{"id":35421,"date":"2019-09-20T21:25:59","date_gmt":"2019-09-21T01:25:59","guid":{"rendered":"https:\/\/cosmicconvergence.org\/?p=35421"},"modified":"2019-09-22T10:57:46","modified_gmt":"2019-09-22T14:57:46","slug":"weworkgate-the-stealthiest-corporate-fraud-of-the-decade","status":"publish","type":"post","link":"https:\/\/cosmicconvergence.org\/?p=35421","title":{"rendered":"WEWORKgate: The Stealthiest Corporate Fraud of the Decade—But why?<\/b>"},"content":{"rendered":"

<\/p>\n

WEWORKgate<\/strong><\/span><\/h1>\n
\n

Corporate Scandals of This Magnitude Don’t Just Happen,
\nThey’re Carefully Engineered by the Banksters to Advance
\nTheir Covert New World Order<\/em> Agenda<\/h2>\n
\n

\"\"<\/a><\/p>\n

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*Did WeWork just morph into an epic corporate fraud?
\nOr was it designed that way?
\nAnd, how did they get away with such an obvious scam for a whole decade?<\/h3>\n
\n

SOTN<\/a> Editor’s Note:<\/strong> There’s only one answer to the questions posed in the title of this post. The institutional enabling of WeWork<\/strong><\/em> as a patently fraudulent enterprise is such that there must be a much greater agenda at work there. That New World Order<\/em> agenda likely has something to do with the ultimate administration of the One World Government<\/strong> that will eventually be headquartered in Jerusalem. Let’s face it: nothing good ever comes out of Israel, especially when they concern obviously fraudulent business models like WeWork’s<\/strong><\/em>. Given the extraordinary amount of capitalization of WeWork<\/strong><\/em> in the face of so much audacious theft of investor capital, and compared to similar enterprises that are much more established and proven, there must be serious money behind WeWork<\/strong><\/em> in order to give it the appearance of being a legitimate venture. That this zombie company is still in ‘business’ is a testament to the massive amount of life support that it is regularly receiving under the radar. So what is the hidden agenda of WeWork<\/strong><\/em>? Could it be that the massive amount of square footage under their control will be quickly allocated to another clandestine project that is directly connected to the outworking of the NWO globalist agenda? Founder Adam Neumann<\/a>, himself, said that his inspiration came from an Israeli kibbutz and we all know how that commune model worked out! (Neumann has stated that he wants “to be president of the world”<\/em> as well as the world’s first trillionaire.) As always, in Neumann his masters found the perfect pitchman to promote one of the biggest and most transparent corporate frauds OF ALL TIME. Hence, there is now every indication that WeWork<\/strong><\/em> is an intel agency-directed black operation on steroids. Will WeWork be used to launch working space that will be used in a global bolshevik revolution?<\/strong><\/em><\/p>\n

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“Moreover, investors are skeptical about Neumann\u2019s leadership, and are concerned that he has been using WeWork as a personal piggy bank. The founder and CEO was recently forced to reimburse his company for a $5.9 million fee that the company paid to him for rights to its name.”
\n(Source: Grand theft now seems to be acceptable when ‘blessed’ startup corporations do it on a really grand scale<\/a>)<\/em><\/p><\/blockquote>\n

\n

State of the Nation<\/a>
\nSeptember 20, 2019<\/p>\n

N.B. The exhaustive expos\u00e9 posted below in its entirety proves that WeWork<\/strong><\/em> was conceived to be an extraordinary CON JOB by the banksters. The irrefutable bullet points listed below detail a complex criminal scheme to defraud investors and vendors alike. That WeWork<\/strong><\/em> has enjoyed unusual institutional support (the International Banking Cartel<\/em> is a wholly owned subsidiary of a certain tribe of banksters) indicates a hidden and quite deliberate agenda. The evidence of outright fraud is so overwhelming, in fact, that it’s quite amazing the normally tightfisted banksters are keeping this loser of a charade going … which means the real perps have something very BIG planned for WeWork<\/strong><\/em>. And it’s coming to a city near you!<\/p>\n

