Chapter 638 The Start of the Complete Collapse
A few days later, Monroe returned.
She had been in New York filmingThe Seven Year Itch, another one of her classic works, famous for the iconic scene of her white dress billowing. (Yup, that's the one you guys always like to share. I kind of know why though.)
That evening, Monroe modeled all her costumes from the film for Hardy, including that iconic white halter dress.
Wearing the dress, Monroe received Hardy's affections.
Life is meant to be enjoyed to the fullest.
Later that night, ABC aired a financial program featuring explosive news: the SEC's investigation into Hans Pharmaceuticals had uncovered significant issues.
The program, initially launched as a stock recommendation show by Andy, had evolved into one focused on stock and investment analysis. Andy, now Hardy's company president, rarely appeared on the program, having nurtured a team of economic experts.
The host shared the findings: According to the investigation, Dr. Hans had indeed used Streptomycin alongside his experimental drug during trials.
As for the efficacy of his new drug, it couldn't be determined because the trials were conducted as mixed experiments, with all data exclusively controlled by Hans himself.
The data provided no clear conclusions, but the real problem was this: Dr. Hans had disappeared. Investigators in Africa found that human trials had ceased about two weeks ago, and Dr. Hans was no longer overseeing them. His whereabouts remain unknown.
The SEC also discovered that even before Dr. Hans announced his tuberculosis miracle cure, he had sold all his shares in Hans Pharmaceuticals to a South Africa-registered company for $800,000.
This meant Hans Pharmaceuticals no longer belonged to Dr. Hans in its later stages.
The South African company, during the stock price surge, sold all its shares to other companies. The current major shareholders were financial investment firms that had bought in at high prices.
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Meanwhile, the South African company's funds had long since been transferred, leaving the company as an empty shell. Since no laws were broken, tracking the funds was impossible.
The host turned to the economic expert and asked, "Professor Rice, as a financial expert, do you think Hans Pharmaceuticals is still a viable investment?"
Professor Rice shook his head. "Based on the current situation, this transaction strongly resembles a scam. Of course, we can't say for certain, but the risk level is now at its highest. Investing is about making money, not stepping on landmines. My advice is to stay far away from this stock."
"As for those still holding shares, all I can do is wish them luck."
The next morning, newspapers reported on the SEC's findings. Since Dr. Hans was still missing and the research data unavailable, they couldn't confirm the drug fraud. A decision on suspending the stock would depend on further verification, so trading would not be halted for now.
For shareholders, this wasn't necessarily good news.
Dr. Hans had likely fled.
Buying shares of Hans Pharmaceuticals was essentially an investment in the drug's anticipated success.
Now that expectation was gone, the company was just an empty shell with no real investment value.
Following the reports, Hans Pharmaceuticals' stock price suffered another catastrophic decline, dropping to just a few cents within a single day.
Many investors wept, as the stock left them penniless.
In truth, the individual investors weren't the biggest losers. The financial institutions that had bought significant shares of the company were hit the hardest. The millions they had invested were now worthless.
Andy decided it was enough.
One must not be too greedy. He instructed his team to close out their short positions. In less than a month, the operation had earned Hardy over $100 million.
This time, the cries of anguish came not only from retail investors but also from numerous U.S. financial institutions. Having taken on the short trades, they naturally bore the risks.
As for profiting off American financial institutions, Hardy felt no guilt this was wall street.
A stock that once soared above $100 per share had plummeted to just a few cents. Even though it hadn't been suspended, it was now virtually meaningless.
Investors wailed in despair.
Anger filled the air.
This stock had rendered them penniless.
News from the U.S. quickly reached Japan, plunging Japanese society into a frenzy of fear. Japan was experiencing a surge in investment enthusiasm, with people mortgaging antiques, gold, land, and homes to pour money into financial investment companies. These companies, in turn, had heavily invested in Hans Pharmaceuticals shares at their peak.
Now that Hans Pharmaceuticals had collapsed, their investments were effectively wiped out.
It wasn't just retail investors who suffered—many traditional Japanese financial institutions had also entrusted large sums of money to these investment firms for management.
From purchasing Hans Pharmaceuticals at over $100 per share to seeing it reduced to a few cents, they had nearly lost everything.
Many were utterly devastated.
The Abe Family
Abe Fusajiro had mortgaged a lifetime's worth of antique collections for over a million dollars, which he invested entirely into a financial firm. Initially, he was elated as the firm's weekly reports showed continuous profits. Doubling his money in a year and quadrupling it in two years seemed well within reach. He boasted to his children about his boldness, confident he would retrieve his antiques and pocket an extra two to three million dollars in profit.
When companies began accepting mortgages of gold, real estate, and land, he didn't hesitate to mortgage three family properties, 300 acres of commercial land in Tokyo, and even the family's hoarded gold reserves.
Life was good.
Abe Fusajiro would read the newspapers, calculate his growing wealth, and revel in the ease of making money. With a drink in hand and a geisha by his side, he enjoyed his carefree, luxurious life.
But a few days ago, everything changed.
The first newspaper article on Hans Pharmaceuticals sent a chill down his spine. His instincts screamed trouble, but he consoled himself that the thriving U.S. stock market would surely weather the storm.
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AN: The more I read about financial scandals, the more ruthless capital seems to me. What you are about to read next is chilling, but keep in mind that this is just one of many Ponzi financial scams. There are others far more severe, with the Quantum Funds incident taking the top spot.Be careful with your investments.
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