A Hedge Fund Billionaire’s Cash Helped Fund a ‘Predatory’ Lender
The two men come from the opposite ends of Wall Street.
David Glass inspired the stock-scam movie Boiler Room, avoided prison in an insider-trading case by wearing a wire, then started a boiler room of his own. His company stands accused of ripping off small businesses on an industrial scale, collecting more than $1 billion of illegal interest over a decade.
Leon Cooperman rose to a senior post at Goldman Sachs, then founded a hedge fund that made him a billionaire. He became a noted philanthropist, with his name on hospital buildings in New Jersey and Florida. He calls himself a “capitalist with a heart.”
There’s no indication the two men know each other. But they are linked through the private credit market, one of the hottest corners of Wall Street. A hunt for higher yields has seen wealthy individuals and institutions pour money into loans made outside the banking system. Whether these investors are aware or not, some of that money has found its way to businesses that prey on the most desperate.
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