Vivek Ramaswamy: The MULTI-BILLION Dollar Financial FRAUD
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- Vivek Ramaswamy allegedly made his fortune through a deceptive biotech company.
- He manipulated data using a Completer Analysis to hide a failed drug’s downsides from investors.
- The company was based in Bermuda, minimizing tax payments for higher profits.
- The rebranded drug, RVT-101, was marketed as an Alzheimer’s breakthrough but ultimately failed.
- Vivek sold shares before the trial, raising suspicions of insider knowledge.
Imagine if I told you that Vivek Ramaswamy, the Presidential Candidate for the Republican Party, built his vast fortune through a deceptive biotechnology company. It’s quite a fascinating story, and it all starts with him claiming to be a Harvard-trained “scientist” in the field of biotechnology. He boasted about developing numerous medicines, with the one he’s most proud of being a therapy for kids born with a genetic condition that would lead to their death by the age of 3 without treatment.
But what if I told you that there’s more to his career than meets the eye? In reality, Vivek’s success story is more intricate and darker than he portrays. He positioned himself as a financier and prospector who employed a clever strategy to deceive investors and cash out with massive payouts totaling over $200 million before he even turned 35.
Vivek’s journey to financial success began with the grand plan of creating a product with seemingly limitless potential revenue, disguised as a virtue-signaling cure for humanity. He deliberately chose the biotechnology industry, which is filled with complex jargon that few can truly comprehend. By doing so, he could easily perpetrate his fraudulent scheme while remaining legally protected.
To add another layer of protection, Vivek incorporated his company in Bermuda, a well-known tax haven, to minimize tax payments once he made his riches. The whole operation seemed cunningly orchestrated to exploit investors, who were lured in by the promise of groundbreaking medicine and the chance to invest in a noble cause.
In 2014, Vivek established Roivant Sciences, based in Bermuda, with nearly $100 million in funding from various investors, including his former employer, the hedge fund QVT. To legitimize his venture, he assembled an impressive advisory board, comprising both Democrats and Republicans, all convinced that they were part of an endeavor to bring critical drugs to the market affordably.
However, behind the scenes, Vivek was manipulating the system. He acquired a failed pharmaceutical drug, previously abandoned by GSK after four unsuccessful clinical trials, and rebranded it as RVT-101. With no intention of conducting new trials, Vivek used his mother, a physician, to reinterpret old studies, attempting to create an illusion of success for the drug.
The study he focused on involved 684 patients and aimed to evaluate the potential benefits of SB742457, now known as RVT-101. Interestingly, this drug wasn’t even tested on its own; it was evaluated alongside another Alzheimer’s drug that already showed positive results. In other words, Vivek’s company relied on the success of an existing drug to mask the failure of RVT-101.
Despite his efforts to present RVT-101 as a game-changer, the drug continued to fail, and Vivek’s elaborate scheme began to crumble. Investors who had placed their faith and money into the venture lost billions as the stock price crashed by over 99%.
It’s a cautionary tale that highlights the importance of due diligence when investing in promising ventures. As a retail investor, you must be vigilant and critical, especially when dealing with complex industries and charismatic figures promising miracles. Vivek Ramaswamy’s story serves as a reminder that there are no shortcuts to success and that any claims of limitless potential should be thoroughly scrutinized.
In conclusion, the tale of Vivek Ramaswamy and his fraudulent biotechnology company is a stark reminder of the dangers of falling for enticing promises without proper investigation. While the biotechnology industry holds incredible potential for groundbreaking discoveries, it also attracts opportunists looking to exploit the hopeful and the gullible. As an investor, it’s crucial to navigate these waters with skepticism and to seek expert advice when needed. Always remember that, in the world of investments, if something sounds too good to be true, it probably is.
Now, let’s delve deeper into how Vivek Ramaswamy manipulated the analysis to make the failed drug appear statistically significant. His cunning technique involved a Completer Analysis, a deceptive method that only considers data from patients who reached the study endpoint. By excluding participants who dropped out due to adverse effects or other reasons, Vivek managed to hide the downsides of the drug and present a skewed picture to investors. This misleading tactic allowed him to create a false narrative of success for the drug.
So here’s what Vivek had: a drug that had already failed in multiple clinical trials, a company based in the tax haven of Bermuda, and a plan to market the drug alongside his hedge fund associates for a massive IPO to rake in billions of dollars. Mr. Ramaswamy proved to be a master salesman, hyping up the Alzheimer’s drug intepirdine as a potential breakthrough that could help millions of people. He confidently claimed that the drug had tremendous potential for delivering value to patients.
Although some former colleagues praised his brilliance and audacity, others were skeptical and believed he was overpromising. But Vivek’s confidence and sales pitch managed to attract investors, who saw a glimmer of hope in the drug’s potential success.
Then came the unexpected twist: before sending the drug into crucial clinical trial tests, Vivek miraculously sold off a portion of his Roivant shares to Viking Global Investors, an institutional investor that wanted in. This move earned him a massive payday of over $37 million in capital gains.
Despite claiming that the sale was to accommodate Viking, many suspected that Vivek had insider knowledge that the trial would likely fail. As he controlled the Phase 3 trial and already had a failed study in his hands, it was reasonable to assume that the drug wouldn’t succeed in the new trial either. Vivek’s ability to delay the trial and keep investors hopeful while the stock remained high further reinforced these suspicions.
As expected, the intepirdine drug flopped in the final stage of development, adding yet another disappointment to the long history of failed Alzheimer’s treatments. The drug, developed by Axovant Sciences (formerly owned by Vivek), was unable to provide the desired relief or delay the worst symptoms of the disease, sending the company’s value plummeting by about 70%.
To cover up the failure and potentially obscure their questionable history, the company underwent a name change, becoming Axovant Gene Therapies, now known as Sio Gene Therapies. By adopting a new name, Vivek and his team aimed to complicate and obfuscate their past, making it harder for people to connect the dots and uncover the truth behind their failed ventures.
This convoluted tale of deception, manipulation, and misleading tactics should serve as a warning to all investors. It highlights the importance of due diligence, critical thinking, and skepticism when considering investment opportunities in complex industries, especially when promises seem too good to be true. Vivek Ramaswamy’s journey is a stark reminder that the world of finance is rife with individuals who may not have your best interests at heart, and it’s crucial to be well-informed and cautious before making investment decisions. Always remember that research, transparency, and a healthy dose of skepticism are your best allies in navigating the unpredictable waters of the financial world.