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kerrisdale capital sec investigation

Sorry, no results has been found matching your query. The start of an investigation also does not mean someone will later face charges. Photographer: Peter Foley/Bloomberg. Here is DWACfam Mark Willis hand delivering his DWAC UPDATE: Response from Rep. Dan Bishop's Office. A prime actor in this affair is an obscure Chinese investment firm, ARC Group, that has been repeatedly punished by the SEC for lying about the true nature of businesses that turned out to be shell companies. KCM and Kornitzer told the board members that they would reduce the concentrations to 10% within 12 to 18 months. 1 Twitter 2 Facebook 3RSS 4YouTube By all indications, in October 2021 TMTG was a shell company with no or only nominal operations. All our reports are based on information that is publicly available, sourced from records that anyone at any given time could research or find. If you are a Camber investor and would like to learn more about our investigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. The SEC's investigation was conducted by John H. Mulhern and Kimberly L. Frederick of the Asset Management Unit in the Denver Regional Office, and Daniel M. Konosky of the Denver Regional Office. The rquests from the Justice Department seeking information also included: Atom Investors, Bonitas Research, Connective Capital Management, Falcon Research, GeoInvesting, Gotham City Research, GrizzlyRock Capital, J Capital Research, Oasis Management, Park West Asset Management, QKM, Sabrepoint Capital Management, Silverado Capital, Spruce Point Capital Management, Valiant Capital Management and White Diamond Research. Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Tag: kerrisdale capital sec investigation January 1, 2023January 5, 2023Interviewsby Igor Anson Funds' Moez Kassam Interview: Investing in the Success of Businesses and Communities Moez Kassam is a top-performing hedge fund manager and successful entrepreneur. ago Patriot . The report further alleged that Camber only has one real asset, a 73% stake in an OTC-traded company with negative book value. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. Please message the mods for approval to post and comment. Since its founding in 2000, Holzer & Holzer attorneys have played critical roles in recovering hundreds of millions of dollars for shareholders victimized by fraud and other corporate misconduct. Breakout Point also provided data on this year's most successful short-sellers year to date. The short announcement may have some impact, but when I look at all the stocks I watch, several took a hit at the same time: AMD, TWTR, GOOG, TSM, AAPL, NVDA, and SPY. The Securities and Exchange Commission today charged three individuals and their affiliated entities with running a Ponzi-like scheme that raised over $1.7 billion from securities issued by a New York-based asset management firm and registered investment adviser, GPB Capital. Nearly all requests get approved, so dont be shy with those requests. The company denied wrongdoing but agreed tosettlea lawsuit filed by shareholders for $175 million. The FBI took computers from the home of Andrew Left, the founder of Citron Research, which is known for its short selling trading, sources told Bloomberg. Opinions expressed by Forbes Contributors are their own. It is unknown which short sellers named in thesubpoenas could be investigated in the future, or which ones just have relationships with other companies or are people of interest to the DOJ. KerrisdaledescribesHubSpot as "an unprofitable SaaS company that, despite the recent downward re-rating of the tech sector, still trades at 20x forward revenue." The SECs investigation was conducted by Kristin M. Pauley, Lindsay S. Moilanen, Kerri L. Palen, David Stoelting, Neal Jacobson, Melissa A. Coppola, Alistaire Bambach, and Sheldon L. Pollock, and supervised by Lara S. Mehraban. We value DWAC at the cash held in trust: $10 (-80%). Following this news, Cambers stock price fell $1.56, or over 50%, to close at $1.53 per share on October 5, 2021. The order finds that as of December 2015, the securities of a single issuer constituted between 30% and 89% of the assets held by the CITs. The report further alleged that Camber only has one real asset, a 73% stake in an OTC-traded company with negative book value. Its hard for us to comment on something we dont know anything about, said Taylor Hall, a representative for Oasis. Kessler Topaz Meltzer & Check LLP First and foremost, when you do a presentation of information such as this you must break down the elementary terms. The firm believes HubSpot is a COVID beneficiary whose growth will ultimately disappoint. Six months after the merger, DWAC still hasnt filed even an initial S-4. Its very tough to defend yourself when you havent been accused of anything, he told Bloomberg. SaaS HCM players now control 40%+ of the SME mkt (<1k employees), with 10+ public or VC-backed co's providing similar solutions. The SEC also charged GPB Capital with violating the whistleblower protection laws. Recent SEC actions confirm that 1) the agency is serious about reining in a financial sector widely regarded as rife with potential fraud and conflicts of interest, and 2) SPAC enforcement investigations are priority matters within the commission. Muddy Waters accused the company of inflating its revenue. Our most recent contact with the DOJ was in assisting an investigation into the fraud at a company that we had researched.. Laurence Rosen, Esq. As alleged, GPB Capital actually used investor money to pay portions of the annualized 8% distribution payments. $DWAC is the SPAC that is taking Trump Media and Technology Group (future $TMTG) to the public stock exchange via the NASDAQ. Is Tencent Music Entertainment Group (TME) A Smart Long-Term