The University of Georgia’s Next Top Entrepreneur

An award-winning B-School Boy, PCP, UGA… these acronyms add up to a naked angry slimy mess inside a trash truck’s hopper …

The spectacle of this student fighting with the cops for his right to die in a mobile dumpster was impressive even on a campus famous for its immensities of trash. Crowds of student onlookers apparently took lots of videos.

It’s all very primal, isn’t it? Curled naked inside the dark wet womb, UGA’s finest sticks his thumb in his mouth, dilates his eyes and cries No! In thunder.

UD thanks John.

MIT’s Business School and La Belle Indifférence

Whether it’s one of their most admired deans or one of their most admired graduates, MIT exhibits the “beautiful indifference” long identified by the psychiatric community as an unsettling insouciance in regard to one’s own dire condition.

Dean Gabriel Bitran rots in prison while MIT publications continue to admire his commitment to “producing leaders with a social conscience.” To this day, MIT has said not one word about Bitran, though one of his campus colleagues has keened over his “immense suffering” as he dealt with the legal implications of having swindled thousands of people out of millions of dollars.

As for Sloan grad Chris Clemons, who is not currently but will soon be in prison… You’d think all those tech geniuses at MIT could figure out a way to remove this from the internet. Or if they don’t like doing that sort of thing, they could append an update to this front page article slobbering over Clemons for his selfless beneficence. Otherwise, since Clemons seems to have embezzled huge funds from the charter schools he founds, sentences like this one from the MIT article about him read a bit … awkwardly…

[W]hat really got me excited were the structural aspects of running a school, like finance, and accounting, and becoming a sophisticated leader of a multimillion dollar organization.

When he said “excited,” Clemons turns out to have had in mind spending tens of thousands of school dollars at “Hooters, Twin Peaks, and the strip clubs Goldrush Showbar and the Cheetah Lounge.”

The thing is, a lot of people start charter schools with just “passion.” But, Clemons explains, you also need MBA types like him.

“Sometimes charter schools struggle to efficiently manage their resources It’s a painful divide in the non-profit sector between those who have some business skills
and acumen and those who don’t.”

UD ain’t complaining that Sloan hires and graduates a few stinkers. Everybody does that. She wonders why the school just smiles like an idiot and pretends the stinkers have nothing to do with MIT.

“[F]or going on 40 years now, the primary business model for the American corporate class has been fraud.”

Why do you think Beware the B-School Boys is one of this blog’s perennially popular categories? If the statement in my headline is true, or roughly true, what do you think places like Wharton, which not only produced Donald Trump and Raj Rajatnaram and Steven Cohen and many of their, er, close associates, but boasts a long glorious history of producing scads of America’s most spectacular thieves, have been teaching people all these years? I mean, not the specific content of courses… I mean the gestalt.

And what a remarkable fact about American culture, that we have these gilded b-schools specializing in predatory capitalism. And the highest-profile b-school of them all produced not only the founder of Trump University, but – possibly – the next president of the United States.

“Seven years after the bankruptcy of Lehman Brothers, the fact that no major Wall Street figure was ever prosecuted for crimes related to the financial crisis remains a sticking point for many.”

We manage to stick them occasionally for insider trading.



But the big boys at Goldman seem to have some sort of immunity.


Rajat Gupta’s Goldman Sachs crony was targeted… But nothing happened. Strangely, it didn’t go anywhere.

And you wonder why ol’ Bern is doing so well.

Wharton, We Have a Problem.

It all started back in the ‘eighties, with Donald Trump’s alma mater producing so many financial criminals that newspapers started keeping track of the ever-growing Wharton “Hall of Shame.” (Type WHARTON in my search engine for all the gory details.) The tradition persists today, with Wharton featuring prominently in articles with titles like Do Business Schools Incubate Criminals? and The Wharton Mafia. It’s positively embarrassing.

The Wharton School of Business has deified Donald Trump, boasting in its alumni magazine of his greatness and influence. It can’t get enough of him. It’s pleased as punch and bursting with pride to have spawned him…. or at least it was until around 2007. In a recent article about him in the U Penn paper, people are beginning to sound less enthusiastic.

