George Remus started with a multimillion-dollar bootleg liquor operation...
And he ended up with $100, a divorce, and a short stint in an insane asylum.
Remus, a lawyer by trade, saw the bottomless opportunity presented by U.S. Prohibition – or more specifically, a loophole in Prohibition's Volstead Act.
The act banned the sale of any beverage with more than 0.5% alcohol by volume. But it allowed the sale of alcohol for medicinal purposes.
So Remus bought all the distilleries and alcohol warehouses he could find, cornering the market on whiskey and other spirits. He built a delivery network to bring the alcohol to pharmacies and other points for legal distribution.
And then, he built another delivery network... a group of drivers to rob his legal delivery workers, take their booze, and deliver it to the illicit speakeasies where Remus could make his real profits.
At first, Remus' scheme worked better than he could have hoped...
He became one of the wealthiest U.S. businessmen, legal or otherwise, of the 1920s. He made more money than he knew what to do with.
He gave $100 bills to children. He threw epic parties... and handed out new cars and diamonds to all the attendees. Some claim he was even the basis for enigmatic millionaire Jay Gatsby in F. Scott Fitzgerald's novel, The Great Gatsby.
But eventually, Remus' bootleg liquor ring caught up to him. He ended up in jail with the worst possible cellmate... undercover Prohibition agent Franklin Dodge.
Dodge was supposed to find out more about Remus and his assets on behalf of the government. But when Remus let slip that his wealth was protected – because his money and his businesses were in his wife's name – Dodge saw his own opportunity.
Instead of claiming Remus' ill-gotten gains for the feds, he quit his job, ran off with Remus' wife, and stole all of his money... leaving behind a meager $100. Knowing Remus would be released from prison soon, the two tried to get him deported and even hired a hit man to kill him.
Unsurprisingly, Remus was furious...
The day his divorce was to be finalized, he chased his wife down and killed her in cold blood. Then he turned himself in.
Remus managed to convince the jury that he was driven temporarily insane by the devastation and rage. He was let off with a slap on the wrist and a short stint in an asylum.
After his wild times during Prohibition, though, no one would do business with him. They didn't want his criminal background to taint their offerings in the once-again-legal liquor market.
Folks, this is more than just an entertaining tale from the Roaring '20s. It's also a century-old warning for today's investors...
The only thing more important than buying the winners... is avoiding the losers.
Companies will do everything in their power to get ahold of your cash...
That's more true than ever in today's fast-paced market.
And that's why it's so important to understand who you're going into business with.
Before making any investment, be sure to do your due diligence. Research the folks running the company – including their past experience and how they're being compensated.
If management is only in it for themselves, there's no way you'll end up on top.
All it takes is one or two bad actors to ruin a stock portfolio. And when it all falls apart... investors will be left holding the bag.
Regards,
Joel Litman
November 12, 2025
