Wade Cook
Encyclopedia
Wade Bruce Cook is an American
author and self-proclaimed financial guru. Cook claims to have started his success when he was a taxi driver in the 1970s. His first book, Real Estate Money Machine, was originally self-published in 1981. An updated version was published in 1996.
Cook is a proponent of rolling stocks (stocks that regularly vacillate between "predictable" highs and lows) and has been very vocal about stock splits being a good way to make money, claiming that many stocks rose post split (since the end of the 1990s bull market, Cook has not been as strong a proponent of this concept). One of his more famous phrases was meter drop. Cook said that as a cab driver he learned that money was made every time the meter dropped, and that it was better to take many small fares rather than one big one. This translated to Cook's short-term investment strategy of buying and selling many stocks for smaller, quicker profits rather than buying and holding securities for an extended period in the hope that they will increase greatly.
In 2002, Cook's company, Wade Cook Financial Corporation (WCFC), filed for bankruptcy. The stock now trades on the pink sheets
for around a penny a share. Since the bankruptcy of WCFC, Cook has kept a considerably lower profile, using the internet as his primary means of marketing. He has continued writing books and launched a multi-level
investment program.
Wade Cook is a member of The Church of Jesus Christ of Latter-day Saints and has been known to use references to religion in his writings and presentations.
At one time his net worth was estimated at $200 million dollars.
. Two companies he controlled, American Business Alliance and Monarch Funding Corporation, also went bankrupt that year.
In 1989, Cook was charged with securities violations by the Arizona Corporation Commission. The following year, the Arizona Attorney General charged him with several criminal counts, including selling unregistered shares of a company he controlled.
In 1998, Cook won a settlement against self-help guru Anthony Robbins over his claim that Robbins had illegally used concepts (particularly the "meter drop") from Cook's book Wall Street Money Machine to create a financial seminar. Robbins agreed that he had read the book and met with Cook, but disputed the illegality of his use of the concepts. A jury in Tacoma, Washington
sided with Cook and awarded damages in the amount of $655,900.
In 2000, WCFC, a company which sold seminars on investing and offered subscriptions to a trading bulletin board service called the Wealth Information Network (W.I.N.), posted $1.7 million in trading losses.
On October 5, 2000, Wade Cook Financial Corporation agreed to a settlement with the Federal Trade Commission
and 14 state Attorneys General on charges that the corporation misrepresented earnings potential. WCFC claimed 20% monthly returns. As a result, WCFC was required to set up redress program for consumers who purchased its products and to alter its advertised earnings claims.
In 2002 the FTC brought new charges based on failure to comply with the previous order.
In 2002, WCFC was forced into Chapter 11 bankruptcy by a group of its creditors, including several employees and independent contractors, who claimed they had not been paid for several months.
In December, 2005, Wade Cook and his wife Laura were charged with several counts of income tax evasion. Both pled not guilty. According to court documents, the Cooks operated a fraudulent charity, ostensibly to benefit the LDS Church, but instead bought show horses, his and her Cadillacs, a 40 acres (161,874.4 m²) estate, and the majority share of an oil rig which gave Cook the right to name it. He named it after himself. The trial began on January 17, 2007.
On February 20, 2007, Cook was found guilty by a federal jury of seven charges for failing to pay taxes on $8.9 million that the government says he should have reported as personal income from 1998 to 2000. His sentencing was set for June 22, 2007. On May 16, 2007 Laura Cook, the wife of Wade Cook, plead guilty to obstructing federal tax laws. She faced up to three years in prison and a fine of up to $250,000.
On August 2, 2007, Wade was sentenced to 88 months in prison, his wife Laura Cook was sentenced to 18 months in prison. Wade was also ordered to pay back $3.75 million in owed back taxes.
On September 4, 2008, Cook was taken into custody at the Federal Detention Center in SeaTac, Washington, preceding transfer to a prison where he is currently serving his 88-month sentence.
He is currently serving his sentence at the Lompoc Federal Correction Center in California with a 2015 release date per the federal prison system online search.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
author and self-proclaimed financial guru. Cook claims to have started his success when he was a taxi driver in the 1970s. His first book, Real Estate Money Machine, was originally self-published in 1981. An updated version was published in 1996.
Background
In the 1990s, Cook was notorious for paid radio programs which he used to market investment seminars. He claimed he could teach people to double their money every 2.5 to 4 months. The government forced him to recant that claim.Cook is a proponent of rolling stocks (stocks that regularly vacillate between "predictable" highs and lows) and has been very vocal about stock splits being a good way to make money, claiming that many stocks rose post split (since the end of the 1990s bull market, Cook has not been as strong a proponent of this concept). One of his more famous phrases was meter drop. Cook said that as a cab driver he learned that money was made every time the meter dropped, and that it was better to take many small fares rather than one big one. This translated to Cook's short-term investment strategy of buying and selling many stocks for smaller, quicker profits rather than buying and holding securities for an extended period in the hope that they will increase greatly.