\n

Is WeWork A Fraud?<\/h1>\n

by Henry Hawksberry<\/p>\n

\"\"<\/picture><\/a><\/em><\/p>\n

So in a nutshell, this is what we know about this charade so far:<\/p>\n

    \n
  1. Its not a technology company in any way, shape or form. No income is derived from the sale of a product or service delivered by a technology. They owe $47 billion in lease commitments. Claiming WeWork is a technology company is one of the many indicators that illustrate how Adam & Miguel intentionally seek to mislead and defraud existing & potential future retail investors. The product is the easiest to replicate and there isn\u2019t one barrier to entry.<\/li>\n
  2. When asked what inspired him to create a shared workspace company, Adam said that when he was growing up in Israel he used to live in a Kibbutz and was so mesmorised by the \u2018sharing ideology\u2019 that he invented Co-Working. Mark Dixon founded Regus in the 1980\u2019s. LEO, Workspace Group, The Office Group, ServCorp, MWB, HQ and many others were around way before Adam thought up of this ponzi.<\/li>\n
  3. WeWork post full year invoices for the year ahead this year to inflate their revenues. They then heavily discount those invoices they\u2019ve already raised and treat them as expenses. They then pay whichever broker secured that lead 100%, yes 100% of the contract value. Note the industry standard commission is 10%. Neither the discounts nor the 100% in commission payments appear in their Financials as they are \u2018community adjusted\u2019. They also do the opposite, they turn expenses into revenues so imagine a landlord agrees to discount their rent by \u00a3250k to offset a portion of their build costs, standard practice, WeWork treats that \u00a3250k as revenue. They also charge members even after they\u2019ve vacated, then credit them later. It\u2019s not difficult to boost revenues on a blank cheque. Revenues are not what you\u2019ve actually cleared through your bank, it\u2019s the total tally of invoices raised in a given period, a big difference.<\/li>\n
  4. The expenses as detailed in their accounts & S1 disclosure is not accurate. To hide two crippling cost groups; fit-outs & marketing, they invented a brand new accounting principle which they called \u2018community-adjusted EBITA\u2019S\u2019. If they hadn\u2019t they would have had to post actual accumulated losses in the region of $6 billion instead of the $4 billion reported. Why don\u2019t we all do this. This is another strong indicator, they are hiding actual losses to mislead, knowingly. For somebody that can\u2019t go a sentence without throwing in \u2018community\u2019 twice it\u2019s interesting he\u2019s never tweeted, his instagram features four landscape google images and he\u2019s non-existent on LinkedIn.<\/li>\n
  5. A brief search on any review site should show you the extent to which they couldnt care less about what their customers think. Despite rolling monthly contracts being sold with 3\/6 month rent free periods for peanuts, with all the promotional freebies they provide, the free beer & festivals, 100% commission rates to brokers, billions in instagram adverts, 3 PR articles a day, none of their buildings are even near full and they are already experiencing falling occupancy rates. They even sent teams to walk into their competitor\u2019s Centres to take photographs of tenant directory\u2019s. That\u2019s how desperate it\u2019s become. Regus is currently engaged in legal action accusing WeWork of poaching customers and they are not the only ones who have accused them of engaging in this.<\/li>\n
  6. Adam & Miguel have already collectively cashed out in excess of $1 billion in loans, royalties, salaries to extended family, private jets and who knows what other instruments (e.g. selling the We trademark he secretly purchased back to WeWork for a cool $6m), they\u2019re chilling, and reportedly less and less involved in the day to day running. Miguel is more involved in a range of other businesses and has already demoted himself from Co-Founder to Head of \u2018Global Culture\u2019, quietly positioning himself for a quick exit post-IPO. Adam on the other hand fancies himself as the next Masayoshi, he has his own \u2018venture capital\u2019 firm investing in genuine entrepreneurs. Why would either of them care what happens to their remaining holdings, they\u2019ve already cashed out enough to set up their grandchildren for life.<\/li>\n
  7. Adam & Miguel then used the funds extracted from WeWork and funnelled it through privately controlled offshore investment vehicles and almost overnight built an asset-rich portfolio of prime commercial real estate (not an asset-light illusionary hustle). It doesn\u2019t end there. Adam & Miguel then lease those buildings they privately acquired. back to their very own \u2018spiritually\u2019 valued WeWork at a ridiculously high yield. Even the very founders are bleeding their own ponzi scheme dry. Are these guys something or what. Further buildings were then acquired with loans (from JP Morgan) totalling $500m hedged against their already saddled collateralised. junk obligation WeWork. It\u2019s not enough that they\u2019re making $230m in fees flogging this ponzi.<\/li>\n
  8. When they got caught, Adam tries justifying it by claiming he acquired the buildings years ago as a way of proving the concept works. An outright lie, and very insulting. If Adam can do and then conceal all of these things, imagine what else we don\u2019t know.<\/li>\n