A Wharton spokesperson said that the leadership of the alumni office and magazine have turned over since the publication of the article, and declined to comment further on Trump.

Hm. A bit snippy there… But, you know, it’s one thing to go the silence route (Trump? Trump who…?); it’s another thing – especially given Wharton’s cultural role as National Fraternal Order of America’s Great Insider Traders – actually to come out and repudiate “the worst human being who has ever won a Republican primary.”

UD doesn’t mean revoke his degree or anything. She means that given Wharton’s already filthy reputation, and given Trump’s incessant dropping of the Wharton name alongside his name, the school might consider issuing a statement distancing itself from its most famous graduate.

Ira Rennert, arguably the most honored man at Yeshiva University…

… and the man after whom the school’s Rennert Entrepreneurial Institute is named, once again shows YU students how to conduct themselves in business.

[T]he government said that Renco had lied when asked about the transaction to keep the pension insurer from finding out about the ownership change until too late. Once a controlled group has been broken, the pension agency loses its ability to go after the parent company’s assets.

And four months later, when R.G. Steel declared bankruptcy, the federal government had to take over the pension obligations and cover a $70 million loss. It sued Renco for fraud, arguing that the deal with Cerberus was a sham, intended primarily to break the link between R.G. Steel and Renco’s wealth.

Details on pensioners and their retirement income here.


Sure, every once in awhile, just like Yeshiva trustee Zigi Wilf, you attract the attention of the courts. Big deal. Price of doing business.


Now, REI grads, go out there and make some deals!

UD Reads the New York Times Business Pages So You Don’t Have To.

Ms Herzer responded with a salacious lawsuit alleging that Mr Redstone was mentally incompetent and had an insatiable appetite for sex and steak.

“I know Gabriel has been suffering immensely over the past few years during this whole ordeal,” wrote Georgia Perakis, a professor of operations management at the MIT Sloan School of Management. “For someone with Gabriel’s character, all this is already a huge punishment.”

UD loves this shit. A hugely influential, venerated, and privileged MIT professor spends years and years stealing more than a hundred million dollars from clients. He did business with Bernard Madoff.

The Bitrans [this was one of those adorable father/son things] paid themselves as much as $16 million in management fees over the life of the businesses and recovered $12 million of their own investments when the funds were doing poorly, the U.S. said in court filings, adding that the two discussed their scheme in e-mail exchanges.

In addition to defrauding investors, the Bitrans lied to the U.S. Securities and Exchange Commission and sought to hide assets by transferring property to a relative without the relative’s permission, prosecutors said.

And a fellow professor gets up during sentencing (three years and nine months) to anguish over his suffering during the long ordeal of running a Ponzi scheme, and to praise his excellent character.

And how does his colleague know firsthand how he’s suffered? Because for all of those “past few years” – in fact, since 2009, long after his Madoff connection and wrongdoing were publicly known – he remained an influential, venerated, and privileged MIT professor. He was even an associate dean. He finally left the school in 2013.


MIT has said nothing and done nothing in all this time. UD doubts that even now – with Bitran suiting up for prison – MIT will say anything about having for years retained on its faculty a massive fraudster.

Meanwhile, all over MIT websites there are statements like this one:

Deputy Dean Gabriel Bitran discussed [with the Financial Times the importance of] producing leaders with a social conscience.

Like Bernard Madoff’s Yeshiva University, you can direct your IT people to erase all images and mentions of Bitran on the school website. I mean, I’m sure MIT is busy scrubbing scrubbing scrubbing right now.

When you ask yourself why so many people detest professors, think of MIT and the way it protected Gabriel Bitran.


Oh by the way. How were the thieves caught?

The scheme was uncovered by the United States Securities and Exchange Commission when, while investigating potential victims of the Bernie Madoff fraud, SEC officials asked for documentation to support the Bitrans’ returns claims. The Bitrans then made false statements to the SEC examiners and provided fabricated records.

Here’s a management tip direct from the Sloan School:


UD’s fond of… call them cosmic convergences.

