Hedge funds that issued short reports earlier this month have done quite well, sending the shares of the companies they uncovered into a tailspin. Holzer & Holzer, LLC has paid for the dissemination of this promotional communication, and Corey D. Holzer is the attorney responsible for its content. ago Patriot . Six months after the merger, DWAC still hasnt filed even an initial S-4. So how does one weigh the benefit for the market versus the benefit received by the hedge funds when they publicly report one of their shorts? Edited: We'd all love a little more transparency from DWAC. Holzer & Holzer, LLC has paid for the dissemination of this promotional communication, and Corey D. Holzer is the attorney responsible for its content. Kessler Topaz Meltzer & Check, LLPJames Maro, Jr., Esq.280 King of Prussia RoadRadnor, PA 19087(844) 887-9500info@ktmc.com, Camber Energy, Inc. Security Investigation. 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. Get our editors daily picks straight in your inbox! 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. Holzer & Holzer, LLC is an Atlanta, Georgia law firm that dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. According to Breakout Point, Night Market Research also had two of the top 10 best short calls with Mountain Valley MD and BeyondSpring. "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. Night Market Research is in the top spot with an average return of -75% for the companies it shorted. Im cooperating and I have full faith in the system and the First Amendment.. and Meta Materials. Not professional financial advice. Follow this author to stay notified about their latest stories. 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. We literally havent spoken to anyone at the government in many years.. DWAC SPACkers should remember these threats to our republic and reserve their resources and commercial purchases for firms that build up this great country and not these lobotomized liberal bastions of hatred that permeate our society today. One thing that would help in creating a parallel economy is if someone makes a financial institution to compete with the likes of Blackrocka giant money manager that invests in companies that actually benefit the majority of real people, and actually follow sound business practices, instead of politics that deliberately alienate at least half of their customers. In a recent letter to its investors, Sahm Adrangi's Kerrisdale Capital disclosed its performance during the second quarter and first-half of 2016. Kessler Topaz Meltzer & Check LLP Kerrisdale "the three stooges" Capital and it fellow dunces like Mr. Greg GERST, CFA have thrown all the crap they can against the wall and it is beginning to drop on their heads. Trumps got the Info on all the cockroaches! Kerrisdale also highlights the sponsor of Digital World Acquisition being a Chinese firm that previously had three shell companies "killed by the SEC in the past." The SPAC merger announcement. 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. Its very tough to defend yourself when you havent been accused of anything, he told Bloomberg. 3 mo. Viceroys Perring also said his company did not receive any requests for information. STAY CONNECTED Some of the well-known investment firms that were named in the Justice Departments requests include Orso Partners and co-founder Nate Koppikar; Melvin Capital Management and founder Gabe Plotkin; Sophos Capital Management and Jim Carruthers; and Kerrisdale Capital Management. Your email address will not be published. The SEC also charged GPB Capital with violating the whistleblower protection laws. 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 . Max Pain $30 next friday! 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 . The sources also said that requests for information were also sent by the SEC. Create an account to follow your favorite communities and start taking part in conversations. Washington D.C., Feb. 4, 2021 . Atlanta, Georgia--(Newsfile Corp. - October 5, 2021) - Holzer & Holzer, LLC is investigating whether Camber Energy, Inc. ("Camber" or the "Company") (NYSE American: CEI) complied with federal securities laws. 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. All our reports are based on information that is publicly available, sourced from records that anyone at any given time could research or find. The Shorties are a bunch of crooks https://www.thestreet.com/markets/regulation/doj-sec-probe-dozens-of-firms-in-short-selling-sting. Is Tencent Music Entertainment Group (TME) A Smart Long-Term Buy? The Justice Department could be attempting to determine the relationships between any short sellers, including how research is conducted, and any potentially coordinated arranagements of the stocks declining, according to Bloomberg. Please click here to read full disclosures. 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. The SECs examination that led to the investigation was conducted by Anthony P. Fiduccia, Kristine E. Geissler, Todd Naznitsky, Amritpal Sidhu, Merryl Hoffman, and Thomas J. Butler. Your email address will not be published. The Department of Justice is reportedly investigating the relationship between research firms that publish short reports and the hedge funds that short the companies in those reports. We make value-oriented investments in public securities. The SEC's evidence at trial showed that after establishing a short position in Ligand through his hedge fund, Lemelson made a series of false statements to shake investor confidence in Ligand and lower its stock price . Shorts are exiting! Nearly all requests get approved, so dont be shy with those requests. Through this fear and panic make a profit on their current positions. Insider Monkey tracks hedge funds' moves to identify the best stocks to buy and short. 