♪ carol: welcome to bloomberg businessweek. i'm carol massar. jason: and i'm jason kelly. we are in bloomberg headquarters in new york. carol: more from our special takeover issue. it's filled with true crime stories on robbery, bribery, and fraud. jason: including king of the snitches. how one man outfoxed drug wars and the dea. carol: how to buy your kids way into college legally.

jason: joel weber joined us earlier in taking over this issue. joel: we set out to steal your summer with heists. everybody loves heists stories. because we are business people, these are business stories. carol: there is one story you described as cinematic. that's true. it's about addiction. joel: it's about a guy in seattle went on an unbelievable bank robbery spree. he hit 30 banks. the bigger story here is that it was about his drug addiction. he went from oxycontin to heroin, and to feel that addiction, he turned to robbing banks. jason: and he did that methodically. one of the things is how powerfully his self-analysis and self-awareness of what went wrong. joel: that's why he was so good at it and why he talks to us, he becomes this sympathetic

character. he's a very persistent bank robber. he was very good at it, a real cornerstone of the heist issue. jason: we go down the coast into the forest. the next story, you can't steal a redwood, but you can still a girl. joel: that's what sarah mcbride talks about. the story of the heist is about the mice who try to get away with it and the cats trying to get them. this is about the cats, the law enforcement in the national parks trying to confront this problem of coming into parks and walking out with girls from redwoods or cacti, and turning to technology to help enforce that so that maybe you get away with it but they will find you. carol: let's get more on plant poachers. jason: sarah mcbride joins us from san francisco. sarah: redwood i learned was two different times. old-growth takes hundreds and hundreds of years to develop. sometimes a thousand years or more. then there's a second growth

redwood, which grows up much more quickly in its younger trees. and so, a lot of the redwood that is legally for sale is this newer redwood, and it's perfectly legal to cut down redwood on private property. where you run into problems is if it's this type of redwood that has taken hundreds of years to develop, that has the type of majesty and dimension that you can't find in the newer trees. and really, the only place where a lot of that is left is our parks, our national and state parks. so people who really want this older type of redwood can be tempted to go to remote areas in national and state parks, mostly in california, and simply chop down pieces of tree, or in this case, the more valuable burrell, when they think nobody is looking.

carol: was interesting too, if they are doing that, they're breaking the law, one of the thing that was interesting is that they are going after people breaking the law. sarah: this is a problem for all sorts of plants. it particularly has played a role in several of thefts in state parks, these small succulents. in particular, a type of succulent called doug leah. those have become wildly popular in asia. and people see people sending outposts and instagram of their collection. and they want them. and 20 years ago, nobody in many parts of the world had even heard of it. and now, people prize them.

they really only grow on the coast of california, mexico, basically what we would think of as the west coast. and people have been flying here from asia, just gathering thousands of these and shipping them back to asia, where they might survive six months or a year, and then probably die because the climate isn't ideal for them there. and the bust in the past couple of years have generally involved natives from korea, china, japan, and thousands and thousands of these. and i think it's similar with redwood. people might see a facebook post of something nice, a nice slab of burrell, and they perhaps might want that themselves. jason: so on the front lines of all this are the park rangers, and not park rangers like we

would think of and say yogi bear cartoon. these guys, these men and women have a tough job. they're law enforcement in a lot of ways. tell us about that. sarah: that's another thing i learned. i thought of park rangers as you describe them. as it turns out, there are several different types of park ranger. there are some that specialize in showing people around the parks and giving talks about what you might see in the park. and then there is a totally different level of park ranger, a park ranger who may train at the same facility as the fbi does in georgia, that is armed to the teeth and basically goes out and enforces the law in these parks. so, they are the ones who are in charge of apprehending criminals in the park. i learned that one part, even yosemite has a jail on-site. this is something you don't

think of when you visit a national park. you're there for a good time and to see nature, maybe hike a little. unfortunately, there are a lot of people who get into a lot of trouble in these parts. carol: up next, more from the heist issue. jason: king of the stitches outfoxing drug lords and the dea at the same time. carol: this is bloomberg businessweek. ♪

