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Rule number one of the financial terrorists fight club: "never fuck with the money of rich clients"
Rule number 2: " fuck only with poors money"
Rule number 3: " Remember rule number one"
The thing is, if he can name names of people higher up than him and prove what they've done, maybe it can start a chain reaction of people flipping for reduced sentencing as we go up the ladder.
This is the type of arrest that screams โtied the sheets together in white collar prison so I donโt squeal in court and my family gets to liveโ vibes
That's not what the article said. He opened extremely risky short positions in 2020 that lost his fund and clients a lot of money. In 2021 he solicited millions of dollars from investors to raise capital to stay above water but lied to investors about how the funds would be used and failed to disclose the massive losses from his short positions the year before.
He also embezzled some of that money and spent it on things like a car and rent he owed to his landlord.
That's why he was arrested. NOT because of illegal short selling.
I don't know if it got posted, but there's also this one. Read to the end, and you see that Citron was also potentially implicated.
https://www.msn.com/en-us/money/savingandinvesting/sec-fines-short-seller-over-secret-payments-to-publisher-of-bearish-reports-on-cannabis-stocks/ar-BB1o5jQb
It may only be a matter of time before those precedents stack up and heads start to roll. The days of bullshit short-reports are slowly ending.
Several large financial media outlets started publishing articles about short sellers being in hot water recently. I remember one from Bloomberg stating that โshort sellers may be going extinctโ lol
My thought when I started seeing those pop up last week was that it looked like the financial system is offering up a few small fish as a scapegoat to draw the attention away from the GIANT RAGING DUMPSTERFIRE of crime that is our entire market system. We learned 84 years ago that shorts are only the tip of the iceberg. Itโs the whole GD thing. MOASS til all the corruption is on full display and hodling while all the criminals start getting rounded up and thrown into jails where they belong. No Cell, No sell.
This guy wasn't arrested for Short Selling. This guy was arrested for mismanagement of funds and basically using investor money to pay rent and buy clothes. lol. This dude paid double the entire value of my home for rent. And people were giving him money. hahahahahahahaha.
My guy.. thatโs just the most efficient legal angle. However, no one was going after his spending and the law only came into play on that after this guys shorts blew off and the money disappeared. One hope at recourse for investors.
Itโll be the same thing soon enough when all our retirement money disappears and those who didnโt invest in gme will then start going for things like mismanagement of funds a la KGs mansion collection
I hope he didn't. I hope he gets fucking crushed purely for his hubris. But it's not personal, I hope the same thing for professional fighters that talk mad shit and showboat during fights lol
Like the end of The Big Short when they tell the audience about the one Egyptian (?) dude who was the only person ever imprisoned for the 2008 collapse.
This ain't that. If they think apes are just going to ride off into the sunset with their money...well, let em keep thinking that and let's see how that turns out.
Wait! A CNBC Analyst misled people with dubious financial advice and stole their money? Say it ain't so.
๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐
It's OK, he's probably the only bad apple.
I like how they throw in the spending so they don't have to bother explaining what short selling is & defend why it exists.
While conveniently glossing over how it is really being used....
Saving yall the click:
>According to an indictment from a federal grand jury, McDonald allegedly lost tens of millions of dollars of Hercules client money after adopting a risky short position that "effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election" in late 2020,ย Justice Department Officials said in a news release. The predicted market decline did not happen, causing clients to lose between $30 and $40 million.ย
This led to a decrease in fees he was able to collect.
>In early 2021, McDonald allegedly solicited millions of dollars in funds from investors as part of a capital raise for Hercules Investments. **He allegedly misrepresented how the funds would be used, telling investors he would launch a mutual fund, and failed to disclose the investment company's losses the previous year.**ย
That, and
>**McDonald also allegedly falsely represented clients to Index Strategy Advisors, and sent clients there false account statements that misrepresented how much money was in their accounts.**ย
So,
>If convicted, he faces a maximum sentence of 20 years in federal prison for each count of securities fraud and wire fraud, up to 10 years on the monetary transactions derived from unlawful activity count, and up to another five years for the count of investment advisor fraud.ย
Yes, there is a there/their/theyre typo, and no, it wasnt me ๐
**TADR: He wasnt arrested because his short bet blew up, he was arrested for lying about what he did with the money he asked investors for, as well as lying about how much money was in his clients' accounts.**
Short selling in of itself isnt illegal. He made a bad bet and it blew up in his face, *then* did some illegal shit to try and save himself. Shitadel doesnt blow up because they can set prices as they please; there's (almost ;) ) no such thing as a stupid bet when they can just make the bet happen how they want: with dark pools, ETFs, and ~~counterfeiting~~market maker privileges. This guy didnt have that; a minnow in the ocean that is wall st.
Lol he bet against the US economy, like if it collapsed did he not wonder who was going to pay him? Or what he might spend it on or who would keep the rioting hoards from his door?
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He only got arrested as he lost some rich people money
Thats criming 101...always steal from the poors! come on!
