The Strangest Ponzi Scheme We've Ever Covered
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День томуThe Franchise Group is a conglomerate that owns multiple retail franchises including The Vitamin Shoppe, Pet Supplies Plus, Buddy's Home Furnishings, and Wag N Wash. New revelations appear to connect The Franchise Group's Founder and CEO Brian Kahn to a now defunct hedge fund called Prophecy Asset Management which ran a Ponzi scheme and ultimately defrauded its investors out of $300 million.
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#Wallstreetmillennial #frauds #franchise
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0:00 - 1:52 Intro
1:53 - 4:50 A Unique Hedge Fund
4:51 The Franchise Group
@DawryMike 3 місяці тому
Vitamin Shoppe always seemed like a fake business in a movie
@sama847 3 місяці тому
Never saw a single car in their parking lots
@rustymustard7798 Місяць тому
Lol it's real? This is the first time i've heard of any of these 'businesses', they all sound fake, like something AI just made up.
@bobbowie5334 27 днів тому
When the store opened I was the only customer and bought a bottle of vitamins from a girl who looked like she was on heroin.
@jpvillaseca 3 місяці тому
Before reading the name I honestly thought he was called Brian Con
@TiberianFiend 3 місяці тому
"Kahn" is a form of "Cohen," so it's not far off.
@antoniofernandesmarchetti1097 3 місяці тому
Me too!
@samsonsoturian6013 3 місяці тому
Vhut?@@TiberianFiend
@Arigator2 3 місяці тому
Ponzi 2: the Wrath of Khan.
@udayhomeful 3 місяці тому
I had to rewind video x2 to read his last name.
@zuglymonster 9 днів тому
Whenever someone says they've found a "fool proof" way to "never lose money" you know its a scam
@frankboff1260 5 днів тому
Unless they’re politicians, their scams always pay well. You just have to give up your soul to get in.
@cvrart 3 місяці тому
A real Kahn artist!
@diestormlie 3 місяці тому
I know it's in the title of the video and all. But as soon as I heard about the Sub-Advisors, I thought about it for a moment and went "Hold on, these are just obfuscated black boxes. They'd be perfect vehicles for fraud!"
@jonathanj8303 3 місяці тому
Also, the deal the sub-advisors were allegedly on - a cut of the take of they did well, make good the losses if they didn't - sounded too good to be true from the hedge fund's perspective. The sub-advisors take all the risk but don't get the reward. Why would anyone agree to this, particularly a professional trader? (Except Caroline Ellison maybe, but we all know how that ended.)
@diestormlie 3 місяці тому
@@jonathanj8303 This is a reminder that Caroline Ellison *wanted* to hedge more, but SBF instructed her to not do that. Oops.
@jonathanj8303 3 місяці тому
@@diestormlie According to the narrative after she turned states' witness for a reduced sentence. In any case I wouldn't trust her to invest chocolate coins, less still real money.
@fanban2926 3 місяці тому
The strategy is basically just a stupid way of saying you trade stocks but that you never lose money because you use stop losses..... I don't understand who falls for this stuff😂😂😂
@diestormlie 3 місяці тому
@@jonathanj8303 Oh, naturally I wouldn't trust her with a Lemonade stand.
@bizzfo 3 місяці тому
Wow, some well known or marketed brands there, Buddy’s, Liberty Tax, Pet Supplies Plus, Vitamin Shoppe
@alexvan5 3 місяці тому
my first job was at PSP. wild.
@rustymustard7798 Місяць тому
Ive never heard of any of these, i thought they were all going to turn out to be fake businesses that didn't really exist.
@p.naxhe. 3 місяці тому
7:08 "this was not a sustainable solution" is an understatement 😂
@techgod3670 3 місяці тому
This channel is a goldmine of niche finance content. Love the narration and the way your videos are presented. Keep on bringing more hedge fund and PE stuffs!
