In fairness to Vivek, new biotech companies and other tech start-ups are notorious for burning through cash for years before finally becoming profitable as their product or service matures and becomes widely adopted. In the meantime, founders and early investors commonly sell off pieces of their ownership, not just to get cash for themselves but to expand the pool of investors backing the company. That does not mean that Vivek or other entrepreneurs are frauds.
“In the meantime, founders and early investors commonly sell off pieces of their ownership, not just to get cash for themselves but to expand the pool of investors backing the company. That does not mean that Vivek or other entrepreneurs are frauds.”
That is true—but it does raise the possibility of money laundering or other dubious activities—and in many cases there is fraud happening.
The details matter—and I think it is reasonable to suggest there is a red flag there.
V’s spinners have a semi-credible answer for everything—the problem is that there are just too many “clues” that something is amiss...
It kinda reminds me of a large scale version of Hillary’s cattle futures deals...
It wasn’t a new biotech company. Vivek created a company to market a failed drug that he had purchased from Glaxo. Oddly enough the drug still didn’t work even after he sold millions of dollars of stock to investors who were led to believe that it would. I guess they didn’t read the fine print in the prospectus.