Genius Grandson Of The Loan Shark King

San Jose, California.

Morning had begun at Scion Capital Management just like any other day.

Michael Burry sat quietly in his usual seat, staring at his monitor.

News of Lehman Brothers’ crisis was shaking the markets, but his expression remained calm.

“So it begins?”

He muttered softly.

The moment he had stubbornly prepared for over the years was finally becoming reality.

Just then, a commotion erupted outside.

“Ah! W-Who are you people?!”

“IRS. Nobody move.”

The door to Michael Burry’s office was thrown open.

Men in black suits poured inside.

“We’re with the IRS.”

Michael Burry slowly raised his head and looked at them.

Rather than surprise, resignation appeared on his face.

‘I’d already heard about this, but to think they’d actually come.’

At this point, it almost felt like they were throwing caution to the wind, but he decided to cooperate for the time being.

IRS agents immediately began searching every corner of his office.

The employees could only stand helplessly outside his office door, anxiously watching.

“Mr. Michael Burry?”

One of the men in black approached.

“Yes, I’m Michael Burry.”

“We’re here to investigate Scion Capital’s fund operations. We ask for your cooperation.”

Michael Burry nodded calmly.

“Of course. Before that, I’d like to see the warrant.”

The agent handed over a sheet of paper.

Burry carefully read through it.

Finally lifting his eyes from the warrant, he spoke.

“I don’t understand. We’ve always complied with the law. What’s the issue?”

“Questions have been raised regarding the profits your fund recently generated. We suspect illegal trading using insider information.”

Michael Burry narrowed his eyes.

“That’s ridiculous. We simply analyzed the market and invested accordingly.”

“That’s what this investigation will determine. From this point forward, we’ll be confiscating all documents and electronic devices in this office.”

The employees could do nothing.

With devastated expressions, they watched the agents seize computers and paperwork.

Michael Burry stood up and looked out the window.

— Burry. It seems they’ve decided to make you the sacrificial lamb. For now, just cooperate with whatever they do.

James’ final warning echoed in his mind.

At that moment, his secretary approached quietly.

“Boss, should I call your lawyer?”

“Yes. Hurry.”

As the secretary contacted his attorney, one of the agents walked over.

“Mr. Burry. You’ll need to come with us. Additional questioning is required.”

Letting out a deep sigh, Michael Burry asked,

“And if I refuse?”

“Then this won’t be voluntary accompaniment. It may become an arrest.”

“Ha... all right. But could you wait until my attorney arrives?”

The agent checked his watch.

“You have ten minutes.”

Michael Burry nodded and sat down to wait.

‘This isn’t just an investigation. It’s a trap meant to tie me down. But why?’

A short while later, his lawyer arrived.

After speaking briefly with the agents, he approached Burry.

“Mr. Burry, I think it would be best to go with them for now.”

“All right. I’m counting on you.”

Michael Burry left the office with the agents.

The remaining employees stared at one another in confusion.

“What happens now?”

“Will the boss come back?”

“What’s going to happen to our fund?”

Questions flew around endlessly, but no one had any answers.

At that same moment, New York.

Kim Muhyuk was receiving reports of everything from his penthouse.

“Manager Ma. How’s Burry?”

“The IRS is conducting a raid on his office. Burry has been taken in for questioning.”

Muhyuk smiled.

“As expected. Assemble a team of top lawyers and help him. Don’t make it too obvious. After all, their ultimate target is us.”

“Understood.”

Looking out the window, Muhyuk sank into thought.

‘Burry, I’m sorry. But your suffering will bring us an even brighter future.’

* * *

Michael Burry sat in a cold metal chair.

Keeping his mouth shut, he quietly surveyed his surroundings.

The heavy atmosphere of an IRS interrogation room pressed down on him.

The IRS, known as the Grim Reaper of Wall Street, was infamous for its persistence.

There was even a joke openly shared on Wall Street:

You might dodge a bullet, but you’ll never dodge the IRS.

“Mr. Burry, once again, you have the right to remain silent. But cooperation would be in your best interest.”

Michael Burry nodded.

“I have nothing to hide. Ask what you want, and I’ll answer what I know.”

The first investigator opened a file.

“Beginning in 2006, you predicted the collapse of the subprime mortgage market and began entering CDS contracts. Correct?”

“Yes.”

“How were you able to make such a prediction? Even your own investors opposed you.”

Burry let out a sigh.

“I simply analyzed the market. The housing bubble, weakened lending standards, the risks of securitized mortgages... all of them were signs of collapse.”

“But predictions this precise are impossible for ordinary people. Did you obtain insider information?”

Michael Burry’s eyes sharpened.

“That’s an insulting question. I merely analyzed publicly available information and made predictions.”

The questioning went on for quite some time.

“How long are you going to keep asking these questions without evidence?”

“That’s for us to decide.”

“I hope you find something. Otherwise, I’ll sue all of you.”

The investigators’ faces immediately stiffened.

“I understand investigating legitimate suspicions. But to push this far based on nothing but assumptions is excessive.”

One investigator glanced at the lawyer.

“Would you mind stepping outside for a moment?”

“No, Mr. Burry. Absolutely—”

“All right. Let’s do that.”

Interrupting his lawyer, Burry agreed.

He wanted to know why they were acting this way.

“Mr. Burry, if you say something without legal advice—”

“I won’t say anything harmful. Please wait outside for a moment.”

“Ha... understood.”

