Originally Posted by dhascall
Given that Struble has a Harvard MBA, and was a Baker Scholar, I believe that he is using these two tactics:
"Affinity fraud is an investment scheme that targets groups, such as social clubs, ethnic or religious communities. Affinity fraud artists exploit the trust within a group by playing upon our instinct to trust those who are like us. In some cases, the scam artist may be an established member of the group. In other cases, he or she may build relationships with influential members in order to gain acceptance. In either scenario, the effect is the same: the scam artist uses that trust to make a fraudulent investment appear legitimate. All too often, victims of affinity fraud are reluctant to report it and try instead to solve problems within the group. Unfortunately, this can leave another community group vulnerable to being targeted."
Given the business-model of iBiquity, with the major broadcast groups as investors, Struble's scheme seems to fit perfectly with affinity fraud. First, he got the major broadcasters to invest, then other major investors, such as Ford and JP Morgan followed, as they were lulled into a false sense of security. Because of the nature of affinity fraud, no one broadcaster wants to admit to the group that they have been scammed, so the whole group stays muzzled, kind of like the broadcast engineers that work for HD Radio Alliance stations. Also, Struble must be counting on the fact that since many ten-of-millions have already been invested, and with grants from Congress for NPR stations, who's going to back out now? He is just taking advantage of group-psychology. Blow the whistle on HD Radio, then blow the whistle on Congress and the FCC, too.
"The Scarcity Tactic: This high-pressure technique creates a false sense of urgency by claiming a limited supply. They might tell you that there's only two units left, or that the deal is closing so they need to know today, which makes it more difficult to ask questions and check the information out, says Gannon."
Again, iBiquity was giving discounts on HD Radio licenses, if broadcasters converted by a certain date - there was a limited time to get the discounts. This is pretty basic fraudulant behavior, and I can't believe that Struble didn't come up with another scheme that wasn't quite so transparent.