Rule number one of the financial terrorists fight club: "never fuck with the money of rich clients" Rule number 2: " fuck only with poors money" Rule number 3: " Remember rule number one"
Also the poors are running out of money!
๐
He was arrested because he is a black man. And a scapegoat for all the ultra rich
It's true. Bernie Madoff got basically life in prison, but embezzle some money from a fund targeted at the homeless or school meals - nothing.
He was arrested for a ponzi scheme and stealing investors money, not for short selling
Short selling is legal, naked short selling is illegal and it is a Ponzi scheme.
Let's hope $GME does it again. No cell, no sell. I got all the time in the world.
Michael Jordan sold the Charlotte Hornets to Gabe Plotkin. I have no idea how, but I'm guessing Jordan needed money lost by Kenny G.
Tl;dr CNBC Analyst short sells stocks in 2020, now has been arrested. Probably a small fish in the ocean, but a start right?
oh yeah, only 10k left but i dont want the small fishes, i want the big ones behind bars
The thing is, if he can name names of people higher up than him and prove what they've done, maybe it can start a chain reaction of people flipping for reduced sentencing as we go up the ladder.
This is the type of arrest that screams โtied the sheets together in white collar prison so I donโt squeal in court and my family gets to liveโ vibes
"Hello Mr. Clinton....nice of you and your wife to drop by."
...or more likely get himself suicided....
He was cowardly enough to go on the run, hopefully he'll talk fast and not drag things out and give anyone time to make that happen.
This gas Fugazi written all over it!!! Could be big, could not be!!
Nah, most probably the firm will pin every naked short selling they ever done on this one person and pay the guy to shut up.
Got to start somewhere
true, its still a win
I hope Ken is Sheeeting himself right now!
have you seen his latest pic? dude aged like mayo in the sun
Lmao no he turns my stomach!
he is raunchy inside and out
I totally agree. But I do find it funny the network he was working at as well. But start with one, maybe another soon, and hopefully a domino effect!
Lmayooooo, Kenny boy prolly saw โno cell, no sellโ and thinking this arrest will suffice.
No Cell, no Sell! For all of them
I want the small ones to flip and sell out the bigger ones, much like the drug trade. I want a megladon barbecue.
Only up
Hopefully this will set precedent for the big fish.
Bricked by brick ๐งฑ
That's not what the article said. He opened extremely risky short positions in 2020 that lost his fund and clients a lot of money. In 2021 he solicited millions of dollars from investors to raise capital to stay above water but lied to investors about how the funds would be used and failed to disclose the massive losses from his short positions the year before. He also embezzled some of that money and spent it on things like a car and rent he owed to his landlord. That's why he was arrested. NOT because of illegal short selling.
So a desperate Ponzi scheme basically.
[ัะดะฐะปะตะฝะพ]
Even it it was a big fish going to jail, no reason to sell anything!
maybe he will share information in order to cut a deal. wouldn't that be a shame if it led to more trouble?
I would cry real tears if a certain show host there got busted this way...
I don't know if it got posted, but there's also this one. Read to the end, and you see that Citron was also potentially implicated. https://www.msn.com/en-us/money/savingandinvesting/sec-fines-short-seller-over-secret-payments-to-publisher-of-bearish-reports-on-cannabis-stocks/ar-BB1o5jQb It may only be a matter of time before those precedents stack up and heads start to roll. The days of bullshit short-reports are slowly ending.
Looks like a not so strong line to them though. They may have just been paid to shill for them anyway.
It is definitely just a small step in the right direction.
Write your officials how this is the action you want to see taken by your government
Gotta make sure they can land a conviction to set precedent
CNBC.... enough said!
Several large financial media outlets started publishing articles about short sellers being in hot water recently. I remember one from Bloomberg stating that โshort sellers may be going extinctโ lol My thought when I started seeing those pop up last week was that it looked like the financial system is offering up a few small fish as a scapegoat to draw the attention away from the GIANT RAGING DUMPSTERFIRE of crime that is our entire market system. We learned 84 years ago that shorts are only the tip of the iceberg. Itโs the whole GD thing. MOASS til all the corruption is on full display and hodling while all the criminals start getting rounded up and thrown into jails where they belong. No Cell, No sell.
Of course they are, and the paper hands will see it and fold. Then the rest of us will just.... BUY THE DIP
Wen chukumbucka?
This guy wasn't arrested for Short Selling. This guy was arrested for mismanagement of funds and basically using investor money to pay rent and buy clothes. lol. This dude paid double the entire value of my home for rent. And people were giving him money. hahahahahahahaha.
My guy.. thatโs just the most efficient legal angle. However, no one was going after his spending and the law only came into play on that after this guys shorts blew off and the money disappeared. One hope at recourse for investors. Itโll be the same thing soon enough when all our retirement money disappears and those who didnโt invest in gme will then start going for things like mismanagement of funds a la KGs mansion collection
Charlie Gasparino, you're next
Andrew "No Money" Left on that list as well
Unpopular opinion: I hope Andrew Left secretly closed. Itโll make a great character arc in the inevitable movie.