♪ carol: welcome back to bloomberg businessweek. i'm carol massar. jason: i'm jason kelly. join us every week for businessweek on the radio. carol: you can also find us online at businessweek.com and on our mobile app. one feature in this heist issue, security fraud made to look easy. charles koch cash misappropriated tens of millions of dollars from shareholders.

jason: the feds caught him, but he kept the money. what happened? here's matt robinson. matt: he started some funds back in the mid-80's, even early 1990's, he raised small amounts from 21000 and investors. and they basically got back with nothing over that time period, the.com bust obliterated. it was sort of the next big thing, and he had all these, everything kind of just lost value. but in that time, what they showed in trial was he kept up a lavish lifestyle. you know, he used funds he shouldn't have for his own personal uses. jason: and importing polo ponies, cowboy style shooting competition.

at one point, he creates his own private boot making shop. matt: he actually went to boot camp. i didn't know it was a thing. you make cowboy boots. a lot of cowboy hobbies. carol: how did this guy come to your attention? is he one of many people scamming investors? is it allegedly? a court actually found -- matt: yeah, so a jury found he violated securities laws. what interested me about this, for lawyers, co-cash is a legal term. this went to the supreme court. it's the case, not the person. it's something the sec has been talking about ever since. they left $900 million, $800 million on the table because not only does he not have to give the money back, everyone else in that same period doesn't have to give it back. jason: explain what happened. this went to the supreme court and there was a fundamental legal argument, as it happens, over whether he essentially had to pay the money. matt: right.

it all comes down to statute of limitations. for the agency, it's five years. so they said, you owe us $3 million penalty. the sec said we want the $35 million, plus interest, of the misappropriation. and he argued well, they're the same. the penalty is $3 million and you want this other money. he kept appealing and it went to the supreme court and they voted 9-0 he's right. this is a penalty. jason: so the penalty was sufficient. the $3 million was sufficient. matt: that was in the window of the statute of limitations. these funds were started so many years ago. carol: interesting, so investors have given him money get nothing. matt: yes. there were four funds. one got pennies on the dollar, the other just nothing. jason: what was the legal argument? all about statute of limitations? matt: right.

and congress does have a few bills in the house and senate to close that loophole to say well, actually, we want you to go beyond that time period. for most -- bernie madoff lasted for so long. these cases go on. right now, we've been in a 10-year bull market. who knows what else is going on? carol: from running out :00 to running several different circles, a dea informant living a double life as a fashion photographer. jason: and his attempt to scam two of the world's most dangerous groups, colombian drug lords and the u.s. government. guest: he is one of the most successful fashion photographers in miami. it's the turn of the millennium and he's got a penthouse in miami beach.

he's a regular at all the hottest restaurants, always surrounded by the models he photographs. he's got his own jet. he seems like he's on top of the world. but what all his fashion friends and family don't know is that he is secretly working for the u.s. government as a kind of freelance spy. carol: but that's not it, right? he's doing that, but he's also friendly with the drug cartels and kingpins. zeke: right. so his job with the government was to infiltrate the drug cartels, into their social circles, and then gather information and hopefully bring them in to become informants. carol: ok. zeke: but what the government didn't know is that vega, while he was meeting with these guys, while the government was watching him closely, was convincing them that he could

take care of all their legal problems, fix their cases, if they would just pay him millions of dollars in bribe money. the crazy thing was, they did it. it seems like it worked. like, once they paid him, they would be able to travel to miami. they would go to disney world. one of them threw a big party on a yacht. guys who were wanted for murder were waved through customs. jason: one of the things that happen fairly early on is that he was dearly working with law enforcement officials. they were endorsing at least some of what he was doing. zeke: vega would meet with these criminals. he'd give them his pitch. he'd say pay me this money, but you're still going to have to meet with the dea and you're going to have to sign a standard cooperation agreement. so these guys would have paid vega.

