4 Bold Business Scams (And Why They Failed Miserably)

iStock
iStock

Starting a legitimate business is hard, boring work. There's paperwork to fill out, employees to hire, and all sorts of other drudgery, not to mention the biggest hurdle of all: providing a product or service for which customers are willing to pay. In all likelihood, it would be much easier to just stumble upon some clever scam to line your pockets. Or so it would seem. As many aspiring scam artists quickly learn, when a business scam fails, it tends to fail in rather grand fashion. Just ask any of these four teams of not-so-smooth operators.

A Corny Sea Story

Xenothemis and Hegestratos may not have been the world's first white-collar criminals, but they were certainly noteworthy for their incompetence. In 360 B.C, the pair stumbled upon what seemed like a killer plan to make some quick cash. Shipping was extremely risky at the time, and boats went down at sea with alarming frequency. To exploit this uncertainty, Xenothemis and Hegestratos devised a plan in which they would receive a cash advance to ship a load of corn from Syracuse to Athens. Due to the dangers associated with shipping, the buyer would take on full risk if the shipment didn't make it to Athens, so if the boat sank Xenothemis and Hegestratos could keep their cash.

Instead of loading the ship with expensive corn, the conniving pair made a plan to sail an empty ship out to sea for a few days, then sink it and escape in lifeboats. Since the boat itself was insured, this plot seemed airtight, and the potential profit was great. Unfortunately, though, the boat's other passengers allegedly caught wind of the scheme during the attempting scuttling of the ship. These passengers were understandably a bit peeved at Hegestratos' attempts to drown them for his own financial gain. Hegestratos panicked and jumped overboard, at which point he drowned. Unable to sink the ship by himself, Xenothemis had to sail on to the port, at which point the buyer, Protos, wanted to know why his shipload of corn was empty. A legal battle followed, and although the verdict has been lost by history, it's safe to say that the late Hegestratos regretted the scam.

When Friday Went Black

Despite his prowess as a general, Ulysses S. Grant's presidency didn't go so smoothly. Ones of its most notable scandals occurred in 1869, when a group of speculators upended the U.S gold market.

The plan started when financier James Fisk and robber baron Jay Gould formed a group of speculators with the goal of cornering the gold market, which would give the group the ability to manipulate the price. Of course, one can only corner the market if there's a fixed quantity of gold available. Otherwise, the government could just sell large quantities of gold, and the cornering effort would be an expensive failure. In an effort to avoid this fate, Gould and Fisk brought President Grant's brother-in-law Abel Corbin into their fold. Using Corbin's influence to get an audience with the President, the pair would argue to Grant that selling gold was a terrible idea that the government should avoid at all costs. The wily pair also used their influence at the White House to secure a position as assistant treasurer of the United States for Daniel Butterfield, who would warn them if the government started to sell gold.

With their connections in place, Fisk and Gould started buying up gold in September 1869, quickly driving the price of gold up by around 30%. Once Grant and his advisors got wise to the situation, though, the government quickly sold off $4 million in gold to break the corner, effectively killing the inflated prices on September 24th. As investors scrambled to get rid of their overpriced gold, the price plummeted sharply, and many involved in the scam lost huge amounts of money. Fisk and Gould managed to avoid big losses due to their connections in the treasury, but what would be known as Black Friday didn't earn them a huge windfall—and significantly harmed the American economy.

Bad Moves

If you've ever hired movers, you know it can be pretty pricey. Erik Deri, the founder of Woodinville, WA-based Nationwide Moving Systems, understood that most movers were expensive, so he drummed up business by offering super-cheap quotes to frugal clients. The customers were ecstatic to find a mover who could get their belongings to a new home so cheaply.

That is, until the price went up. Deri's movers would load the company's vans with all of a customer's worldly belongings, then a foreman would inform the client that they'd have to pay an inflated price to actually get their stuff to their new digs. The price hikes weren't small, either; one man's estimate stated he could move for $3,000 but was later revised to $16,000 after loading. According to authorities, if customers balked at these demands, the movers would threaten to unload their boxes and furniture into the street"¦and then charge them an unloading fee. If things got really sticky, Nationwide's trucks could just take off with all of the clients' possessions. Deri supposedly paid cash bonuses to employees who successfully strong-armed customers into forking over the premiums.

