Professor Elam

Weekend Sept 4 2022

IN the aftermath of the 19+29 crash, it was reported some individuals took their own lives by jumping off tall buildings.

Froday afternoon apparently the BBB CFO  jumped from the  18th Floor. He had previously worked for Proctor and Gamble and Avon.

I am guessing he had made some fictional entries and could not stand the stress of it but that is just speculation on my part.

Guxtavo Arnal found dead.

Later this weekend Sunday, Matt Lampert at Socio Institute sent me this update on the CFO

CFO subject of insider tradingand fraud lawsuit

The suit, filed in United States District Court for the District of Columbia on August 23, claims that Cohen and Arnal provided "materially false statements regarding the financial condition and holding situation" of Bed Bath & Beyond for their financial benefit. The lead plaintiff is investor Pengcheng Si.

"The defendants, knowing that the information they disclosed was false, took advantage of the inflated stock price and used fraudulent and misleading SEC filings to sell all their [Bed Bath & Beyond] shares and options at artificially inflated prices to unsuspecting and innocent public investors and then retained control of the profits," the suit states. 

On August 18, both Arnal and Cohen sold shares of the company, with Arnal selling more than 42,000 shares for an estimated $1 million, and Cohen selling the entirety of his 9.8% stake through his firm, RC Ventures, causing shares to plummet.

The lawsuit claims Cohen — who is also the co-founder of Chewy and chairman of GameStop — approached the CFO about his "pump and dump" scheme in March 2022, and "convinced Gustavo that their plan would be a mutually beneficial one.""Under this arrangement, defendants would profit handsomely from the rise in price and could coordinate their selling of shares to optimize their returns," the lawsuit states. 

Arnal allegedly worked with JPMorgan, which is listed as a defendant in the suit on claims the bank "aided and abetted" the plan by "enabling Cohen to use JPM's accounts to effectuate such transactions and otherwise launder the proceeds of their criminal conduct."

The lawsuit further notes Cohen's involvement in similar plans, such as elevating GameStop to "meme stock" status.

"Cohen has historically employed pump and dump schemes to raise much needed capital and has ignited several meme stocks to jaw-dropping heights," the lawsuit states. 

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this is why we have a course in ethics. And his salary was about  $750,000, was another million really worth  the risk, hardly.

A tragic end to another foolish fraud scheme.