"Yesterday justice was served when Walter Forbes, the former CEO of now-defunct
, was convicted of a conspiracy so unbelievably large that I still can't believe it was pulled off," Jim Cramer said on his
"RealMoney" radio show Wednesday.
Cramer said he finally got his payback when Forbes, the man who lied to his face about how well Cendant was doing and "ripped out $18 million from me and my partners in one brief moment," was convicted.
Cendant was the merger of two service companies, CU International and HFS, Cramer explained.
Before the merger, Cramer said he spent a day with Forbes, while the former chief executive "painted a picture of ever-growing revenues and initiatives that were going to guarantee years and years of steady growth." However, they were "all lies," Cramer said.
As he is "always a believer in going where the big money goes," Cramer said he and his partner, Jeff Berkowitz had 1.5 million shares and bought another 500,000 shares when the stock dropped three points.
"We bought the stock because the CFO, another convicted criminal, had told us all was well that night before," he said. "Of course he failed to mention that he had been fired and he was part of the conspiracy to lie about the books."
However, on Tuesday it "all came to an end for Forbes, who maintained his innocence and played a lot of golf for eight years," Cramer said.
If Forbes had pleaded guilty in 1998, he probably wouldn't even have to go to jail, "that's how loose the regulators were then," Cramer said. But now, Forbes "will go away for a long time."
"pulled off the unthinkable" and managed to replicate what happened in the dot-com era by growing "fast but profitlessly," Cramer said.
He called the numbers Vonage reported Tuesday "pathetic." But the media focused on how the loss was less than expected, Cramer said incredulously. Still, Cramer said he "salutes" Vonage for pulling off its goal of extracting "as much money as possible from the public."
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