Where Are The Felony Fraud Prosecutions?
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2018-09-14 11:21 by Karl Denninger
in Company Specific , 207 references Ignore this thread
Where Are The Felony Fraud Prosecutions?
[Comments enabled]

This is pretty-simple stuff folks.

Bharadwaj said she wired Tesla about $60,000 early Aug. 22 to pay for a Model 3. She was told the car was ready for pickup that day; a few hours later, though, she was told her car wasn’t ready after all but would be delivered Sept. 9. That delivery was canceled as well.

“It was extremely difficult to get hold of anyone, and even when I did, I never got the same story,” Bharadwaj said.

If you're told something is available "cash on delivery" now, and you wire the money the ******n car better be there and in deliverable form.

You have a contract.  If it was never in deliverable form at the time you were told it was, and you wired the cash, that certainly appears to be fraud.  As in go to prison right now fraud.

So is this:

There’s no doubt in Richard Lam’s mind: When he takes the wheel of his Tesla Model 3, he’ll be thrilled with it. “I hear that owners, once they get their cars, are very happy,” said Lam, 31, an electrical engineer from Diamond Bar.

Getting it is the problem. Lam has been waiting more than two months. He’s already paid Tesla for the highest-end Model 3 available, which costs $79,500. He’s paying principal and interest on his loan. But for now he’s left driving a 1999 Mustang, a loaner from his brother.

Who financed it?  And who disbursed the funds to the car company without an actual car being delivered against that with a delivery acceptance signature from the customer?

I have never seen a finance arrangement on a vehicle where the finance company (in-house or otherwise) disburses the funds to the car company (and thus starts charging you interest and principal) until the car is in your hands and you've signed acceptance for same.

What's wrong with people here?  What's wrong with the state Attorneys General?

This isn't someone getting screwed out of $10 on something -- it's a damned car, a titled piece of property and you have no title nor delivery on same plus, it appears, the company that got the money lied about the vehicle being ready.

This needs to result in instant felony criminal indictments folks.

If you or I screwed someone out of a tenth of this amount of money we'd be in the dock right now.  Tesla does it to people and..... nothing.

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Aztrader
Posts: 8068
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Scottsdale, AZ
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Wish I could get customers to pay in advance for a promise. This usually comes from customers with too much money and no common sense.
James56287
Posts: 700
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A True American Patriot!
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I haven't seen it, but I bet their accounting is actually a mess. I can only imagine the revenue recognition nightmare on their books with news stories like this floating around. Clearly fulfillment of their performance obligation hasn't occurred (even if they're papering up the transaction like it did with a customer signature), but they've received cash, so deferred revenue needs to be recognized for these units, etc.

I'd have some heartburn signing off on those financials every year if I was that audit partner. Hell I'd have heartburn during the client acceptance / continuance decision at the beginning of the engagement with them being the cash furnace that they are.
Lenguado
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Orlando, FL
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~$80K for a "top of the line" bottom rung model electric golf cart?!?!?!!?!?
smiley

Apparently Richard Lam has never heard of David Hannum and his (attributed) comment about P.T. Barnum: "There's a sucker born every minute." That's like a - 2,000% ROI, at best (if the bumpers don't fall off as soon as you drive it off the lot).


Sounds to me that us TF'ers need to start up an Electric Car Company in CA!

Seems that they not only look the other way at fraud in that state - but if it is a "GREEN" company, they facilitate it.

We could call our first car, the "SNOWFLAKE"!

We can crowd-source the financing - and just "say" that we burned through it in production - in the giant circus tent that we purchased second hand from the Barnum & Bailey folks!

smiley

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Bodhi
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Georgia
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Of course TSLA is currently up $4 on the day. smiley
Ahhz
Posts: 251
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Bodhi wrote..
Of course TSLA is currently up $4 on the day.

Why not? They've just shown they found more gullible suckers customers willing to pony up cash. /sarc

Robodog
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Lenguado:

I like your apt Barnum allusion but criminy! they're assembling their product, probably one of the most complicated in modern manufacturing, in tents situated in the desert. Compare that to Toyota & their indoor very clean, refined & efficient methods where I'd have no reservations eating off their production line floor. I've read reports that upwards of 80% of their finished goods need re-working. Add the foregoing to their cars & cash burning & I fail to see how their auditors could issue any opinion on their financials without a going concern caveat.

