Gowex Chief Orchestrated Sham by Hiding Lies in Plain Sight

bloomberg.com

24 points·spindritf··6 comments

I joined a startup wholly-owned by GOWEX 5 months ago. A startup that is now defunct.

I know it sounds crazy but we all believed those numbers, we were happy, money everywhere.

But from time to time one of my mental alarms would go off, and I would just ignore it. "What could possibly be wrong with this company? It's a publicly-traded company, after all."

The moral of the story is: pay attention to your instincts.

"I know it sounds crazy but we all believed those numbers, we were happy, money everywhere.

... 'What could possibly be wrong with this company? It's a publicly-traded company, after all.'"

Sounds like we've already forgotten about Enron[1]. They seemed to be rolling in cash, were hyped by Wall Street analysts and the media, etc. How could it all have been a scam?

[1] https://en.wikipedia.org/wiki/Enron_scandal

The article seems to totally ignore this, but how much money did Gotham City Research make from shorting this company?

I don't think it's public knowledge. They did make money though. It's an interesting company and I wanted to submit another link[1] specifically about them but it's behind a registration wall.

[1] http://www.ft.com/intl/cms/s/0/a841ea38-ca4d-11e3-8a31-00144...

Hey I know that name. I have a GOWEX WiFi network saved on my phone. IIRC it was an open network picked up whilst on holiday in Dublin which did not work in the slightest. /unrelated anecdote

Amazed that the research company that discovered the fraud is called Gotham City Research! http://gothamcityresearch.com/

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