In the Beginning, They Just Wanted Other People's Money
You think a company blatantly named "Other People's Money" is just a coincidence? Don't be mistaken. Mordecai Weissman and Myron Goodman, two men from Brooklyn, were not stupid—they were just overconfident. In 1970, they founded O.P.M. Leasing Services with thin capital but sky-high ambitions. Their basic idea was simple: borrow money from banks, buy expensive computers, lease those computers back to large corporations, and use the lease payments to repay the loans. The plan sounded perfect on paper. But in the real world, it was a recipe for disaster.
How the Fraud Began: Simple Forgery
In 1972, just two years after its founding, Weissman and Goodman realized they could not compete with giants like IBM and Control Data through honest means. So they decided to "accelerate" the process. They began forging and altering lease documents. Imagine: they would take a legitimate lease, then duplicate it, change the dates, amounts, and customer names, and use it as collateral for several different loans. The deceived banks and financial institutions never checked thoroughly—they were too eager for the promise of profits from seemingly stable computer leases.
The Scale of the Fraud: No Joke
When O.P.M. went bankrupt in 1981, the total losses reached US$200 million. At that time, that was a staggering figure. For context, US$200 million in 1981 is equivalent to over US$600 million today when adjusted for inflation. Among the deceived victims were major banks, insurance companies, pension funds, and corporate giants like Merrill Lynch, Xerox, American Express, and General Motors. Their largest client, Rockwell International, was probably still scratching its head when it found out what happened.
How could they deceive for nearly a decade? The answer: because the financial system of that era relied too heavily on trust and easily forged paper documents. There was no central database to check for duplicate leases. No automated verification system. Just a photocopier and unlimited imagination.
From Brooklyn to Manhattan: A False Image of Success
At its peak, O.P.M. Leasing Services was among the top five computer leasing companies in the United States. They moved from Brooklyn to Manhattan, renting luxurious offices in the financial district. They hired lawyers, accountants, and managers of high caliber. From the outside, they looked like a typical American success story: two entrepreneurs who started from the bottom and became millionaires. But inside, it was a house of cards built on lies.
They offered more attractive lease terms than competitors—lower rents, longer periods, enticing purchase options. Customers suspected nothing. They thought they were getting a great deal. In reality, they were riding a train heading for a cliff.
The Fall: When the House of Cards Collapsed
In early 1981, authorities began to investigate. A former employee leaked information to the FBI. An internal audit revealed huge discrepancies in lease records. Banks that were once so confident suddenly panicked. They sent loan recall notices. O.P.M. could not pay. In the end, the company went bankrupt, and Weissman and Goodman were charged with multiple counts of fraud.
Both eventually pleaded guilty. Mordecai Weissman was sentenced to 12 years in prison, while Myron Goodman received a 10-year sentence. However, those sentences did not return the US$200 million that had vanished. The victims—banks, pension funds, and insurance companies—had to bear huge losses.
Lessons from the O.P.M. Scandal
What makes the O.P.M. scandal so fascinating is the irony of the company's name itself. "Other People's Money" was not just a joke—it was their business philosophy. They took other people's money, used it to buy assets, and then made it seem as if those assets were more valuable than they really were.
This scandal also teaches us that financial fraud does not always come from large, complex institutions. Sometimes, it starts with two men who had an idea too good to be true, and too much confidence to stop when they knew they were wrong.
Today, O.P.M. Leasing Services is remembered as one of the earliest corporate scandals that highlighted the weaknesses of the American financial system. It is a reminder that when something seems too good to be true, it probably is. And sometimes, the company's name itself—even if funny—can be the first sign that you are dealing with untrustworthy people.
Conclusion: Other People's Money, Your Own Responsibility
The O.P.M. Leasing Services scandal is not just about financial fraud; it is also about human weaknesses—greed, blind trust, and the reluctance to ask tough questions. The deceived banks and investors may have learned an expensive lesson: do not let a tempting company name or the promise of quick profits blind you.
And for Weissman and Goodman, even though they spent time in prison, they might still smile a little every time they remember how easily they fooled the system. Because in the end, they did not just use other people's money—they used other people's trust, and that is the most valuable thing to steal.
