How Philly’s richest got hoodwinked | Morning Newsletter
And remote workers are moving.
The Morning Newsletter
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It should be a pretty hot day with temps reaching the high 80s. I hope you enjoyed the weekend and are feeling more refreshed to take on the week.
Prominent business owners and finance professionals poured millions of dollars into a company that the Securities and Exchange Commission deemed fraudulent. While many frauds target unsophisticated investigators, this one relied on some of Philly’s richest, who helped persuade each other to pump in more money.
Our lead story breaks down how the scam worked.
— Taylor Allen (@TayImanAllen, morningnewsletter@inquirer.com)
Some of Philly’s wealthiest allegedly got scammed.
Josh Verne, a Gladwyne furniture heir, began pitching investors five years ago for a start-up, Ownable. The plan was to rent laptops and smartphones to “subprime customers” who couldn’t afford to buy their own. He raised $31 million from investors who wanted to capitalize on people with bad credit.
The SEC called it fraud. It accuses Verne of spending at least $9 million from his investors for personal expenses and hiding losses though $5 million in “Ponzi-like” payments to reassure investors and attract new ones.
Although the SEC’s June 13 civil fraud complaint against Verne didn’t identify the alleged victims, many weren’t hard to find.
Keep reading to learn more details about the case and the big-name investors.
What you should know today
Local 98 rejected Johnny Doc’s pick to lead Philly’s politically powerful electricians union.
With a $37.7 million price tag, this year’s mayoral primary was the most expensive election in Philly history.
Jena Antonucci made history earlier this month when she became the first female trainer to win a Triple Crown race. Her victory in the Belmont inspires women of Philly’s horse racing community.
Power 99-FM’s on-air talent and producers are trying to unionize.
Delco high schoolers are taking on food insecurity with Food4Philly. It’s an entirely student-run organization with more than 100 members and 10 affiliate chapters that works to donate extra food from restaurants and grocery stores to local food banks and food pantries.
Villanova has a tentative agreement to buy the nearby Cabrini University. Cabrini will close in 2024.
People who worked remotely were more likely to pick up and move somewhere new during the past few years.
During the COVID-19 pandemic, people who worked from home became more likely to move than any other worker, according to Census Bureau American Community Survey data recently analyzed by the New York Times.
The data for 2020 through 2021 shows that expensive metros lost more residents than they gained, the Times’ analysis showed. While cities such as New York, Chicago, Washington, and Seattle have a higher percentage of workers who are living in them than Philadelphia, those cities also saw higher numbers of remote workers moving out.
Continue reading to learn how Philadelphia was impacted.
🧠 Trivia time 🧠
The Cure performed in Philly on Saturday for the first time in over a decade.
When was the last time they had a show here?
A) 2007
B) 2008
C) 2010
D) 2002
Think you know? Check your answer.
What we’re...
🍴Craving: A classic buttercream cake.
🥃 Explaining: How to make a bacon old-fashioned. If you make this, let us know how it turned out and if we should give it a chance.
🧩 Unscramble the anagram 🧩
Hint: 🚲
ARCHIVIST LILLY LURKER
We’ll select a reader at random to shout out here. Cheers to Jim Keenan, who correctly guessed Sunday’s answer: Lantern Festival. Email us if you know the answer.
Photo of the day
Your Philly story
Last week, I asked you to reminisce about your best memories at a music festival or concert in the region. Some responses were edited for clarity. Here are a couple:
“This is a tie. I saw Tracy Chapman on June 24, 1990. A friend and I walked from Rittenhouse Square to the concert at the Mann. The whole evening was magical and filled with possibilities. Music, joy and community. The buoyancy of the music carried us on our journey. Then later, I was given a series of Philadelphia Orchestra summer concert tickets. That’s when I saw Aretha Franklin with the orchestra on July 3, 1992. She was larger than life. It was a totally different vibe yet it was equally as magical. I learned my lesson that walking to the Mann is a onetime adventure.” — Alicia Bjornsoon, Salem County in New Jersey.
“I was 16 in 1964. I traveled with a friend to Wilson Farm in Paoli for the third Philadelphia Folk Festival. It was exciting camping out, listening to music, and meeting and seeing performers (Judy Collins, Phil Ochs et al). It was my first time away from home alone! It was liberating, a part of maturing, and an excellent adventure.” — James Dolan, Berwyn
Thank you for starting your week with The Inquirer. ☀️