topic Re: Cheesesteaks and Stock Fraud in Community Chat

Cheesesteaks and Stock Fraud

PickyPicky3 — Wed, 22 Mar 2023 02:10:53 GMT

I've been following the story of the Hometown Deli, which used to be in Paulsboro, NJ, for a few years.

The owner of this smalltown deli confided to a friend about six years ago that he would like to grow the business. The friend convinced the owner that he could create a parent company, sell its shares publicly, and raise money for new business ventures.

The friend and two crooked associates did just that. They then fraudulently manipulated stock prices until the little deli, which had never earned more than $40,000, was capitalized at $100 million. They tried to sell off their shares and run, but they got caught and charged with securities fraud. The deli owner was not charged.

The Hometown Deli was sold for $15,000 but has not reopened.

One of the thieves went to hide in Thailand but this week was extradited back to the USA to face charges.

A Cinderella story -- of sorts. How do these things happen?

Re: Cheesesteaks and Stock Fraud

Franklinbell — Wed, 22 Mar 2023 03:10:37 GMT

Very interesting! Thanks for sharing!

Re: Cheesesteaks and Stock Fraud

Snowpuppy — Wed, 22 Mar 2023 13:38:47 GMT

I followed this story off and on..

How does it happen? Same way Lehman, Bear Sterns, SVB, Signature bank, etc happen. Greed. As long as people making $ nobody cares about ethics.

Re: Cheesesteaks and Stock Fraud

Cats3000 — Wed, 22 Mar 2023 10:23:10 GMT

@PickyPicky3 Two things to remember: If its too good to be true, it probably is. As PT Barnum said: There's a sucker born every minute.

Re: Cheesesteaks and Stock Fraud

chrystaltree — Wed, 22 Mar 2023 15:30:33 GMT

They obviously didn't know what they were doing so they caught in a dumb scheme but this type of thing is not uncommon. Those who know what they are doing don't get caught, they become multimillionaires.

Re: Cheesesteaks and Stock Fraud

scatcat — Wed, 22 Mar 2023 16:00:02 GMT

Google PPP fraud. The gov't was handing out cash like Halloween candy.
shocking - a lot of scams