Posts Tagged ‘fraud’

I think that Scientology is a creepy, over-commercialized enterprise that feeds on people’s irrationality and does not do any good to anyone. In fact, I think the same about all religions and most quasi-religions.

But what was it that a great Frenchman said once? I do not agree with what you say but I will defend to death

To the point.  A French court has sentenced two Scientology centers of “fraud in an organised gang” and slapped a fine of almost a million dollars.

Here’s a link. They are a bunch of other links on the same story, easily accessible through Google, and the stunning thing is that they all use words like “pressured”, “harassed” and so on. Apparently some former members didn’t like all the money that the Church convinced them to spend on vitamins and such like, and so they sued.  No, they were not coerced in any way, nor were they shown a forged copy of  Nature containing a made-up paper on the virtues of Scientologistic vitamins. Merely “pressured”, and we are not talking about vulnerable body parts either.

I think this is a ridiculous case. But I subscribe to rather quaint notions of free speech and individual responsibility. I happen to believe that individuals and organizations should be allowed to say whatever they wish about heaven, hell or the spiritual succor obtained by eating  round bananas. I also happen to think that a conviction for fraud should meet an extremely high threshold of material misrepresentation of facts; for example by selling a handkerchief belonging to Nancy Pelosi to the customer who had asked for one used by Madonna. Short of such objective misrepresentations, irrational nonsense — whether spouted by religious organizations, new age spiritualists, ideologues, vegans or extreme environmentalists — should never be censored or prosecuted. One ought to take responsibility for one’s choices, and following a belief-system is a choice.

That’s my worldview, and I like to call it freedom. France, as I never tire of pointing out, lost sight of the concept a long time ago. I am glad I don’t live there today, and I do not ever plan to either.

(Here’s a related short piece on soothsayers and fraud I wrote a while back.)


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A fortune teller in Montgomery county went to court to try and overturn a local ban on fortune telling. The fortune teller claimed his free speech rights were being hindered. The county claimed they were justified in having a law to prevent fraud.  The county won, as you might have expected (unlike in movies, the little guy usually loses in real life).

This case might seem like an intellectual riddle to some. Should we stop fraud or uphold free-speech? However, it really is quite simple. There is a fundamental difference between fortune telling and actual fraud. A guy who purports to sell milk but gives you coloured water (I believe this used to be common in India) or a pharmacist who sells you a different drug from the one you asked for is giving you something that you did not want and did not pay for. More precisely, the customer in those cases has a expectation, built upon unambigously laid out terms and well-defined history, of what he or she is supposed to receive — and this expectation is violated in an objective manner.

In fortune-telling on the other hand, the customer gets what he or she should expect to get. The product in this case exactly matches the average consumer’s reasonable understanding of it.

Suppose that in a hypothetical world where it is really possible to predict the future and lots of people do so successfully, I (in my current state of ignorance) decide to set up shop and represent myself as equivalent to those other real fortune tellers. Then I will be committing fraud, because I will be giving the customer an objectively different product than from what he asked for and had reason to expect. But in our world, the average customer knows what fortune telling entails. In fact many people who go to these tellers are there just for the fun of it. As Matt Bandyk puts it, “To say that the local government needs to `protect’  its citizens from the `fraud’ perpetrated by these businesses is giving the fortune tellers too much credit, and its customers too little credit. These customers know what they are getting into when they sit in front of the tarot cards or a crystal ball–if it makes them feel a little bit better, and a local business benefits, who is really being hurt in that exchange?”

If you still think fortune-telling should be outlawed by the government on grounds of fraud, consider that by the same expanded logic, all religious institutions are committing fraud. Do we really want to live in a world where the government has the power to decide the correctness of speech to this degree and ban your speech whenever it doesn’t meet their test?

(Hat Tip: The Agitator)

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It’s the classic pitfall. The law tries to prevent a reprehensible act of fraud (in this case, obtaining sex from one’s brother near-sleeping girlfriend by impersonating the brother). However it does so by passing a law whose language is much broader than it should. The result is yet another encroachment by the law into an area it has no business being in.

Read Eugene Volokh’s excellent discussion on a potentially chilling statute that is being pushed for passage in Massachusetts. Also the comments under Volokh’s post are interesting; below are some of my favourites.

Make-up is now to be illegal in Massachusetts, as are Wonderbras and those ass-padding panties.

Did they just outlaw the greater bulk of bar-room pick up lines?

OK, let’s take a hypothetical 25 yr old Tom and 16 year old Suzy. Suzy tells Tom she is 19, and they have sex. In both Texas and Mass, this is rape. In Texas, she’s the victim, in Mass, he is. Makes sense to me!

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