they would be meeting with dea agents and prosecutors thinking their case had been fixed. now do the dea agents and prosecutors no that that's what they think? that's one of the things i was looking into. jason: to say the least, this is a high wire act where he's walking between law and some really bad people and yet, i mean, hopefully this isn't a spoiler, he's still around. you talked to him. here he is all these years later, look what i did. zeke: i would track down these retired law enforcement officials. a lot of them said, vega's still alive? wow, that's pretty cool. good for him. because many of the informants who worked with him were assassinated. and at one point, vega heard

from the fbi and his underworld connections that there was a price on his head, too. but that didn't stop him. he kept running the scheme, even after that. carol: but until there was a sting operation and he got caught and arrested and put in jail. zeke: right. so, the story opens with the vega just back from a photo shoot in cancun, i believe, partying with some of his photography and fashion friends, when his doorbell rings and one of his drug trafficker clients is at the door. not too weird for him. he's used to that. but the guy seems to have a lot of questions. remember when i paid you that $7 million? who did you bribe with that? and vega says don't worry about it. the money's gone. i spent it. it's not a big deal.

but this guy, sort of suspiciously, wants to keep talking about it. the drug trafficker leaves. a new group shows up. it's the fbi and they arrest him. vega says i did this all for the dea. talk to my guys there. this is all legal. they say no way, throw him in jail. carol: add to the mystery, the case is ultimately dropped and he goes free. zeke: right, the case was dropped and he does go free, but they say you're right. he did do this. but we're not going to prosecute for this. jason: we sat down with crunch fitness ceo jim rowley. this is bloomberg businessweek. ♪

jason: welcome back to bloomberg businessweek. i'm jason kelly. carol: i'm carol massar. you can also listen to us on the radio and a.m. 1130 on in new

york, 91 fm in washington, d.c. jason: a.m. 960 in the bay area. in london on dab digital and on bloomberg in the business app. they were buying crunch fitness. carol: a little deal flow. here's crunch ceo jim rowley. jim: it's fantastic they identified crunch as an opportunity. i think by now is fitness has never been more popular. with the recent changes in the retail landscape, landlords are finally clambering to have fitness companies and clubs as part of their old mall set up, their new mall set up. it's been a fantastic time. with crunch, specifically, because we're celebrating a 30 year anniversary. we've proven a successful track record, both in new york and california, and i think there's a big interest in our platform because of the intellectual property around our group fitness classes,, personal training and we launched a franchise company that's been

tremendous. carol: talk to us about that property. it's the fitness base that's been just me. it's changed a lot from when you started toast up at the ip and why it makes you and interesting play. jim: the heart of crunch is group fitness. we're innovative in that respect. we take from broadway. we can take from hollywood. we can take from what's happening on the street. we also go out into europe, hotspots in miami. we look for the alternative and the alternative with exercise. we come back and create classes around that are nuanced for crunch members. carol: why sell now? what opportunities does that provide for you? jim: first of all, angela, our partner for 10 years, 10 years is a long time as a hold for them. the time was now for them. the sad part of that is that

they were tremendous private equity partners. i would give them a growing review. i can't say that about every partner we've had. it was time for them. that was the initiative that process forward. to have gpt growth, the cpd -- ceo sat in on the presentations, met with mark and i directly, went through the entire presentation. when you get that blessing from that order and magnitude, and chris kelly, who runs the fund for him, it was tremendous. to have that level of tier one private equity enforce your company -- the timing couldn't have been better. carol: is going public at some point for consideration? jim: i think it's always a consideration. i've never run a public company. you hear the horrors of what it's like. but when you see the values of what is placed, there's another public company in the fitness space doing tremendously well.

