|Bid||1,197.86 x 800|
|Ask||1,198.59 x 900|
|Day's range||1,190.40 - 1,209.39|
|52-week range||977.66 - 1,296.97|
|Beta (3Y monthly)||0.98|
|PE ratio (TTM)||24.19|
|Earnings date||23 Oct 2019 - 28 Oct 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||1,411.37|
Amazon, Facebook and Google told the United States Trade Representative's office how France's digital services tax could hurt their businesses at a hearing on Monday.
Estée Lauder, Uber, Google, Tesla, Microsoft and Nvidia are the companies to watch.
Life as a public company has so far been a rocky one for the audio streaming platform. Since directly listing on the NYSE in April 2018 at $165.90 a share, the stock has had its ups and downs, and is now sitting more than 10% below its opening price.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The relationship between President Donald Trump and the largest U.S. technology companies has often been frosty but a common opponent -- France’s plan to tax U.S. tech giants -- will bring the two sides together, at least temporarily.Alphabet Inc.’s Google, Facebook Inc. and Amazon.com Inc. all testified in Washington on Monday in support of the Trump administration’s efforts to potentially punish France for enacting a 3% tax on global tech companies with at least 750 million euros ($832 million) in global revenue and digital sales of 25 million euros in France.France’s digital tax “is a sharp departure from long-established tax rules and uniquely targets a subset of businesses,” Nicholas Bramble, trade policy counsel at Google, said at the U.S. Trade Representative’s Office hearing in Washington on Monday. “French government officials have emphasized repeatedly that the” tax is intended to target foreign technology companies.How ‘Digital Tax’ Plans in Europe Hit U.S. Tech: QuickTakeThe U.S. is probing France’s new tax, which French President Emmanuel Macron signed into law last month, using a tool that could be a precursor to new tariffs or other trade restrictions. U.S. Trade Representative Robert Lighthizer could take action as soon as Aug. 26 when a comment period on the issue closes.‘Radical Left’The effort to crack down on France has created common ground for Trump -- who has called Google and Facebook “on the side of the Radical Left Democrats” and accused Amazon of avoiding taxes -- and technology companies that are both worried foreign governments are looking to use American corporations as a way to collect additional tax revenue.While Amazon has increased its profit margins, even so the French digital tax could eat into profitability, said Peter Hiltz, the online retailer’s director of international tax and policy planning.If another country -- such as Spain -- were to enact a tax similar to France, that tax could compound, he said. If a French buyer were to buy a product from a Spanish seller, that transaction would be taxed by both countries, he said.The U.S. is looking to use France as an example to deter other countries from targeting American technology firms for tax dollars. The U.K., New Zealand, Spain and Italy are among countries considering their own digital taxes, a move that U.S. officials say could lead to companies being taxed multiple times on the same profits.Trump has threatened to tax French wine or other goods in response to the digital tax. Trump said he was considering a 100% tariff on French wine at a fund-raiser last week, though it’s unclear if he was being serious.He also tweeted last month “we will announce a substantial reciprocal action on Macron’s foolishness shortly!” The so-called 301 investigation, which looks into unfair trade practices, is the same tool Trump used to slap tariffs on China over alleged intellectual-property theft.The U.S. says countries considering their own version of a digital tax should focus on ongoing global talks with 130 countries on how to tax tech companies. Any future pact would likely create a whole new set of rules governing which countries have the right to tax the companies, which corporate profits are taxable, and how to resolve the inevitable disputes that would arise. A deal could be reached as soon as next year.Opposition to France’s tax is a rare area of bipartisan agreement in Congress. In a letter to Treasury Secretary Steven Mnuchin in June, Senators Chuck Grassley, an Iowa Republican, and Ron Wyden, an Oregon Democrat, urged the U.S. to look at “all available tools under U.S. law to address such targeted and discriminatory taxation.”The lawmakers included a suggestion to use a section of the tax code that would double the rate of U.S. taxes on French citizens and companies in the U.S.