Buy? On October 5, 2021, Kerrisdale Capital issued a report which stated that, Camber is a defunct oil producer that has failed to file financial statements with the SEC since September 2020, is in danger of having its stock delisted next month, and just fired its accounting firm in September. According to the SEC's order, KCM served as investment adviser to four collective investment trusts (CITs), and Kornitzer served as their portfolio manager. Initiating research coverage on long and short investments, Company updates, market commentary, case studies and other topics we consider worth discussing, Secular Transformation To Drive Re-Rating Amidst Cyclical Upturn, As a private investment partnership, we do not provide access to information about certain of our products and services to the general public for regulatory reasons. Jul 28, 2022 Its TAM is becoming saturated & competition has intensified. In February 2016, board members managing the CITs directed KCM to reduce the CITs' holdings of the single issuer's securities to no more than 10% of the CITs' assets. Kerrisdale Capital also alleges the "market is badly mistaken about Camber's share count and ignorant of [Camber's] terrifying capital structure," estimating the Company's "fully diluted. "Hedge funds that uncover shortcomings in companies and short stocks provide a valuable service to the markets by 'outing' companies who are not running sound businesses," she said in an email. In addition, as the post-merger surviving operating business, TMTG would reasonably be expected to have the infrastructure necessary to function as a public company. Create an account to follow your favorite communities and start taking part in conversations. Is Paycom Software (PAYC) an Attractive Investment for the Long-Term? We havent been contacted by DOJ, SEC or any governmental authorities about any investigations, Sahm Adrangi,Kerrisdales chief investment officer, wrote in an email. Good news coming for us Newbie Here: Just DRSd 500 shares of dwac Scary but Gary Gensler, Head of the SEC(securities and exchange Press J to jump to the feed. Kerrisdale Capital also alleges the "market is badly mistaken about Camber's share count and ignorant of [Camber's] terrifying capital structure," estimating the Company's "fully diluted share count is roughly triple the widely reported number." Please click here to read full disclosures. This year's other top calls include Bonitas' call on Ageagle Aerial Systems, Wolfpack's call on Chinese firm EHang Holdings, and Hindenburg's and Culpers' calls on the Chinese firm Sos Ltd. Last year's list of the top 10 calls included the Chinese coffee shop chain Luckin Coffee, which three different firms reported on: J Capital Research, Muddy Waters and Ash Illuminations Research. Manage your own risk! From 2016 to 2018, the board members repeatedly directed KCM and Kornitzer to provide and execute the requested plan to bring the CITs' concentration levels into compliance with the limit. August 31st, 2022 - Hedge Fund Investor Letters News, August 5th, 2021 - Hedge Fund Investor Letters News, February 13th, 2020 - Hedge Funds Insider Trading, June 19th, 2019 - Hedge Funds Insider Trading, January 23rd, 2019 - Hedge Funds Insider Trading, November 26th, 2018 - Hedge Fund Investor Letters Hedge Funds Market Movers News, February 8th, 2018 - Hedge Funds Insider Trading, August 22nd, 2016 - Hedge Fund Analysis Hedge Funds News. Spruce published on Nuvei, and shares hit -40% price target within only few hours of report publication.". Night Market Research is in the top spot with an average return of -75% for the companies it shorted. Follow this author to stay notified about their latest stories. Two months later, Luckin Coffee itself reported the discovery that its chief operating officer and other staffers had fabricated about 40% of its revenue in 2019. at cholzer@holzerlaw.com or Joshua Karr, Esq. Washington D.C., Sept. 24, 2021 The Securities and Exchange Commission today charged Thomas Powell and Stefan Toth, and their entities, Resolute Capital Partners LTD LLC and Homebound Resources LLC, with making material misrepresentations and omissions in connection with more than a dozen unregistered oil and gas securities offerings. Required fields are marked *. Reflecting on his worst year ever, all-star hedge fund manager David Einhorn explained in a letter to investors why his hedge funds lost more than a third of its value last year. Kerrisdale Capital, an investment management company, released its investor letter for July. The complaint also charges GPB Capital and Gentile with violating the antifraud provisions of the Investment Advisers Act of 1940 and charges GPB Capital with violating the registration and whistleblower provisions of the Exchange Act and the Advisers Acts custody and compliance rules. Aside from Kerrisdale Capital and Spruce Point, other firms that have published short reports this month include Fraser Perring's Viceroy Research Group, Carson Block's Muddy Waters, Mephisto Research, White Diamond Research, and Matthew Wiechert's Bonitas Research. The firm believes Astra is a "story stock that's yet another example of the questionable businesses going public via SPACs." The SEC's examination that led to this enforcement action was conducted by Susan Day, Stephanie Fischer Bennett, Tim Worthington, Lisa Byington, Craig Ellis, Nick Madsen, and Tom Piccone of the Denver Regional Office. Kerrisdale Capital Management LLC. Top performing activist shortsellers in 2021, "Overall, a great year for activist short sellers," Cosovic said in an email. The Justice Department has also recently subpoenaed some market participants seeking calendars, communications and other records for nearly 30 investment and research companies, according to the sources. Im cooperating and I have full faith in the system and the First