Post by
Welster on Jul 18, 2019 10:14pm
The anatomy of a scam
1. Project 1 is launched with assets of the founders. 2. They raise money with private investors to fund project 1. 3. They hire a spanking new "top" Management team to make Project 1 feel realll good 4. But new Management puts almost no money in project 1 and have almost no direct equity awwwww ;( 5. Then management of project 1, have a great idea to launch a US project that should be part of Project 1, but they have so little equity. :( ..so they decide to erase any proof of this being created internally , erasing executive profiles etc... 6..Some of Project 1 Management now appear as founders in this brand spanking new US project 2 with no link to project 1. 7. US project 2 gets funds by using the proceeds from project 1's funding and just to make sure that Project 1 investors dont get equity in US project 2 , They call it a "deposit" for future product supply from US project 2 that project 1 will use in its market...one day , somehow , maybe , 8. Now project 1 has no more money no strong position , no strategy and its worth almost nothing .... It goes to market begging for new money and has no success...awwwwww! 9. WOW but by some miracle someone does believe in Project 1....it's US project 2!... and they come to the rescue with a nice 15/1 RTO to save the day. 10.. But wait management had another card up its sleeve , hidden IP project 3 that holds the IP of the technology that drives US project 2. Wow they have great ideas. 11.. and yes these great honest people sign bogus contracts, blabla disclosures etc.. between themselves to makes sure they cover all bases so that no investors of Project 1 could claim any wrong doing. 12. All along Project 1, rich from its investor money, pays for the management's salaries and expenses so they can be comfortable while creating US project 2 and IP Project 3 on the backs of investors who see nothing of this. 13. And finally Greedy management team f... over investors and gets bigger equity positions , bigger salaries , bigger options plans and a big old laugh. P.S. Oh and no no heyyyy...., the board neverrrr had any idea that this was happening. We should not even think one second that they have direct or indirect equity in US project 2., They probably only heard of that project when the RTO LOI came in. That's the anatomy of a scam boys and girls. Sweet dreams !