Radical Bunny LLC was a Phoenix-based investment company that allegedly promised double digit annual returns to 900 investors by making high-interest loans to a single commercial property developer.
That developer, Scott Coles, just happened to be the longtime friend and accounting client of the Radical Bunny CEO.
Now, most observers would probably pick up on a few red flags in sentences like “guaranteed double-digit returns,” “high-interest commercial property loans,” and a limited liability corporation set up to loan money to a single developer.
As it happened, though, Radical Bunny targeted Indian gas station and convenience store owners — a class of investor who might be forgiven for thinking scratch-off tickets were the biggest racket going.
Whatever the case, one personal-finance tip here is probably beware stupid names.
That includes mortgage brokers with names like Ownit, special purpose entities named after Star Wars characters, collateralized debt obligations named after dead presidents — Kyle Bass alerted us about those — and limited liability companies named after kids, dogs, and second wives. (The latter was the inspiration behind Radical Bunny.)
Meanwhile, at Radical Bunny, there was the whole gamut of seedy sideshow scams — including a 67%-interest loan extended to the treasurer of a black church — that came to a screeching halt when Coles donned his favourite tuxedo and committed suicide last year.
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