In 2002, Cook's company, Wade Cook Financial Corporation (WCFC), filed for bankruptcy. The stock now trades on the pink sheets
Pink Sheets
OTC Markets Group, Inc., informally known as "Pink Sheets", is a private company that provides services to the U.S. over-the-counter securities market including electronic quotations, trading, messaging, and information platforms. According to the U.S. Securities and Exchange Commission, OTC...
for around a penny a share. Since the bankruptcy of WCFC, Cook has kept a considerably lower profile, using the internet as his primary means of marketing. He has continued writing books and launched a multi-level
Multi-level marketing
Multi-level marketing is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation...
investment program.
Wade Cook is a member of The Church of Jesus Christ of Latter-day Saints and has been known to use references to religion in his writings and presentations.
At one time his net worth was estimated at $200 million dollars.
Financial and legal troubles
In 1987, Cook filed personal bankruptcyPersonal bankruptcy
Personal bankruptcy is a procedure which, in certain jurisdictions, allows an individual to declare bankruptcy. In other jurisdictions, bankruptcies are reserved for corporations.-Canada:...
. Two companies he controlled, American Business Alliance and Monarch Funding Corporation, also went bankrupt that year.
In 1989, Cook was charged with securities violations by the Arizona Corporation Commission. The following year, the Arizona Attorney General charged him with several criminal counts, including selling unregistered shares of a company he controlled.
In 1998, Cook won a settlement against self-help guru Anthony Robbins over his claim that Robbins had illegally used concepts (particularly the "meter drop") from Cook's book Wall Street Money Machine to create a financial seminar. Robbins agreed that he had read the book and met with Cook, but disputed the illegality of his use of the concepts. A jury in Tacoma, Washington
Tacoma, Washington
Tacoma is a mid-sized urban port city and the county seat of Pierce County, Washington, United States. The city is on Washington's Puget Sound, southwest of Seattle, northeast of the state capital, Olympia, and northwest of Mount Rainier National Park. The population was 198,397, according to...
sided with Cook and awarded damages in the amount of $655,900.
In 2000, WCFC, a company which sold seminars on investing and offered subscriptions to a trading bulletin board service called the Wealth Information Network (W.I.N.), posted $1.7 million in trading losses.
On October 5, 2000, Wade Cook Financial Corporation agreed to a settlement with the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
and 14 state Attorneys General on charges that the corporation misrepresented earnings potential. WCFC claimed 20% monthly returns. As a result, WCFC was required to set up redress program for consumers who purchased its products and to alter its advertised earnings claims.
In 2002 the FTC brought new charges based on failure to comply with the previous order.
In 2002, WCFC was forced into Chapter 11 bankruptcy by a group of its creditors, including several employees and independent contractors, who claimed they had not been paid for several months.
In December, 2005, Wade Cook and his wife Laura were charged with several counts of income tax evasion. Both pled not guilty. According to court documents, the Cooks operated a fraudulent charity, ostensibly to benefit the LDS Church, but instead bought show horses, his and her Cadillacs, a 40 acres (161,874.4 m²) estate, and the majority share of an oil rig which gave Cook the right to name it. He named it after himself. The trial began on January 17, 2007.
On February 20, 2007, Cook was found guilty by a federal jury of seven charges for failing to pay taxes on $8.9 million that the government says he should have reported as personal income from 1998 to 2000. His sentencing was set for June 22, 2007. On May 16, 2007 Laura Cook, the wife of Wade Cook, plead guilty to obstructing federal tax laws. She faced up to three years in prison and a fine of up to $250,000.
On August 2, 2007, Wade was sentenced to 88 months in prison, his wife Laura Cook was sentenced to 18 months in prison. Wade was also ordered to pay back $3.75 million in owed back taxes.
On September 4, 2008, Cook was taken into custody at the Federal Detention Center in SeaTac, Washington, preceding transfer to a prison where he is currently serving his 88-month sentence.
He is currently serving his sentence at the Lompoc Federal Correction Center in California with a 2015 release date per the federal prison system online search.
Books by Wade Cook
- Real Estate Money Machine
- Stock Market Miracles
- Don't Set Goals: The Old Way
- Bear Market Baloney
- Business Buy the Bible
- Brilliant Deductions
- How to Pick Up Foreclosures
- Wall Street Money Machine (Vols. 1-5)
- Blueprints for Success
- Real Estate for Real People
- Cook's Book on Creative Real Estate
- Wealth 101
- Y2K Gold Rush
- Safety 1st Investing
- Wade Cook's Power Quotes
- Red Light, Green Light
- Two Bad Years and Up We Go!
- Wade Cook's Stock Picking Handbook
- Stock Market Money Machine
External links
- The Federal trade Commission's synopsis of the 2000 settlement
- WCFC's bankruptcy filing