
The Money is Gone - Kristine1975
https://theintercept.com/2016/09/22/the-money-is-gone/
======
colinbartlett
So not only did he not lose $1M (he invested $100k), the article doesn't tell
us how (come back for part 2). Pretty disappointing journalism.

~~~
prakashk
If you scroll down, Part 2 appears as "BIG PLAYERS, LITTLE STOCKS, AND NAKED
SHORTS"

Direct link: [https://theintercept.com/2016/09/23/big-players-little-
stock...](https://theintercept.com/2016/09/23/big-players-little-stocks-and-
naked-shorts/)

~~~
ComodoHacker
And even Part 2 doesn't explain clearly what's happened.

~~~
manarth
But you'll be amazed at what's revealed in Part 3!

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wiredfool
Classic sucker play.

Smart Dude knows something, has some experience, moves into something
'related' where he thinks he knows what's going on, ignoring all classic signs
of a scam.

Then, when his money is well and truly sunk, he tries to figure out where it
went. At least that part is new.

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verroq
tl:dr; guy invests 100k, a reverse stock split happens which locks up his
shares, stock gets pumped then dumped while he watches helplessly. Find out
more in part 2 (which doesn't exist).

~~~
sdsykes
Part 2 (of 7) will be up tomorrow:
[https://twitter.com/ddayen/status/779059213527945216](https://twitter.com/ddayen/status/779059213527945216)

~~~
osi
re-post the series back when all 7 are done!

~~~
clifanatic
You'll be shocked when you read part 4!

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arielweisberg
"He had previously worked on Wall Street as an institutional equity trader and
research analyst for a subsidiary of the now-defunct investment bank
Donaldson, Lufkin, and Jenrette.

"But DiIorio didn’t know that at the time.""

How does someone who worked on Wall St. not know what penny stocks are? How do
they not know the importance of disclosure and regulation?

It's just bizarre for someone to come out of that world without the proper
cynicism for investing, but maybe that's because the people I have met from
Wall St. make money. Some of them "quite a bit."

I wonder if he worked for one of those institutions that doesn't actually make
money and instead lives off of fees.

~~~
chrisgd
Hear hear. I am guessing he never actually traded stocks.

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jamespo
From what I see he didn't "lose" $1M. He invested $100K which at one point was
worth $1M.

~~~
radarsat1
> at one point was worth $1M.

which isn't even true if you can't sell it. If you can't sell it, it's worth
"$0".

I actually don't understand what the article describes, this "lock-out"
period. Is it actually a common thing? Isn't the stock price set by people
willing to buy? If it can't be sold, how can there be a price?

~~~
mholmes680
I don't know about common, but its a thing - likely because of the "preferred
shares" class.

This guy doesn't seem too big on reading the fine print: invests in Penny
stocks and doesn't realize risk? Invests $100k without finding out details?
Doesn't know what preferred shares are? Figured 1:1000 (public deal) and 1:30
/ 3:1 (his deal) was exactly the same?

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altitudinous
"Part 2 is coming soon". I am the sucker for reading that far.

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sk5t
I flagged this article (is that an abuse of that flag system?). Part 2 is now
up but is woefully thin on useful detail; we learn nothing about who at UBS or
Knight might be manipulating the market or why.

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theincredulousk
The "To be continued..." format was not a great choice for narrative like
this. So much content missing that it could be considered click-bait.

~~~
coldcode
It's a pump and dump article on pumping and dumping. How ironic...

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mholmes680
so, i bookmarked, and more parts are showing up.

2 - [https://theintercept.com/2016/09/23/big-players-little-
stock...](https://theintercept.com/2016/09/23/big-players-little-stocks-and-
naked-shorts/)

3 - [https://theintercept.com/2016/09/24/naked-shorts-cant-
stay-n...](https://theintercept.com/2016/09/24/naked-shorts-cant-stay-naked-
forever/)

4 - [https://theintercept.com/2016/09/25/calling-the-
sec/](https://theintercept.com/2016/09/25/calling-the-sec/)