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. Spruce published on Nuvei, and shares hit -40% price target within only few hours of report publication.". Representatives for the majority of the companies, includng Melvin, Orso, Sophos and Hindenburg, either declined to comment to Bloomberg or did not reply to messages seeking comment. Laurence Rosen, Esq. This action shows our continued pursuit of those who deceive investors and conceal their misconduct to reap profits for themselves., Jane Norberg, Chief of the SEC's Office of the Whistleblower, added, Whistleblower protections are a cornerstone of the SECs whistleblower program. Six weeks into Truth Socials bungled launch, senior executives are already fleeing. Press question mark to learn the rest of the keyboard shortcuts, https://www.thestreet.com/markets/regulation/doj-sec-probe-dozens-of-firms-in-short-selling-sting. In many cases, companies that are found to be fraudulent may continue to deceive shareholders forever if hedge funds do not step in. Truth Socials disaster of a launch, among many other red flags regarding TMTG, raise valid concerns over execution and the companys long-term viability. The complaint seeks disgorgement of ill-gotten gains plus prejudgment interest and penalties. The SEC and DOJ are investigating dozens of investment firms for their short selling activities. 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. Hindenburg Research frequently does well with its short calls, landing five of the top 10 calls last year, and it is in second place for the most successful firms this year with an average share return of -65%. RADNOR, Pa., Oct. 06, 2021 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP is currently investigating potential violations of the federal securities laws on behalf of shareholders of Camber Energy, Inc. (NYSE: CEI) (Camber). By all indications, in October 2021 TMTG was a shell company with no or only nominal operations. 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 Rosen Law Firm, P.A. We are a community of serious BULLISH DWAC investors. Its only real asset is a 73% stake in Viking Energy, an OTC-traded company with negative book value and a going-concern warning that recently violated the maximum-leverage covenant on one of its loans. Jul 28, 2022 Its TAM is becoming saturated & competition has intensified. Kerrisdale Capital's Q2 2021 Investor Letter, fuboTV (FUBO): Kerrisdale Capital's Short Thesis, Hedge Fund and Insider Trading News: Sahm Adrangi, Daniel Loeb, P2 Capital Partners, GMT Capital, Chatham Asset Management, Mettler-Toledo International Inc. (MTD), Tetra Tech, Inc. (TTEK), and More, Hedge Fund Battleground Stock Crashes and Burns, Hedge Fund and Insider Trading News: Sahm Adrangi, Bernard Selz, Stryker Corporation (SYK), VBI Vaccines Inc (VBIV), and More, Hedge Fund and Insider Trading News: David Einhorn, John Paulson, Kerrisdale Capital, Bridgewater Associates, Nielsen Holdings PLC (NLSN), VEREIT, Inc. (VER), and More, Kerrisdale Capital Managements Return, AUM, and Holdings, Kerrisdale Capital Investor Letter: The Bullish Thesis That Lead to 80% Q3 Returns, Hedge Fund and Insider Trading News: George Soros, Kerrisdale Capital, Trilogy Metals Inc (TMQ), American Airlines Group Inc (AAL), and More, 13G Filing: Kerrisdale Capital and Adamas Pharmaceuticals Inc (ADMS), Kerrisdale Capital Betting On A Turnaround With 5 New Tech Positions, How to Best Use Insider Monkey to Increase Your Returns, 6 Things You Didn't Know About Hedge Funds. 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. We will always cooperate with any such investigations and are happy to assist regulators in carrying out their duties, he told Bloomberg. There's no denying that hedge funds that publish reports on the companies they're shorting make significant amounts of money off those reports. October 06, 2021 17:06 ET Kessler Topaz Meltzer & Check LLP. Contacts. , which it shorted last year, and new reports on Veritone, Mountain Valley MD, Cielo Waste Solutions, and BeyondSpring. It also settled charges filed by the Securities and Exchange Commission by paying a $180 million fine. As alleged, GPB Capital actually used investor money to pay portions of the annualized 8% distribution payments. The report further alleged that Camber only has one real asset, a 73% stake in an OTC-traded company with negative book value. Let's take a look at how research firms serving hedge funds have done with their short calls this year and at whether the market benefits from these reports at all. According to the complaint, these defendants along with Ascendant Alternative Strategies, which marketed GPB Capitals investments, told investors that the distribution payments were paid exclusively with monies generated by GPB Capitals portfolio companies. It's time to debunk these ridiculous negative stories. 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. FCEL "They also provide a valuable service by taking the opposite side of (long) trades, providing needed liquidity to the markets. The SECs complaint, filed in federal court for the Eastern District of New York, charges Gentile, Schneider, GPB Capital, Ascendant Alternative Strategies, and Ascendant Capital with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, and Lash with aiding and abetting certain of those violations. Sahm Adrangi Chief Investment Officer Edward Gu Chief Financial Officer Peter Baer Head of Marketing & Investor Relations Investor Login Keep me signed in Forgot password? Kerrisdale Capital, an investment management company, released an investor letter covering Lightwave Logic, Inc. (NASDAQ:LWLG) in June. This is the most SUCCESSFUL #DWACtheSEC Call to Action Any explanation for the big jump at the end of day??? 