Chapter 397: Shocking Scam
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Through hundreds of accounts across several overseas financial companies, the short amount totaled over $12 million, leveraged 20 times, with an expected return of about $125 million. Andy introduced the figures with a satisfied smile.
If everything goes according to plan, this operation could yield another $100 million. However, many will suffer from this market manipulation. Capitalists often climb to success over the bodies of the fallen, their rise marked by ruthless competition and opportunism.
"What's our next move?" Hardy asked Andy.
"In fact, we don't need to do anything more. We'll just wait for the market to react. Such significant news will be thoroughly investigated, and it will eventually cause a complete market collapse," Andy replied.
Hardy nodded, reflecting on the old adage:
"Sit back and watch the clouds drift by, listen to the flowers bloom and fall, and let the tides flow."
In the meantime, Hardy decided to catch a show in the U.S.
Back at the manor, he called Elena, the French girl, to come over. It had been a while since he last saw her, and she had a way of making time seem to stand still. Among Hardy's women, Elena's legs were especially noteworthy.
The revelation of the "Hans Pharmaceuticals" scandal by the Los Angeles Financial Times had sent shockwaves through the stock market. Initially, the company experienced a panic decline, but after a brief stabilization, skepticism loomed. Despite the rumor, the stock price stabilized momentarily as holders refused to sell, causing the market to fixate at an equilibrium point.
News about the scandal spread rapidly, causing concern in both the U.S. and Japan. In Japan, where financial companies had heavily invested in Hans Pharmaceuticals, the panic was palpable. If the company's stock plummeted, it would result in massive losses.
Two days later, Hardy started his day with exercise. Elizabeth Taylor, still recovering from the previous night's activities, was still asleep. After his workout and shower, Hardy headed to the dining room for breakfast and read the morning papers.
The New York Times reported even more sensational news about "Hans Pharmaceuticals." It was confirmed that the company's drug trials were falsified. Reports from Africa revealed that the drugs used were not as advertised. Instead of the claimed "ethambutol," a mixture of streptomycin and ethambutol was used, with the effectiveness and authenticity of the new drug being questioned.
The scandal continued to unfold. The New York Times reported:
"It was confirmed that Hans Pharmaceuticals' trials in Africa were unsuccessful. Local officials discovered that the drugs used were not pure 'ethambutol' but a combination of 'ethambutol' and 'streptomycin'. This raises serious concerns about the legitimacy of the company's claims and the stock price manipulation."
As the reports gained traction, the stock price of Hans Pharmaceuticals, previously soaring above $80 per share, crashed to $20. By the end of the day, the stock price continued to plummet.
The following day, the Los Angeles Times revealed that the Securities Regulatory Commission was investigating Hans Pharmaceuticals. If fraud was confirmed, the company might face suspension of trading, and the responsible parties could be held accountable. Investors rushed to sell their shares, but there were no buyers left. Panic set in as the stock price sank to just $3 per share.
The news kept coming. ABC TV's financial program broadcasted breaking news about the SEC's investigation into Hans Pharmaceuticals, highlighting the discrepancies in drug testing and the mysterious disappearance of Dr. Hans. The South African company that had taken over Hans Pharmaceuticals' shares had sold off their stakes, leaving the company an empty shell.
The report detailed:
"The investigation revealed that Hans Pharmaceuticals' drug trials included streptomycin, contradicting their claims. The data is unreliable, and Dr. Hans has vanished. The company has been sold off, leaving only an empty shell. Investment in this stock is extremely risky and ill-advised."
The stock price collapsed to mere cents. Investors, especially those who had bought in at high prices, faced devastating losses. Hardy, who had strategically manipulated the market, reaped over $1 billion from the short selling operation.
Monroe returned to the U.S. amidst the chaos. Filming "The Seven Year Itch" in New York, she had donned the iconic white dress that had become a symbol of her stardom. That night, she modeled the dress for Hardy, who enjoyed the moment thoroughly.
The financial fallout from the Hans Pharmaceuticals scandal was immense, affecting countless investors and financial institutions. Hardy, however, remained unfazed, having executed a flawless market manipulation strategy with substantial gains.
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