(Updates with Amazon representatives comments starting in the sixth paragrah.)To contact the reporter on this story: Laura Davison in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Joe Sobczyk at email@example.com, Sarah McGregor, Robert JamesonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The U.S. will extend for another 90 days a limited set of exemptions that had protected rural networks and other U.S. customers from a ban on doing business with China’s Huawei Technologies Co., Commerce Secretary Wilbur Ross said Monday.Some telecom companies in the U.S. are “dependent” on Huawei, and so a 90-day reprieve was deemed appropriate, Ross said in an interview with Fox Business’s Maria Bartiromo. Still, the U.S. also added more than 40 Huawei affiliates to a trade blacklist.“We’re giving them a little more time to wean themselves off,” he added. Ross said the next deadline will be around Nov. 19. He added that Commerce decided to place 46 more Huawei subsidiaries on its entity list.The announcement doesn’t address the wider national-security concerns about Huawei and answer the bigger question of whether U.S. chip companies and other major suppliers will be allowed to sell parts to China.Huawei said in a statement that the temporary relief “does not change the fact that Huawei has been treated unjustly. Today’s decision won’t have a substantial impact on Huawei’s business either way.” The move to add more of Huawei’s affiliates to the so-called Entity List “at this particular time, is politically motivated and has nothing to do with national security,” the company said.QuickTake: How Huawei Became a Target for GovernmentsPresident Donald Trump over the weekend indicated the U.S. was “doing very well with China, and talking” but also suggested he wasn’t ready to sign a trade deal.U.S. stocks rallied Monday after the Trump administration signaled progress on trade negotiations and Ross announced the extension. Huawei, China’s largest technology company by sales, has been at the heart of worsening tensions and been called a bargaining chip in thorny trade negotiations between Washington and Beijing. Trump had said he anticipated talking with Chinese President Xi Jinping “very soon” and the Huawei move may sweeten the tone of those discussions.Huawei, for its part, has been trying to carry on operations in face of U.S. sanctions on the sale of the vital technology. The company this month announced its in-house HarmonyOS, an open-source operating system that could one day serve as a replacement for Google Inc.’s Android if its access to that software is curtailed.Without Android or the numerous American silicon, technology and consultancy suppliers that Huawei does business with, many of its most promising product lines would either cease their rapid growth or be thwarted entirely.Rural AreasThe U.S. Commerce Department previously granted a three-month temporary license to Huawei’s U.S. customers shortly after the Trump administration blacklisted the Chinese company. That allowed telecom carriers in rural areas to continue using Huawei equipment and Google to provide only key Android security updates to Huawei phones.The latest extension came after Trump met in July with the chief executives of key Huawei suppliers from Alphabet Inc.’s Google and Broadcom Inc. to Intel Corp. and Qualcomm Inc. to discuss economic issues including a possible resumption of sales to Huawei. U.S. companies argued that Huawei will turn to non-American suppliers if sanctions persisted, hurting the U.S. in the long run. But trade talks with Beijing ground to a halt and China refused to resume purchases of American agricultural products.National SecurityThe announcement Monday came one day after Trump suggested that Huawei was unlikely to receive another extension, pushing back against news reports about an expected reprieve.“At this moment, it looks much more like we’re not going to do business,” Trump told reporters on Sunday in New Jersey. “I don’t want to do business at all, because it is a national security threat.”The president tied trade negotiations with the ongoing situation in Hong Kong, saying that a deal between the U.S. and China would be harder if there’s a violent conclusion to protests there because of concerns raised by U.S. lawmakers.Earlier this month, the trade war between the two countries intensified as the U.S. announced a next round of 10% tariffs on Chinese imports between Sept. 1 and Dec. 15. China responded with a boycott of American farm products and allowed its currency to weaken, signaling that this can help cushion the tariff blow.(Updates with Huawei reaction in fifth paragraph.)\--With assistance from Gao Yuan and Kasia Klimasinska.To contact the reporters on this story: Vlad Savov in Tokyo at firstname.lastname@example.org;Jordan Fabian in New York at email@example.com;Shawn Donnan in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Elizabeth Wasserman, Sarah McGregorFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Huawei plans to launch its own mapping service as soon as this October. But Huawei’s Map Kit will initially not be a consumer mapping service.
