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10 Times People Exploited Loopholes Like a Boss

6. A man bought a first-class, fully refundable ticket at the Xi’an International Airport. After accessing the airport’s VIP lounge where he ate food, he opted for a refund and re-booked the ticket the next day, doing this same thing for almost a whole year.

Xi’an International Airport
Xi’an International Airport. Image credits: Matyas Rehak/Shutterstock.com

A man from the Xi’an province of China used an ingenious idea to exploit a loophole in the airline system. The first time he bought a first-class, fully refundable ticket, he had a grand meal at the first-class lounge which is known for its premium gourmet meals.

However, instead of going ahead with his journey, he got a refund and returned the ticket, only to come the next day, buy another ticket, eat in the first-class lounge, and later get a refund for the travel ticket.

This continued for about 300 more times when officials became suspicious and eventually prevented him from continuing this charade. (source)

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7. In Tennessee, a club promoter was denied authorization to build a Swingers’ Club next to a Christian School, so he got creative and got a “Swingers’ Church” built next to the school due to a loophole in the law for the definition of a church.

AI Woods
AI Woods stands in front of his building. Image credit: danweismann

A club developer, after several unsuccessful attempts to secure permission to build a club next to the Goodpasture Christian School in Madison, Wisconsin, finally came up with a plan that got approved.

Since the law didn’t allow for a club that was close to a Christian school, the club developer got around this law through a loophole that only has set definitions for what constitutes a church.

For instance, as long as it is a place of gathering with set principles and beliefs, a place is sanctioned to be a church. Interestingly, he just renamed the club and its rooms to their respective “church” counterparts, like the “dungeon” got transformed into the “choir room” and the “game room” became the “fellowship hall.” (source)

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8. Unlike most people who are supposed to pay taxes, George Soros ingeniously evaded paying taxes through a legal loophole of deferring taxes for fees obtained from clients. Furthermore, he found a way to legally invest this money to where it grew without being taxed. This prompted his hedge fund to amass around 15 billion dollars, which would have been a paltry two billion dollars if the taxes were deducted.

George Soros
George Soros. Image credits: Heinrich-Böll-Stiftung/Flickr

George Soros, who is famous all over the world for being one of the richest and most talented investors, furthered his hedge fund and its success due to an interesting loophole he discovered very early in his career. This loophole allows for some large tax deductions that can in turn be used as an investment.

The loophole was that the fees paid by clients could be deferred from tax, i.e., paid later. This would allow him to immediately invest this money instead of having tax deducted, allowing it to grow.

This led to his profits reaching a whopping 15 billion dollars. However, it is said that this loophole was closed in 2008, and it might result in Soros having to pay about seven billion dollars in taxes. (source)

9. Owing to the stringent rules that Spotify so tightly upholds in the royalties area, the band Vulfpeck asked its fans to listen to an entirely “silent” track called “Sleepify” when they went to sleep. This helped them amass royalties of up to 20,000 dollars before Spotify finally saw through this loophole. 

Vulfpeck
Vulfpeck. Image credits: Chris Hahn/Flickr

Vulfpeck, a band from Ann Arbor, Michigan, came up with a very strong response to Spotify’s “peanut” royalties. In dire need of funds for their tour, they decided to attack Spotify through a legal loophole that didn’t violate any of their agreements.

Known for its very low royalty rates, Spotify ended up making Vulfpeck cunning enough to come up with an idea to bump royalties. Their fans were told to play the album “Sleepify” throughout the night during sleep, which had around ten songs on it, each of which was thirty seconds of silence.

They were very clever to time it at thirty seconds, as the royalties are only given for songs which are thirty seconds or more. This album ended up collecting around 20,000 dollars over a period of two months before Spotify caught on and finally stopped this from happening. (source)

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10. The infamous killer Ted Bundy proposed to his then-girlfriend, Carol Anne Boone on the stand, in a courtroom, and she responded positively, which actually ended up being a legally backed marriage. There existed a legal loophole that validated any proposal and acceptance under oath as legally binding. 

Ted Bundy was one strange character to begin with. The fact that he murdered several innocent women by luring them using his charming ways, only makes it stranger.

However, the weirdest thing happened when he used an old Florida law to his advantage, to get married to Carol Ann Boone, during his trial. He proposed to her when she was on the stand.

When she said yes, he declared to the courtroom that they were legally married. Sadly, it turned out to be valid as the law at that time stated that under the consent of both individuals, all a marriage needed was a courtroom and the presence of a judge to make it a legally binding authority. (source)

Also read: 10 People Who Became Millionaires in Unexpected Ways

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