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HOW TWO GUYS LOST GOD & FOUND $40 MILLION.
BACKGROUND• Abe Zeines and Meir Hurwints, Two Jewish men who grew up in in
Brooklyn with very religious families. • Started a business called Pearl Capital, which is a cash advance
company. • Surpassed the U.S. Small Business Administration by giving out
loans less than $150,000 to small business while charging a huge interest rate. • Usually convinced business such as pizza parlors and florists by
telling them they could provide fast cash while knowing that the business would most likely go bankrupt.
• Original company had no competition so they could charge whatever they wanted to. • Standard deal was $9,000 to small business and they would
receive $14,500 within six months. = 250% Interest.
CONT. • As they brought in huge profits, they began to be
investigated. • Because of this investigation, they were looking to sell
their company quickly. • The two men soon found out that as long as they never
used the word “loan” they could get in trouble in court. • With this new information, they continued to do business
where their only goal was to maximize profits. • A company called Capital Z recently bought their business
for $80 million with a contract of $20 million more to come.• Abe and Meir now live in a huge mansion in Puerto Rico
where they do nothing but party and spend money.
QUESTIONS:• Is it ethical for them to target small business owners they
they know will file for bankruptcy soon after?• Even though they had no competition, should they have
been forced to put a limit on how much they could charge?• Now that these advancement companies are legal, do you
think they should have regulations as well?• Should this situation spark more investigations on the
legality of these firms in the future?• What are some changes that could be made to this type of
business in the future?
SOURCES• http://www.bloomberg.com/news/features/2015-10-06/how-
two-guys-lost-god-and-found-40-million