@ducknorris233 3 місяці тому
I need a flowchart on this one
@Kingbobman69 3 місяці тому
I mean...his name is Brian Con
@Jeez001 3 місяці тому
Lot of scam in retail sector involving leveraged buying outs
@alanlevy1982 3 місяці тому
Someone who started a bottom-feeding business of renting furniture to people in economic distress turned out to be a con man? I’m shocked…
@OffGridInvestor 3 місяці тому
In Australia we've had some charging 47% interest which is actually illegal. I never knew but we have a law in Australia on the highest interest rate you can have. Somehow a few of these places and payday loans places HAVE GONE BROKE. The craziest thing about payday loans? Almost everyone here is PAID WEEKLY.
@cvp5882 3 місяці тому
Kahn man
@mabamabam 3 місяці тому
@@OffGridInvestor No. Almost everyone on wages is paid fortnightly, salary is paid monthly. A few casuals are paid weekly.
@xulshaenlightened5860 10 днів тому
You know things are bad when the other rent to own businesses look down on your rent to own business and consider it “low class.”
@resevoirdog 3 місяці тому
Wallstreet millennial is such a dope niche. I love your work !!❤
@michaellisi7285 3 місяці тому
What a strange story. Glad they got caught but feel bad for their investors. I can’t imagine losing that much… Great video as always!!
@vranime3772 3 місяці тому
Think of the poor shareholders 😢
@kemp10 3 місяці тому
Why is that a 'but' statement? If you feel bad for the investors you would feel glad they got caught.
@avernvrey7422 3 місяці тому
Hedge fund, meaning the investors had to be "certified investors" meaning over $5million net worth.
@2andramas 3 місяці тому
These people hoped to make money without adding value to society, why feel sorry for them when it goes wrong?
@JohnSmith-cf4vl 3 місяці тому
I was wondering how American freight was selling full bed sets etc for 100 bucks dresser, nightstands and bed frame etc
@beinquisitive 3 місяці тому
For when a conventional ponzi just won't do...
@nr12345 3 місяці тому
So the certificates were forged and proven to be forged and the guy still continued out of jail without any charges ? WTF kind of puppet show is this.
@WEPayne 3 місяці тому
WSM, Boomer here, ye built a great channel, congrats ! I'm a bit old skool but find your perspective refreshing and disturbingly appropriate. Cheers ! Payne
@3rdalbum 26 днів тому
When you explained the system of sub-advisors who were on the hook for 100% of losses but could only make a small percentage of profit, I wondered why literally any investor wouldn't see the problem with that. And my knowledge of investing is close to nil.
@Nukestarmaster 11 днів тому
I mean, a lot of WSB degenerate gamblers would take those terms, but, well ... they're not exactly the kind of people you want in charge of your money.
@cursedex80 3 місяці тому
-"This is my business partner, Brian Con" -"It's Kahn." -"Same thing."
@theminer49erz 3 місяці тому
What an appropriate name lol its funny that Sylvin Learning Center is part of this. I went there when I was a kid to help with my school. Although knowing the stuff wasnt the problem I aced every test, but I refused to do homework for 3 hours after spending 8 hours of my day going to and back from school where we did nothing, so I was "failing" even though I alwasy messed up the curve for everyone else with higer grades. Anyway, they ended up putting me on the wrong program for like 8 months and then still wanted my folks to pay for it even though it was someone else's lesson plan. It was a joke.
@trainwreck420ish 3 місяці тому
Wow, same story. I hated doing homework when I aced everything in class. Also went to sylvan learning in Minnesota.
@barrybolton1396 3 місяці тому
@@trainwreck420ish Same
@__Dave__ 3 місяці тому
This type of content is some of my favorite lol this story is nuts
@patrickbrade1992 3 місяці тому
Really appreciate WSM content! It's been a great source of in depth information about a host of businesses and people who are behind them. Keep it coming!!!!!!
@mrkrag 3 місяці тому
WSM and Ponzi in one video. Yessss!
@tektronix475 3 місяці тому
quality content, as usual!