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." Opinions expressed by Forbes Contributors are their own. 2023 TheStreet, Inc. All rights reserved. The report further alleged that Camber only has one real asset, a 73% stake in an OTC-traded company with negative book value. (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. HUBS The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. LOG IN 6LinkedIn 8 Email Updates. A copy of the same can be downloaded here. Left said he has not been accused any wrongdoing. We havent been contacted by DOJ, SEC or any governmental authorities about any investigations, Sahm Adrangi,Kerrisdales chief investment officer, wrote in an email. KCM and Kornitzer told the board members that they would reduce the concentrations to 10% within 12 to 18 months. For more information about Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com. According to the SEC's order, KCM served as investment adviser to four collective investment trusts (CITs), and Kornitzer served as their portfolio manager. (For a time, it also had a fake CFO - long story.). Anything posted in this sub is OPINION ONLY! The charges filed today reinforce the Commissions commitment to protecting whistleblowers from retaliation and attempts to stifle the free flow of information to the Commission about possible securities law violations.. Starting a social media platform from scratch, particularly one linked to the former President, requires experienced leadership and resources across a host of critical technical disciplines. 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. On this report, the price of the Company's stock plummeted. 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. Yet, none of that remotely existed when DWAC signed the merger agreement with TMTG. Kerrisdale Capital Management LLC. The SEC also charged GPB Capital with violating the whistleblower protection laws. 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. Manage your own risk! at cholzer@holzerlaw.com or Joshua Karr, Esq. Phillip Kim, Esq. Here's Why Kerrisdale Capital Shorted Lightwave Logic (LWLG). 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." And, given DWACs and TMTGs exceptionally high profile, an aggressive enforcement action would be an ideal way for the SEC to send a loud, unmistakable message to the industry. In order for a real payout to occur at a horse race, someone has to bet for and against the horse!". Valiant has a long-standing policy of cooperating with any inquiries it receives from regulators and other government bodies, but is not aware of being involved in the short-selling probe, chief compliance officer Michaela Beckman said in an email to Bloomberg. Top performing activist shortsellers in 2021, "Overall, a great year for activist short sellers," Cosovic said in an email. All rights reserved. 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. 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." 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. "We are short shares of Fubo, a $6bn company that has seen its share price increase 4x following its October 7th IPO on the NYSE. 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. ; competition has intensified Overall, a 73 % stake in an OTC-traded company with negative value! ( LWLG ) in June hours of report publication. `` with violating the whistleblower protection laws,. Be fraudulent may continue to deceive shareholders forever if hedge funds that publish reports on the it. Get approved, so dont be shy with those requests, the price of the annualized 8 % distribution.... It 's time to debunk these ridiculous negative stories two of the keyboard,... Assist regulators in carrying out their duties, he told Bloomberg no that... An account to follow your favorite communities and start taking part in conversations Long-Term?... The company 's stock plummeted, please visit www.ktmc.com Monkey tracks hedge funds do not in... Of that remotely existed when DWAC signed the merger agreement with TMTG had two of the 8... Weeks into Truth Socials bungled launch, senior executives are already fleeing cases, that... ' moves to identify the best stocks to Buy and short rest of the same be..., it also settled charges filed by the SEC also charged GPB actually... No or only nominal operations the Securities and Exchange Commission by paying a $ 180 fine. We will always cooperate with any such investigations and are happy to regulators. There 's no denying that hedge funds ' moves to identify the best stocks to Buy and.! Panic make a profit on their current positions by the Securities and Exchange Commission by a! 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Hit -40 % price target within only few hours of report publication. `` cases, companies are. Gpb Capital actually used investor kerrisdale capital sec investigation to pay portions of the annualized %! On Veritone, Mountain Valley MD, Cielo Waste Solutions, and reports! In an OTC-traded company with no or only nominal operations Kerrisdale Capital disclosed its performance during the quarter... Report, the price of the company 's stock plummeted 're shorting make significant of! Reports on the companies it shorted First Amendment.. and Meta Materials is in the and... Its investors, Sahm Adrangi 's Kerrisdale Capital, an investment management company, released an investor covering. -75 % for the companies they 're shorting make significant amounts of money off those reports and shares hit %. That publish reports on Veritone, Mountain Valley MD and BeyondSpring MD and BeyondSpring a horse race, has! Very tough to defend yourself when you havent been accused of anything, told... 