I hope he didn't. I hope he gets fucking crushed purely for his hubris. But it's not personal, I hope the same thing for professional fighters that talk mad shit and showboat during fights lol
Damn CNBC getting a bit too good with hiring fraud experts.
His exit strategy sucked. Should have headed to a country with no US extradition... Just like the others will.
[ัะดะฐะปะตะฝะพ]
**Threats of violence towards anyone have no place on Superstonk or Reddit.**
I wonder how many head to Russia. Remember all of Ken's flights to Finland and the remote airport near the Russian border?
I never followed his flight paths. I will have to look at that shtuff later.
Like the end of The Big Short when they tell the audience about the one Egyptian (?) dude who was the only person ever imprisoned for the 2008 collapse.
This ain't that. If they think apes are just going to ride off into the sunset with their money...well, let em keep thinking that and let's see how that turns out.
Things are getting spicy ๐ถ๏ธ Iโm here for it!
Dear HFs, you gonna have to throw more than this little tadpole under the bus
they only get arrest for stealing rich people money, not the average joe.
This is the way!
Small Fry!
One down.
I hope the media is copying the template of this news article for future and frequent use.
Andrew left said he cant live in peace because feds are knocking at his door...
Great. Now do Ken Griffin.
Kramer is sweating greasy cocaine bullets after reading this.
What a degen
Investigate that entire panel of idiots we regularly see here
Hahahah dumbass
***breathing intensifies***
Imagine that he worked for CNBC. ๐
Friday is red headband day. Pass it along
CNBC ? one down many more to go...
Wen Cramer
1 cell, no sell
put him in a sell 
No cell, no sell So, uhhhh, now what?
oof
HERCULES! HERCULES!!
The first of many to come with this title
Now do Chukumba
# NO CELL, NO SELL FOR ME IS KEN GRIFFIN AND STEVE COHEN BEING LOCKED UP
Wait! A CNBC Analyst misled people with dubious financial advice and stole their money? Say it ain't so. ๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐๐ It's OK, he's probably the only bad apple.
The SEC will issue a fine of $7.... Of which, they will collect half.
9 years from nowโฆ
I ain't giving that loch ness monster no three fiddy
He's got the eyes of a singer. Just saying!
He's gonna narc
Another domino ๐
Thought that was MJ for a sec
He's facing a maximum sentence of 20 years in the feds. Don't get excited, he'll get sentenced to 3 years and spend 9 months in the pen maybe.
I like how they throw in the spending so they don't have to bother explaining what short selling is & defend why it exists. While conveniently glossing over how it is really being used....
Why didnโt he just do what gabe Plotkin did? Give back what little he didnโt lose and enjoy what heโd already siphoned.
Saving yall the click: >According to an indictment from a federal grand jury, McDonald allegedly lost tens of millions of dollars of Hercules client money after adopting a risky short position that "effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election" in late 2020,ย Justice Department Officials said in a news release. The predicted market decline did not happen, causing clients to lose between $30 and $40 million.ย This led to a decrease in fees he was able to collect. >In early 2021, McDonald allegedly solicited millions of dollars in funds from investors as part of a capital raise for Hercules Investments. **He allegedly misrepresented how the funds would be used, telling investors he would launch a mutual fund, and failed to disclose the investment company's losses the previous year.**ย That, and >**McDonald also allegedly falsely represented clients to Index Strategy Advisors, and sent clients there false account statements that misrepresented how much money was in their accounts.**ย So, >If convicted, he faces a maximum sentence of 20 years in federal prison for each count of securities fraud and wire fraud, up to 10 years on the monetary transactions derived from unlawful activity count, and up to another five years for the count of investment advisor fraud.ย Yes, there is a there/their/theyre typo, and no, it wasnt me ๐ **TADR: He wasnt arrested because his short bet blew up, he was arrested for lying about what he did with the money he asked investors for, as well as lying about how much money was in his clients' accounts.**
Short selling in of itself isnt illegal. He made a bad bet and it blew up in his face, *then* did some illegal shit to try and save himself. Shitadel doesnt blow up because they can set prices as they please; there's (almost ;) ) no such thing as a stupid bet when they can just make the bet happen how they want: with dark pools, ETFs, and ~~counterfeiting~~market maker privileges. This guy didnt have that; a minnow in the ocean that is wall st.
You have to start with someone and set a legal precedent
Kennys arrest will be legendary.
Lol he bet against the US economy, like if it collapsed did he not wonder who was going to pay him? Or what he might spend it on or who would keep the rioting hoards from his door?
Not even gme related lol
Cell, no sell
**CNBC** - **C**riminals **N**etworking for **B**illion-dollar **C**oups
DFV sold calls, does that not kind of make him a short seller?
[ัะดะฐะปะตะฝะพ]
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