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Business schools are going to study WeWork and Adam in the same chapter as Bernie Madoff and MCI Worldcom. This has been one of the most successful scams of all
by situational87 7y ago
Business schools are going to study WeWork and Adam in the same chapter as Bernie Madoff and MCI Worldcom. This has been one of the most successful scams of all time.
The fact that it was all legal is just mind-boggling.
- adrr 7y agoWas it a scam? Adam didn't violate any laws. Investors should have done diligence and all the self dealing would have came out during an audit. Fact they didn't is what i think is the scam. If i was an lp in the fund, i would think about suing the fund for the breach of duty.
- rabidrat 7y agoGood scams start off as legal until new laws are written detailing how exactly the scams are illegal in the future.
- SpicyLemonZest 7y agoMaybe, but this is very different from the original examples of Madoff and Worldcom. Their scams were flagrantly illegal at the time that they did them.
- wayoutthere 7y agoIt's legal because the people that got duped were "professional investors". It will be a good case study for an investment analysis class though. Would absolutely be a different discussion if they had IPOed.
- travisoneill1 7y agoNo, it's legal because he never lied. He did all that shit right out in the open and disclosed it to potential investors in the S-1.
- puranjay 7y agoIts a perfectly legitimate business that brings in billions of dollars and may even be profitable with some optimization. To call it a scam a la a Ponzi scheme is a little too harsh.
- 0xffff2 7y agoWeWork isn't the scam. The way Neumann managed to cash out is the scam.