In a Ponzi scheme you commit fraud. You make false claims about returns, and then use downstream investors money (enticed by those false claims) to pay off upstream investors to keep the scheme going.
This is a stock sale. The "mom and pop investors" buy into it with full knowledge of what they're buying. It might be a bad investment, but I don't see where the fraud comes in? I'm not convinced that WeWork is a sustainable business which is why I won't invest in it. Others might disagree.. we'll find out down the road who is right.
I think that's why they said "modern ponzi scheme".
And no, mom-and-pop investors don't have full knowledge, not like insiders do. The fraud would come in if the insiders are being anything less than perfectly honest about current condition, future prospects, or their expectations.
Of course, this might not rise to the level of criminal fraud. But when you look at something like Groupon, which fell 90% quite quickly, and which had insiders taking money out early on, it's reasonable to suspect that at least some insiders knew what they were selling to the public was dubious, but did it anyhow.
This is a stock sale. The "mom and pop investors" buy into it with full knowledge of what they're buying. It might be a bad investment, but I don't see where the fraud comes in? I'm not convinced that WeWork is a sustainable business which is why I won't invest in it. Others might disagree.. we'll find out down the road who is right.