https://www.wsj.com/articles/an-all...by-a-short-seller-ends-in-gunfire-11648051215
Paywall and hysterical.
Paywall and hysterical.
An Alleged Fraud Uncovered by a Short Seller Ends in Gunfire
- Thread starter ajacobson
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Mostly Mormons invest 300MM in a 12.5% in 90 days (yes, that is 50% APR) low risk ponzi. The 2 runners buy private jet and Bentleys. They get found out and arrested, one of them has a stand off with the FBI but survives.
"The strategy promoted by Mr. Judd was “the most obvious Ponzi scheme we’ve ever seen,” said Nate Anderson, founder of the investment firm that investigated it. In a notice seeking out victims of the alleged fraud, the FBI also called it a Ponzi scheme. Ponzi schemes are investment frauds where early investors are paid with funds raised from later investors. The money raised is generally not invested."
"The contracts were said to provide a 12.5% payout after a loan was repaid in 90 days. They were sold as risk-free. “We’ve never had one—over 16,000 in six-plus years—go bad,” said Mr. Judd in a pitch secretly recorded by Hindenburg in February."
"The strategy promoted by Mr. Judd was “the most obvious Ponzi scheme we’ve ever seen,” said Nate Anderson, founder of the investment firm that investigated it. In a notice seeking out victims of the alleged fraud, the FBI also called it a Ponzi scheme. Ponzi schemes are investment frauds where early investors are paid with funds raised from later investors. The money raised is generally not invested."
"The contracts were said to provide a 12.5% payout after a loan was repaid in 90 days. They were sold as risk-free. “We’ve never had one—over 16,000 in six-plus years—go bad,” said Mr. Judd in a pitch secretly recorded by Hindenburg in February."
No, because most likely they didn't even invest the money. I mean they did, into jets and luxury cars.
I never understand these idiots, what is their endgame? At least fly to a non-extraditing country once you have the money...
No. But that’s fraud. if you make millions on the original 500k, your investors might forgive you (ala Martin skirelli) but the regulators won’t.
A Ponzi scheme would be that you then raise 2mm from someone else and pay that as returns to the first 1mm.
People who cash out “earn” from other people’s investments. Eventually the whole thing collapses like a pyramid scheme.
It would be illegal but not a Ponzi. What you can do is invest the money you received as you promised, make a killing and then pay yourself as previously agreed and then pay your taxes and then pay all the other related fees and pay for all the previous losses and then if you have any money left over buy yourself a Volkswagen Passat.
Lol, not as appealing