(Republicaninformer.com)- An Indian company lost $100 billion after a team of researchers accused it of running “the largest con in corporate history,” according to The Daily Wire. The multinational conglomerate, Adani Group, which specializes in port management, electric power, mining, oil and gas, renewable energy, and food processing, reportedly had its valuation inflated by “a brazen stock manipulation and accounting fraud scheme over the course of decades.”
Hindenburg Research, the team that conducted the two-year investigation, said that after speaking to former executives and visiting the companies in different nations, they concluded that Adani Group offered shares of the company for loans, took on huge debts, and used shell companies from family members to financially benefit, the outlet reported.
Vinod Adani, the elder brother of Gautam Adani who runs the company, allegedly controls 38 shell companies. The companies are located in several countries, including Mauritius, Cyprus, Singapore, the United Arab Emirates, and other Caribbean islands. They allegedly have zero employees, negligible online presences, and websites that contain little more than stock photos.
The investigation concludes that these shell companies are used for stock parking, stock manipulation, and laundering money to create false balance sheets that present the company as financially healthy. Family of the Adanis reportedly work within the company as well despite their prior history of illegal schemes.
Rajesh Adani and Samir Vora, the younger brother and brother-in-law of Gautam Adani, who were both involved in offshore diamond scams, both secured positions in the company as executives. Indian authorities reportedly conducted several investigations into the family over the last 20 years.
While shares of Adani Group initially fell more than 50% after the news of the investigation broke, the shares are on the rise again, according to Bloomberg. Since the recent selloff, the stock has more than doubled from its low.