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Reference: O.P.M. Leasing Services — Wikipedia
The O.P.M. Scandal: Other People's Money That Brought Ruin. When the company's name itself was a dark joke—O.P.M. (Other People's Money)—it promised huge profits but ultimately led to a fraud worth over US$200 million. Learn how a small computer leasing company from Brooklyn deceived banks, insurance companies, and corporate giants like Merrill Lynch and Rockwell International, before going bankrupt in 1981.. In the Beginning, They Just Wanted Other People's Money
You think a company blatantly named "Other People's Money" is just a coincidence? Don't be mistaken. Mordecai Weissman and Myron Goodman, two men from Brooklyn, were not stupid—they were just overconfident. In 1970, they founded O.P.M. Leasing Services with thin capital but sky-high ambitions. Their basic idea was simple: borrow money from banks, buy expensive computers, lease those computers back to large corporations, and use the lease payments to repay the loans. The plan sounded perfect on paper. But in the real world, it was a recipe for disaster.
How the Fraud Began: Simple Forgery
In 1972, just two years after its founding, Weissman and Goodman realized they could not compete with giants like IBM and Control Data through honest means. So they decided to "accelerate" the process. They began forging and altering lease documents. Imagine: they would take a legitimate lease, then duplicate it, change the dates, amounts, and customer names, and use it as collateral for several different loans. The deceived banks and financial institutions never checked thoroughly—they were too eager for the promise of profits from seemingly stable computer leases.
The Scale of the Fraud: No Joke
When O.P.M. went bankrupt in 1981, the total losses reached US$200 million. At that time, that was a staggering figure. For context, US$200 million in 1981 is equivalent to over US$600 million today when adjusted for inflation. Among the deceived victims were major banks, insurance companies, pension funds, and corporate giants like Merrill Lynch, Xerox, American Express, and General Motors. Their largest client, Rockwell International, was probably still scratching its head when it found out what happened.
How could they deceive for nearly a decade? The answer: because the financial system of that era relied too heavily on trust and easily forged paper documents. There was no central database to check for duplicate leases. No automated verification system. Just a photocopier and unlimited imagination.
From Brooklyn to Manhattan: A False Image of Success
At its peak, O.P.M. Leasing Services was among the top five computer leasing companies in the United States. They moved from Brooklyn to Manhattan, renting luxurious offices in the financial district. They hired lawyers, accountants, and managers of high caliber. From the outside, they looked like a typical American success story: two entrepreneurs who started from the bottom and became millionaires. But inside, it was a house of cards built on lies.
They offered more attractive lease terms than competitors—lower rents, longer periods, enticing purchase options. Customers suspected nothing. They thought they were getting a great deal. In reality, they were riding a train heading for a cliff.
The Fall: When the House of Cards Collapsed
In early 1981, authorities began to investigate. A former employee leaked information to the FBI. An internal audit revealed huge discrepancies in lease records. Banks that were once so confident suddenly panicked. They sent loan recall notices. O.P.M. could not pay. In the end, the company went bankrupt, and Weissman and Goodman were charged with multiple counts of fraud.
Both eventually pleaded guilty. Mordecai Weissman was sentenced to 12 years in prison, while Myron Goodman received a 10-year sentence. However, those sentences did not return the US$200 million that had vanished. The victims—banks, pension funds, and insurance companies—had to bear huge losses.
Lessons from the O.P.M. Scandal
What makes the O.P.M. scandal so fascinating is the irony of the company's name itself. "Other People's Money" was not just a joke—it was their business philosophy. They took other people's money, used it to buy assets, and then made it seem as if those assets were more valuable than they really were.
This scandal also teaches us that financial fraud does not always come from large, complex institutions. Sometimes, it starts with two men who had an idea too good to be true, and too much confidence to stop when they knew they were wrong.
Today, O.P.M. Leasing Services is remembered as one of the earliest corporate scandals that highlighted the weaknesses of the American financial system. It is a reminder that when something seems too good to be true, it probably is. And sometimes, the company's name itself—even if funny—can be the first sign that you are dealing with untrustworthy people.
Conclusion: Other People's Money, Your Own Responsibility
The O.P.M. Leasing Services scandal is not just about financial fraud; it is also about human weaknesses—greed, blind trust, and the reluctance to ask tough questions. The deceived banks and investors may have learned an expensive lesson: do not let a tempting company name or the promise of quick profits blind you.
And for Weissman and Goodman, even though they spent time in prison, they might still smile a little every time they remember how easily they fooled the system. Because in the end, they did not just use other people's money—they used other people's trust, and that is the most valuable thing to steal.
---
Reference: O.P.M. Leasing Services — Wikipedia https://en.wikipedia.org/wiki/O.P.M. Leasing Services