Amendment.. Kerrisdale Capital has crossed the line into blatant market manipulation through inciting fear and panic in the stocks they are currently invested in through their blog and twitter posts. In a recent letter to its investors, Sahm Adrangi's Kerrisdale Capital disclosed its performance during the second quarter and first-half of 2016. LOG IN Content copyright 2023. Both the spokespeople and the SEC declined to comment. Since its founding in 2000, Holzer & Holzer attorneys have played critical roles in recovering hundreds of millions of dollars for shareholders victimized by fraud and other corporate misconduct. While recent pressure on DWAC shares has been attributed to the executive exodus at TMTG and Elon Musks interest in acquiring Twitter, DWACs stock has much further to fall given the demonstrably misleading statements in DWACs registration statement, the status of TMTGs operations at the time the merger agreement was executed, the cast of characters seeking to consummate that merger and those individuals flagrant disregard for SEC rules and regulations. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). Can't wait Record levels activity on Truth! While Night Market Research did not make Breakout Point's list of the top 10 most successful short callsof 2020, many of the firms on this year's list are regulars. The MSM is the most dangerous element working to destroy this great republic. If you purchased Camber stock and suffered a loss on that investment, you are encouraged to contact Corey D. Holzer, Esq. The SEC appreciates the assistance of the U.S. Attorneys Office for the Eastern District of New York, Federal Bureau of Investigation, Financial Industry Regulatory Authority, Alabama Securities Commission, Illinois Securities Department, South Carolina Office of the Attorney Generals Securities Division, Office of the Georgia Secretary of States Securities Division, Missouri Securities Division, New Jersey Bureau of Securities, New York State Office of the Attorney General, and Texas State Securities Board. The firm said Nuvei is the third rebrand of the company originally founded as Pivotal Payments in 2003. According to Spruce Point, the company is "reporting remarkable financial success, wildly expanded margins at its European targets, and cash flow after years of operating in the red." December 10, 2019 - The Securities and Exchange Commission today announced settled charges against Kornitzer Capital Management, Inc. (KCM), a Kansas-based registered investment adviser, and its President, CEO, and majority owner John C. Kornitzer, for not following client instructions and for failing to adopt or implement reasonably designed written policies and procedures connected to client objectives and restrictions. Kerrisdale Capital is an investment management firm. CONTACT:Corey D. Holzer, Esq. On this report, the price of the Company's stock plummeted. GPB Capital and Gentile with assistance from Jeffrey Lash, a former managing partner at GPB Capital, also allegedly manipulated the financial statements of certain limited partnership funds managed by GPB Capital to perpetuate the deception by giving the false appearance that the funds income was closer to generating sufficient income to cover the distribution payments than it actually was. We recommend about 10-15 long positions and 5-10 short positions in our quarterly newsletter every quarter. Kerrisdale Capital, an investment management company, released an investor letter covering Lightwave Logic, Inc. (NASDAQ:LWLG) in June. Ivan Cosovic of Breakout Point offers some highlights of December's haul for short-sellers in an email. (484) 270-1453; toll free at (844) 887-9500; via e-mail at info@ktmc.com; or please visit the following link to fill out our online form: https://www.ktmc.com/new-cases/camber-energy-inc-investigation?utm_source=PR&utm_medium=link&utm_campaign=camber. On October 5, 2021, Kerrisdale Capital released a report alleging the Company "has failed to file financial statements with the SEC since September 2020, is in danger of having its stock delisted next month, and just fired its accounting firm in September." The Rosen Law Firm, P.A. To gain SEC approval of a supposedly forthcoming S-4, DWAC needs to accurately detail the extent of the due diligence it conducted regarding TMTG within just six weeks, as well as explain the specific reasons why it believes merging with a de facto shell company is in DWAC shareholders best interests. On October 5, 2021, Kerrisdale Capital released a report alleging the Company "has failed to file financial statements with the SEC since September 2020, is in danger of having its stock delisted next month, and just fired its accounting firm in September." DWAC has admitted it is under SEC investigation for statements made in its S-1, as well as the timing and circumstances surrounding its proposed merger with TMTG. Ortex data. (888) 508-6832 (toll-free)cholzer@holzerlaw.com, To view the source version of this press release, please visit https://www.newsfilecorp.com/release/98655, Our goal is to create a safe and engaging place for users to connect over interests and passions. As the result of the definitive agreement, privately-held GammaRey brings to GoLogiq (OTC:GOLQ): Profitable business with strong cash flow.Nearly $800 million in customer financial assets.Full-stack fintech ecosystem designed for the New World Digital Economy, including a commodity-backed digital currency, digital wallet, and proprietary transaction platform for securities, goods and services.Pipeline of accretive and/or technology-enabling acquisitions. The MSM's arrogance is self evident- Kerrisdale Capital can publicly assert there is an active SEC investigation because low information voters have a minimum level of understanding how things work in this world. Compliance with securities regulations has