I overheard someone involved in this in a public place. Deals are in the range of 1-30 million USD. There were at least 2 listed companies involved. they funnel money from profits to insiders through external expenses from semi legit companies, which pay out to insiders part of the fake expense.
anyone knows more about it? do you know how much of profits are gone for this? i understand is cost of doing business (for investors), but I’d like to know the inefficiency we lose. is it 1%? is it 10%? more?
why I’m asking, I want to hear how widespread is this. anyone heard about something similar?
I asked here but was removed as they think no listed company would do any fraud. [https://www.reddit.com/r/Bogleheads/comments/1tkr46h/comment/](https://www.reddit.com/r/Bogleheads/comments/1tkr46h/comment/)