  9. With pressure mounting, he arranges to appear alongside his actor friend Ashton Kutcher in an \u2018Exclusive\u2019 interview on CNBC. Ja Rule, sorry I mean Ashton Kutcher, in his trademark goofy-like character plays his part to perfection\u2026. \u2018When I realised it was a technology company I also realised that this company, through its technology, has the greatest capacity than any other company in the entire world to bring people together\u2019. He\u2019s using an actor to convince people his act is for real.<\/li>\n
  10. The only reason it was valued at $47 billion is purely because one individual in Japan bafflingly and solely invested a total of $12 billion, in 9 separate funding rounds, each at double the price (and valuation) he (and he alone) paid less than 6\/12 months prior. Since Softbank first invested in 2012, nobody else has invested. The only two people who claim WeWork is worth $47 billion are Masayoshi Son and Adam Nuemann. As long as we\u2019re debating, and continue doing so until after the IPO Adam & Miguel are loving it.<\/li>\n
  11. Why would Masayoshi, an intelligent individual, invest so many billions into this barefaced fraud, for the life of me I cant figure it out. Maybe Adam & Miguel deceived him too. Or it could actually really be as simple as it looks. It\u2019s impossible for Adam, Miguel and Masayoshi to sell their shares on the secondary market or post-IPO for $100bn+ if Masayoshi didn\u2019t allow Adam & Miguel to parade WeWork in the press as being worth $47 billion, using purely Softbank\u2019s 9 sole investments & revaluations. Once they exchange, media outlets can run headlines that project an aura that they are indeed worth what two people have decided to value it at. Everybody in the loop benefits, from the early investors that hope to offload their investments to later stage mugs, to the media outlets and banks Goldman Sachs\u2019 & JP Morgans who earn hundreds of million in share sale commissions. Everybody wins. No one is accountable.<\/li>\n
  12. Even Adam\u2019s wife Rebekah, persuaded Masayoshi to sink $100m into her very own pet-ponzi, WeGrow, \u2018the future of education\u2019. Cute no, his and hers.<\/li>\n
  13. It was only until the Saudi\u2019s threatened to pull their funds out of the Vision Fund when Masayoshi reconsidered and decided to pull a proposed further investment of a whopping $16bn (which would have brought the total amount invested in\/borrowed by WeWork to a laughable $30 billion, 15x what Facebook raised). This is what may have alarmed Adam to quickly initiate the IPO. He may now be afraid that if he agreed to delay the IPO he wouldn\u2019t be able to re-submit later without providing a more scrupulously drafted breakdown of WeWork\u2019s finances. He may also be worried that if a permanent suspension of the IPO happens, the company may not survive.<\/li>\n
  14. Adam & Miguel have consistently been way off any of their forecasts made in their original pitch deck to investors (available online). He forecasted profits of $14 million in 2014, $64 million in 2015, $237 million in 2016, $542 million in 2017 and $1 billion in 2018 (on revenues of $3.6bn, a 36% profit margin). Their \u2018community-adjusted\u2019 accumulated losses amount to over $4bn, their actual losses are much higher. WeWork sued a whistleblower who raised alarm bells in 2016 when she revealed how WeWork had slashed their profit forecasts by 76%. When Bloomberg revealed this, WeWork claimed that it had \u2018over-estimated\u2019 what landlords would be willing to front in build out costs. But according to Adam \u2018Because we have 40% margins, we can choose when to become profitable\u2019.<\/li>\n
  15. Two profitable serviced office groups, the largest IWG (Regus & Spaces) and the most luxurious LEO, who collectively manage in excess of 3500+ centre\u2019s have been on the market for close to 2 and half years now and they have not been approached by anybody willing to pay a multiple of more than 1.25x revenues, which would make IWG valued at between $3\/4 billion. SoftBank could have acquired four Regus\u2019s for their $12 billion and still have enough change to sprinkle some fairy dust on top. Instead they\u2019re losing one Regus a year.<\/li>\n
  16. Facebook raised $2.2 billion pre-IPO. Google raised $130m pre-IPO, Ebay $6.9 million. WeWork has raised $14 billion so far, 7x what Facebook required pre-IPO, 140x what Google needed and they\u2019re not even a technology company. Where has that $14 billion gone? They raised $14 billion, have less than $1.5bn cash and have nothing to show other than $47 billion in lease commitments and a portfolio of supersized Starbucks\u2019s which are beginning to look outdated and in need of urgent refits. Airbnb on the other hand is a technology company, has raised $4 billion and posted profits of $93m last year on $2.4 billion in revenues. No money has been swindled out of Airbnb, they\u2019re fiscally responsible and taking their time, waiting for the right moment to IPO. No rush.<\/li>\n
  17. Serviced Offices as anybody in the industry will tell you generates almost as much yield as your traditional commercial landlord, typically 2\/3%. Serviced Offices used to be very profitable when there were few half decent ones around but today they\u2019re everywhere and desk prices have collapsed whilst conventional leasing rates have held steady. It\u2019s not just been around since the 1980\u2019s but now everybody\u2019s getting into it, even developers British Land & Boston Properties are beginning to include it as part of their offerings. Now its purely a landlord play. Cafe\u2019s and Hotels are jumping in too, even brokers are building their own platforms where they act as operator, Knotel, Instant Managed, CBRE to name a few. Even Google have a platform, \u2018Campus\u2019, very cool place. Adam though doesn\u2019t think they\u2019re come close to being a threat, \u2018Our biggest competitor is work itself\u2019.<\/li>\n
