When wealthy individuals like David Einhorn and Scott Bommer bet against the Rooftop Special Opportunities Fund, they faced a taboo: selling their own stake in the plan in a deeply held shell that they would sell one share for a double.
For example, Einhorn sold his Einhorn Partners stake in the Rooftop SPAC for $2 per share when it traded at $11.
For owners of the Rooftop SPAC, selling was a risk, and many withdrew their money from the fund. The Rooftop SPAC filed for bankruptcy in 2015.
In a letter late this week, billionaire Norman Swanton said he stood to gain $80 million from selling his ownership stake in the Rooftop SPAC to the hedge fund he started with investors calling themselves the Washable Renewable Foundation and calling themselves the Sand Goldman Group. Swanton has called himself “the Rooftop SPAC founder and the Madoff of the new millennium.”
But the hedge fund founder, who lives in Hockessin, Delaware, told The New York Times that Swanton is lying. The limited liability company that Swanton calls the Washable Renewable Foundation and which Swanton is the president of is really his company, according to Swanton.