As an attorney, he had no choice but to obey his client.

Once he left, one investigator put down his file.

“Let’s be honest. Tell us about your relationship with Dreamhigh Investment.”

So that’s what this is about.

Suppressing a bitter sigh, Michael Burry replied,

“Scion Capital has no relationship with Dreamhigh.”

“That’s not what we think. We have evidence showing money from Dreamhigh flowed into your hedge fund.”

“That wasn’t Dreamhigh’s money. It was James’ personal funds.”

“Isn’t that the same thing?”

Burry smirked.

“No. Was Dreamhigh personally owned by James? As far as I know, it has a different owner.”

“Then let me ask again. Did James merely invest? Or...”

“You want to ask whether James gave me insider information?”

The investigator nodded.

“Our information indicates that you and James have maintained a very close relationship.”

“There was nothing beyond normal communication between an investor and a fund manager.”

The second investigator slid over another document.

“These are records of phone calls between you and James, the CEO of Dreamhigh. You two communicated rather frequently over the last two years.”

After examining the document, Burry answered,

“Yes. Those calls were simply updates on investment performance and requests for advice.”

“That’s really all?”

“You’re asking whether I received insider information from Dreamhigh?”

Burry’s face hardened.

“I did not break the law.”

“Listen, Mr. Burry. You could end up carrying this burden alone. You’re not our real target.”

“I can’t tell lies.”

The investigators continued trying to pry something out of him.

But Michael Burry repeated the same answer until the end.

In truth, even if he wanted to say something, he couldn’t.

If he said anything reckless, he would owe a penalty exceeding ten times the amount invested.

No matter how much money he made from this crisis, it would be an impossible sum to pay.

“Mr. Burry. We’re going to thoroughly investigate your connection to this financial crisis. And if we find even the slightest flaw, you’ll spend the rest of your life in pri—”

The office door suddenly opened before the investigator could finish.

“Harper. Can you really back up those words?”

“...Commissioner.”

“Not commissioner anymore. Anyway, Harper, haven’t you gotten a bit aggressive?”

Former IRS Commissioner John Winchester entered with an army of attorneys.

“Commissioner, what brings you here?”

“Can’t I come? I’m here to represent Mr. Michael Burry.”

Both the investigators and Michael Burry widened their eyes.

“You’re defending him?”

John nodded and turned toward Burry.

Unlike his attitude toward the investigators, his demeanor was surprisingly gentle.

“From now on, we’ll handle everything. Don’t answer a single question.”

“Who are you?”

“Does that matter? What matters is that we’re here to defend you.”

John reassured him with a warm smile and sat beside him.

The legal team lined up behind him.

“Well then, Investigator Harper. Say it again. ‘If we find even the slightest flaw, you’ll spend the rest of your life in prison’? What were you about to say after that?”

“...Nothing.”

“Haha. Harper, mistakes happen in business. The IRS exists to identify those mistakes and collect taxes. It isn’t a judicial agency. Don’t get confused.”

Beneath his relaxed attitude lay confidence and authority.

The investigator bit his lip and lowered his head.

“My apologies.”

“Good. Now, what exactly is our client accused of?”

“...Illegal trading using insider information.”

“Haha. Fine. Let’s say that’s possible. Since when has the IRS been responsible for investigating that?”

The investigator remained silent.

Narrowing his eyes, John asked,

“Whose orders? Who gave the order?”

“No one. We received a tip and determined that an investigation was justified.”

“Then the SEC can investigate it. We’ll be leaving now. Anything else?”

The blood drained from the investigators’ faces.

“If you have nothing else, prepare to be sued. Your abuse of authority caused enormous damage to Mr. Burry and his hedge fund. I hope you look forward to it.”

After finishing firmly, John turned to Burry.

“Let’s go.”

“I can leave?”

“Yes. This entire thing was absurd from the beginning. You never needed to come here in the first place.”

“My lawyer...”

“Haha. He probably isn’t familiar with this kind of matter. But now that we’re representing you, there’s nothing to worry about.”

Michael Burry left the New York IRS office with John and the legal team.

Once they entered the car, John handed him a cellphone.

“Go ahead. We’ll wait outside.”

John stepped out.

“This is Michael Burry.”

— Michael, are you all right?

“Ah, James.”

— I heard the news and immediately sent the legal team. We weren’t too late, were we?

“I’m fine. Thanks to you, I got out without any problems.”

— Good. My boss would like to speak with you. Will you take the call?

James’ boss...

The owner of Dreamhigh?

“Of course. Thank you for your concern.”

A moment later, a voice he had heard before came through the receiver.

— Burry. I’m glad you’re safe. But this is only the beginning. The pressure on you will intensify. Can you endure it?

“I haven’t done anything wrong. There’s nothing to endure.”

Michael Burry answered honestly, and a soft chuckle followed.

— That’s right. You’ve done nothing wrong. The ones at fault are the people trying to turn you into a sacrifice.

“Who exactly came up with this plan?”

— Who else? People looking for someone else to shoulder the blame.

“The Fed Chairman?”

As soon as he named the most suspicious figure, the answer came immediately and firmly.

— No. The Treasury Secretary and the President of the New York Fed are leading this. And this won’t end here. So prepare yourself mentally. We’ll handle the rest. You must be exhausted, so go home and get some rest.

The call ended abruptly.

Staring at the disconnected phone in his hand, Michael Burry fell deep into thought.