Fools for Gold

Bre-X Minerals Ltd. was a small Canadian mining company that made a big announcement in 1995. Geologists had discovered gold on a site Bre-X owned near Busang, Indonesia. Not just a little gold, either—at least 30 million ounces, possibly as much as 200 million ounces. Given the high prices of gold, such a deposit would have been worth tens of billions of dollars. Bre-X's stock price shot through the roof; shares went from being valued at a few cents to over $280 Canadian.

In fact, the deposit seemed so rich and so large that a small company like Bre-X could not possibly handle it all without some help. In 1997, the Indonesian government convinced Bre-X to take on an American firm as a partner to help extract the gold. When this firm, Freeport-McMoRan, started sampling the soil at the deposit site as part of its due diligence, it reached a confusing conclusion: there wasn't any gold in the soil. Subsequent examinations by independent auditors reached the same conclusion. The "natural" gold that in the original samples Bre-X had taken was mostly river gold from other regions or shavings off of gold jewelry.

Although the company's market cap had climbed to $4.4 billion, this report quickly destroyed Bre-X's value. Share prices dropped 97 percent in a day following the announcement, the company was soon removed from the Toronto Stock Exchange and Nasdaq, and Bre-X quickly went bankrupt. Amazingly, no one ended up in jail from this scam, but you should still probably be wary if anyone offers to sell you an enormous gold mine on Borneo.

Ethan Trex grew up idolizing Vince Coleman, and he kind of still does. Ethan co-writes Straight Cash, Homey, the Internet's undisputed top source for pictures of people in Ryan Leaf jerseys.

Everything You Need to Know About the New DC Universe Streaming Service

Brenton Thwaites stars in DC Universe's Titans
Brenton Thwaites stars in DC Universe's Titans
Warner Bros. Television

by Natalie Zamora

Although the fates of two major DC superheroes, Superman and Batman, are kind of up in the air right now as far as for their Extended Universes, things are looking up for the franchise, as their exclusive streaming service has just launched. Here's everything you need to know about DC Universe.

THE SIGNIFICANCE

With all the different types of streaming services we have today, why is DC Universe so special, and why would someone pay for it if they can find the content elsewhere? Well, this streaming service allows all your favorite DC content to live in one space. Instead of having to search for what you want throughout the internet, you can find it all here. For the die-hard fan, this is perfect.

DC Universe offers an impressive collection of live-action and animated movies, TV shows, documentaries, and comic books. The service also offers exclusive toys you can only get by being a subscriber.

THE CONTENT

Heath Ledger stars as The Joker in 'The Dark Knight' (2008)
© TM & DC Comics/Warner Bros. Entertainment Inc.

So, what exact DC content lives on DC Universe? Well, there's a range of content from recent to old-school, such as Batman: The Animated Series, The Dark Knight, Teen Titans, and Constantine. Apart from what's on there now, the service will be debuting the live-action Titans series later this year, along with Swamp Thing and Doom Patrol in 2019. DC is also developing new series for Harley Quinn and Young Justice: Outsiders, exclusively for the service.

THE PRICE

​To get all of this exclusive DC content, it must be expensive, right? No, not really. Compared to Netflix, which is $10.99 a month, DC Universe is inexpensive, at a rate of $7.99 monthly or $74.99 annually. It is a bit pricier than Hulu, however, which is $5.99 monthly for the first year, then $7.99 monthly after. Like most streaming services, you can also try a free seven-day trial with DC Universe.

HOW TO SIGN UP

​Are you sold? If so, the sign up process is fairly simple. Head to ​DC Universe, create an account, and choose your plan, either monthly or annually. Either way, you'll get your free seven-day trial to browse around and see for yourself if it's really worth it.

10 Classic Books That Have Been Banned

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iStock

From the Bible to Harry Potter, some of the world's most popular books have been challenged for reasons ranging from violence to occult overtones. In honor of National Book Lovers Day, here's a look at 10 classic books that have stirred up controversy.

1. THE CALL OF THE WILD

The Call of the Wild, Jack London's 1903 Klondike Gold Rush-set adventure, was banned in Yugoslavia and Italy for being "too radical" and was burned by the Nazis because of the author's well-known socialist leanings.

2. THE GRAPES OF WRATH

Though The Grapes of Wrath—John Steinbeck's 1939 novel about a family of tenant farmers who are forced to leave their Oklahoma home for California because of economic hardships—earned the author both the National Book Award and a Pulitzer Prize, it also drew ire across America because some believed it promoted Communist values. Kern County, California (where much of the book took place) was particular incensed by Steinbeck's portrayal of the area and its working conditions, which they considered slanderous.

3. THE LORAX

The cover of Dr. Seuss' The Lorax
Google Play

Whereas some readers look at the title character Dr. Seuss's The Lorax and see a fuzzy little guy who "speaks for the trees," others saw the 1971 children's book as a dangerous piece of political commentary, with even the author reportedly referring to it as "propaganda."

4. ULYSSES

James Joyce's 1922 novel Ulysses may be one of the most important and influential works of the early 20th century, but it was also deemed obscene for both its language and sexual content—and not just in a few provincial places. In 1921, a group known as The New York Society for the Suppression of Vice successfully managed to keep the book out of the United States, and the United States Post Office regularly burned copies of it. But in 1933, the book's publisher, Random House, took the case—United States v. One Book Called Ulysses—to court, and ended up getting the ban overturned.

5. ALL QUIET ON THE WESTERN FRONT

In 1929, Erich Maria Remarque—a German World War I veteran—wrote the novel All Quiet on the Western Front, which gives an accounting of the extreme mental and physical stress the German soldiers faced during their time in the war. Perhaps unsurprisingly, the book's realism didn't sit well with Nazi leaders, who feared the book would deter their propaganda efforts.

6. ANIMAL FARM

The cover of George Orwell's Animal Farm
Public Domain, Wikimedia Commons

The original publication of Animal Farm, George Orwell's 1945 allegorical novella, was delayed in the UK because of its anti-Stalin themes. It was confiscated in Germany by Allied troops, banned in Yugoslavia in 1946, banned in Kenya in 1991, and banned in the United Arab Emirates in 2002.

7. AS I LAY DYING

Though many people consider William Faulkner's 1930 novel As I Lay Dying a classic piece of American literature, the Graves County School District in Mayfield, Kentucky disagreed. In 1986, the school district banned the book because it questioned the existence of God.

8. LOLITA

Sure, it's well known that Vladimir Nabokov's Lolita is about a middle-aged literature professor who is obsessed with a 12-year-old girl who eventually becomes his stepdaughter. It's the kind of storyline that would raise eyebrows today, so imagine what the response was when the book was released in 1955. A number of countries—including France, England, Argentina, New Zealand, and South Africa—banned the book for being obscene. Canada did the same in 1958, though it later lifted the ban on what is now considered a classic piece of literature—unreliable narrator and all.

9. THE CATCHER IN THE RYE

Cover of The Catcher in the Rye

Reading J.D. Salinger's The Catcher in the Rye has practically become a rite of passage for teenagers, but back when it was published in 1951, it wasn't always easy for a kid to get his or her hands on it. According to TIME, "Within two weeks of its 1951 release, J.D. Salinger’s novel rocketed to No. 1 on the New York Times best-seller list. Ever since, the book—which explores three days in the life of a troubled 16-year-old boy—has been a 'favorite of censors since its publication,' according to the American Library Association."

10. THE GIVER

The newest book on this list, Lois Lowry's 1993 novel The Giverabout a dystopia masquerading as a utopiawas banned in several U.S. states, including California and Kentucky, for addressing issues such as euthanasia.

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