Francis Lorenzo worked for an investment firm as the director of investment. He was helping a company called Waste2Energy (W2E) secure funding by offering shares of their company as an investment.
W2E had some crazy idea that they could make the environment better by converting waste to energy, thus the name. However, they were just starry-eyed dreamers, and their shit-to-shine ideas were bogus AF, and didn’t work.
So now all these investors in W2E had largely invested in a company that was peddling bullshit.
In order to protect investors a bit, W2E offered debentures, which are basically debt secured by future earnings potential, versus any actual assets. I know, sounds shady AF, right?
Lorenzo emailed investors that their investments were safe as hell, because of these debentures, , the assets W2E does have, and that his company was backing the investment themselves. He said this info came from his boss. The assets were the important part, and let’s just say Lorenzo’s estimation of the assets values were about as accurate as a presidential campaign promise.
The SEC, realizing this was bullshit of the highest order, charged Lorenzo, and his boss, with fraud. Lorenzo tried to say, “Hey, I was just doing what that shady mother fucker told me to do. I’m innocent.” Lorenzo feels like since he’s just a dumb employee, and not the boss, only the boss should be responsible for breaking the law.
6 Justices think Lorenzo is full of shit, and that him and his boss can go eat a bag of dicks. They both know better, and they will pay accordingly. Gorsuch and Thomas disagreed, only wanting Lorenzo’s boss to munch on those nuts. Kavanaugh couldn’t be bothered and went to play some golf.
Hear oral arguments, or read about the case here.