In the end, though, Deri learned that you can't scam that many customers and hope to get away with it. In 2005 he was found guilty of 27 counts of extortion and one count of conspiracy to commit wire fraud and extortion. Three of his accomplices were also convicted in connection with the moving racket. Deri was sentenced to seven years in prison, after which he'll face deportation to his native Israel.

Fools for Gold

Bre-X Minerals Ltd. was a small Canadian mining company that made a big announcement in 1995. Geologists had discovered gold on a site Bre-X owned near Busang, Indonesia. Not just a little gold, either—at least 30 million ounces, possibly as much as 200 million ounces. Given the high prices of gold, such a deposit would have been worth tens of billions of dollars. Bre-X's stock price shot through the roof; shares went from being valued at a few cents to over $280 Canadian.

In fact, the deposit seemed so rich and so large that a small company like Bre-X could not possibly handle it all without some help. In 1997, the Indonesian government convinced Bre-X to take on an American firm as a partner to help extract the gold. When this firm, Freeport-McMoRan, started sampling the soil at the deposit site as part of its due diligence, it reached a confusing conclusion: there wasn't any gold in the soil. Subsequent examinations by independent auditors reached the same conclusion. The "natural" gold that in the original samples Bre-X had taken was mostly river gold from other regions or shavings off of gold jewelry.

Although the company's market cap had climbed to $4.4 billion, this report quickly destroyed Bre-X's value. Share prices dropped 97 percent in a day following the announcement, the company was soon removed from the Toronto Stock Exchange and Nasdaq, and Bre-X quickly went bankrupt. Amazingly, no one ended up in jail from this scam, but you should still probably be wary if anyone offers to sell you an enormous gold mine on Borneo.

Ethan Trex grew up idolizing Vince Coleman, and he kind of still does. Ethan co-writes Straight Cash, Homey, the Internet's undisputed top source for pictures of people in Ryan Leaf jerseys.

13 Father's Day Gifts for Geeky Dads

Amazon/Otterbox/Toynk
Amazon/Otterbox/Toynk

When in doubt, you play the hits. Watches, flasks, and ties are all tried-and-true Father’s Day gifts—useful items bought en masse every June as the paternal holiday draws near. Here’s a list of goodies that put a geeky spin on those can’t-fail gifts. We’re talking Zelda flasks, wizard-shaped party mugs, and a timepiece inspired by BBC’s greatest sci-fi series, Doctor Who. Light the “dad” signal ‘cause it’s about to get nerdy!

1. Lord of the Rings Geeki Tikis (Set of Three); $76

'Lord of The Rings' themed tiki cups.
Toynk

If your dad’s equally crazy about outdoor shindigs and Tolkien’s Middle-earth, help him throw his own Lothlórien luau with these Tiki-style ceramic mugs shaped like icons from the Lord of the Rings saga. Gollum and Frodo’s drinkware doppelgängers each hold 14 ounces of liquid, while Gandalf the Grey’s holds 18—but a wizard never brags, right? Star Wars editions are also available.

Buy it: Toynk

2. Space Invaders Cufflinks; $9

'Space Invaders' cufflinks on Amazon
Fifty 50/Amazon

Arcade games come and arcade games go, but Space Invaders has withstood the test of time. Now Pops can bring those pixelated aliens to the boardroom—and look darn stylish doing it.

Buy it: Amazon

3. Legend of Zelda Flask; $18

A 'Legend of Zelda' flask
Toynk

Saving princesses is thirsty work. Shaped like an NES cartridge, this Zelda-themed flask boasts an 8-ounce holding capacity and comes with a reusable straw. Plus, it makes a fun little display item for gamer dads with man caves.

Buy it: Toynk

4. AT-AT Family Vacation Bag Tag; $12

An At-At baggage tag
ShopDisney

Widely considered one of the greatest movie sequels ever made, The Empire Strikes Back throws a powerful new threat at Luke Skywalker and the Rebellion: the AT-AT a.k.a. Imperial Walkers. Now your dad can mark his luggage with a personalized tag bearing the war machine’s likeness.

Buy it: ShopDisney

5. Flash Skinny Tie; $17

A skinny Flash-themed tie
Uyoung/Amazon

We’ll let you know if the Justice League starts selling new memberships, but here’s the next best thing. Available in a rainbow of super-heroic colors, this skinny necktie bears the Flash’s lightning bolt logo. Race on over to Amazon and pick one up today.

