Extravagantly Overpriced Pipes, One Possibility

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mso489

Lifer
Feb 21, 2013
41,210
60,459
A number of threads have pointed out the astonishing prices asked for some pipes, some of these fairly nice but not in that price range, others junky but priced into the thousands. A friend familiar with the online market for book sales has observed this in books and came up with an astute suggestion. This may be a money laundering scheme for taking dirty drug or other criminal money and channeling it into seemingly legitimate commerce. So perp one pre-arranges to sell a vastly overpriced pipe to perp two to settle some criminal deal, and suddenly they are just a couple of old pipe collectors trading on a fine old pipe, for $8 K; if the deal is bigger, they just trade the necessary number of pipes. So next time you see an ordinary pipe for a really high price, it may not be phishing for a confused pipe-buying sucker, but a way to put a smoke screen around a deal that has nothing to do with tobacco pipes. This may not explain all such instances, but possibly quite a few.

 

peteguy

Lifer
Jan 19, 2012
1,531
909
That is interesting. I had never thought of that but it makes sense as drug sellers are creative as hell.

 

JimInks

Sultan of Smoke
Aug 31, 2012
61,278
564,033
Maybe the pipe makers are trying to raise enough money to buy a bag of Stonehaven? :crazy:

 

jkrug

Lifer
Jan 23, 2015
2,867
8
D@mn you MSO....now I have to come up with another scheme to launder my dirty loot!! :crying:

 
Jan 4, 2015
1,858
11
Massachusetts
People laundering money are very creative. That possibility wouldn't surprise me. It can also be an insurance fraud scheme. Establishing a high value for something worth much less and then having a theft or some other kind of loss. The inflated value has been established by an independent entity so it's presumed to be valid. They file a claim for the inflated value.

 

johnnyreb

Lifer
Aug 21, 2014
1,961
612
A friend familiar with the online market for book sales has observed this in books...
Book authors will often buy up their own books opening week in order to make the NY Times bestsellers list, therefore selling more books thru more retailers in the long run. It takes a bit of cash to buy them up (~4,000 copies in the first wk) & the books just go back into inventory but the increased sales & the fact you can claim to be a "best selling author" is worth it in the long run.
Popular musical groups do much the same thing by buying out the front row tickets to their own concerts, then reselling those tickets back thru ticket brokers for inflated prices. If you know the concert will sell out & you have the cash flow it is a way to drastically increase profits.

 
Mar 1, 2014
3,647
4,917
I thought everyone knew fleabay was a giant money laundering service.

I guess it's good for really obscure items, but otherwise I've found everything I could want for second hand items from forums and local second hand stores. If I want to get rid of random stuff it goes to the local small town thrift store that gives all the money to charity.

 

buroak

Lifer
Jul 29, 2014
1,867
14
I have suspected this when seeing ridiculously overpriced used books on Amazon. I am glad I am not alone in thinking that money laundering is afoot.

 

andrew

Lifer
Feb 13, 2013
3,043
402
It's kind of an out there scheme, there's too many tried and proven money laundering things that work way to well for any major criminal enterprise to go at laundering money in my opinion. Popular money laundering businesses are bars, 99 cent pizza joints if you've ever been in downtown vancouver there's literally 10 of these per block, all with nothing but a counter selling 99 cent pizza slices, casino's, I just can't see pipes or books really being something that you could cook the books with in a way where laundering money would be worthwhile. Also tattoo parlors.

 
Mar 30, 2014
2,853
78
wv
I've thought of something similar. If I win the lottery, couldn't I "buy" my parents car for 10 million instead of being raped for gift taxes?

 

bigpond

Lifer
Oct 14, 2014
2,019
13
Guys, online vendors are required to submit paperwork about transactions beyond a certain (low threshold), just as your bank does without your knowledge or consent when your deposit or withdrawal reaches a different threshold this all goes to everyone's favorite governmental agency, US specific. The process is far easier to track via online sales agents such as amazon and ebay then it is with agents that will accept bitcoin. Bitcoin circumvents governmental accounting metrics which is precisely why it's the first choice of today's tech savvy dirtbag.

 

johnnyreb

Lifer
Aug 21, 2014
1,961
612
It's kind of an out there scheme, there's too many tried and proven money laundering things that work way to well for any major criminal enterprise to go at laundering money in my opinion.
I agree with Andy. People who launder money have tons of it to launder. Selling extravagantly priced pipes & tobacco paraphernalia on eBay just won't get that job done. Extravagant eBay prices that drastically exceed the market are probably a reflection of several things including the old adage, "There's a sucker born every minute."

 

warren

Lifer
Sep 13, 2013
11,733
16,332
Foothills of the Chugach Range, AK
Serious money laundering is pretty sophisticated. A piddling amount of money (under a $1,000,000.00?) needs no sophisticated handling. Buy a house, sell the house. However it is done, there is always a paper trail which will help to unravel the operation. I was never in that part of LE (not smart enough) but, all the "egg heads" I worked with wanted to get assigned to that task force. There's a reason CPAs and the like are recruited by the FBI. CPAs, code writers and others in the computer fields are highly sought these days. In my day it was "people persons" with a modicum of street smarts.

 

johnnyreb

Lifer
Aug 21, 2014
1,961
612
These guys launder their money thru the Bada Bring!
o5n9lu.jpg


 
The reason for pipes being super expensive is the hyper we guys generate through social media websites, youtube and forums like Pipesmagazine etc and it translates to a higher value than the article actually has. Suddenly the retailers and estate market dealers have requests for a higher number of which gets the prices to be increased. After-all these guys are doing a business and would always welcome extra money. Although, not every estate merchant is like that but they still need to earn an income.
Chris :puffpipe:

 

mso489

Lifer
Feb 21, 2013
41,210
60,459
Granted the big boys need a money laundry that more nearly approximates CitiBank in terms of size, scope and international reach. But the small fish also need to evade the law and the tax man, so a few $8K pipes a year might help them. I know nothing about it, but something explains the comic prices asked and sometimes payed for $70 pipes online beyond just the occasional unwitting clueless buyer. Maybe it isn't money laundering, but I doubt it's pipe sales either.

 
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