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Signs That a Stock is Not a Fraud!

Sam Bankman-Fried on Forbes
Written by Andy

These are signs that a company is probably not a fraud!

1) High insider ownership although this deserves a second look, with regards to related party dealings..etc

2) No dual-class stock

3) Little or no debt

4) Pays dividends out of free cash flow.

5) Modest directors compensation.

6) Simple, understandable business.

Note: I am not saying companies not meeting these criteria are automatically frauds.

Signs you might be dealing with a fraudster:

  • Claims to not care about money.
  • Only wants wealth so he can change the world through altruism.
  • Member in good standing of @wef
  • Donates money exclusively to progressive politicians.
  • Laser eyes
  • Crypto evangelist

FTX Fraud Case

“Fraudy McGrifter” start-up kit:

  • Black Turtleneck
  • Vegan
  • WEF membership
  • Forbes cover
  • Some compliance connection (law professor dad OR “Nasdaq Chairman”)
  • Some bullshit ESG narrative
  • Political donations to party that promotes said ESG narrative
  • “Blame society” when caught

If you’re wondering “where all that money went”, this is the scooter rental co’s $BRDS founder’s Miami mansion. Bird went public at a $2.5bn valuation, and now trades at $98m. Investors lost 96%. Ponzilords at banks, in media & on here enabled this massive grift. Who’s the fool? To make it even more on the nose, this scam-artist mansion previously belonged to a “drug kingpin”, and the building is a clone of Tony Montana’s mansion in “Scarface”. Looks like IPO deals are the new c*caine. Except noone ever goes to jail after robbing investors of $2.5bn… These kinds of things seem to be what you might call ‘legal frauds.’ An early-stage company is listed at a crazy valuation and its prospects are then pumped up by management and banks. The founders and early-stage backers then exit before reality hits and the shares crash.


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