The Art of Obstruction
As CFO of Crazy Eddie during the 1980s, I orchestrated what would become one of retail’s most notorious financial frauds. Our approach to covering our tracks was methodical and two-pronged.
First came destruction. Our office shredders operated around the clock, turning potentially incriminating documents into confetti. But for the mountain of paperwork we couldn’t immediately destroy, we devised something more creative: complete chaos. Before the company’s takeover in 1987, we transported an entire warehouse of unshredded documents and deliberately scrambled their organization. Invoices from thousands of companies, checks and statements from hundreds of checking accounts, hundreds of thousands of customer receipts, and millions of other documents—all mixed together in a calculated chaos. This wasn’t simple disorganization; it was an impenetrable paper labyrinth designed to exhaust even the most determined investigator.
The Perfect Crime
What made our scheme particularly effective was what didn’t exist on paper. The most damaging evidence—details of secret bank accounts maintained by Eddie and his family across multiple countries—never appeared in any company records. These accounts, scattered strategically across global jurisdictions, contained the true financial story, safely hidden beyond American reach.
These foreign accounts held explosive information. They documented our systematic skimming operations and their gradual reduction—a calculated move designed to artificially inflate growth rates as more income was being reported, creating the illusion of rapidly improving performance before the company went public in 1984. Most damning of all, they revealed our “Panama Pump” scheme of 1986, where $1.5 million of previously unreported income was recycled back into the company to fraudulently boost revenues and profits. This financial sleight of hand remained completely invisible on the books American investigators were examining.
Our document strategy proved remarkably effective. The warehouse of mixed papers that investigators spent years combing through contained absolutely nothing incriminating. Without a paper trail and unaware of the foreign accounts, the government’s case developed slowly, with criminal indictments coming in 1993 and the SEC civil trial taking place as late as 1997—a full decade after the company’s takeover.
The Unexpected Advantage
Years later, I discovered just how effective our tactics had been. At a fraud prevention lecture where I appeared alongside one of the FBI agents from the case, I asked him during lunch what had frustrated their investigation most.
“Mixing up those documents,” he answered immediately. He explained that federal investigators were legally obligated to examine every surviving piece of paper—regardless of its relevance—while having no way to know what was in the shredded materials. This deliberately created chaos had consumed their resources and added years to their investigation.
The Final Play
When the legal pressure mounted, I recognized my unique position. The government had no knowledge of those secret international accounts, leaving them with a weak case built primarily on witness testimony. I alone knew where all the financial “bodies were buried”—information that no amount of document searching would have uncovered.
I made a calculated decision in 1989: trading this insider knowledge for leniency. The revelation of these hidden accounts gave prosecutors the case they needed while simultaneously improving my legal position. I transformed from potential defendant to the government’s star witness—a final irony in a fraud defined by misdirection.
The lesson I learned? Sometimes the most effective concealment isn’t about what you destroy or disorganize, but what you keep completely off the books. And knowing when to reveal those secrets can become your ultimate leverage.
Full Circle: From Fraudster to Educator
Life takes unexpected turns. After my involvement with Crazy Eddie concluded, I found myself on the opposite side of the table—working with various government agencies, including the FBI, to share my experiences with young law enforcement officers. I became a valuable resource precisely because I understood the criminal mindset from the inside.
These sessions were always eye-opening for both sides. The agents would learn the subtleties of financial fraud from someone who had mastered the craft, while I gained appreciation for the dedication of those working to prevent such crimes. Sometimes the best education comes from former enemies—the poacher turned gamekeeper brings insights no textbook can provide.
Today, when I stand before a room of fresh-faced agents, showing them how to spot the warning signs I once carefully concealed, I realize that my greatest contribution to financial integrity came not from my years of legitimate accounting work, but from the very schemes I once perfected. In the end, the most qualified person to dismantle a maze is the one who built it in the first place.
Written by,
Sam Antar
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