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
“Fraudy McGrifter” start-up kit:
- Black Turtleneck
- 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.