Buy it: Amazon

6. Captain America Shield Apron; $20

A Captain America themed apron
Toynk

Why let DC fans have all the fun? Daddy-o can channel his inner Steve Rogers when he flips burgers at your family’s Fourth of July BBQ. Measuring 31.5 inches long by 27.5 inches wide, this apron’s guaranteed to keep the cookout Hydra-free.

Buy it: Toynk

7. Doctor Who Vortex Manipulator LCD Leather Wristwatch; $35

A Doctor Who-themed watch
Toynk

At once classy and geeky, this digital timepiece lovingly recreates one of Doctor Who’s signature props. Unlike some of the gadgets worn on the long-running sci-fi series, it won’t require any fancy chronoplasm fuel.

Buy it: Toynk

8. Wonder Woman 3-Piece Grill Set; $21

Wonder Woman three-piece gill set
Toynk

At one point in her decades-long comic book career, this Amazon Princess found herself working at a fast food restaurant called Taco Whiz. Now grill cooks can pay tribute to the heroine with these high-quality, stainless steel utensils. The set’s comprised of wide-tipped tongs, a BBQ fork, and a spatula, with the latter boasting Wonder Woman’s insignia.

Buy it: Toynk

9. Harry Potter Toon Tumbler; $10

Glassware that's Harry Potter themed
Entertainment Earth

You can never have too many pint glasses—and this Father’s Day, dad can knock one back for the boy who lived. This piece of Potter glassware from PopFun has whimsy to spare. Now who’s up for some butterbeer?

Buy it: EntertainmentEarth

10. House Stark Men’s Wallet; $16

A Game of Thrones themed watch
Toynk

Winter’s no longer coming, but the Stark family's propensity for bold fashion choices can never die. Manufactured with both inside and outside pockets, this direwolf-inspired wallet is the perfect place to store your cards, cash, and ID.

Buy it: Toynk

11. Mr. Incredible “Incredible Dad” Mug, $15

An Incredibles themed mug
ShopDisney

Cue the brass music. Grabbing some coffee with a Pixar superhero sounds like an awesome—or dare we say, incredible?—way for your dad to start his day. Mom can join in the fun, too: Disney also sells a Mrs. Incredible version of the mug.

Buy it: ShopDisney

12. Star Wars phone cases from Otterbox; $46-$56

Star Wars phone cases from OtterBox.
Otterbox

If your dad’s looking for a phone case to show off his love of all things Star Wars, head to Otterbox. Whether he’s into the Dark Side with Darth Vader and Kylo Ren, the droids, Chewbacca, or Boba Fett, you’ll be able to find a phone case to fit his preference. The designs are available for both Samsung and Apple products, and you can check them all out here.

Buy it: Otterbox

13. 3D Puzzles; $50

3D Harry Potter puzzle from Amazon.
Wrebbit 3D

Help dad recreate some of his favorite fictional locations with these 3D puzzles from Wrebbit 3D. The real standouts are the 850-piece model of Hogwarts's Great Hall and the 910-piece version of Winterfell from Game of Thrones. If dad's tastes are more in line with public broadcasting, you could also pick him up an 890-piece Downton Abbey puzzle to bring a little upper-crust elegance to the homestead.

Buy it: Hogwarts (Amazon), Winterfell (Amazon), Downton Abbey (Amazon)

At Mental Floss, we only write about the products we love and want to share with our readers, so all products are chosen independently by our editors. Mental Floss has affiliate relationships with certain retailers and may receive a percentage of any sale made from the links on this page. Prices and availability are accurate as of the time of publication.

8 Facts About the Stonewall Riots

Monica Schipper, Getty Images for Airbnb
Monica Schipper, Getty Images for Airbnb

A pivotal moment in civil rights took place the week of June 28, 1969. That day, police raided a gay bar called the Stonewall Inn in New York City's Greenwich Village. The move was a clear condemnation by law enforcement officials of the city's gay population. The volatile riots that followed sparked a new sense of urgency about demanding tolerance for persecuted communities.

1. The Stonewall Inn was operated by an organized crime organization.

In the 1960s, homosexuality was under fire from all directions. Because it was perceived as being amoral, individuals caught engaging in so-called "lewd behavior" were arrested and their names and home addresses were published in their local newspapers. Homosexual activity was considered illegal in most states.