NEW YORK/SAN FRANCISCO (Reuters) - Alphabet Inc's Google has shut down a service it provided to wireless carriers globally that showed them weak spots in their network coverage, people familiar with the matter told Reuters, because of Google's concerns that sharing data from users of its Android phone system might attract the scrutiny of users and regulators. The withdrawal of the service, which has not been previously reported, has disappointed wireless carriers that used the data as part of their decision-making process on where to extend or upgrade their coverage. Google's Mobile Network Insights service, which had launched in March 2017, was essentially a map showing carriers signal strengths and connection speeds they were delivering in each area.
(Bloomberg) -- Somewhere between Spotify crashing and Alexa failing to locate his favorite sushi place, Rafael Rivera decided he was dealing with an unfinished product.The software developer’s rectangular Echo Auto, perched on the dashboard of his 2005 Mini Cooper, picked up his voice seamlessly over blaring music or air conditioning. But repeated restarts and clunky mapping made the on-the-go hub for Amazon.com Inc.’s Alexa less useful.“Am I part of a beta program?” he recalls thinking. “Is this thing done?”Introduced almost a year ago and shipped to the first invited customers in January, the sometimes-buggy Echo Auto is the most visible element so far of Amazon’s ambition to take Alexa on the road.Behind the scenes, the company is trying to persuade automakers to bake the voice-activated digital assistant into their entertainment systems. Those efforts are gaining some traction—BMW and Audi earlier this year began selling select models that integrate Alexa’s software by default. But Amazon is entering a market already contested by Google and Apple Inc., not to mention automakers leery of ceding control of the dashboard to Big Tech.While colonizing the car probably won’t generate much in the way of revenue at first, just being there would help Amazon position itself for a coming era of voice-based services. “Amazon wants to get into the car in a big way,” says Mike Ramsey, a senior research director at Gartner who tracks the auto industry. “They sense that there is a big opportunity.”Amazon declined to make anyone available to discuss the program, but a spokesman pointed to comments Ned Curic, vice president of Alexa Automotive, made last month to the Automotive News: “The real North Star for us is to be embedded with all the cars,” Curic said. “We’re working very hard to get there because we believe that is the best experience.”The company has said it wants to make Alexa, its hub for trivia, music and Amazon products, ubiquitous. The company built teams in recent years charged with making the software useful beyond the living room, seeking ties to home automation and security companies, building out voice and video calling functionality and even exploring wearable devices and home robots.The first tie between Alexa and an automaker was, like many Amazon efforts, an experiment. In 2016, Hyundai Motor Co. rolled out the first application linking Alexa to a big carmaker in a tool that let owners of some models start their vehicle or set the climate control from an Alexa device.Amazon formalized its push a year later, hiring Curic, an executive with Toyota Motor Corp.’s North American subsidiary, to run the automotive efforts. Curic’s team plucked staff from Lab126, the San Francisco Bay Area hardware division behind the Echo speaker, and Amazon Web Services, the company’s cloud-computing arm. Amazon also went shopping for recruits who knew their way around the industry, seeking veterans of German stalwarts like Daimler AG, BMW and Volkswagen, companies that have been among the most aggressive in exploring voice software.Hanging over the exercise to take Alexa on the road is Amazon’s failure to build a smartphone to rival Alphabet Inc.’s Google and Apple. About 62% of people who use their voice to control music or other applications in their car today do so through a smartphone, a market dominated by Google and Apple, according to a survey by voice technology news site Voicebot and dashboard entertainment startup Drivetime. Another 32% opt for the software included in their car’s entertainment system while 6% use different technology, including the Echo Auto.“Amazon’s Achilles heel is not having a play on the phone,” says John Foster, chief executive of Aiqudo Inc. a startup working to tailor mobile applications for voice control. “They’re going at it the best way they can. But I do think they suffer from this disadvantage that Google is really starting to make clear.”Google, the company behind Android, the world’s most popular operating system, has gotten automakers on board, building ties that could be used to hook drivers into Google's Assistant, Alexa's biggest rival in the U.S. Fiat Chrysler Automobiles, Renault-Nissan-Mitsubishi and Volvo are all building entertainment systems on Android.