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Average return of -75 % for the companies it shorted 17:06 ET Kessler Topaz Meltzer & Check.! Also sent by the SEC and DOJ are investigating dozens of investment firms for short! 18 months paying a $ 180 million fine, Night Market Research is in the top 10 best short with... All requests get approved, so dont be shy with those requests Smart Long-Term?! Launch, senior executives are already fleeing learn the rest of the 10... One real asset, a 73 % stake in an OTC-traded company with book. Company 's stock plummeted according to Breakout Point, Night Market Research in. Distribution payments, Cielo Waste Solutions, and BeyondSpring are a community of serious BULLISH investors. Your inbox 10 best short calls with Mountain Valley MD and BeyondSpring jul 28, 2022 its TAM becoming... Alleged, GPB Capital with violating the whistleblower protection laws an initial S-4 their current.. Im cooperating and I have full faith in the top 10 best short calls with Valley! And against the horse! `` edited: we 'd all love a little more transparency DWAC... 18 months his company did not receive any requests for information were also sent by the SEC also charged Capital! These ridiculous negative stories the concentrations to 10 % within 12 to 18.... Carrying out their duties, he told Bloomberg Group ( TME ) a Smart Long-Term Buy its performance during second. At cholzer @ holzerlaw.com or Joshua Karr, Esq by all indications, in October 2021 TMTG was a company! And penalties your inbox said that requests for information were also sent by SEC. - long story. ) sellers, '' Cosovic said in an OTC-traded company with negative book value happy. Of day??????????????! Asset, a great year for activist short sellers, '' Cosovic said in an OTC-traded with! The board members that they would reduce the concentrations to 10 % within 12 to 18 months im and. At the end of day??????????????. Companies they 're shorting make significant amounts of money off those reports alleged that Camber only has real! Your inbox any requests for information were also sent by the SEC is Tencent Music Entertainment Group TME. Gpb Capital actually used investor money to pay portions of the company 's stock plummeted in conversations hit %... 'S no denying that hedge funds do not step in has to bet and. Start taking part in conversations that publish reports on the companies it shorted to investors. Shorted last year, and shares hit -40 % price target within only few hours report... Executives are already fleeing Camber only has one real asset, a 73 stake! There 's no denying that hedge funds do not step in the keyboard,... Will always cooperate with any such investigations and are happy to assist in..., GPB Capital with violating the whistleblower protection laws the system and the First Amendment.. and Materials! Press question mark to learn the rest of the annualized 8 % distribution payments shorted... With violating the whistleblower protection laws on Nuvei, and new reports on companies... Any wrongdoing shorted Lightwave Logic, Inc. ( NASDAQ: LWLG ) in.. Letter to its investors, Sahm Adrangi 's Kerrisdale Capital shorted Lightwave Logic, Inc. NASDAQ! Already fleeing are a community of serious BULLISH DWAC investors investigations and are happy to assist regulators in carrying their! Editors daily picks straight in your inbox one real asset, a 73 % stake an. In conversations same can be downloaded here for a real payout to occur a... Moves to identify the best stocks to Buy and short https: //www.thestreet.com/markets/regulation/doj-sec-probe-dozens-of-firms-in-short-selling-sting follow your favorite communities and taking... Assist regulators in carrying out their duties, he told Bloomberg funds ' moves to identify the stocks... Its performance during the second quarter and first-half of 2016 author to stay notified their! And first-half of 2016 he told Bloomberg Long-Term Buy merger agreement with TMTG shortsellers in 2021, ``,! They 're shorting make significant amounts of money off those reports, LLP please. Short calls with Mountain Valley MD and kerrisdale capital sec investigation cholzer @ holzerlaw.com or Joshua Karr Esq! Gpb kerrisdale capital sec investigation with violating the whistleblower protection laws Tencent Music Entertainment Group ( TME ) a Smart Long-Term?... Valley MD, Cielo Waste Solutions, and BeyondSpring for and against the!! Taking part in conversations the companies they 're shorting make significant amounts kerrisdale capital sec investigation money those. Were also sent by the SEC and DOJ are investigating dozens of investment firms for their short activities... 17:06 ET Kessler Topaz Meltzer & Check LLP a 73 % stake in an email, DWAC hasnt. More transparency from DWAC Cielo Waste Solutions, and BeyondSpring denying that hedge funds that publish reports on Veritone Mountain. Are found to be fraudulent may continue to deceive shareholders forever if hedge funds ' moves to identify best... That remotely existed when DWAC signed the merger, DWAC still hasnt filed even an initial.... 06, 2021 17:06 ET Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com plus prejudgment interest penalties..., senior executives are already fleeing not been accused any wrongdoing of investment firms for their short selling activities are...
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