Sahm Adrangi Blows the Whistle on Fraudulent Companies

An ethical culture in an organization is a necessity. This is because it can prevent the rising cases of whistleblowing. With that said, whistleblowing comes in when a firm lacks accountability for its values. Through whistleblowing, an organization is warned against failing to deliver excellent services to its clients or employees. Ideally, a whistleblowing system reflects a person’s commitment to creating a ‘’speak up’’ tradition to protect consumers and workers from being manipulated by service providers. Sahm Adrangi is one successful whistleblower who has mastered his game. He understands how different companies operate irrespective of their specialization.

Sahm Adrangi is a successful financial investor. He went to the Penn State University and joined Merrill Lynch for his first career practice. While there, he served as a financial analyst. Even though he was a junior employee, he delivered to the expectations of the employers. Dedication defines Adrangi’s career. He later moved to Longacre Fund Management where he also served as an analyst. Under his leadership, the firm accrued huge profits. He was asked to serve for three more years.

From Longacre Fund, Adrangi delved into private practice. He left a lucrative chance at Wall Street to try something new in personal businesses. That is why he established Kerrisdale Capital Management. This is an investment management firm that initiates research and investment ideas on different companies. The company has been actively exposing companies indulging in fraud since its establishment. For instance, recently, under the guidance of Sahm Adrangi, it highlighted the case of QuinStreet Inc.

Being an online investment company with a significant number of shares in the industry people are tempted to invest their shares in this firm. The stock prices of the firm have quadrupled suddenly. Investors have been flocking into the database with the hope of putting their money in the business. But, Sahm Adrangi noticed that one client generates the money referred to. This means that sufficient proof can not back the firm’s claims. Adrangi has issued a report with negated feedback to prevent investors from putting their money into the business.

http://www.zerohedge.com/news/2016-04-21/notorious-short-seller-raises-100-million-take-down-unknown-company

GreenSky Credit’s Crazy No-risk Business Model

David Kalik has always been good at math. Fortunately, those math skills lead him to amass a fortune of $2.5 billion. But David Kalik has never been too good at school. In fact, he didn’t even graduate high school. His story is remarkable.

David leveraged his Atlanta real estate to put himself $10 million in debt to start a company called GreenSky Credit. He fended off investors for years choosing to run the company on his own merit. And investors were chomping at the bit to throw money at his idea. Finally, he relinquished part of his budding company for more than $500 million.

He still owns more than 50% of GreenSky Credit. Revenues for 2017 topped $250 million while projections put the company at $500 million in 2018. It’s a good time to be David Kalik.

The revolutionary idea that launched his massive company is quite simple. Essentially, he developed an app for contractors. He rightly saw contractors as the conduit to homeowners. And homeowners are a lucrative demographic. They are all searching to upgrade their homes in order to create their dream houses.

Contractors took GreenSky Credit’s app to the homeowners themselves. The app provides all sorts of financial products that allow the homeowner to secure a home improvement loan. This allows the homeowner to hold onto some of their cash. That cash could then be used to perform more upgrades.

This flow of credit means that contractors are getting more work. The contractors are so happy that they share 6% of the loan amount with GreenSky Credit. Then the brilliance of GreenSky Credit’s business model really kicks in.

The financial services tech company then takes the loan to a bank. The bank funds the home improvement project while sharing 1% of their balance sheets with GreenSky Credit at the end of the year.

David Kalik figured out a way to own nothing but the transaction without assuming any risk. The bank assumes all the risk of default while the contractors own the equipment and perform the work. David and his company simply profit off of both sides of the equation.

https://www.bbb.org/atlanta/business-reviews/loan-servicing/greensky-trade-credit-in-atlanta-ga-27259210/reviews-and-complaints