“Google has a much bigger footprint in the auto industry than Amazon does,” says Ramsey, of Gartner. “They’re getting big wins. Amazon is just starting to scratch the surface.”Other carmakers are going their own route.Some, like Daimler’s Mercedes, have thrown their weight behind proprietary voice software. The Mercedes-Benz User Experience system, like many automaker-branded software, is powered by technology built by Nuance Communications Inc., a software company in Massachusetts.“Each of these manufacturers wants to preserve their own brand” in the car, says Richard Mack, a Nuance marketing executive. “When you press that button on the steering wheel, Mercedes would much rather see their emblem come up rather than a Google or an Amazon or a Microsoft logo.”Amazon has tried to assuage carmakers worried about Google or Apple's potential automotive ambitions by suggesting Alexa could be one among several voice assistants embedded in a future entertainment system, according to two people who have heard the pitch, but aren't authorized to publicly discuss it. Amazon last year released tools that let carmakers build Alexa into their cars. The company has also tried to leverage Alexa’s popularity in the home, saying to potential partners that customers would rather use voice software they’re already familiar with than learn a new program while behind the wheel.As Curic’s team negotiated with carmakers, Lab126 engineers got to work on an end around, repurposing the Echo speaker’s microphone arrays and software, originally designed for homes, for noisy car environments. The device avoided dealing with in-car communications systems entirely by piggybacking off of customers’ smartphone to connect to Alexa servers.When it was released, analysts said the Echo Auto seemed to fill a gap in the market, offering a device that promised to bring modern voice control to older car models. It drew more than 1 million orders, Amazon said, though the device is still shipping in batches and only to invited customers.Reviewers said the device lacked polish, coming off at times like a work-in-progress. A reviewer at tech news site the Verge said some of the auto-focused applications Amazon touts on its website “are laughably bad right now.”It’s harder to get a read on how customers feel because Amazon, which helped popularize online product reviews, has disabled customer reviews for the Echo Auto.Ryan Adzima, who bought one to replace the outdated voice control system that came standard in his Jeep, is a fan. The owner of five Echo smart speakers figured the device’s introductory price tag of $25 was a bargain compared with replacing his entertainment system or buying a voice-activated navigation system.He liked the device, which heard his commands over road noise with the windows open and top down and easily handled tasks like calls and music. Connectivity, dependent on sometimes spotty wireless service around his Las Vegas home, left something to be desired, forcing him to reach for his phone to skip songs by hand when Alexa’s servers couldn’t be reached.Adzima isn’t in the market for a new car. But if Alexa is integrated in enough models by the time he is, he’ll consider it.“If I was sitting on a lot, and one car had Alexa built in, the other didn’t, and the cost difference wasn’t that much?,” he says. “That would definitely make my decision.”To contact the author of this story: Matt Day in Seattle at firstname.lastname@example.orgTo contact the editor responsible for this story: Robin Ajello at email@example.com, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Yandex , a Russian equivalent to Google, said it is considering expanding its fleet of self-driving cars to up to 1,000 within the next two years in order to speed up tests on the fledgling technology. Yandex hopes to start testing more than 100 of its self-driving cars on roads by the end of this year. Research published by HSBC bank in January said that Yandex's autonomous driving software put it on a par with global leaders in the technology and that it was catching up with Google's Waymo.
Yandex, a Russian equivalent to Google, said it is considering expanding its fleet of self-driving cars to up to 1,000 within the next two years in order to speed up tests on the fledgling technology. Yandex hopes to start testing more than 100 of its self-driving cars on roads by the end of this year. Research published by HSBC bank in January said that Yandex's autonomous driving software put it on a par with global leaders in the technology and that it was catching up with Google's Waymo.
