The New York Times: “Tyco may have serious commercial fraud, including company executives misappropriating company property, falsifying sales, fabricating annual financial reports, etc. This newspaper will follow up and report on further developments.”
New York Financial News: "According to people familiar with the matter, Tyco made more than 300 acquisitions in the three years from 2002 to 2005, spending approximately US$8.5 billion, but 90% of the acquisitions were "not clean." The whistleblower claimed that the company's president
, the financial director, and many senior executives participated in stealing US$170 million in Tyco funds in the name of acquisition projects, illegally making US$430 million in profits by selling the company's stocks, and falsifying the company's financial information."
News Channel: "During his tenure as president, President Dennis gave himself a large salary and bonus, 20 million per year. After Dennis quickly became rich, he lived a luxurious life, including a beach villa, an apartment on Fifth Avenue in Manhattan, and a luxury yacht worth 15 million US dollars.
, a $20 million art collection, three Harley-Davidson luxury motorcycles and a helicopter. To maintain his luxury yacht, Dennis spends $700,000 a year.
But he did not pay for all this himself. According to the whistleblower, these expenses were reported to Tyco Company, but the owner was Dennis himself.
Last year Dennis held a luxurious birthday party for his wife Karen on the Mediterranean island of Sardinia. The party imitated the celebration scenes of the ancient Roman Empire, with a large number of actors and models dressed as gladiators and Roman beauties singing and dancing by the swimming pool.
Famous singers were invited to sing, there were beachside barbecues, hunting and diving for a total of four days. The carnival cost US$2.1 million, all of which was billed to Tyco.
When the TV news channel reported it, it also included a large number of photos and videos, including photos and videos of Dennis's mansion, yacht, and birthday party.
Even Lin Yi called Dennis's wife's birthday party extravagant. I have to say that rich people really enjoy it.
Although he has hundreds of millions of funds in his hands now, he really doesn't know how to spend it.
Yahoo News also reported on the Internet, and it was the most direct. It directly posted a short essay written by Lin Yi, with a sentence below, "The original text of the Tyco incident report letter, this website will not make any comments. As far as I know,
The Ministry of Justice, FBI, and Taxation Bureau have also received reports, and the contents are more detailed, and we are waiting for official notification."
So many news media reports were overwhelming, and many people were shocked after reading it. Some people were angry at the greed of these executives, while others realized that Tyco might be in trouble this time, especially their stocks.
There are several reasons for stocks to fall.
Major external changes, such as wars, natural disasters, market downturns, poor corporate management, loss of credibility, and corporate scandals, including problems with senior executives, financial fraud, etc.
Wall Street's reaction was swiftest.
In the morning, Tyco's stock price was still on an upward trend. When the news came out at noon, Tyco's stock price turned around and started to fall in the afternoon. Although it was not a sharp drop, it showed that the market was worried about Tyco.
To close in the evening,
Tyco's stock fell by 1.7%, which is 3% lower than its highest point. You must know that this is a company with a market value of 100 billion, and 3% means that 3 billion US dollars have been evaporated.
This is just the reaction on the first day.
After all, the news has not been confirmed, and no one can say whether it is fake news or not.
Naturally, Tyco Company received the news immediately. After reading the news report, President Dennis felt his whole body go cold.
He felt very bad.
Everything was under his control before, and the internal operations would never be discovered as long as no one digs deeper. But there is no perfect scam in the world, unless the scam is true. Once all the things are connected in series and investigated, it will definitely be revealed.
Can detect problems.
At this time, the financial director hurriedly walked in, with an anxious look on his face, "Dennis, we must find a way to suppress this matter, otherwise once the board of directors takes action, the problem will be serious."
"Don't I know?" Dennis said angrily.
But the question is how to suppress so many news media reports now and ask them to retract and declare that their reports are wrong? He can't do that.
"Hold a press conference as soon as possible to clarify the contents of the report. Also, if you can erase it from the account, erase it immediately." Dennis said.
"It's impossible to wipe out accounts worth hundreds of millions," the financial director said.
"Then think of other ways. Don't tell me it's impossible. If the matter is exposed, you won't be able to run away." Dennis yelled at the financial director.
The financial director looked disgusted and turned away.
Dennis lit a cigarette, took two puffs, threw it out, and yelled, "Who the hell exposed these things? Damn it, what should I do now?"
...
the next day,
Tyco held a press conference.
Fifty or sixty media companies came.
An executive general manager of Tyco took the stage and issued a statement saying that the contents of the news reports were all false and deliberately smeared Tyco. They asked the news media to immediately delete the previous reports, and at the same time, they would call the police to pursue criminal liability for false accusations.
.
After Tyco's clarification, Tyco's stock stopped falling, and Marty quickly informed Lin Yi, "Boss, Tyco's stock has stabilized."
Lin Yi watched Tyco's clarification press conference and smiled softly, "Celebrities have clarified that many have overturned, and Tyco is not far away from overturning."