As a result, being part of the LGBTQ community in New York was never without its share of harassment. Several laws were on the books that prohibited same-sex public displays of affection; a criminal statute banned people from wearing less than three “gender appropriate” articles of clothing. Commiserating at gay-friendly bars was also problematic, because officials often withheld liquor licenses from such establishments.

This kind of persecution led to members of the mafia purchasing and operating gay-friendly clubs. It was not an altruistic endeavor: The mob believed that catering to an underserved clientele by bribing city officials would be profitable, and it was. The Genovese crime family owned the Stonewall Inn on Christopher Street, which became known for welcoming drag queens and giving homeless teenagers and young adults a place to gather. Often, these places got tipped off before a raid took place so they could hide any liquor. But the June 28 raid at the Stonewall Inn was different: No one was tipped off.

2. Police had to lock themselves inside the Stonewall Inn to barricade themselves from the crowd.

During the June 28 raid, police (who were alleged to have targeted Stonewall for its lack of a liquor license and the owners' possible blackmail attempts on gay attendees) confiscated alcohol and arrested 13 people in total, some for violating the statute on inappropriate gender apparel. After some patrons and local residents witnessed an officer striking a prisoner on the head, they began lashing out with anything within arm’s reach—including bottles, stones, and loose change. A number of people even pulled a parking meter from the ground and tried to use it as a battering ram.

The police, fearing for their safety, locked themselves inside the Stonewall Inn as the angry mob outside grew into the thousands. Some were attempting to set the property on fire. Reinforcements were eventually able to get the crowd under control—for one night, at least.

3. The situation got worse on the second night of the Stonewall riots.

After getting the crowd to disperse, police likely thought the worst of their problems was over. But on the second night, the Stonewall Inn reopened and another mob formed to meet the police response. Both sides were more aggressive on the second night of the Stonewall Uprising, with residents and customers forming a mob of protestors and police using violent force to try and subdue them.

“There was more anger and more fight the second night,” eyewitness and participant Danny Garvin told PBS’s American Experience. “There was no going back now, there was no going back … we had discovered a power that we weren’t even aware that we had.”

4. Protestors set their sights on The Village Voice.

Tempers flared again days later when The Village Voice published two articles using homophobic slurs to describe the scene at the Stonewall Inn. Angry about the demeaning coverage, protestors once again took to the streets, with some descending on the offices of the Voice, which were located just down the street from the Stonewall.

5. Not all of the protests were violent.

During the demonstrations—which some observers later referred to as an “uprising”—some protestors opted for a nonviolent approach in order to be heard. Eyewitnesses reported residents forming Rockettes-style kick lines that performed in front of stern-faced policemen. Others sang or participated in chants like “Liberate the bar!”

6. The Stonewall Riots led to New York’s first gay rights march.

Once the riots had subsided, protestors were filled with motivation to organize for their rights. A year after the riots, residents began marching on Christopher Street and Sixth Avenue. The date, June 28, was dubbed Christopher Street Liberation Day. Thousands of people marched the streets while thousands of other people lined up alongside them to protest the treatment of the LGBTQ community at the hands of law enforcement officials and society at large.

Some members of a New York Police Department who had confronted protestors during the Stonewall Riots one year before were now being ordered to protect those same protestors during the walk. Other marches took place in other cities, marking the country's first widespread demonstration for gay rights.

7. The Stonewall Inn is now a national monument.

Since the events of 1969, the Stonewall Inn has been considered an important and historic venue for the new era of gay rights. On June 24, 2016, President Barack Obama made that official when he designated the Stonewall Inn and the surrounding area a National Historic Landmark under the care of the National Park Service. Many credit the Stonewall Uprising with the subsequent surge in gay rights groups. One participant, Marsha P. Johnson, started Street Transvestite Action Revolutionaries (STAR) the following year, an organization devoted to helping homeless LGBTQ youth.

8. The Stonewall Inn is still standing.

Following the riots, the Stonewall’s patrons were still faced with police harassment and were growing uncomfortable with the mob affiliation. Months after the event, the Stonewall became a juice bar before subsequent owners tried operating it as a bagel shop, a Chinese restaurant, and a shoe store in the 1970s and 1980s. New owners renovated the building in 2007.

Today, the Stonewall is once again operating as a bar and club at 53 Christopher Street in Manhattan. Naturally, everyone is welcome.

Note: An earlier version of this article misidentified Marsha P. Johnson's organization as Street Transgender Action Revolutionaries. The correct name is Street Transvestite Action Revolutionaries.