it's attractive. it's not necessarily a goal, but it is a consideration. jason: when you think about tbg as a partner, life time fitness is another jewel. clearly, they are making a play on this lifestyle we're talking about. how have you come to understand that approach? jim: i think there's tpg and tpg growth. the biggest opportunity for us was access. they own or do own hundreds of companies. so imagine our little company getting access to the ceo's they partnered with, to the analytics and support they provided, to marketing understanding, especially from a digital marketing standpoint. i'm most excited about access to their network. they've seen a lot and done a lot. to broaden our business experience is something i'm looking forward to. carol: i do also wonder about

kind of this landscape and the choices out there. we spent time with the folks at palatine. the fitness landscape has changed dramatically. how does that impact you? do you incorporate what they do? jim: great question. we've done enough studies to understand the majority of people who participate, they're actually health club members, as well, so it's something they do in addition to their health club membership. our biggest fear is the netflix binge watch. that's our business -- biggest competitor. we live in a world where you can watch whatever you want for hours upon hours. you don't even have to get food. you call postmates or grubhub. that's the life a lot of people are living. carol: what do you have to do? that's a challenge, right? we talk about all these different facilities competing for your time.

what do you do to get this people who would rather binge watch for a day? jim: we market like crazy to get their attention. we try to partner with postmates and grubhub to offer free passes. carol: is that productive? jim: it can be. a lot of people made the decision that's not how they want to make their free time. we try to make crunch fund. they want to live a healthier lifestyle, crunch is the first thing they think of. jason: tell us about hiring labor, instructors. there are not enough quality instructors to fuel their expansion. how are you doing with the labor side? jim: that's a great question. when the boutique expansion came to be three or four years ago, it was tough on us because they recruited our top instructors. our top personal trainers, top right instructors, were being recruited for much higher hourly wage or session fees and so forth. it was difficult in the beginning.

what we really tried to do is internalize our training program. we've got an internal education program where we bring people on the margin in terms of being appealing to be hired. maybe they don't have the experience over the certifications and education, but they've got the initiative. we'll bring them in, trained in the crunch way, and put them into our clubs. that's helped us identify people that have the mindset, but not the resume yet, and they want to get involved. carol: check out our entire conversation. you can find that at our podcast. we talked a lot of stuff. jason: we did. he's been through a lot of history. he's in big marine, some thoughts about where the fitness business is going. some surprises there. carol: lots more coming up, including a story about a man who could not stop robbing banks. jason: how to fix a soccer match. don't do it, but this is how you would. this is bloomberg businessweek. ♪

jason: welcome back to "bloomberg businessweek." carol: still ahead about the real husbands of the real housewives. jason: plus, how to fix a soccer match. carol: it happens a lot. it is part of a special heist issue. and for more on how it came together, here is the editor behind the issue. >> the idea is to give people a different experience. the new cycle slows down while

everyone is going to the beach or whatever. these are our true crime stories. last year's highest issue is very heist-y. this one is little more extensive and includes other forms of skulduggery. we even have a service component to tell the reader how to pull off their own heist. jason: how to fix a soccer match, robert trahan. -- rob a train. >> the idea is to show people how some of this bad stuff happens. jason: what is the thing you're looking for? >> i was looking for stories that are true and involve something nefarious. so true crime with a variety. so we have stuff that is serious and tragic. jason: the bank robbery story is

one of the multifaceted heist stories, because it is a human story, it is about the opiate crisis at its core. also about a bank robbery. so you go into it and it is a bit of a head sink. >> it is at addiction story, in both senses. addicted to opioids, as you say, but he sort of becomes addicted to robbing banks. it has this amazing quality where things are piling one on top of the other and people won't be able to put it down. jason: meanwhile, we look at the story of the snitch at the center of the drug trade and the dea and the gray areas of law-enforcement and crime. >> that story is wonderful. it is as crazy as anything you'll see in narcos.

