Essay on Company Fraud Of The 1970 ' S Fair Trade
In the 1970’s “fair trade” laws allowed manufacturers to require retailers to sell merchandise at the same price to avoid price competition for their products (Antar, 2011). This type of regulations force Eddie Antar to look for a different alternative in order to remain in business. It appears as if his only options were to purchase overseas and overstock from other retailers. Crazy Eddie stores had one goal in mind; sell a product to every customer that walked into their stores. Greed and personal gain was the main reason why the Antar family was able to commit fraud for 17 years without questioning until shortly after the company made its IPO. It is estimated that a fraud scheme of more than $120 million took place throughout the existence of the company. Yes, Crazy Eddie’s prices were insane and the company’s venture was not that far behind.
The Antar Family
Eddie Antar, Sam M. Antar and Ronnie Gindi each owned 1/3 of the store named Sights and Sounds (renamed Crazy Eddie) which was located in Brooklyn, New York. During those times, “fair trade” laws were forcing small retailers into going out of business. In order to have a profitable business, for more than a decade Eddie Antar and family recurred to make several decisions that marked them for life. Misleading actions from everyone “employed” at Crazy Eddie’s resulted in a lucrative adventure for many that in the end only punished a few.
The company’s marketing strategy appeared to be one of their most…