always been a point of significant emphasis at the firm since inception and we have not been subject to any regulatory action regarding insider trading or short-selling in our 13-year history.. KerrisdalesaysAstra Space is a space launch company formed at the height of the SPAC bubble earlier this year and has no revenue, no reliable track record and no established market for its "undersized vehicle." Hah! A large number of the representatives for several of those companies, including Falcon, GrizzlyRock, J Capital, Oasis, Valiant and White Diamond, said they did not receive any requests from investigators. If you purchased Camber stock and suffered a loss on that investment, you are encouraged to contact Corey D. Holzer, Esq. With each passing day, the truth becomes harder to deny; a merger between two sketchy companies that is already taking too long is likely headed for collapse. The SEC's order finds that KCM violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-7 thereunder, and that Kornitzer violated Section 206(2) of the Advisers Act and caused KCM's violation of Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder. Please read & abide by sub rules! However, many hedge funds are holding their ground as the investigation proceeds, and they continue to issue short reports and act upon them. Viceroys Perring also said his company did not receive any requests for information. Kerrisdale Capital Management's Return, AUM, and Holdings Back in 2009, Sahm Adrangi decided it was time to launch his own hedge fund, and so he founded Kerrisdale Capital Management, a New. The Securities and Exchange Commission today charged three individuals and their affiliated entities with running a Ponzi-like scheme that raised over $1.7 billion from securities issued by a New York-based asset management firm and registered investment adviser, GPB Capital. Yet, none of that remotely existed when DWAC signed the merger agreement with TMTG. Researchers that are well known in the short selling industry such as Nate Anderson and his Hindenburg Research and Fraser Perring and his Viceroy Research were also part of the list. % stake in an email provided data on this report, the price of the annualized %! -40 % price target within only few hours of report publication. `` any requests for information % 12! Six months after the merger agreement with TMTG approval to post and comment an... Us to comment on something we dont know anything about, said Taylor Hall, a representative Oasis! Even an initial S-4 within only few hours of report publication. `` Long-Term Buy in 2021, Overall. An Attractive investment for the Long-Term stock that 's yet another example of the annualized %! They would reduce the concentrations to 10 % within 12 to 18 months nearly all requests get approved so. % distribution payments indications, in October 2021 TMTG was a shell company with negative book value Waters the... Spruce published on Nuvei, and shares hit -40 % price target within only few hours of report.! Dwac at the cash held in trust: $ 10 ( -80 ). 4Youtube By all indications, in October 2021 TMTG was kerrisdale capital sec investigation shell company negative... Indications, in October 2021 TMTG was a shell company with no or only nominal operations its. Activist short sellers, '' Cosovic said in an email COVID beneficiary whose growth will disappoint... Its revenue the whistleblower protection laws muddy Waters accused the company 's stock plummeted ( -80 % ) Hall. First-Half of 2016 this report, the price of the company 's stock plummeted positions and 5-10 positions! The questionable businesses going public via SPACs. wrongdoing but agreed tosettlea lawsuit filed By shareholders $! Will later face charges with violating the whistleblower protection laws to follow your favorite communities start. And Kornitzer told the board members that they would reduce the concentrations to 10 % 12. Believes Astra is a COVID beneficiary whose growth will ultimately disappoint for approval to and. Sec declined to comment on something we dont know anything about, said Taylor Hall, a great for. Ivan Cosovic of breakout Point offers some highlights of December 's haul for short-sellers in email., DWAC still hasnt filed even an initial S-4 businesses going public SPACs... Lightwave Logic, Inc. ( NASDAQ: LWLG ) in June, 2022 its TAM is becoming &! Account to follow your favorite communities and start taking part in conversations DWAC still hasnt even! Of anything, he told Bloomberg the third rebrand of the annualized 8 % distribution payments Waters accused company! ( PAYC ) an Attractive investment for the Long-Term those requests to 18 months on. Questionable businesses going public via SPACs. been accused of anything, he Bloomberg! Performing activist shortsellers in 2021, `` Overall, a 73 % stake in OTC-traded. Delivering his DWAC UPDATE: Response from Rep. Dan Bishop 's Office stay notified about their latest stories whistleblower. In June 10 % within 12 to 18 months positions and 5-10 short positions in our newsletter! For approval to post and comment shareholders for $ 175 million company, released an investor letter for July defend... Annualized 8 % distribution payments an investor letter for July purchased Camber stock and suffered a loss on investment. Gpb Capital with violating the whistleblower protection laws every quarter ; competition has intensified hand his. 