  18. Serviced Offices is like the hotel industry only many times simpler, its just desks, chairs, simple decor in common areas (plants & picture frames), wifi, electricity, daily cleaning, plates and cutlery, and maybe a plug in telephone handset. Or you can just hire one of the many contractors WeWork use (John Robertson Architects, Oktra etc) although most floors are just glass partitioned boxes (they don\u2019t do stud walls). LEO, Spaces and some of TOG\u2019s centres have always been more beautiful with a far higher build quality than any of WeWorks offices. Now that\u2019s it\u2019s a landlord play, you have a avalanche of landlords with far a deeper understanding of interior design and office fit outs than WeWork will ever be able to outsource.<\/li>\n
  19. The Co-working side of the Serviced Office industry is not at all profitable. Nobody makes money from co-working. Most operators provide a little co-working alongside a largely 3\/6 person partitioned multi-office layout or around dead spaces. WeWork took out entire floors and dedicated it to open-plan co-working.<\/li>\n
  20. How did this even begin? The earliest shareholders including a gentleman called Mortimer Zuckerman were not just their landlords AND seed investors. They also happened to own Fast Company and NY Post which were instrumental in propping up WeWork in the press before anybody knew who they were. The headlines they spun about WeWork\u2019s valuation and \u2018meteoric\u2019 rise was basically the shareholders advertising their investments. Even Wikipedia\u2019s page (throughout 2015 and 2016) introduced WeWork as the \u2018most innovative company of 2015\u2019, citing a Fast Company article.<\/li>\n
  21. WeWork even thought about setting up WeCafe\u2019s, they want to be the first ever to disrupt the \u2018working-in-a-coffee shop-as a-service-space\u2019. An internal report revealed people are working at spacious, trendy hipster designed coffee shops where they get not just a free table but also a chair (and free wifi) all for the price of a cup of tea. If WeWork charged their members a fraction of the market rate, half will vanish overnight. Or put another way, when they want to start becoming profitable and all the freebies come to an end it will feel like s rug has been pulled from under WeWork\u2019s feet, by which time Adam & Miguel will be long gone.<\/li>\n
  22. WeWork doesn\u2019t pay the appropriate property taxes due on their UK based centre\u2019s. If you look at their Business Rates schedules of the respective boroughs in which they operate in (available online) you\u2019ll notice that split their entire space into tiny cubicles. By doing so WeWork avoids paying property taxes and earns tax rebates originally intended for small businesses, $2.4 million to date. So they\u2019re effectively being financed by Her Majesty\u2019s Government & the UK taxpayer too.<\/li>\n
  23. WeWork spends more on PR than anything else (mainly directed towards Henry Blodget, a permanent fixture at the famous hedonistic WeRetreats, the all expenses paid festivals courtesy of Softbank). They are carefully written with the subtle intention of building an impression that the company is a roaring success, they pay for many of these articles. Some are even co-written by WeWork\u2019s PR team. Every month they pay these new breed of digital financial news tabloids like Business Insider, Fast Company etc to write sensational headlines like \u2018The Rise of WeWork\u2019 & \u2018How WeWork become a $47bn company\u2019.<\/li>\n
  24. If you are not already acutely aware that Adam Neumann and Miguel McKelvey are fraudsters, count the number of times the word \u2018Hustle\u2019 is plastered in neon lights at every one of their tacky ikea-designed offices (or just google the words: wework hustle and click on images).When asked whether how they could come up with a $47 billion dollar valuation, he replied \u2018\u201dNo one is investing in a co-working company worth $20 billion. That doesn\u2019t exist. Our valuation and size today are much more based on our energy and spirituality than it is on a multiple of revenue.\u201d. When Miguel was asked about their $20 billion valuation (before it was almost tripled to $47bn), Miguel McKelvey answered \u2018Who gives a s***?\u2019.<\/li>\n
  25. There are many people out there who give discreetly to charity, some give generously but only with the fanfare, some \u2018pledge\u2019 to be charitable largely for the PR impact but have no intention of giving, this is something new. Adam, his wife Rebekah & Miguel have \u2018pledged\u2019 to give $1 billion they don\u2019t have and yet to swindle out of WeWork (not the last billion, the next billion) so they can acquire more land to help mankind and support environmental causes \u2018close to their heart\u2019. Is this the twilight zone? Where did the first billion go? Why do they feel the need to use meaningless philanthropic pledges to make themselves appear to be good wholesome folk, generous not greedy, charitable and tax-free. WeWork\u2019s cleaners have twice protested over wages. Everything is fake.<\/li>\n<\/ol>\n
    <\/div>\n