(Bloomberg) -- ByteDance Inc. has invested in a prominent Chinese Wikipedia-like platform, stepping up its internet search challenge to rival Baidu Inc.A unit of ByteDance, the world’s most valuable startup according to CB Insights, now holds 22% of the registered capital of Baike.com, according to a recent update on a Chinese government website that publishes company registration information. Baike, which means encyclopedia in Chinese, is the country’s second largest such reference platform and was founded in 2005 by Chief Executive Officer Pan Haidong. Pan is no longer listed as a shareholder of his company, the website shows.As China’s internet shifts from desktop to mobile, ByteDance is increasingly chipping away at advertising sales from Baidu, drawing users to its umbrella of apps from news aggregation to short video platforms. It’s also moving into Baidu’s core search engine business, launching Toutiao Search. That already features entries from Baike.com and started out as a function within ByteDance’s popular news app of the same name. It’s being built into a Google-like service and the company has said it’s recruited from Google, Baidu and Microsoft Corp.’s Bing.Baidu uses its own Wikipedia-like Baidu Baike, which is the market leader. Wikipedia is blocked in all languages in China.Representatives from ByteDance and Baike.com didn’t immediately respond to requests for comment. A spokesman for Baidu had previously declined to comment on ByteDance’s search service, but referred to remarks by a company executive who said Baidu has successfully fended off new entrants in the past.To contact the reporter on this story: Zheping Huang in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- President Donald Trump, who has repeatedly lashed out at technology giants and their leaders, announced on Friday evening that he would be dining with Apple Inc. Chief Executive Officer Tim Cook.“Having dinner tonight with Tim Cook of Apple,” Trump, who is staying at his golf resort in Bedminster, New Jersey, wrote on Twitter. “They will be spending vast sums of money in the U.S. Great!”He did not elaborate, and Apple did not immediately respond to a request for comment on the meeting.Heads of other major technology companies, including Amazon.com Inc., Alphabet Inc.’s Google and Facebook Inc. have not fared as well in the president’s tweets and public remarks.He and his political allies have made unsupported claims that social media companies muzzle conservative views. Trump has assailed Amazon for edging out brick-and-mortar retailers and criticized its founder Jeff Bezos, who owns the Washington Post.Pressure on tech companies is increasing in Washington as congressional Republicans examine accusations of bias against conservatives; Democrats in the House conduct an antitrust inquiry and officials at the Justice Department and the Federal Trade Commission divvy up oversight of Google, Facebook, Apple, and Amazon.Earlier this week, FTC Chairman Joe Simons said in an interview that he wouldn’t let Trump’s complaints about the size and political inclinations of large technology platforms affect his agency’s decisions.Cook visited the White House in June to discuss the Trump administration’s efforts to develop job training programs that meet the changing demands of U.S. employers. The meeting was part of the American Workforce Policy Advisory Board, a working group that includes many corporate leaders. Commerce Secretary Wilbur Ross and Trump’s daughter and adviser Ivanka Trump unveiled the initiative earlier this year.\--With assistance from Alistair Barr.To contact the reporter on this story: John Harney in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Kevin Whitelaw at email@example.com, John HarneyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
As both Nvidia and AMD compete to create the next best AI and cloud computing GPUs, the tech is only going to proliferate in performance and both companies stand to gain.
