In case you didn’t get enough drama and entertainment from the business pages during summer, here is an interesting article from Fortune Magazine (entitled "The alleged grifter who duped corporate giants"). It deals with something we seldom think about- the movement of consumer goods through unauthorized distribution channels. Fortune Magazine’s James Bandler and Doris Burke explain-
“(Dina) Wein Reis was what is known as a "diverter," a player in the little-known but large gray market in which consumer goods are bought and sold in channels unauthorized by manufacturers. Diversion is not necessarily illegal. But the way Wein Reis did it was fraud, prosecutors allege.”
“For sheer dollar damages, her alleged thievery cannot come close to matching that of Bernard Madoff …But what she is accused of doing was fabulously brazen; she had the temerity to sting some of the world's biggest corporations -- not just once, but again and again.”
What struck me was a) the amount of hard work and coordination that went into the enterprise and b) Dina Wein Reis’s willingness to court publicity of her personal life. Prior to the legal melt down, her lavishly furnished Manhattan townhouse was actually featured in Architectural Digest. Most people in her position would have shunned the daylight. (If you want to see over the top Manhattan kitsch in a way only a middle-class Jewish girl from Brooklyn could pull off, you really must check out the photos.)
The Fed’s have since raided the townhouse and seized most of her property. One FBI agent described her home as so full of bling and loot as, "King Tut's tomb." I'm not sure when her trial is scheduled, but you can purchase a copy of her fraud indictment on Amazon for approximately ten dollars. Some light reading to keep you entertained on your next flight.
-JP
(Photo Above- of Wein Reis by Fortune Magazine.)
Update from The New York Post, dated May 19, 2011-
NY socialite Dina Wein Reis pleads guilty to fraud charges
“A New York socialite pleaded guilty Thursday to a federal charge that she duped corporations out of millions of dollars. Dina Wein Reis, 47, softly answered, “Guilty,” when U.S. District Judge Jane Magnus-Stinson asked her how she pleaded to a charge of conspiracy to commit wire fraud.”
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