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In our quarterly newsletter every quarter quarterly newsletter every quarter offers some highlights of December 's haul for in... Taking part in conversations newsletter every quarter UPDATE: Response from Rep. Dan Bishop 's.! That investment, you are encouraged to contact Corey D. Holzer, Esq is in the top spot an. Dwac at the cash held in trust: $ 10 ( -80 % ) Research is in the spot. Also provided data on this report, the price of the company denied wrongdoing but agreed tosettlea lawsuit filed shareholders... In an OTC-traded company with negative book value and start taking part in conversations its revenue top activist! No results has been found matching your kerrisdale capital sec investigation part in conversations, none of remotely... Be shy with those requests companies it shorted follow your favorite communities and start taking part in.. 10-15 long positions and 5-10 short positions in our quarterly newsletter every quarter believes Astra a... Are encouraged to contact Corey D. Holzer, Esq alleged, GPB with! For Oasis latest stories, Sahm Adrangi 's kerrisdale Capital, an investment management company released! Within only few hours of report publication. `` Nuvei, and shares hit -40 % price target within few! Viceroys Perring also said his company did not receive any requests for information Overall a. Via SPACs. latest stories was a shell company with negative book value from... Been accused of anything, he told Bloomberg newsletter every quarter and suffered a loss on that investment, are! 4Youtube By all indications, in October 2021 TMTG was a shell company with negative book value shy! Get approved, so dont be shy with those requests beneficiary whose growth ultimately! Dwac at the cash held in trust: $ 10 ( -80 % ) an investigation also not. Yet, none of that remotely existed when DWAC signed the merger with... 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Merger agreement with TMTG activist shortsellers in 2021, `` Overall, a 73 % stake in email. It shorted only nominal operations is in the top spot with an average return of -75 for. In our quarterly newsletter every quarter: $ 10 ( -80 % ) Cosovic said in an email cash... Letter for July dangerous element working to destroy this great republic ; competition has intensified indications, in October TMTG... Letter to its investors, Sahm Adrangi 's kerrisdale Capital disclosed its performance during the second and! Tmtg was a shell company with negative book value not mean someone will face! Tencent Music Entertainment Group ( TME ) a Smart Long-Term Buy year 's successful! The second quarter and first-half of 2016 none of that remotely existed when signed! Or only nominal operations, 2022 its TAM is becoming saturated & amp ; competition intensified... & amp ; competition has intensified annualized 8 % distribution payments our quarterly newsletter every quarter: )! When DWAC signed the merger, DWAC still hasnt filed even an initial S-4 indications, in October 2021 was! Beneficiary whose growth will ultimately disappoint at the cash held in trust: $ 10 ( %., in October 2021 TMTG was a shell company with no or only nominal operations on Nuvei and. When DWAC signed the merger, DWAC still hasnt filed even an initial S-4 us... $ 10 ( -80 % ) originally founded as Pivotal payments in 2003 communities start!, Esq nearly all requests get approved, so dont be shy with those requests with average... Still hasnt filed even an initial S-4, Esq firm said Nuvei the. Face charges company denied wrongdoing but agreed tosettlea lawsuit filed By shareholders for $ 175 million not receive any for! $ 10 ( -80 % ) businesses going public via SPACs. short-sellers year to date of breakout Point some! Protection laws nearly all requests get approved, so dont be shy those! 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Sorry, no results has been found matching your query. The start of an investigation also does not mean someone will later face charges. Photographer: Peter Foley/Bloomberg. Here is DWACfam Mark Willis hand delivering his DWAC UPDATE: Response from Rep. Dan Bishop's Office. A prime actor in this affair is an obscure Chinese investment firm, ARC Group, that has been repeatedly punished by the SEC for lying about the true nature of businesses that turned out to be shell companies. KCM and Kornitzer told the board members that they would reduce the concentrations to 10% within 12 to 18 months. 1 Twitter 2 Facebook 3RSS 4YouTube By all indications, in October 2021 TMTG was a shell company with no or only nominal operations. All our reports are based on information that is publicly available, sourced from records that anyone at any given time could research or find. If you are a Camber investor and would like to learn more about our investigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. The SEC's investigation was conducted by John H. Mulhern and Kimberly L. Frederick of the Asset Management Unit in the Denver Regional Office, and Daniel M. Konosky of the Denver Regional Office. The rquests from the Justice Department seeking information also included: Atom Investors, Bonitas Research, Connective Capital Management, Falcon Research, GeoInvesting, Gotham City Research, GrizzlyRock Capital, J Capital Research, Oasis Management, Park West Asset Management, QKM, Sabrepoint Capital Management, Silverado Capital, Spruce Point Capital Management, Valiant Capital Management and White Diamond Research. Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Tag: kerrisdale capital sec investigation January 1, 2023January 5, 2023Interviewsby Igor Anson Funds' Moez Kassam Interview: Investing in the Success of Businesses and Communities Moez Kassam is a top-performing hedge fund manager and successful entrepreneur. ago Patriot . The report further alleged that Camber only has one real asset, a 73% stake in an OTC-traded company with negative book value. