[Ranabegins]

Originally Posted by Tucker48

Moreover there is a difference between a scam or failure of the financial model or system. 2008 recession was a result of wrong financial model but was not a scam. 2015 film 'the big short' explains the 2008 crisis in a simple way.

I disagree with you in case of 2008 crisis. People who were responsible for this knew that this will eventually fail. They were very well aware of the wrong doing and still kept doing it to make more money. So, yes it may have begun as a wrong financial model but it became a scam in the later stages. Please watch Inside Job(2010) as they have given a good idea of what happened.

[HTC]

Bernie madoff scam is worth mentioning here. More to read here in wiki link- https://en.m.wikipedia.org/wiki/Mado...stment_scandal.

The fact that he was cheating so many big league personalities without fear and guilt is amazing. May be few people are wired that way from birth. If not, not sure how he got sleep every night knowingly going to bed about what he was doing.

[ValarMorghulis]

Anugrah Stock and Broking Limited


The latest entrant to a Rs. 1000 crore scam club is the new kid on the block: Anugrah Stock and Broking Limited, a Mumbai based stockbroking company.

The premise was simple: Take money from customers and tell them that a group of highly qualified, capable and intelligent stockbrokers will invest this in the stock market and share exceptional monthly returns with them.


The kink in the plans? The company apparently was dabbling in the derivative markets through an associate company using the client's money. But when the company was derivative trading license was suspended for irregularities, the company got a stay on the suspension conditioned to paying Rs165 crores.


Of course the owners are now "missing" with even the billboards and banners disappearing from their "office".
PS: PS: A third associate company was involved in raising the money and the total loss to investors is to the tune of 1000 crores.

Link
Link 2

[avishar]

Everyone needs to read this amazing thesis/investigation into Nikola, the Hydrogen car company start up in which GM invested $ 2 billion this week.

This guy will give Theranos/Elizabeth a run for her money!


Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America

An excerpt:

On the morning of September 8, 2020, Nikola announced a strategic manufacturing partnership with General Motors, sending shares of both companies sharply higher.

For many, the deal was viewed as long-awaited validation for Nikola, which to date has mainly presented little but prototypes, renderings and a heap of promises. After all, General Motors is one of the largest, multinational auto manufacturers on the planet and has been in business for over 100 years. It has reach into every major auto market, including the U.S., Europe and China.

Economically, GM gets a $2 billion in stock (an 11% stake) in Nikola for non-cash contributions such as engineering and validating a truck for Nikola, $700 million in expense reimbursements, supply contracts and 80% of the EV credits, along with a host of ‘outs’. GM can begin selling shares before a single truck rolls off the line. Essentially, it’s a free call option in a “sexy” EV story for General Motors.

But why sign with Nikola at all? GM’s CEO was asked on the day of the announcement what technology GM would get out of the deal. She couldn’t name a single thing.

The real “value” for GM seems to be branding. We believe the legacy automaker simply seeks to latch General Motors’ storied name onto Nikola’s charismatic Founder and Executive Chairman, Trevor Milton. Trevor is perceived by many as a forward-thinking, fresh, visionary entrepreneur capable of rivaling Elon Musk’s allure.

But in GM’s attempt to keep up with Elon Musk, who did they just get into bed with?

[ValarMorghulis]

Transstroy India: The biggest Indian scam of 2020

This week the CBI booked a Hyderabad based company, Transstroy India and its directors for an alleged bank fraud totaling ₹7,926 crore. For context, the Nirav Modi scam involved ₹7,700 crores.

Link 1
Link 2

In December 2017, an audit was conducted by global consulting firm EY, which stated in its report multiple instances of siphoning off of funds by the infrastructure firm and a fraud perpetrated by it. Some of the instances are listed below:
-Writing off Rs 794-crore worth debt and adjusting it to the company’s reserves, where the receivables were hypothecated to the banks.
-Borrowing money for projects which never took off and banks weren’t informed.
-Amount worth Rs 2,261.58 crore routed through non-consortium banks without informing the consortium. -Acquisition of a hydel power project from Sri Jayalakshmi Power Corp. for Rs 36.5 crore without informing banks.
-Procurement of similar machinery from two different vendors with same engine and serial number by manipulating records to secure more loans than the eligibility.
-Transferring funds worth Rs 2,341 crore to another company on the books, without the funds reflecting in the accounts of the company concerned.
-Inflating inventory statistics to provide security cover to banks.
-Using Rs 5.28 crore worth bank loans to purchase gold and silver to donate to three different temples in South India.

[V.Narayan]

Originally Posted by ValarMorghulis

Transstroy India: The biggest Indian scam of 2020

They improved on Nirav Modi. Better than what our cricket team did.

Using Rs 5.28 crore worth bank loans to purchase gold and silver to donate to three different temples in South India.

Poor chaps, looks like God renegaded on His part of the deal to keep them blessed and protected!!!!

[srini1785]

New Kid on the block : Onion Credit Pvt Ltd ( Onion - Seriously).

Multi-Crore Loan Apps Scam Caught In Hyderabad, Gurgaon; RBI Warning Out

https://www.ndtv.com/india-news/hyde...g-scam-2342691

Of couse, going by nirav / mallya scale its not much but going by the age of the main perpetrator, he sure is getting there ( if they let him out that is).

[whitewing]

Originally Posted by srini1785

New Kid on the block : Onion Credit Pvt Ltd ( Onion - Seriously).

https://www.ndtv.com/india-news/hyde...g-scam-2342691

Of couse, going by nirav / mallya scale its not much but going by the age of the main perpetrator, he sure is getting there ( if they let him out that is).

Sadder is that it has taken some lives by way of suicides by defaulting borrowers.

[Behemoth]

Here is a very interesting video on some of the biggest tech fails and scams of the decade . Very interesting watch - he is one of the most interesting youtubers I follow.

https://youtu.be/QMWlRWnAZH8

[ValarMorghulis]

Adam Neumann, the charismatic(?) charlatan(?) behind WeWork, which caused SoftBank to lose billions of dollars is back.

While WeWork had WeSpirit and other such hogwash behind, what was essentially, an office leasing company, Neumann has a new company called Flow.

Look at what Flow does and try to garner a pattern:

In Adam Neumann’s residential real estate company Flow, he’s hoping that if his residents “feel” like owners — regardless of their actual equity ownership — they will plunge their own toilets instead of calling the superintendent.

Neumann had remained tight-lipped about what Flow actually does ever since Andreessen Horowitz invested $350 million in August. Flow will own and operate multifamily residential apartment buildings and has plans to debut in cities such as Atlanta; Fort Lauderdale, Florida; Miami; and Nashville, Tennessee. Even in the new video, which runs for more than 50 minutes, Neumann is coy about core aspects of the business, such as how Flow will simulate ownership for tenants while maintaining control of the buildings.

Basically, the same wine in a new bottle. No one, yet, knows how the company will work or make any profits.

Link