American Hunting: Starting with Solitary Life in the Wilderness

Chapter 278 The Complete Ship of Profit
“Me?” He smiled, without a hint of arrogance in his smile. “My algorithm was already running when I called you.”

"I didn't start running away at my peak."

"I was using my peak moment to cover my retreat."

"Finally, after the stock price broke through $550, I completed a complete liquidation, leaving with all of my $1300 million principal and $3.03 million unscathed."

"I warned you all that the party music would stop abruptly at its peak. After all, my friend's information is absolutely accurate."

Looking at the three faces with different expressions on the screen, Lin Yu'an knew that the "reprimand" had been enough. It was time to reunite them.

His tone turned serious: "Alright, everyone. Now is not the time to discuss how much less money you've earned. The real storm is just beginning."

"An investigation by the SEC is something we're about to face."

Brian immediately composed himself and regained control: "That's right. That's the only topic I'm discussing in this meeting today. With such huge market volatility and so many hedge funds going bankrupt, the SEC can't just sit idly by."

“They will definitely launch a top-level investigation, and we, those who have made a lot of money in this war, will inevitably be their main targets.”

"Marty, what's your opinion? How big are the legal risks?"

Marty cleared his throat and regained his professional demeanor: "Brian, we need to look at this issue from two perspectives: the financial evidence chain and the behavioral evidence chain."

He confidently stated, "From a financial perspective, we are absolutely safe. All our transactions are conducted through multi-layered, anonymous offshore accounts."

"It's virtually impossible for the SEC to penetrate the legal firewalls of Switzerland and the Cayman Islands to find the ultimate beneficiaries of the funds. They can't find any direct evidence along that line."

“But,” his tone became extremely serious, “on a behavioral level, we are almost naked.”

"The four of us are a close-knit business community. During the time window when we were communicating frequently, four mysterious forces appeared in the market at the same time and speculated in the same direction on the same unpopular stock."

"In the SEC's big data monitoring system, the probability of such a behavioral pattern occurring by chance is lower than being struck by lightning twice."

"This could be their opening to attack us. They don't need to find the money; they just need to paint a story to the jury and the public that suggests a high probability of collusion."

Scout asked nervously, "What about the consequences? Will they summon us? Will they freeze our assets?"

“A summons is inevitable, but the possibility of freezing assets is unlikely because they have no evidence of a cash flow problem.”

"But the biggest problem is that once the investigation itself is leaked to the media, the damage to CAA and our personal reputation will be catastrophic. This is their real weapon: using trial by media to replace legal trial."

Everyone fell silent. Although they had made money, they felt as if they were sitting on the edge of a volcano that could erupt at any moment.

Brian's gaze finally settled on Lin Yu'an, his voice low and powerful, "Lin, what advice does your friend from the 'East' or 'North' have on this? Did they foresee all of this?"

Lin Yu'an realized that this seemed to be the core issue of the meeting.

They wanted to know if the mysterious channel behind them had already made arrangements for their funeral.

Meeting the gazes of the three, Lin Yu'an revealed a mysterious smile and slowly said, "Gentlemen, I cannot give you a 100% guarantee. After all, I am merely a messenger who delivers messages, not a god who sets the rules."

He then changed the subject, saying, "However, according to my friend's analysis, the outcome of this incident may surprise everyone."

"In the end, aside from the unlucky ones who will go bankrupt and be liquidated, and aside from Robin Hood-like executioners who are pushed to the forefront and given a huge but insignificant fine to appease public anger..."

"Everyone else will be fine."

"Why?" Scout blurted out, a question the other two most wanted to ask as well.

“Because…” Lin Yu’an leaned back in his chair and said slowly, “Because the SEC will eventually find that they will investigate people or forces that they dare not investigate!”

This answer led to different speculations among the three: a Jewish financial group? Israel? The US President? Foreign powers?
Lin Yu'an certainly dared to say that, because he clearly remembered the results of the SEC's 45-page investigation report from his previous life.

He knew that SEC investigators would be frantically investigating every aspect, trying to find a culprit to convict in this unprecedented market turmoil.

They will investigate Rohan Hamelin Capital, trying to find evidence of market manipulation. They will analyze millions of posts and comments, and interview retail investor leaders like Keith Gill.

But their ultimate conclusion will be that there is no evidence that the discussions on social media constitute a fraudulent market manipulation scheme.

Retail investors are simply sharing their enthusiasm publicly, an act protected by the First Amendment to the U.S. Constitution regarding freedom of speech. While it may seem audacious, it is not illegal.