as you say, it kind of explores the gray areas in terms of what is legal and what isn't. if you are interested in business, those gray areas are interesting. it is entertaining to see people doing bad stuff but it also shows you what are the balance of morality and ethics. and when business breaks down, what happens? jason: that story about the man who could not stop robbing banks. it is about addictions on several levels. carol: it is indeed. >> when i reach out to this guy and make contact, it took a turn. it is about a very successful

bank robber, but that is not what it is about. carol: tell us his story. he was pretty successful at one point. >> he was an engineer in boeing who was formerly in charge of the biggest jets boeing makes. meeting with airlines in every continent, flying around, and he got addicted to opioids. carol: how did that happen? >> he hurt his back playing roller hockey. it is easy now to say, of course, everyone gets hooked. but then, his doctor said that, he said here's something that helps. it was the only thing that stopped the pain and it was like a miracle because there were times he could not get out of bed. but over time, your body gets addicted. the doctor is, i'm sure, aware of the problem. but once you are addicted, it is not a conversation to have openly. so then you become an addict trying to function. carol: she did level with boeing. >> they gave him a leave and more and more companies do this. he went to treatment and the when he got out of treatment he went and bought bills. -- pills. jason: so he comes upon this

idea of essentially starting to robbing banks. >> desperation and desperate times. in 2010, perdue pharma switches the formula for oxycontin. that is when the heroin epidemic starts because the pills are no longer affordable or crushable. then he starts doing heroin and his problem gets out of control. he ran out of money and lost his job. he robbed the first bank poorly and got arrested -- carol: with his son! >> yes, there are a lot of said elements. he was not convicted and let go, he's in bad shape. he says he gives money to support his habit and also his mother. besides robbing banks, and because he is an engineer, he is very good at it. he does not carry a weapon. he says he know they will give me the money if i ask for, and a

five smart and fast enough i should not get caught. -- if i am smart and fast enough, i should not get caught. jason: what is his mindset? what is he thinking? >> at the beginning, i think he is thinking i won't get caught. i have done a few stories, and they all tell me it is one of the best adrenaline rushes. i think he got somewhat addicted to that as well. but by the time the streak comes to an end, he says he was getting pretty desperate. he knew the end was near and he needed help. he did not want to get caught, but when he does, he thought this needed to happen. carol: now he is on a mission to go after the drug companies. >> the main thing he wants to do is get back on his feet. he is 50 and needs to rebuild his life. he probably won't get a job at boeing. but he needs to get his life back and find a way to make money.

but also, he is angry. he feels like i should be punished for what i did, i robbed banks, i've done my time. but i did not become an addict because i wanted to, i went to my doctor and asked for pills for pain. that is what got me addicted. so he wants to join the fight. jason: up next, want to buy your kid into college? here is how you can do it the legal way. carol: plus, the husbands of the real housewives, they have perpetrated some interesting heists of their own. jason: this is "bloomberg businessweek." ♪

carol: welcome back to "bloomberg businessweek." jason: join us every day on the radio from 2 p.m. to 5 p.m. wall street time. carol: and find us online and on our mobile app.

in this week's issue, buying your kids way into college. jason: here is how you can legally game the system. >> you really can't buy your kid into college but there are ways to be spending a lot of money. so let's review the doors. the front door is that your kid is the real deal. real academic tops, top grades, top test scores. done something amazing, some real achievement. founded here for cancer, etc.. -- found a cure for cancer, etc.. the back door is giving a lot of money. but, of course, there is no guarantee and it could be a really expensive. carol: like a donation to the school? >> yeah, potentially tens of millions of dollars.

but there is no guarantee that kid has to be able to do the work. if the kid gets in and can't, it doesn't help anybody. so he created the side door by lying, cheating, and bribing. some of the more memorable stuff from the 204 page indictment including photoshop and kids faces onto bodies of crew team members -- photoshopping kid's faces onto bodies of crew team members, faking disabilities to get more time on tests. that was the cyberwar. -- the side door. it is safe to say that door is closed. so one way to get your kid and advantage is test prep. what does that mean? are you sending your kid to times a week, three times a week. chances are, the kid takes it seriously, they might be really prepared but there is no guarantee.

jason: one of the things he talked about, parents out there are always looking for ways to game the system, some going to extremes. one of the things you say is to go to a place that is not new york or l.a. or chicago because folks are looking for geographic diversity. >> and one counselor said tri-state's with only one congressional district, meaning it is a sparsely populated place. but the trick is you actually have to live there. if you are from california and you have a house in a ski town in montana, you have to live there. they will check that, you can't just put montana. are your teacher recommendations from teachers in montana? are you helping that local community and doing volunteer work and amazing research? you don't want to fake that, they will check. carol: what about just being a great athlete.

