Quote Originally Posted by kschang View Post
I wrote a short profile on it and need some proofreading:

A MLM Skeptic: Scam Study: Pigeon King
@kschang (reply to post #1)

I have checked some different sources. Galbraith started his pigeon sale project in 2001, "according to some sources". We can use that year to identify the time frame between 2001 - the bankruptcy in June 2008 - the trial in November / December 2013. I will add some info from June 2006 / December 2007.

1. Some forensic accountant info from the trial:
Pigeon King would have owed $3 billion eventually, accountant testifies | CTV Kitchener News

You can basically ignore his $350 million / $3 billion calculations, they are hypothetical numbers used to prove that the scheme was unsustainable (what the investors COULD have earned if the contracts HAD BEEN completed, and the amount of new contracts needed to be able to pay the current investors).

The forensic accountant reported
894 contracts, sold for $42 million (the number of contracts were found in the video)
394 farmers had received $30 million in payment
Investments made after January 2007 would all have lost money
At the time of bankruptcy, monthly payouts to farmers were $2.6 million per month, growing $100,000 per month

* Bankruptcy trustee BDO Dunwoody found Pigeon King's liabilities to be $23.5 million
(diabled link) todaysfarmer.ca/2008/08/06/farmers-lament-pigeon-king-losses

2. Interview with a farmer in 2007, "Farm and dairy"
You're raising what? Pigeons! - Farm and Dairy

He reveals a lot of details about the investment (June 2006) and the profitability:
100 breeding pairs plus building investments = around $30,000 (estimated by the farmer)
+ he reinvested in 100 additional breeding pairs in December 2007 (info found in another article)
work per day = around 2 hours
Resale price (for the offsprings) = $25 per bird
Gross income per month = $2,500 average (100 pigeons per month, 20 weeks old)
Net income per year = $18,000 - $20,000

Other people have estimated 90-100% ROI per year (from the offsprings). He has probably paid $200 - $250 per breeding pair = both the prices for the breeding pairs and for the offsprings has been reduced.

* A friend of that farmer had a $18 per bird contract (a newer contract than his own)
* Arlan Galbraith's only witness had a $10 per bird contract. That witness managed to sell 1,200 pigeons for $2 per bird after the bankruptcy (to show you the market value of the birds in a "problem market").

You have only got link to 2 sources here, but the info is from 6-8 different sources. Missing sources are about some "additional info", e.g. about the farmer's reinvestment. I have mostly been focusing on the financial side of the story here.