Ed Okun or Michael Okun: What’s With The Okun Name And Scandal?

Chicago Sun-Times published this deansguide article September 11, 2008

A New York man, Michael Okun, was recently arrested for bilking a Hillsborough, California woman of $510,000 in a ponzi scheme disguised as an investment vehicle. Okun contacted the victim in 2001 and brought the scheme into full swing according to a San Francisco Chronicle story. Does Ed Okun have a evil twin, lost son, or family member here? Here is why I keep writing about rip offs

What Happened?

1. According to a San Francisco jury indictment, Okun wrote a letter to the victim claiming to have a patent for a search engine and was working on a deal with Microsoft related to developing the technology

2. Okun claimed he was amongst a group of investors “ trying to raise $25 million to secure Microsoft’s participation and persuaded her to wire $260,000 to a New York bank account in the name of Media World Communications,” the indictment said

3. Over the course of the next 2 years Okun recruited a second investor with the idea of paying off the original investor with the new investors initial cash investment: a typical ponzi scheme

Analysis

Although the amounts of money are far below the levels of Ed Okun, is it just coincidence that two men with the same name ran ponzi schemes on investors? The name Okun is not Smith. Is there a connection between the two men? Three things are clear in this case different and similar from the Ed Okun case:

1. Due Diligence: the Hillsborough victim: never performed any due diligence on Michael Okun, search engine technology, or where her money was being sent. The cash was going directly into Okun’s personal bank account just like the money that Ed Okun was stealing went into his personal accounts onshore and maybe offshore

2. “Player”: Google search of the name Michael Okun and nothing comes up on page one today about this con artist. Imagine if the Hillsborough investor had performed a Google search in 2001 and nothing showed up on a search query. That would not be out of the norm for that time period, except for the fact that Michael Okun claimed to be a player. He should have showed up somewhere with a trail of former clients, investment firms, employment history, or something to investigate

3. Denial: everyone wants to believe they are not being ripped off. It is this embarrassment factor, that allows the Michael Okun’s and Ed Okuns of the world to continue their schemes. It is also the reason a person loses more than the initial investment