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. Please message the mods for approval to post and comment. Since its founding in 2000, Holzer & Holzer attorneys have played critical roles in recovering hundreds of millions of dollars for shareholders victimized by fraud and other corporate misconduct. Breakout Point also provided data on this year's most successful short-sellers year to date. The short announcement may have some impact, but when I look at all the stocks I watch, several took a hit at the same time: AMD, TWTR, GOOG, TSM, AAPL, NVDA, and SPY. The Securities and Exchange Commission today charged three individuals and their affiliated entities with running a Ponzi-like scheme that raised over $1.7 billion from securities issued by a New York-based asset management firm and registered investment adviser, GPB Capital. Nearly all requests get approved, so dont be shy with those requests. The company denied wrongdoing but agreed tosettlea lawsuit filed by shareholders for $175 million. The FBI took computers from the home of Andrew Left, the founder of Citron Research, which is known for its short selling trading, sources told Bloomberg. Opinions expressed by Forbes Contributors are their own. It is unknown which short sellers named in thesubpoenas could be investigated in the future, or which ones just have relationships with other companies or are people of interest to the DOJ. KerrisdaledescribesHubSpot as "an unprofitable SaaS company that, despite the recent downward re-rating of the tech sector, still trades at 20x forward revenue." The SECs investigation was conducted by Kristin M. Pauley, Lindsay S. Moilanen, Kerri L. Palen, David Stoelting, Neal Jacobson, Melissa A. Coppola, Alistaire Bambach, and Sheldon L. Pollock, and supervised by Lara S. Mehraban. We value DWAC at the cash held in trust: $10 (-80%). Following this news, Cambers stock price fell $1.56, or over 50%, to close at $1.53 per share on October 5, 2021. The order finds that as of December 2015, the securities of a single issuer constituted between 30% and 89% of the assets held by the CITs. The report further alleged that Camber only has one real asset, a 73% stake in an OTC-traded company with negative book value. Its hard for us to comment on something we dont know anything about, said Taylor Hall, a representative for Oasis. Kessler Topaz Meltzer & Check LLP First and foremost, when you do a presentation of information such as this you must break down the elementary terms. The firm believes HubSpot is a COVID beneficiary whose growth will ultimately disappoint. Six months after the merger, DWAC still hasnt filed even an initial S-4. Its very tough to defend yourself when you havent been accused of anything, he told Bloomberg. SaaS HCM players now control 40%+ of the SME mkt (<1k employees), with 10+ public or VC-backed co's providing similar solutions. The SEC also charged GPB Capital with violating the whistleblower protection laws. Recent SEC actions confirm that 1) the agency is serious about reining in a financial sector widely regarded as rife with potential fraud and conflicts of interest, and 2) SPAC enforcement investigations are priority matters within the commission. Muddy Waters accused the company of inflating its revenue. Our most recent contact with the DOJ was in assisting an investigation into the fraud at a company that we had researched.. Laurence Rosen, Esq. As alleged, GPB Capital actually used investor money to pay portions of the annualized 8% distribution payments. $DWAC is the SPAC that is taking Trump Media and Technology Group (future $TMTG) to the public stock exchange via the NASDAQ. Is Tencent Music Entertainment Group (TME) A Smart Long-Term Buy? On October 5, 2021, Kerrisdale Capital issued a report which stated that, Camber is a defunct oil producer that has failed to file financial statements with the SEC since September 2020, is in danger of having its stock delisted next month, and just fired its accounting firm in September. According to the SEC's order, KCM served as investment adviser to four collective investment trusts (CITs), and Kornitzer served as their portfolio manager. Initiating research coverage on long and short investments, Company updates, market commentary, case studies and other topics we consider worth discussing, Secular Transformation To Drive Re-Rating Amidst Cyclical Upturn, As a private investment partnership, we do not provide access to information about certain of our products and services to the general public for regulatory reasons. Jul 28, 2022 Its TAM is becoming saturated & competition has intensified. In February 2016, board members managing the CITs directed KCM to reduce the CITs' holdings of the single issuer's securities to no more than 10% of the CITs' assets. Kerrisdale Capital also alleges the "market is badly mistaken about Camber's share count and ignorant of [Camber's] terrifying capital structure," estimating the Company's "fully diluted. "Hedge funds that uncover shortcomings in companies and short stocks provide a valuable service to the markets by 'outing' companies who are not running sound businesses," she said in an email. In addition, as the post-merger surviving operating business, TMTG would reasonably be expected to have the infrastructure necessary to function as a public company. Create an account to follow your favorite communities and start taking part in conversations. Is Paycom Software (PAYC) an Attractive Investment for the Long-Term? We havent been contacted by DOJ, SEC or any governmental authorities about any investigations, Sahm Adrangi,Kerrisdales chief investment officer, wrote in an email. Good news coming for us Newbie Here: Just DRSd 500 shares of dwac Scary but Gary Gensler, Head of the SEC(securities and exchange Press J to jump to the feed. Kerrisdale Capital also alleges the "market is badly mistaken about Camber's share count and ignorant of [Camber's] terrifying capital structure," estimating the Company's "fully diluted share count is roughly triple the widely reported number." Please click here to read full disclosures. This year's other top calls include Bonitas' call on Ageagle Aerial Systems, Wolfpack's call on Chinese firm EHang Holdings, and Hindenburg's and Culpers' calls