Cheques And Campaign Cash

A businessman raised money for what he called short-term financing for shops and suppliers. Investors were given post-dated cheques promising about 60 percent a year, and were pressed to roll their gains straight back in. The companies did little real trade; money from new investors paid the old ones, and losses passed $20 million. He also got other people to donate to political campaigns and then paid them back, which let him hand over large sums and look well connected.