@bernardkealey6449 3 місяці тому
So it was both a Ponzi of franchises, and a franchise of Ponzis.
@IbnBahtuta 3 місяці тому
AKA Phonzi. 🤣
@bernardkealey6449 3 місяці тому
@@IbnBahtuta yeah real “Happy Days” for investors!
@IbnBahtuta 3 місяці тому
@@bernardkealey6449
@jonasalves7492 3 місяці тому
I started the video and went to another tab, that's when I hear " the group owas created by Brian Con"
@Allen_Leigh_Canada 3 місяці тому
UKposts closed caption rightly spells the frauster's name: Brian Con!
@lucre113 3 місяці тому
Going purely off thumbnail this looks like a banger video 😂
@xulshaenlightened5860 10 днів тому
I guess Prophecy Asset Management didn’t see that coming…
@davidallen8611 3 місяці тому
Why can I not find you on Patreon to support?? I want to help this great channel 🙂
@PunishedFelix 3 місяці тому
His name really had to sound like "Con" huh
@Presserp 2 місяці тому
What a Kahn man. Kahn you believe it? Kahnsidering it.
@seanohara6101 3 місяці тому
Great Vid
@Vettedbiz 3 місяці тому
We've had a few of their franchisees reach out to us about this scandal. Pretty wild if true!
@davidholmes9643 3 місяці тому
They will not enjoy Jail especially if some of their new friends have lost money.
@treyhex628 3 місяці тому
You could say he is a Kahn man.
@santoshvaidya8358 3 місяці тому
They created money out of fake certificates and still not arrested. That’s a SEC violation. Had their companies shown losses of $400Ms! They should be prisoners for 25 years. Do a video on Nikesh ‘Nik’ Patel from Orlando, Florida, he’s serving 25 years behind bars and still scamming with the support of his wife Trisha Patel.
@utuberwatchin 3 місяці тому
Kahn = Con too easy
@skeveharvey 3 місяці тому
hes a Kahn man 😭😭😭😭
@MrXjoeharperx 3 місяці тому
Something tells me that this money is not lost. It has been conveniently misplaced.
@ejthenobody 3 місяці тому
I mean. The man's name was "Brain Kahn." That's like being named "Madison Grift," or "Rob Banks," or "Bernie Madoff"-- oh wait a second.
@seneca983 3 місяці тому
What happened to people who owned shares of these companies while they were public? Did they gain or lose when the companies were taken back to being private?
@blinkyblonk4912 3 місяці тому
How can they think they will get away with Fraudulent Certificates ? They are merely postponing being caught . They might as well simply say " I fancy spending a section of my life in Jail ".
@dtpolaris8265 3 місяці тому
Fitting last name
@mgu1N1n1 3 місяці тому
Buyer Beware!
@glenngordon521 3 місяці тому
The kicker is that FRG still trades under the guise of $RILY - that would be B Riley with a 64% short interest
@bobe3250 28 днів тому
Seen all of those businesses but not Buddy’s. The con men might be based out of NY/NJ areas
@himtheguy8459 4 дні тому
not one mention of the furniture store badcock at all
@dirtydan6098 3 місяці тому
2:12 oh wow thanks good info
@meglukes 19 днів тому
0:30 Fouunder & CEO. The second U is for underhanded?
@travosaga 7 днів тому
These CEOs contribute nothing and create nothing.
@daveunderwood5901 3 місяці тому
Wasn’t this the company that tried to buy Kohl’s a couple years ago?
@mrj-charles6383 21 день тому
I was always a fan of John Hughes movies when I was younger. Sad to see he came back to life as a con man.
@ericstevens8131 3 місяці тому
Is there more crime in the finance sector than in other professions? It seems so.
@2andramas 3 місяці тому
Well you cant create value without work, so investing just means taking value from someone else, you dont get into this business without beeing prone to immoral actions.