>> if you are a legitimately great player, there will be a lot of people watching. there are a lot of people who rank and see how the kids are doing. so that is hard to fake and there are a lot of kids who are very good. you may want to stay away from sports that people are actually watching. we mentioned in the graphic, squash may not be the way to go. one counselor told me a few decades ago, rich kids, that was their in, but now the really accomplished squash teams recruit from overseas. these kids are the real deal. carol: how to fix a soccer match. last year, bookmakers took bets on 75,000 soccer matches around the world. jason: for a matchmaker, that is 75,000 plus chances to profit, in theory, it is easy. he does have to arrange an outcome and bet on it. >> it is not the greatest

betting sport. baseball is a great betting sport because every pitch is a great opportunity. but there is a lot of ways to tilt a soccer match. who will get the first corner kick, you can bet on the wins, the total score, all that stuff. and there are a lot of ways to influence it that are not 100% obvious right away and that is a big key when trying to manage a match. carol: how do you start to do this? jason: carol is like, ok, now i need some actual instruction. carol: what do you do? >> one of the ways i tried to split this up was, there's basically the old-fashioned thing, you groom a player. that is a long-term project which is why it is frequently organized crime that does this. you have got to get to know them where they are. this company sports radar does classes where they talk to young players throughout the organization about how this will happen. one of the things is that you won't know when you are being

approached because it will just be a guy at the club who wants to pay for your bottle service, maybe arrange a prostitute, whatever. they will do you favors and pay your debt. at some point, they will ask for things and a little bit more. it will come to a point where you have given them enough where if you say no, they will tell the world what you did. and then they own you, and when you're done, they get you another guy. so they wonder how these guys wind up being regulated, it's because it started with a were 17 -- being manipulated, it's because it started when they were 17. carol: are big-name players part of this? >> you can usually rely on the elite talents not be a part of this. carol: and they have folks coming and looking for endorsements.

>> it's more likely to be a defender at the second tier of some european league. jason: and it is not just the players, the rafts -- refs are a mark here. >> referees are great because they earn less money. typically, it is matches in parts of the world where the federations are not well supported. there's not a lot of money or regulation so bribes can get you on the pitch even if you are not good or are provably corrupt. people have security guards to shut off lights halfway through the match to affect markets, people have gotten two teams to just fake the report of a natch. there was -- a match. there was a report in belarus of a match that never happened. carol: where are the officials

in all of this? >> that is part of the problem. it is a patchwork of regulation. jason: up next, keeping up with the real husbands of the real housewives, spoiler alert, they are not great dudes. carol: plus, eccentric autos from the 80's hit the block at pebble beach. jason: this is "bloomberg businessweek." ♪

jason: welcome back to "bloomberg businessweek." carol: you can also listen to us on the radio on sirius xm channel 119, and on a.m. 1130 in new york, 106.1 in boston, 99.1 f.m. in washington, d.c. jason: a.m. 960 in the bay area, london on dab digital, and through the bloomberg business app. carol: staying with this week's special heist issue, the real

husbands of bravo's real housewives. jason: our reporter is a fan and has a rundown of the rap sheet's. >> this has been on the show a lot that one is going to be deported because of fraud. but it turns out his scam was pretty involved. first, he is not paying taxes. but he still wants to get some mortgages so he makes up-fake tax returns, sends them to the bank, gets millions in mortgages, then does not pay the mortgage. he spent the money, files for bankruptcy, and in order to get your debt discharged what you need to show that you are broke. so they don't even mention that they are getting paid to be on real housewives. jason: that whole thing came crashing down. both of them went to jail. the housewife herself, right? >> the husband said she -- he was the mastermind and she did

