557

Equity Funding Corp. of America, 1970-80's Specimen Stock Certificate Historic Insurance Scandal and

Currency:USD Category:Coins & Paper Money / Stock & Bond - Certificates Start Price:75.00 USD Estimated At:120.00 - 240.00 USD
Equity Funding Corp. of America, 1970-80's Specimen Stock Certificate Historic Insurance Scandal and
PLEASE CONTACT US TO REGISTER FOR LIVE BIDDING OR ABSENTEE BIDDING AT:

PH: 1-201-944-4800
FAX: 1-201-839-3336
Web: www.archivesinternational.com
Email: info@archivesinternational.com

Snail Mail: Archives International Auctions
1060 Main Street, Suite 202, River Edge, NJ 07661

The auction will take place on January 24, 2023 at AIA's office located at 1060 Main St., Suite #202, River Edge, NJ 07661 beginning at 11:00 AM
Delaware, ND (1980-1990s). >100 Shares Specimen Stock Certificate, Black text with green border and underprint, Allegorical woman with wires and globe at top center. Red specimen overprints and POCs. VF condition, SCBN. Equity Funding Corporation of America was a Los Angeles-based U.S. financial conglomerate that marketed a package of mutual funds and life insurance to private individuals in the 1960s and 70s. It collapsed in scandal in 1973 after ex-employee Ronald Secrist and securities analyst Ray Dirks blew the whistle on massive accounting fraud, including a computer system dedicated exclusively to creating and maintaining fictitious insurance policies. Investigation found that from 1964 onward, as many as 100 company employees had engaged in organized deception of investors, auditors, reinsurers and regulatory authorities. The company created more than 60,000 bogus life insurance policies that it sold to reinsurance companies for a fee. In order to pay the premiums on the policies, Equity Funding created additional bogus policies that they would also sell. Sometimes they would claim the bogus policyholder died and then receive the death benefits from the reinsurance company. An important sidelight was the filing of insider trading charges against whistleblower Dirks. The ensuing case of Raymond L. Dirks v. Securities and Exchange Commission went all the way to the U.S. Supreme Court where Dirks was finally acquitted. The case has been termed historic in helping to define insider trading, as well as the treatment of whistleblowers, analysts and the press.