Kyle Bass is known internationally as the man who correctly predicted the subprime mortgage crisis that took place almost 10 years ago. Unfortunately, Kyle Bass is also known for doing some pretty unethical things.
Let’s take the pharmaceutical scam that was so vile both houses of Congress came together to come up with a way to stop it. While not illegal due to a loophole, this scam was without a doubt one of the most unethical scams in recent history. And though it was simple in nature, it literally affected the lives of millions of people.
Here is how the scam worked. To get things rolling Bass teamed up with world renowned patent troll Erich Spangenberg. With Spangenberg on his team it was time to pounce. To make his scam look legit he set up a front organization known as the Coalition for Affordable Drugs.
With everything in place Bass and Spangenberg would get together, pick certain pharmaceutical firms, short sell their stocks, and then turn around and challenge several patents using their front organization.
Anytime this happened stocks would take a nosedive, Bass would make millions in a matter of days, and the prices of pharmaceutical drugs would go up. This caused palpable harm as millions of people were no longer able to afford their medications. Medications that helped many of them stay alive.
The funny thing is, when asked why he would do such a thing, Bass said he was doing it to bust patents and make drugs more affordable by driving down prices due to competition.
As a matter of fact, he has a reputation for doing the opposite. He will do anything to make a quick buck and that is exactly what he did in this situation. According to Scott McKeown, an intellectual-property expert, Bass was trying to spook the markets so he could turn a quick profit.
When Celgene, one of the pharmaceutical firms that was Bass’ biggest target, filed suit against him, Bass changed his defense and admitted he was motivated by a love of money.
Unfortunately for him, the Patent Trial and Appeals Board has a big problem with his patent challenges and is considering sanctioning him. Let’s see what lie he will tell to try and get out of this one.