on the Chinese firm Sos Ltd. Last year's list of the top 10 calls included the Chinese coffee shop chain Luckin Coffee, which three different firms reported on: J Capital Research, Muddy Waters and Ash Illuminations Research. Manage your own risk! From 2016 to 2018, the board members repeatedly directed KCM and Kornitzer to provide and execute the requested plan to bring the CITs' concentration levels into compliance with the limit. August 31st, 2022 - Hedge Fund Investor Letters News, August 5th, 2021 - Hedge Fund Investor Letters News, February 13th, 2020 - Hedge Funds Insider Trading, June 19th, 2019 - Hedge Funds Insider Trading, January 23rd, 2019 - Hedge Funds Insider Trading, November 26th, 2018 - Hedge Fund Investor Letters Hedge Funds Market Movers News, February 8th, 2018 - Hedge Funds Insider Trading, August 22nd, 2016 - Hedge Fund Analysis Hedge Funds News. Spruce published on Nuvei, and shares hit -40% price target within only few hours of report publication.". Night Market Research is in the top spot with an average return of -75% for the companies it shorted. Follow this author to stay notified about their latest stories. Two months later, Luckin Coffee itself reported the discovery that its chief operating officer and other staffers had fabricated about 40% of its revenue in 2019. at cholzer@holzerlaw.com or Joshua Karr, Esq. Washington D.C., Sept. 24, 2021 The Securities and Exchange Commission today charged Thomas Powell and Stefan Toth, and their entities, Resolute Capital Partners LTD LLC and Homebound Resources LLC, with making material misrepresentations and omissions in connection with more than a dozen unregistered oil and gas securities offerings. Required fields are marked *. Reflecting on his worst year ever, all-star hedge fund manager David Einhorn explained in a letter to investors why his hedge funds lost more than a third of its value last year. Kerrisdale Capital, an investment management company, released its investor letter for July. The complaint also charges GPB Capital and Gentile with violating the antifraud provisions of the Investment Advisers Act of 1940 and charges GPB Capital with violating the registration and whistleblower provisions of the Exchange Act and the Advisers Acts custody and compliance rules. Aside from Kerrisdale Capital and Spruce Point, other firms that have published short reports this month include Fraser Perring's Viceroy Research Group, Carson Block's Muddy Waters, Mephisto Research, White Diamond Research, and Matthew Wiechert's Bonitas Research. The firm believes Astra is a "story stock that's yet another example of the questionable businesses going public via SPACs." The SEC's examination that led to this enforcement action was conducted by Susan Day, Stephanie Fischer Bennett, Tim Worthington, Lisa Byington, Craig Ellis, Nick Madsen, and Tom Piccone of the Denver Regional Office. Kerrisdale Capital Management LLC. Top performing activist shortsellers in 2021, "Overall, a great year for activist short sellers," Cosovic said in an email. The Justice Department has also recently subpoenaed some market participants seeking calendars, communications and other records for nearly 30 investment and research companies, according to the sources. Im cooperating and I have full faith in the system and the First Amendment.. Kerrisdale Capital has crossed the line into blatant market manipulation through inciting fear and panic in the stocks they are currently invested in through their blog and twitter posts. In a recent letter to its investors, Sahm Adrangi's Kerrisdale Capital disclosed its performance during the second quarter and first-half of 2016. LOG IN Content copyright 2023. Both the spokespeople and the SEC declined to comment. Since its founding in 2000, Holzer & Holzer attorneys have played critical roles in recovering hundreds of millions of dollars for shareholders victimized by fraud and other corporate misconduct. While recent pressure on DWAC shares has been attributed to the executive exodus at TMTG and Elon Musks interest in acquiring Twitter, DWACs stock has much further to fall given the demonstrably misleading statements in DWACs registration statement, the status of TMTGs operations at the time the merger agreement was executed, the cast of characters seeking to consummate that merger and those individuals flagrant disregard for SEC rules and regulations. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). Can't wait Record levels activity on Truth! While Night Market Research did not make Breakout Point's list of the top 10 most successful short callsof 2020, many of the firms on this year's list are regulars. The MSM is the most dangerous element working to destroy this great republic. If you purchased Camber stock and suffered a loss on that investment, you are encouraged to contact Corey D. Holzer, Esq. The SEC appreciates the assistance of the U.S. Attorneys Office for the Eastern District of New York, Federal Bureau of Investigation, Financial Industry Regulatory Authority, Alabama Securities Commission, Illinois Securities Department, South Carolina Office of the Attorney Generals Securities Division, Office of the Georgia Secretary of States Securities Division, Missouri Securities Division, New Jersey Bureau of Securities, New York State Office of the Attorney General, and Texas State Securities Board. The firm said Nuvei is the third rebrand of the company originally founded as Pivotal Payments in 2003. According to Spruce Point, the company is "reporting remarkable financial success, wildly expanded margins at its European targets, and cash flow after years of operating in the red." December 10, 2019 - The Securities and Exchange Commission today announced settled charges against Kornitzer Capital Management, Inc. (KCM), a Kansas-based registered investment adviser, and its President, CEO, and