For instance, there was the time Sheldon Silver won the William M. Bulger Excellence in State Leadership Award. Silver, Bulger, Silver, Bulger … double-barreled … er … Excellence! Two fine gentlemen, the two fine civil servants… and in the case of Bulger an academic servant too! The world’s most incurious university president!

And one of them got a civic leadership award from the other one.

That was a beautiful convergence.

Here’s another one: Green, Milken.

Bernard Madoff’s … associate, Yair Green, is currently being sued by Irving Picard for all that money he got from Bernie and gave to the university that made him chair of its Executive Committee.

Several years ago, Green gave a paper at a conference sponsored by one of America’s most famous financial criminals, Michael Milken.

So Green, Milken… Another great convergence.

Next up in the Shkreli case…

…his noble defense lawyer.

Baruch Weiss’s “purpose in life is to undo injustice … [T]here is something almost superhuman” about [his] drive to do the right thing.”

Weiss worked unceasingly for another persecuted martyr, Sholom Rubashkin, and UD feels sure he will offer the same moral indignation at injustice to Martin Shkreli.

The beauty of hedge fund capitalism…

… is that if any particular hedgie pisses you off, for any reason at all, you stand a fair chance of nailing him on securities fraud. That’s why if you’re a hedgie you should keep your head down and not piss too many people off the way Martin Shkreli did with that price hike on that drug. Because all the annoyed SEC had to do was run its eyes lightly over his financial past in order to arrest him, just now, at his New York digs.


It wouldn’t be University Diaries without anagrams. Try your hand. Here are my first attempts. I imagine it as an abbreviated conversation between an onlooker and Shkreli as he’s loaded into the police van.

[M A R T I N S H K R E L I]





Ira Rennert, the genius behind Yeshiva University’s Rennert Entrepreneurial Institute…

… reveals the key to a successful business career: Spend your entire life in courtrooms. You’ll loot your businesses, of course; that’s how you make big money. And individuals, workers, the government, what have you, will sue you. They will sue you again and again.

And they will win, because after all you do seem to loot or defraud or whatever your businesses. And you’ll have to pay out hundreds of millions of dollars in fines and compensation.

But do not worry, because

1. you’ve got plenty of money left over after you pay out the judgements; and
2. you don’t give a shit about bad publicity.

That’s it, kiddies! The business philosophy of your benefactor. Inspirational.

Kellogg’s Serial …

… cheaters.

Beware the B-School Boys.

Edward L. Queen has a nice Jeff Bridges vibe…

going, plus his recent New Republic piece is a more than worthy addition to one of UD‘s most popular categories, Beware the B-School Boys. Gets a bit preachy at the end (“When a person’s worth is determined only by money, only by success as it is and can be monetized, when one has no sense of being without the BMW, the Rolex, the Armani suits, the yacht, etc, the moral flabbiness emerges. Indeed, it engulfs entire organizations and perhaps even entire societies.”), but one does tend to zoom out in one’s final paragraph…

[The idea that] the only duty of a corporation is return on investment [has now been] drilled into generations of business school graduates… [Further,] evidence suggests that not only are business students more impaired in their moral judgments in a broader sense than are those in other majors and professional schools, but that business schools themselves may be responsible.


SCHOOL FOR SCANDAL: UD has long argued that this would be a wonderful new motto for Wharton.

“We’re great football players, but we’re shit people.”

The soaring oratory of Maurice Clarett. As UD readers know, UD has long recommended exactly the same thing for the B-School Boys (see her ever-popular category Beware the B-School Boys) — charismatic ex-cons drawn from the same crowd as their audience. Andy “Enron” Fastow is one example, but America’s prisons are packed with ciceronian swindlers.

Together, these two lad-categories (football hero/captain of industry) make up much of our national mythology, and therefore America’s institutions continue to deal gently with them, which is why remarkable numbers of them keep raping women and financial systems.

UD is a big believer in the power of testifying. She thinks Business Ethics courses are bullshit, but she thinks Madoff on the hustings would be marv.

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