not know what was going on, but apparently the court did not buy it. she had served a year in prison. carol: there are a couple of other couples like the erin brockovich lawyer. talk about him. >> oh, yes. so this lawyer appears to be super successful. he brought the case that inspired the movie erin brockovich and has done other big cases since then. however, in the past year or so, he has been sued twice by lenders who say they advanced his firm millions and were not paid back. in the lawsuits, they said he took this money, saying it was for some important legal purchase but you blew it to keep up with the other housewives. he denies this, but the cases are still pending. jason: back in new york, this phrase always races and iran --

raises an eye-brow. upscale dry-cleaning kingpin. carol: i don't watch that one. tell us about that story. >> this guy is a real character. he first made the pages of new york's tabloids in a scandal where he did he -- wj -- where p diddy had an arrangement from his dry cleaner, and it was like, why would he have these connections? he has been sued a few times by his employees overpaying them less than the minimum wage. -- over paying them less than minimum wage. jason: are they not doing a good job of screening them on the show?

>> i don't think they are going for this on purpose, i think that it takes a certain kind of rich person to agree to go on a show like this. you are not going to get someone from goldman sachs, the employer would never agree to it. also, one of the guys i wrote about said that he had to run a scam because he just felt so much pressure to appear to be rich because he was on the show. jason: we could not let you head into the summer weekend without checking in with our "pursuits" theme about a summer staple, the pebble beach auction. carol: an amazing car show, here is our car expert with a preview. >> it is a group of four cars available for cell, part of a famous racing series across europe in the 80's over mud, dirt, rocks, cross-country. very intense, the cars were

developed to race in that series. it was so intense it did not last very long. they canceled it because people were dying. carol: oh. >> but a few of the cards -- cars have remained and had a special history. and there is a growing interest by discerning collectors but also people who just like funky things from the 80's. carol: it is perfect they will be in pebble beach, take a step back to remind everybody about this because it is remarkable. >> monterey car week happens every year and pebble beach is the climax happening on the sunday. it is the most beautiful and most expensive cars in the world, shown here. it is in carmel, california, very beautiful. there are also auctions during the week and these cars will be sold. again, they really stand out because they look kind of ugly.

carol: tell us about some of the cars. some of these are not household names. >> we have got the delta 2-4, this is probably the most known -- delta s-4, this probably the most known and has a distinctive clamshell body. it means the back on latches and lifts up completely so that mechanics could get to the mechanics of the car during a race and fix things quickly. this is probably the most expensive of the lot. a similar model sold for millions in germany in april. this one we will be seeing is probably going to go for half a million. carol: tell us about the article. >> i called the oddball. the mg metro 6r-4. you might recognize the name, this is not that.

[laughter] it might share the name, but this is a monster that was created. jason: spoiler on the front, spoiler on the back, gills -- >> huge gills on the side, two seats, tiny doors, tiny wheels. they were doing what they could to make a fast and the thought was the spoilers would help downforce. they help aerodynamics. everything was for the purpose of speed, not aesthetics. jason: speaking of aesthetics, you have some great photos of the interior. a little bit austere, shall we say? >> that is a nice way to put it. minimal, bare-bones, everything is metal. no radios, no air-conditioning, of course. we are talking metal. the gas tanks were located under

the seats of the car, which as we know is not a safe place to put them. it is metal on metal and in the ground. carol: bloomberg businessweek is available on newsstands now. jason: what is your must-read? carol: i love the story by josh. it is a tragic story, here is an a conflict engineer who becomes addicted to opioids. jason: and it does and on a bit of a hopeful note. the guy is very self-aware and he wants to know what happens next. carol: your must-read? jason: mine is a bit of a must listen and must watch. i love catching up with the crunch fitness ceo. getting a chance to talk to that nexus we are so interested in, fitness and money, i loved it. carol: it is such a big interesting -- industry. and of course, you can find more stories on businessweek.com. jason: and check out our podcasts on itunes, soundcloud,

or bloomberg.com. carol: more bloomberg television starts now. ♪

kim: smart tv menu. takes back a scary tweet just moments after asking users to run a virus check. and jurassic park has come to augmented reality and the results are dynamite. plus, we speak to an engineer -- made the google spark smart speaker accessible. finally, you don't need