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Application of Fraud Elements to Senator Dorgan (D-ND)

 

In the case study on deception with a projection, knowing full well the Congress is exempt from its own Laws, the elements of fraud (see below) are still being met by senior Democratic politicians in their deception with a projection.  Senator Dorgan’s (D-ND) comments will be featured to demonstrate my points.  (Not featured in this case study but using the same tactic)

1)   Senator Dorgan in 2003 makes a representation the CBO in 2001 “predicted” a $5.6 trillion surplus.

2)   The representation is not true as indicated in the CBO report the Senator references. “ …the baseline projection is not a prediction of future outcomes…”  - CBO 2001

3)   A $5.6 trillion budget surplus is material. Using a CBO projection for purposes of deception using a tactic that is illegal in the private sector is material (Securities Act of 1933, Sec. 27A, page 47 of PDF file.) – Webhost Opinion

4)   Senator Dorgan knows his 2003 statement is false.  In 2001, referencing the same projection, Senator Dorgan said this:  I hope that is the case, but with the current slowdown in our economy, we ought to be cautious. Economic forecasts are no more reliable than weather forecasts." - Emphasis added. – Congressional Record 2001

5)   Senator Dorgan’s intent is for his 2003 statement to be relied upon.  It is an opening statement of his as Chairman of the Democratic Policy Committee. – Webhost Opinion

6)   The vast majority of Americans are not aware of a tactic to deceive with projections. – Webhost Opinion

7)   Americans are relying on statements from their elected officials. – Webhost Opinion

8)   American’s have a right to rely on their elected officials to comply with the Code of Ethics for Government Service.

9)   American’s are injured by being misled by intentional deception of elected officials. – Webhost Opinion

Senator Dorgan (D-ND) – Ethics - $5.6 Trillion Projection

 

 

 

http://wcc.dli.mt.gov/TOOLS/Fraud_Elements.htm

Fraud: Elements

Taylor v. State Compensation Insurance Fund, 175 Mont. 432, 913 P.2d 1242 (1996) To sustain a claim of fraud, insurer was required to plead and prove each of the nine elements of fraud: (1) a representation; (2) falsity of the representation; (3) materiality of the representation; (4) speaker’s knowledge of the falsity of the representation; (5) the speaker’s intent it should be relied upon; (6) the hearer’s ignorance of the falsity of the representation; (7) the hearer’s reliance on the representation; (8) the hearer’s right to rely on the representation; and (9) the hearer’s consequent and proximate injury caused by reliance on the representation.

 

 

http://www.nysscpa.org/cpajournal/2004/1204/essentials/p38.htm

Excerpt

The Fraud Diamond: Considering the Four Elements of Fraud

By David T. Wolfe and Dana R. Hermanson

 

A Different Way to Think About Fraud Risks

The authors believe that the fraud triangle could be enhanced to improve both fraud prevention and detection by considering a fourth element. In addition to addressing incentive, opportunity, and rationalization, the authors’ four-sided “fraud diamond” also considers an individual’s capability: personal traits and abilities that play a major role in whether fraud may actually occur even with the presence of the other three elements.

Many frauds, especially some of the multibillion-dollar ones, would not have occurred without the right person with the right capabilities in place. Opportunity opens the doorway to fraud, and incentive and rationalization can draw the person toward it. But the person must have the capability to recognize the open doorway as an opportunity and to take advantage of it by walking through, not just once, but time and time again. Accordingly, the critical question is, “Who could turn an opportunity for fraud into reality?”

Using the four-element fraud diamond, a fraudster’s thought process might proceed as follows (Exhibit 1):