@mattportnoyTLV Місяць тому
0:27 *FOUUNDER*
@jai-kk5uu 3 місяці тому
Don't traditional margin loans require 50% collateral? This is a 10% collateral
@nathanielbrewster8457 3 місяці тому
Typo when introducing Brian at about :30. "Fouunder"
@isambo400 3 місяці тому
I like Pet Supplies Plus lol. They don’t sell puppies and host adoptions for cats
@GeDruchy 3 місяці тому
nice speculation
@CurrentlyVictor 3 місяці тому
Brian Con? Doing a Ponzi scheme? Interesting…
@stuartegrin7543 3 місяці тому
Sounds like Sbf
@upsidedownnugget9531 3 місяці тому
Just over causeway John Hughes? He sold me a lemon once but didn’t know he was this dodgy.
@tomspeed3354 2 місяці тому
how can he not mention B Riley Financial? unbelievable amateur
@kennethbarr6842 3 місяці тому
FIRST DD AND CON ?+= CON?
@user-hd4jc1ct8q 3 місяці тому
Kahn man?
@Fredricktbb 3 місяці тому
Khan sounds like Con
@ItsMe-my7sz 3 місяці тому
K-ah-n, no o sound but a long a sound, just like the goalie
@writerconsidered 3 місяці тому
You can't steal from rich people. Only poor people.
@bobbowie5334 27 днів тому
_Kahhhhhhhhhhhn!_
@icreatedanaccountforthis1852 3 місяці тому
Sounds like they are a magnet for cons.
@SamJohnsonAZ 3 місяці тому
Kahnman
@deividasmalaska5793 3 місяці тому
Invest in Graph Tech huh?
@deathroll914 Місяць тому
Fouunder
@kubluu 3 місяці тому
This video is a bit over my head... hard to understand all the collateral, loans, investments going on.
@davefil6102 3 місяці тому
KAAAAAAAAAAAAHN!!!
@bbailey4life 3 місяці тому
Terrible description of the risks involved or why it’s more risky than any other Finacial investment product
@noahthenormal 3 місяці тому
I'm always convinced by people who just say "WRONG" without elaborating whatsoever
@rustymustard7798 Місяць тому
The biggest scam here is furniture rental, who TF make such poor financial decisions that they RENT F'N FURNITURE?!?! Milk crates and scraps of plywood exist for a reason. If you can't afford to buy furniture then you sure as hell can't afford to rent it lol. No wonder why y'all broke, you fall for stuff like this. I've never heard of any of these businesses, they all sound like some fake parody stores from a GTA game or something. Like what kind of NPC goes to a place called "The Vitamin Shoppe" unironically?
@zacozacoify 3 місяці тому
This video is so hard to follow XD
@saraphinn 3 місяці тому
I am new to your channel, and I find this excellent information, but the speech is going way to fast for me to understand and comprehend what you are narrating. I understand this is might be trendy, but if you speak clearly and concisely for all people that might be interested in your content, like ESL, hard of hearing, that kind of thing.
@dwylhq874 3 місяці тому
Meh. 😒 zero surprises.
@DaPeePeePooPooCheck 3 місяці тому
So fraudsters defrauding fraudsters?
@anokata-kd8oc 3 місяці тому
Home furniture store which sells products from Acer and Dell? You Americans are really strange sometimes.
@cemarz 3 місяці тому
J
@NoliePolie523 3 місяці тому
7th??!!
@asher404404 2 місяці тому
I love your content usually, but you did not explain this video well - was a very hard story to follow.
@NorthStarBlue1 2 місяці тому
It's a topic that's not easy to sum up in a short video, the whole thing is a very tangled web and all the details are still not fully revealed yet. This one may take years to fully document with how deep it seems to be going.
@shawnstangeland3011 3 місяці тому
Bitcoin
@ebaylistentomusic 3 місяці тому
Brian Con
@panzfaust9812 6 днів тому
Just a mid trader
@TheGTAVC3 3 місяці тому
First to comment first
@kidd32888 3 місяці тому
2nd
@trishoconnor2169 3 місяці тому
Was this repetitive script written by AI?
slowed club
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Володимир Луцик
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