Not a bad twist on the "first in the pool" effect. I mean, really. If you don't have a bunch of billion dollar reference clients, why not just create a few?
The owner of Locke Capital Management Inc., an investment adviser based in Rhode Island and New York, created a bogus billion-dollar client to help persuade investors to entrust money to her firm, regulators said in a lawsuit.
Makes sense to me. Between fake clients, fake trades, fake trade confirms, fake employees, fake pension funds, fake promissory notes, fake appraisals, and fake deaths, we could build an entire economy on fake and keep it running for years!
Money Manager Touted Bogus Billion-Dollar Client, SEC Claims [Bloomberg]