Sunday, March 01, 2009

Internet blogs to end fraud?

Two weeks ago, another Ponzi scheme was uncovered – this time, in large part because of the internet. (http://www.timesonline.co.uk/tol/news/world/us_and_americas/article5761474.ece) (http://dalmady.blogspot.com/)

Alex Dalmady, a 48 year old Venezuelan financial analyst, wrote a report questioning Stanford International Bank’s business model and stated returns that was published in January, 2009 and subsequently reproduced on various internet blogs. His report fueled the investigation of Stanford International Bank and led to the ultimate discovery of Stanford’s massive fraud.

It seems as though the internet, and bloggers, may actually help uncover (though I doubt will prevent) future fraud within the US. What remains to be seen, however, is how internet law will grow along with these blogs. As it currently stands, the Communications Decency Act of 1996 protects blog owners but not bloggers: in short, a blog owner whose blog has published offensive opinions cannot be held liable but a blogger who uses a blog site can be held liable for his or her accusations.

Perhaps it's time for some online libel reform? Or perhaps we need to post our accusations under the name “anonymous”?

Genevieve

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