By the end of the afternoon,
Tyco's full-day decline was 2.56%, which is not a small amount but within the acceptable range. After all, the news has not been confirmed yet.
night,
Lin Yi turned on his computer and looked around Tyco's network again, and found a lot of good stuff. This time it was not internal data accounts, but some chat records on the employee intranet.
"Haha, good stuff."
Lin Yi cut out some chat records.
Open your mailbox.
"Whoosh~~"
Sent to several media outlets.
The next morning,
Multiple media reported that "Tyco's internal chat records were leaked. Several middle and senior management said in the chat that the board of directors had sent a financial company to Tyco to prepare for an accounting review, and the financial director was temporarily suspended from his duties."
This is a big signal.
Even the board of directors does not trust the president and management, which means that there may really be a big problem within Tyco.
Just today,
Tyco's stock price fell very sharply, with an overall decline of 5.8 percentage points.
the next day,
More news came out that the board of directors has restricted the rights of many managers within Tyco, including President Dennis. Now Dennis can no longer sign any documents related to financial management.
Tyco stock fell sharply again. The drop reached 7% throughout the day.
In fact, this is just the beginning.
Two days later,
Officials finally reacted, and the FBI began a formal investigation into Tyco. At the same time, the IRS also stated that it would send people into Tyco.
These are definitely two bombshells.
There was a roar.
Deafening.
The investors and institutions who had bought Tyco's stock finally couldn't sit still and began to sell. Tyco's stock began to plummet crazily.
"No, strictly speaking you made history." Lin Yi said with a smile.
historically,
Because of this embarrassment, Tyco's stock price fell by more than 70% within half a year. Many executives, including President Dennis and Chief Financial Officer, were sentenced. Although the management was changed later, Tyco has never recovered since then. For ten years
It was later acquired by another large group.
Now,
The bomb has exploded.
Nothing will happen to Lin Yi next.
You just need to keep an eye on the stock market to see when it is appropriate to close your position. You can leave this to Marty. After all, the whole process may take three or four months.
He received a call from Tommy a few days ago and said that the Miami bar has started to open. It is not bad and is initially on track.
Lin Yi returned to his room in the hotel and took out the phone to contact Hussein. As soon as he turned on the phone, he received several text messages.
"Has it started yet? I see changes."
"Very fierce."
"I'm afraid a super company will be crippled this time. You guys are so awesome."
"Call and chat when you have time."
Lin Yi smiled,
Called it.
The phone only rang twice before being answered.
"Lin, I'm watching the news, haha, it's very lively now." Hussein said with a smile.
"It seems you made a lot of money this time." Lin Yi said.
"No, it's us."
"After I received your call, I also contacted several friends to work together. Together, we have approximately US$300 million."
Lin Yixin said,
Ten times 300 million, that’s 3 billion US dollars leveraged.
No wonder Tyco’s stock price fell a lot back then, and it shipped 3 billion units within a week, which shows that these people have a lot of energy, and it’s very likely that these people have their own short-selling institutions.
"Lin, we want to hear your opinion. How low do you think Tyco can fall? When should we ship?"
This was the biggest reason why Hussein found Lin Yi.
Lin Yi thought for a while,
"I think Tyco will fall by at least 50%. We analyze that the ideal situation can be about 70%. As for when to ship, it depends on your own judgment." Lin Yidao.
"Lin, when will you come to Dubai, I'll treat you to a drink." Hussein said with a smile.
"I'll come over when it's over."
"Well, I will entertain you warmly when the time comes."
After hanging up the phone, Lin Yi took the phone back into the space and put the electronic devices in the space. It can completely isolate external signals and there is absolutely no fear of anyone tracking him.
All that remains is to wait.
...
A manor in the United States.
Several major shareholders of Tyco were all here, and everyone looked very unhappy. In just five days, Tyco's stock price fell by more than 17%, and the stock price evaporated by nearly 20 billion, which made the shareholders very angry.
"I have already investigated. Before Dennis and his friends were exposed, someone made a large amount of short selling. The amount was very huge. This incident was definitely premeditated."
"Dennis and the others should indeed be punished, but we cannot let Tyco's stock price continue to plummet. We must find ways to stop it. We must replace new management as soon as possible. On the one hand, we must find ways to save the market. On the other hand, we must increase publicity and tell the public about Tyco."
It's just that there was corruption and fraud in the management, but there were no operational problems. Tyco is still the world's top company, and Tyco has always had a stable, high-profit manufacturing business and a rich product line."
"Also, find out those short sellers. They must be behind this matter. Even if they make money, they will spend it without their lives."
"I will notify the "company" and ask the company to help solve the problem. The FBI and CIA will find those guys. I believe there will be a way to make them spit out the money and put it into the coffin."
Lin Yi’s actions,
It led to the person behind it.
To use the money of the American consortium,
Not that easy.
The president and congressmen are all under their control, not to mention some investors.