(Bloomberg Opinion) -- Two years ago, 10 sailors died when the U.S. Navy’s guided missile destroyer USS John S. McCain collided with a chemical tanker off Singapore. An investigation has determined that insufficient training and inadequate operating procedures were to blame, and both factors were related to a new touch-screen-based helm control system. The Navy has decided to revert its destroyers back to entirely physical throttles and helm controls.It’s worth exploring the Navy’s rationale for installing touch-screens (“Just because you can doesn’t mean you should,” says Rear Admiral Bill Galinis), as well as its rationale for getting rid of them:Galinis said that bridge design is something that shipbuilders have a lot of say in, as it’s not covered by any particular specification that the Navy requires builders to follow. As a result of innovation and a desire to incorporate new technology, “we got away from the physical throttles, and that was probably the number-one feedback from the fleet – they said, just give us the throttles that we can use.”There are lessons here — including a prescient one from 50 years ago — for other, more mundane transport-control interfaces as well.Large, interactive touch-screens are becoming increasingly prevalent in passenger cars; in the case of Tesla, they’re the only control interface. They’re lovely to look at, but as the Navy’s experience suggests, they might be more confusing than physical controls. That confusion isn’t academic, either: Distracted driving is an increasingly dangerous problem. According to the National Highway Traffic Safety Administration, 10% of all fatal crashes from 2012 to 2017 involved distracted drivers. Mobile phones are a major cause of distraction, as we’d expect, but they’re an even bigger problem for younger drivers.Almost 50 years ago, robotics professor Masahiro Mori wrote an extraordinary essay, “The Uncanny Valley,” on people’s reactions to robots as they became more and more humanlike. As Mori said, our affinity for robots rises as they more closely resemble humans. That affinity plunges, becoming negative and finally rising again once a robot reaches the (possibly unattainable) full likeness of a human being.Something similar is at work in our current touch-screen-filled vehicles. To an extent, adding more screen real estate give us more information, and with it more safety — until it begins to provide an overwhelming amount of information and an overly complex set of choices for visual navigation. And moving from one information-rich interface to another is increasingly difficult, as another Navy rear admiral said in reviewing the John S. McCain collision:When you look at a screen, where do you find heading? Is it in the same place, or do you have to hunt every time you go to a different screen? So the more commonality we can drive into these kind of human-machine interfaces, the better it is for the operator to quickly pick up what the situational awareness is, whatever aspect he’s looking at, whether it’s helm control, radar pictures, whatever. So we’re trying to drive that.There are two ways our in-car screens could evolve. The first is that, for safety’s sake, they’ll move back down the curve, so to speak, and be less ambiguous and more full of knobs and dials and physical throttles. That’s the Navy’s new approach. The second, though, is that we won’t go back, at least in passenger applications, to a more tactile interface of specific controls. We’re probably going to get more screens, with more information. Maybe the only way out of this valley is to shift the interface completely to voice or, in the very long run, to obviate the issue by having cars drive themselves. That could be how we navigate this uncanny valley of vehicle interfaces — the removal of any need to control the vehicle at all, and the chance to fill our cars’ screens with pure entertainment. Weekend readingA greener energy industry is testing investors’ ability to adapt. One coal CEO says “make money while you can” in an industry that is in terminal decline. The venture capital arm of Royal Dutch Shell Plc has invested in Corvus Energy, a maritime and offshore battery systems company. America’s obsession with beef is killing leather. A look at how Phoenix comes alive at night, and how other cities might too in a hotter world. An exploration of how extreme climate change has arrived in America. The Anthropocene is a joke. On a geological time scale, human civilization is an event, not an epoch. Three years of misery inside Google, the happiest company in tech. Here’s what happens when Apple Inc. locks you out of its walled garden after fraud suspicions. Machine vision can spot unknown links between classic artworks. When Midwest startups sell, their hometown schools often lose. A programmer in California got a “NULL” vanity license plate in the hopes that the word would not compute in a database of traffic offenders. Instead, he was fined $12,049. Robert Ballard, discoverer of the Titanic, is exploring a startling clue that may help him find Amelia Earhart’s plane. Bugatti’s one-off La Voiture Noire debuted at the Pebble Beach Concours D’Elegance. It’s already been sold, for $18.68 million. Bloomberg Businessweek’s Peter Coy looks back on the 40 years since the magazine declared “ the death of equities.” Get Sparklines delivered to your inbox. Sign up here. And subscribe to Bloomberg All Access and get much, much more. You’ll receive our unmatched global news coverage and two in-depth daily newsletters, the Bloomberg Open and the Bloomberg Close.To contact the author of this story: Nathaniel Bullard at firstname.lastname@example.orgTo contact the editor responsible for this story: Brooke Sample at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nathaniel Bullard is a BloombergNEF energy analyst, covering technology and business model innovation and system-wide resource transitions.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Google publicly disclosed its acquisition of homework helper app Socratic inan announcement this week, detailing the added support for the company's AItechnology and its relaunch on iOS
Dozens of Android adware apps disguised as photo-editing apps and games havebeen caught serving ads that would take over users' screens as part of afraudulent money-making scheme