Posted on 01/28/2023 2:50:24 PM PST by SeekAndFind
The world's third-richest man has been accused of pulling of the 'largest con in corporate history' through the Indian-based Adani Group corporation.
US investor Hindenburg Research, which has begun short selling the conglomerate through bonds, conducted a two-year probe into head Gautam Adani, who is worth $125billion.
The firm alleges that Adani and his family controlled a web of offshore shell accounts that it used to carry out corruption, money laundering and taxpayer theft, all while siphoning money from the companies they owned.
Adani has pulled off this gargantuan feat with the help of enablers in government and a cottage industry of international companies that facilitate these activities,' the firm wrote in its report published Tuesday.
The Adani Group immediately denied the claims and expressed their shock at the allegations which cost the company $12billion in market value and saw its flagship firm Adani Enterprises fall nearly 4 percent on Wednesday.
Gautam Adani, 60, is the chair of the Adani Group, one of the three largest industrial conglomerates in India.
He began his journey as a diamond sorter in Mumbai in the late 1970s before going to work in his brother's plastics business in 1981.
After securing a deal win Korea, he launched the group's flagship import-export business, Adani Enterprises.
His business secret, as the Financial Times put it, was simple. 'Earn a small amount in one business, then take on heavy debts against its income to finance expansion into another,' the broadsheet said.
The group now has interests in ports, power generation and transmission, real estate, cement among a plethora of other industries.
Adani controls India's largest port, Mundra Port, and became the country's biggest airport operator after purchasing a 74 percent stake in Mumbai International Airport in 2020.
(Excerpt) Read more at dailymail.co.uk ...
At a net worth of $125billion, Adani only ranks behind French luxury goods mogul Bernard Arnault and Tesla CEO Elon Musk.
I think the Hindenburg has been thoroughly researched already.
its scathing report, Hindenburg questioned how the Adani Group used its offshore entities in tax havens like Mauritius, the Caribbean Islands, and the United Arab Emirates, adding that certain offshore funds and shell companies tied to the group ‘surreptitiously’ own stock in Adani-listed firms.
The short seller alleged that at least 28 of the shell entities were operated by Adani’s older brother, Vinod, or his ‘close associates,’ as Hindenburg highlighted Indian officials’ investigation into fraud allegations against the group.
According to the officials in those investigations, Vinod would move money from offshore entities into private offshore trusts and companies owned by the family. That money would then go to the entities in Mauritius before being used to invest in Adani Group stocks.
‘If the Adani Group secretly controls significant amounts of publicly traded stock without disclosure, the resultant share price of Adani listed companies could be easily manipulated to meet the immediate needs of the Adani Group,’ Hindenburg concluded.
I wonder if Hunter Biden knows Adani …. 🤔
In the immortal words of Michael Corleone:
“The higher I go, the crookeder it becomes.”
What’s the problem?
This type of thing is SOP for George Soros.
The world of finance is nothing but a con with a veneer of integrity ..
The world of finance is nothing but a con with a veneer of integrity ..
and international currency traders in general.
Oh the humanity.
If you have the background necessary to understand financial statements (and complicated footnotes) it soon becomes obvious that most large/prominent corporations/banks etc are houses of cards that could collapse at any time.
There are a few exceptions but they are rare.
This differs from the Biden Crime Syndicate how?
Or differs from the Global Warming Con how?
Although the accusations could be accurate, a Short-seller will benefit greatly if people believe the accusations (accurate, or not). So, taken with a grain of salt...
I woul never do business with anyone from India.....or anything else knowingly for that matter.
This is a pretty common procedure everywhere.
Blackrock for one does similar things.
Nomura in Japan ditto.
Then I guess we are screwed once the house of cards collapses. Say hello to another dark ages period.
After reading your post, I can visualize Indian businesses perturbed and nervous.
In my working days (retired now) I was involved in underwriting business loans.
It was rare that a business did not lie to us about something—usually major.
Once we caught them the question was whether they could still qualify after we did our adjustments to their numbers.
Indeed it does, How I miss The Godfather. Great and interesting series.
Veto!
(The Girl)
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