Cypher: Long ago, back in the 1990's, a fellow worker and I arranged a trip to Lee, MA for a tour of the company we both had invested in recently.
SKS showed us around--just an office building with about 3 people there at 11 am.
Steven tried to show us the latest version of a Wave rent-to-own video game. But he couldn't get it to work on an office computer. So he called someone who got it up--but it was so lame, even back then.
Steven told us both bunches and bunches of big lies--the biggest being Wave had secured all but one of the software game manufacturers ("except Disney, and they are coming along just fine"--SKS).
He also told us all of the major PC OEMs had agreed to put Wave in their computers and it would all happen in 90 days. [The 90 day figure was written up, quoting Steven in CRN, a month or two prior to us arriving].
Steven introduced us to his father, Peter, just back from spearfishing in Tahiti, tanned and wearing shorts, flip-flops and a T-shirt. Peter was entertaining and charming, unlike the son.
But the reason for this post is what happened at the end. Steven walked us out to the car and then said, "Down on the first floor [or basement], it's full of computers. Want to see it?"
I said, "No, but thanks anyway, we have to get back."
After I wised up, I wondered what Steven would have said, had I asked to see the roomful of computers? Bear in mind, this was in the early days and Wave had not even one legit customer. They would have had no need for a room full of computers.
Watch the movie, "The Grifters" and you will see the same scene where the client declines to open the door to the next room "full of boiler room salesmen," and walks away.
Meanwhile the camera glides through the wall as the client ( the mark) walks away. Inside, the camera shows an unfinished and empty room.
I think Steven pulled the same trick on me. Had I looked into that room back then, this tale might have ended differently for me. But I was naive and trusting.
Had I realized what he was pulling, I would have booked out of there so fast and on my way home, I would have told my broker to sell all Wave shares.
Live and learn; trust, but verify.
Blue