They will investigate hedge funds, particularly Citadel and Point72, trying to find evidence of collusion between them and Robin Hood to suppress retail investors.

However, their ultimate conclusion will be that there is no evidence of illegal collusion among the hedge funds. Citadel's bailout of Melvin Capital will be defined as a necessary measure to maintain market stability.

Their short selling is foolish, but it is also a legitimate market practice.

They will use every means possible to investigate the real reason Robin Hood pulled the plug. They will examine all communication records between Robin Hood and the liquidation house, as well as the margin requirements.

Ultimately, however, they had no choice but to adopt Robin Hood's official explanation and restrict buying because clearinghouse margin requirements had surged by billions of dollars overnight, which was for risk management.

This is a perfect, unassailable procedural reason.

They even investigated whether there was large-scale naked short selling. But the final conclusion was still that no evidence was found of large-scale, illegal naked short selling leading to "ghost stocks".

That short-selling ratio of over 170% can be attributed to a complex but legitimate combination of market behaviors.

Ultimately, this war that shocked the world and seemed full of conspiracy and manipulation will be defined in the official investigation report as an unprecedented extreme market fluctuation driven by social media.

No one will be sent to prison.

There will be no heroes, no criminals, only victors and losers.

Lin Yu'an is the only person in the world who had read the game guide in advance.

Lin Yu'an didn't voice these inner monologues. He simply looked at his three allies on the screen, who were still in shock and doubt, with an absolutely confident gaze.

He concluded by saying, “Believe me, everyone. The storm will pass quickly. All we need to do is remain calm and then enjoy the fruits of our victory.”

He changed the subject abruptly, his gaze sweeping over Scout and Brian, his eyes like a scalpel, precisely cutting into their most pressing concerns: "And dealing with those... minor troubles that are getting in the way."

This sentence, like a key, instantly unlocked a new topic for the meeting.

Brian and Scout exchanged a glance, both seeing the same meaning in each other's eyes. The more than three hundred million dollars tied up was no small sum.

They need a strategy to get out of this predicament, and the person in front of them who can accurately predict the peak is undoubtedly the only one who can provide the answer.

Brian spoke slowly, his tone already carrying the air of an equal business negotiation: "What advice do you have regarding the portion of your position that's stuck? Or rather, do you have a new strategy for dealing with it?"

Lin Yu'an smiled. He knew that from this moment on, the ultimate entity of this secret alliance, composed of four people and spanning entertainment capital, had truly been born.

Their greed and mistakes forced them to become even more tightly bound to his chariot.

"Of course I have suggestions," he said slowly, looking at the three pairs of expectant eyes on the screen.

"do not move."

"What?" Scout was stunned. "Just let over three hundred million dollars rot there?"

"It's not rotten inside, Scout. Although the climax of the battle is over, it's not completely over. The short sellers on Wall Street may be scared, but they're not all dead."

"The anger of retail investors did not subside with the removal of internet cables; instead, it transformed into a more enduring belief." "In the coming months, the bulls and bears will engage in several more fierce tug-of-wars."

He looked at Brian and Scout and gave the next "oracle".

"Hold onto your positions, and there will be an excellent opportunity to exit. The stock price will return to a level where you can all leave with huge profits."

"As for the specific day..." he smiled, "that depends on the ticket to the next poker game."

These words acted like a reassurance, instantly easing the tension between Scout and Brian.

They no longer dwelled on the profits that had already evaporated, but instead pinned their hopes on the next opportunity that Lin Yu'an described.

The loss of money is temporary, but the loss of this prophet who can provide information is the real end of the world.

The atmosphere of the meeting gradually shifted from tension and regret to a sense of relief after surviving a disaster and an expectation for even greater victories in the future.

Just then, the most composed person, Marty Singh, started tapping his pen again, drawing everyone's attention.

Marty began, “Gentlemen, getting out of this mess is a problem for the future. The SEC investigation is a procedural hassle.”

"But before us lies an even more direct and ferocious enemy, which is already sharpening its knives, ready to cut the largest piece of our fat flesh."

His voice wasn't loud, but it instantly turned the relaxed atmosphere in the conference room serious again.

He paused, his gaze sharp as he swept over everyone: "The Internal Revenue Service (IRS)."

The letters IRS were like a bucket of ice water poured over everyone's heads.

Scout's facial muscles twitched; he had just calculated that his and Justin's net profit was close to five hundred million dollars.

Based on California's highest combined federal and state tax rate, they could potentially have to pay over $200 million in taxes!

