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My guess was defrauding Chinese as they were the major investors in it.
by mimikatz 6y ago
My guess was defrauding Chinese as they were the major investors in it.
- ralph84 6y agoMore likely the Chinese investors needed a way to evade capital controls in China and this was the vehicle.
- neaden 6y agoHow would this work for them? Is it easier if you are a big Chinese investor to buy stock in a small American company than to purchase it in a F500?
- plorkyeran 6y agoIt's basically reverse money laundering to turn money that the government knows about into money that the government doesn't. 1. Make a really bad investment in an overvalued small company. 2. Company passes some portion of the money back to you in a way that the government doesn't know about. 3. Company goes bankrupt. 4. The party knocks on your door and asks you where all your money went and you point to a failed foreign investment.
- neaden 6y agoInteresting, thanks.
- briefcomment 6y agoThis would be a poorly executed instance of this strategy right? Who in their right mind is getting fooled by a 100m dollar sandwich shop?
- onetimemanytime 6y agowould you have known if this story wasn't posted? Plus every small shop has potential....1 trillion, billion stores all over the world so the value is forward looking ;)
- bobthepanda 6y agoIt used to be easier to do this via rolling at the big tables in Macau.