Thinking outside the media box is dangerous. Media companies need to be forward-thinking and both willing and able to adapt quickly if they hope to survive and thrive in a changing marketplace. But thinking unconventionally may lead to behaving unscrupulously.

The proof is in this new and utterly unethical media business model:

IBusiness Reporting plans to report on companies that may be engaging in fraudulent practices (kinda like the ones Minkow engaged in way back when) and fund its reporting through shortselling the stocks of those companies. If the stock price drops after the outlet reports negative information about the company, IBR makes money.

Let’s say that again. There are no ads on the site. No endowments. Nothing of the sort. When one of IBR’s staff, who has taken the position that such-and-such stock will go down, reports information that makes the stock go down, IBR makes money.

One man behind the operation, Barry Minkow, went to jail for orchestrating a Ponzi scheme, so his willingness to cross the boundaries of ethical behavior is no surprise. But Los Angeles Times reporter William Lobdell, who should know better than to engage in such conflicts of interest, is running iBusiness Reporting. His involvement tarnishes the reputation of journalism.

IBR’s business model is a perverted form of insider trading. IBR is buying stocks in companies with the intent of making money by driving down share values. Hopefully, this scheme will be short-lived.