Think of the word “billionaire” and several names probably come to mind, such as Jeff Bezos, Elon Musk or Warren Buffett. A name that is, perhaps, not as well-known is Gautam Adani. Also a billionaire, he has been making headlines after a small investment firm accused him of several crimes.
The investment firm claims that there is evidence to prove that Adani, who made most of his fortune in the mining, shipping and coal industries, has committed accounting fraud, stock manipulation and money laundering. The accusations triggered a nosedive in stock prices for Adani’s companies. In fact, he reportedly lost more than $60 billion of his net worth in just one week.
The accusing entity stands to profit from Adani’s downfall
The company that made accusations against the Adani conglomerate is an activist short seller on Wall Street. This means that the investment firm in question actively tries to uncover fraud schemes in other businesses. The short seller expects stocks in the exposed company to drop, so it sells them before it happens and then buys them back at a lower price, earning a profit.
Adani denies the allegations
The Adani conglomerate has faced other legal problems in the past, including accusations of fraud. However, all charges were cleared. Regarding the latest allegations against his companies, Adani has flatly denied any wrongdoing. Adani has threatened a lawsuit against the investment firm, which responded by saying it would welcome litigation, provided it takes place in the United States.