The Strangest Ponzi Scheme We've Ever Covered

[@jpvillaseca]

Before reading the name I honestly thought he was called Brian Con

[@TiberianFiend]

"Kahn" is a form of "Cohen," so it's not far off.

[@antoniofernandesmarchetti1097]

Me too!

[@samsonsoturian6013]

Vhut?@@TiberianFiend

[@Dragon-Believer]

Ponzi 2: the Wrath of Khan.

[@udayhomeful]

I had to rewind video x2 to read his last name.

[@DawryMike]

Vitamin Shoppe always seemed like a fake business in a movie

[@sama847]

Never saw a single car in their parking lots

[@rustymustard7798]

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]

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.

[@techgod3670]

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!

[@cvrart]

A real Kahn artist!

[@bizzfo]

Wow, some well known or marketed brands there, Buddy’s, Liberty Tax, Pet Supplies Plus, Vitamin Shoppe

[@alexvan5]

my first job was at PSP. wild.

[@rustymustard7798]

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.

[@pdfads]

Liberty tax has a lot of popup storefronts, with temp workers, at tax time, at least in the rural South. They have a sign twirler out front in a Statue of Liberty costume. They make their money from high-interest tax-anticipation loans ("Instant Refunds") to financially stressed individuals (The same market segment as Buddy's).

[@zuglymonster]

Whenever someone says they've found a "fool proof" way to "never lose money" you know its a scam

[@frankboff1260]

Unless they’re politicians, their scams always pay well. You just have to give up your soul to get in.

[@SolidSonicTH]

Reminds me of a con I learned of through Formula 1 called "Moneytron", which was basically a supercomputer NO ONE WAS ALLOWED TO LOOK AT that could algorithmically earn money but it was totally insolvent and apparently the secret room it was kept in was a broom closet.

[@p.naxhe.]

7:08 "this was not a sustainable solution" is an understatement 😂

[@diestormlie]

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]

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]

@@jonathanj8303 This is a reminder that Caroline Ellison *wanted* to hedge more, but SBF instructed her to not do that. Oops.

[@jonathanj8303]

@@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]

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]

@@jonathanj8303 Oh, naturally I wouldn't trust her with a Lemonade stand.

[@cursedex80]

-"This is my business partner, Brian Con" -"It's Kahn." -"Same thing."

[@alanlevy1982]

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]

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]

Kahn man

[@mabamabam]

@@OffGridInvestor No. Almost everyone on wages is paid fortnightly, salary is paid monthly. A few casuals are paid weekly.

[@xulshaenlightened5860]

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.”

[@williamwaugh6]

I understand where you are coming from. It's a very predatory buisness but if you have a 380 credit score, 20$ in your pocket, and no refrigerator you can go to a rent to own store and get a refrigerator that day. It's only an option when you have no option.

[@ducknorris233]

I need a flowchart on this one

[@Kingbobman69]

I mean...his name is Brian Con

[@Jeez001]

Lot of scam in retail sector involving leveraged buying outs

[@michaellisi7285]

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]

Think of the poor shareholders 😢

[@kemp10]

Why is that a 'but' statement? If you feel bad for the investors you would feel glad they got caught.

[@avernvrey7422]

Hedge fund, meaning the investors had to be "certified investors" meaning over $5million net worth.

[@2andramas]

These people hoped to make money without adding value to society, why feel sorry for them when it goes wrong?

[@resevoirdog]

Wallstreet millennial is such a dope niche. I love your work !!❤

[@reconjitz]

I was wondering how American freight was selling full bed sets etc for 100 bucks dresser, nightstands and bed frame etc

[@beinquisitive]

For when a conventional ponzi just won't do...

[@matt.stevick]

New here but it’s already one of my favorite channels, and im chronically watching / listening to KZbin 24/7

[@__Dave__]

This type of content is some of my favorite lol this story is nuts

[@nr12345]

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.

[@RobertBlockman]

😂 at this point this is a “how to make money online” channel just as well with how little white collar crime is prosecuted especially if you are operating between countries

[@Logistics_Sandar]

@@RobertBlockman Stop with the naughty thinking Robert😂

[@theminer49erz]

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]

Wow, same story. I hated doing homework when I aced everything in class. Also went to sylvan learning in Minnesota.

[@barrybolton1396]

@@trainwreck420ish Same

[@davidgarris2513]

I hated homework and being fortunate to have a high IQ and great memory, basically refused to take any schoolwork home beginning in the first grade. I always did great on my tests and that always allowed me to get by with a passing grade. I'm still vehemently opposed to homework. 🐾🐶🐕

[@AnotherMartinez]

Please make a follow up video!

[@mrkrag]

WSM and Ponzi in one video. Yessss!

[@3rdalbum]

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]

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.

[@tektronix475]

quality content, as usual!

[@pdfads]

Liberty & Buddy's are actually in the same business: high interest loans to low-income persons.

[@patrickbrade1992]

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!!!!!!

[@ejthenobody]

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.

[@xulshaenlightened5860]

I guess Prophecy Asset Management didn’t see that coming…

[@bernardkealey6449]

So it was both a Ponzi of franchises, and a franchise of Ponzis.

[@IbnBahtuta]

AKA Phonzi. 🤣

[@bernardkealey6449]

@@IbnBahtuta yeah real “Happy Days” for investors!

[@IbnBahtuta]

@@bernardkealey6449

[@williamwaugh6]

You missed frg buying out badcock furniture for 580 million dollars during that time.