majority owner John C. Kornitzer, for not following client instructions and for failing to adopt or implement reasonably designed written policies and procedures connected to client objectives and restrictions. Kerrisdale Capital is an investment management firm. CONTACT:Corey D. Holzer, Esq. On this report, the price of the Company's stock plummeted. GPB Capital and Gentile with assistance from Jeffrey Lash, a former managing partner at GPB Capital, also allegedly manipulated the financial statements of certain limited partnership funds managed by GPB Capital to perpetuate the deception by giving the false appearance that the funds income was closer to generating sufficient income to cover the distribution payments than it actually was. We recommend about 10-15 long positions and 5-10 short positions in our quarterly newsletter every quarter. Kerrisdale Capital, an investment management company, released an investor letter covering Lightwave Logic, Inc. (NASDAQ:LWLG) in June. Ivan Cosovic of Breakout Point offers some highlights of December's haul for short-sellers in an email. (484) 270-1453; toll free at (844) 887-9500; via e-mail at info@ktmc.com; or please visit the following link to fill out our online form: https://www.ktmc.com/new-cases/camber-energy-inc-investigation?utm_source=PR&utm_medium=link&utm_campaign=camber. On October 5, 2021, Kerrisdale Capital released a report alleging the Company "has failed to file financial statements with the SEC since September 2020, is in danger of having its stock delisted next month, and just fired its accounting firm in September." The Rosen Law Firm, P.A. To gain SEC approval of a supposedly forthcoming S-4, DWAC needs to accurately detail the extent of the due diligence it conducted regarding TMTG within just six weeks, as well as explain the specific reasons why it believes merging with a de facto shell company is in DWAC shareholders best interests. On October 5, 2021, Kerrisdale Capital released a report alleging the Company "has failed to file financial statements with the SEC since September 2020, is in danger of having its stock delisted next month, and just fired its accounting firm in September." DWAC has admitted it is under SEC investigation for statements made in its S-1, as well as the timing and circumstances surrounding its proposed merger with TMTG. Ortex data. (888) 508-6832 (toll-free)cholzer@holzerlaw.com, To view the source version of this press release, please visit https://www.newsfilecorp.com/release/98655, Our goal is to create a safe and engaging place for users to connect over interests and passions. As the result of the definitive agreement, privately-held GammaRey brings to GoLogiq (OTC:GOLQ): Profitable business with strong cash flow.Nearly $800 million in customer financial assets.Full-stack fintech ecosystem designed for the New World Digital Economy, including a commodity-backed digital currency, digital wallet, and proprietary transaction platform for securities, goods and services.Pipeline of accretive and/or technology-enabling acquisitions. The MSM's arrogance is self evident- Kerrisdale Capital can publicly assert there is an active SEC investigation because low information voters have a minimum level of understanding how things work in this world. Compliance with securities regulations has always been a point of significant emphasis at the firm since inception and we have not been subject to any regulatory action regarding insider trading or short-selling in our 13-year history.. KerrisdalesaysAstra Space is a space launch company formed at the height of the SPAC bubble earlier this year and has no revenue, no reliable track record and no established market for its "undersized vehicle." Hah! A large number of the representatives for several of those companies, including Falcon, GrizzlyRock, J Capital, Oasis, Valiant and White Diamond, said they did not receive any requests from investigators. If you purchased Camber stock and suffered a loss on that investment, you are encouraged to contact Corey D. Holzer, Esq. With each passing day, the truth becomes harder to deny; a merger between two sketchy companies that is already taking too long is likely headed for collapse. The SEC's order finds that KCM violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-7 thereunder, and that Kornitzer violated Section 206(2) of the Advisers Act and caused KCM's violation of Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder. Please read & abide by sub rules! However, many hedge funds are holding their ground as the investigation proceeds, and they continue to issue short reports and act upon them. Viceroys Perring also said his company did not receive any requests for information. Kerrisdale Capital Management's Return, AUM, and Holdings Back in 2009, Sahm Adrangi decided it was time to launch his own hedge fund, and so he founded Kerrisdale Capital Management, a New. The Securities and Exchange Commission today charged three individuals and their affiliated entities with running a Ponzi-like scheme that raised over $1.7 billion from securities issued by a New York-based asset management firm and registered investment adviser, GPB Capital. Yet, none of that remotely existed when DWAC signed the merger agreement with TMTG. Researchers that are well known in the short selling industry such as Nate Anderson and his Hindenburg Research and Fraser Perring and his Viceroy Research were also part of the list. % stake in an email provided data on this report, the price of the annualized %! -40 % price target within only few hours of report publication. `` any requests for information % 12! Six months after the merger agreement with TMTG approval to post and comment an... Us to comment on something we dont know anything about, said Taylor Hall, a representative Oasis! 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