That means they risked a heart attack, danced a waltz on the edge of a knife, and in the end, had to hand over nearly half of their spoils to Uncle Sam.

This disgusted him even more than losing money in the market.

Brian's expression also turned serious. A two billion dollar cash-out would present an epic tax problem.

Looking at everyone's expressions, Marty's lips curled into a confident smile. This was truly his home turf.

Marty said confidently, tapping the table like a professor about to begin a lecture.

"Don't look at me like that, folks. Taxes are a game that punishes the poor and middle class; for us, they're just a series of costs that need to be planned."

"First of all, you must remember one principle: not a single penny of this money can return to the United States before it has been processed by me. Otherwise, even God can't save you."

“Scooter, Brian, listen up.” Marty’s speech quickened, displaying remarkable professionalism.

“We use offshore accounts in the Cayman Islands for our transactions. This is our first line of defense, but it’s far from enough.”

“I will immediately have my team set up a more complex, multi-layered, irrevocable discretionary trust for each of you in Liechtenstein and the Cook Islands.”

"The beneficiaries of these trusts will be another group of anonymous foundations registered in Panama. It's a maze, a legal maze specifically designed to confuse IRS auditors."

“Once GME’s profits are settled, the funds will be transferred directly from the Cayman brokerage account to these new trusts. At this stage, it is just a number and has no tax implications.”

"Next comes the most crucial step: how to make this money work for you legally and at low cost."

“We will use the models of ‘asset swap’ and ‘leveraged lending’ to solve this problem.”

He looked at Brian: "Brian, you like art, don't you? Soon, your trust fund will become a major client of Sotheby's and Christie's."

“You can use this money to buy a few paintings by Gerhard Richter or Basquiat. These works of art are not only assets, but also perfect tax sponges.”

“These can be donated to your family charitable foundation in the United States to offset your tax liability for the next ten years. Not only will you not have to pay taxes, but you will also gain the reputation of a philanthropist.”

He then turned to Scout: "Scout, you like investing, you like cash flow."

"It's equally simple: your trust in Liechtenstein will provide a low-interest shareholder loan to a new Class C company you've established in Delaware."

“You can use this loan to buy a mansion in Beverly Hills or invest in a new tech company, and you only need to pay negligible interest to your own trust every year.”

"The money you receive is debt, not income. Debt is not subject to taxes."

“As for myself,” Marty shrugged, “I’ll be more straightforward: my profits of over a hundred million will become the capital of an investment company in the British Virgin Islands.”

"Then I went to Europe and acquired a Swiss watch brand with a long history but on the verge of bankruptcy. The company's losses could perfectly offset my investment gains."

Marty's words silenced the entire conference room.

Scout was stunned; he felt as if a door to a new world was slowly opening before him.

He had previously hired top accountants, but what they did was like child's play compared to the global tax structure Marty described.

Brian nodded slowly, a look of appreciation in his eyes.

Marty's plan was flawless, perfectly exploiting legal loopholes in different jurisdictions around the world to build an impregnable fortress of wealth. This is the rule of the game for top players.

Just then, Lin Yu'an, who had been listening quietly, finally spoke up, interrupting Marty's impending concluding remarks. "Marty, I also have a question."

All eyes turned to him.

“I recently took a liking to a farm located on the border of Montana and Wyoming. It has a total area of ​​30,000 acres, with 9,000 acres in Montana and 21,000 acres in Wyoming.”

"The asking price is 230 million US dollars," Lin Yu'an calmly announced.

“I plan to use the profits from this purchase to buy it as my future home. What advice do you have regarding this acquisition from a tax and legal perspective?”

Marty's eyes lit up instantly, a light even brighter than when he heard about the two billion in cash.

Large land transactions, especially complex interstate transactions, are the favorite business of top lawyers because they offer plenty of room for maneuver.

"Lin, this is a brilliant idea! Brilliant!"

Marty excitedly stated, "Buying land, especially large farms, is the most classic and effective method for wealth transfer and tax planning among America's wealthy class!"

"As your legal advisor, I will plan this matter for you free of charge. My first piece of advice is: absolutely do not purchase it in your personal name!"

“I will register a limited liability company for you in Wyoming, and the sole shareholder of this company will be your discretionary trust in the Cook Islands.”

"Then, the purchase funds will also be injected into this Wyoming LLC from your offshore trust in the form of a loan."

"In this way, your $300 million profit becomes a legitimate liability of a company in the United States and enters the United States cleanly."

"Finally, and most importantly, is the separation of land use and the establishment of environmental easements!"

(End of this chapter)