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Benthere
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Tesla is a POS but those buyers are |Fin idiots. Get a certified check payable to the dealer and hand it over when they hand over the car. They got what they deserved sucking on a virtue signalling phallus that is tesla
Bjonsson
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Quote:
I bet their accounting is actually a mess. I can only imagine the revenue recognition nightmare on their books

That would be interesting to delve into.

For this guy who prepaid for his car... is Tesla recording this as a sale?

And if so, is the car built yet? If not, is Tesla recording sales on cars for which their COS has not fully incurred the full and finished production cost of that same car?

If not, how are they treating the discrepancy? A favorable "financing" issue?

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Benthere
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James Spot on though you are remembering when audit firms had integrity. Well they did for about 15 minutes after AA went down. Revenue recognition would only be the tip of the iceberg, That's pretty easy at the end of the day, match a payment to a vehicle. How about taking an inventory? Those nasty details like shipping cutoff, inventory receipts you count but haven't been billed yet, unrecorded liabilities on PO's (remember when Elon the magnificent elon wanted vendors to cough up money?) Bank recs up to date??? Since they cant deliver anything on time I assume stuffing the inventory pipeline is a luxury they cant do yet.

I would love to see the models they concocted (an auditors signed off on) for future warranty expense. Elon will be long gone before that little grenade goes off.
Themortgagedude
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How this isn't trading with a Q in the stock symbol I'll never know.

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Tickerguy
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Ditto.

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Winding it down.
Spanktron9
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Reality.
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Quote:
Get a certified check payable to the dealer and hand it over when they hand over the car.


TSLA doesn't have a dealer network. They are *disrupting* the model and have only delivery centers (don't pay attention to their recent sales events at non-licensed production and research facilities).

Quote:
How this isn't trading with a Q in the stock symbol I'll never know


Go to twitter and search $TSLAQ. Prepare to lose your life in the process. There is a dedicated group of people who are doing research, DD and professional level analytics on this topic.

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Benthere
Posts: 72
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You have to be a double freekin idiot to wire money ANYWHERE for a promise to deliver what you are paying for upfront. I hope to read a lot of the musk acolytes getting butt reamed More popcorn please!
Quik49
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Glad you posted this....saw it in TOS on my phone but could not copy it.... A q at the end indeed....meanwhile the pump continues on how much production has ramped up....more lemons in the making. Q4 I think is going to be the implode moment....that this charade has gone on this long is unbelievable

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Long Vaseline....

Benthere
Posts: 72
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Ive been around the block on this crap, new companies trot out the latest shiny durable good, boats, rv's you name its the devil in the quality you buy it and it has a fantastic warranty 5 years bumper to hitch. Tesla has NOOO dealer support OR a track record for the s**t they churn out. Good luck. So minimal contingent liabilities ON THEIR p&l for warranty which will be HUGE. looks good for a few years. Where is the infrastructure for parts and a service department? That is a major headache for any manufacturer expecting to be around for awhile.

Look to exit strategy, sell to Toyota or someone else for the brand |(if it is worth a S**t) and the buyer will eschew all previous liability.
Benthere
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Does anyone think that Tesla has had the time or , worse yet , the appreciation to put in place the expensive infrastructure to do quality control over their supply chain, wherever the hell that is? Do you think that the engineers fill out engineering change notices on the fly? Would you park your ass on a space X rocket?
Calsdad
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Massachusetts
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A couple of weeks ago I ran across a guy who posts on Youtube as Rich Rebuilds.

He goes around gathering up Tesla parts and resurrecting dead Teslas and has learned a lot about the cars in the process of doing so.

He makes the point that Tesla really locks down these cars as far as getting factory support for repairs outside of the Tesla network.

Listen to what this guy has to say about how he got treated by Tesla after he went out of warranty: https://www.youtube.com/watch?v=iR4CFiuR....


Captainkidd
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Houston, Texas
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They wired the money to Tesla, with a promise of future delivery....

Are we absolutely sure Musk isn't a Nigerian prince????

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Quik49
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Tesla facing criminal US charges...posted it in the death thread

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Long Vaseline....

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