Neumann scammed chump investors out of a bunch of money in ways that were legal, but would have been illegal at a publicly traded company.

For example, selling some of his wework shares, buying office buildings, then leasing the buildings back to wework at above-market rates. Registering the 'We' trademark for himself then selling it to wework. That would be illegal due to being a conflict of interest, were the company publicly traded - but it wasn't.

(There was also drug use and sexual assault claims)