[@BDOT310]

3:21 the red flag is the diagram is shaped like a pyramid 😂😂

[@blinkyblonk4912]

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 ".

[@Presserp]

What a Kahn man. Kahn you believe it? Kahnsidering it.

[@lalalol36]

Never faced a down month you say? It's a sure thing you say? Lol

[@lucre113]

Going purely off thumbnail this looks like a banger video 😂

[@MrXjoeharperx]

Something tells me that this money is not lost. It has been conveniently misplaced.

[@mjv5864]

Vitamin Shoppe is my largest customer. My aunt owned a Sylvan. I shop at PSP. Geez.

[@davidholmes9643]

They will not enjoy Jail especially if some of their new friends have lost money.

[@jonasalves7492]

I started the video and went to another tab, that's when I hear " the group owas created by Brian Con"

[@WEPayne]

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

[@matt.stevick]

lol I respect introducing oneself as “boomer”

[@PunishedFelix]

His name really had to sound like "Con" huh

[@baymontbgky]

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.

[@Allen-L-Canada]

KZbin closed caption rightly spells the frauster's name: Brian Con!

[@Vettedbiz]

We've had a few of their franchisees reach out to us about this scandal. Pretty wild if true!

[@davidallen8611]

Why can I not find you on Patreon to support?? I want to help this great channel 🙂

[@seanohara6101]

Great Vid

[@seneca983]

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?

[@rustymustard7798]

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?

[@nathanielbrewster8457]

Typo when introducing Brian at about :30. "Fouunder"

[@PatHaskell]

I have never heard of any of these, where were these located?

[@treyhex628]

You could say he is a Kahn man.

[@dawnmcdonald6397]

Frg destroyed Badcock Home Furniture in less than 2 years.

[@meglukes]

0:30 Fouunder & CEO. The second U is for underhanded?

[@glenngordon521]

The kicker is that FRG still trades under the guise of $RILY - that would be B Riley with a 64% short interest

[@utuberwatchin]

Kahn = Con too easy

[@AllMi3htykid]

Their business model is literally a pyramid like how did this nof draw a red flag with investors 😂

[@skeveharvey]

hes a Kahn man 😭😭😭😭

[@sjwilloughby-greene8214]

I used Liberty Tax. My identity was stolen. I'm in S.C. 🤔

[@daveunderwood5901]

Wasn’t this the company that tried to buy Kohl’s a couple years ago?

[@mgu1N1n1]

Buyer Beware!

[@jai-kk5uu]

Don't traditional margin loans require 50% collateral? This is a 10% collateral

[@bobe3250]

Seen all of those businesses but not Buddy’s. The con men might be based out of NY/NJ areas

[@ericstevens8131]

Is there more crime in the finance sector than in other professions? It seems so.

[@2andramas]

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.

[@dtpolaris8265]

Fitting last name

[@tomspeed3354]

how can he not mention B Riley Financial? unbelievable amateur

[@dirtydan6098]

2:12 oh wow thanks good info

[@travosaga]

These CEOs contribute nothing and create nothing.

[@PlateletRichGel]

I have no sympathy for greedy people who make stupid investments, or non diversified or weird investments. Just buy good stocks, sell half when they double, and sell half when you take loses.

[@mattportnoyTLV]

0:27 *FOUUNDER*

[@mrj-charles6383]

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.

[@upsidedownnugget9531]

Just over causeway John Hughes? He sold me a lemon once but didn’t know he was this dodgy.

[@isambo400]

I like Pet Supplies Plus lol. They don’t sell puppies and host adoptions for cats

[@writerconsidered]

You can't steal from rich people. Only poor people.

[@AllMi3htykid]

Prophecys business model is a Pyramid and people still invested that'd their own fault 😂

[@CurrentlyVictor]

Brian Con? Doing a Ponzi scheme? Interesting…

[@icreatedanaccountforthis1852]

Sounds like they are a magnet for cons.

[@bbailey4life]

Terrible description of the risks involved or why it’s more risky than any other Finacial investment product

[@noahthenormal]

I'm always convinced by people who just say "WRONG" without elaborating whatsoever

[@zacozacoify]

This video is so hard to follow XD

[@Fredricktbb]

Khan sounds like Con

[@ItsMe-my7sz]

K-ah-n, no o sound but a long a sound, just like the goalie

[@bobbowie5334]

_Kahhhhhhhhhhhn!_

[@SamJohnsonAZ]

Kahnman

[@JeffGilligan-q7t]

Kahn man?

[@prepaidtrash5552]

You gotta be reading a script the pace that you talk lol

[@GeDruchy]

nice speculation

[@deividasmalaska5793]

Invest in Graph Tech huh?

[@kubluu]

This video is a bit over my head... hard to understand all the collateral, loans, investments going on.

[@asher404404]

I love your content usually, but you did not explain this video well - was a very hard story to follow.

[@NorthStarBlue1]

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.

[@davefil6102]

KAAAAAAAAAAAAHN!!!

[@dwylhq874]

Meh. 😒 zero surprises.

[@kennethbarr6842]

FIRST DD AND CON ?+= CON?

[@saraphinn]

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.

[@stuartegrin7543]

Sounds like Sbf

[@anokata-kd8oc]

Home furniture store which sells products from Acer and Dell? You Americans are really strange sometimes.

[@deathroll914]

Fouunder

[@NoliePolie523]

7th??!!

[@shawnstangeland3011]

Bitcoin

[@ebaylistentomusic]

Brian Con

[@panzfaust9812]

Just a mid trader

[@cemarz]

J