The CEO Longfin Corp, a United States-based finance and technology company, will be paying $400,000 to the Securities and Exchange Commission (SEC), to resolve what are considered “fraud action” put against him via the SEC.
Venkata S. Meenavalli is the CEO’s name, and him along with three other related persons have illegally earned over $26 million that they must pay back to what a press release considers “harmed investors.”
This release continues, noting that the SEC filed a complaint that Meenavalli and his company “obtained qualification for a Regulation A+ offering by falsely representing in public filings that the company was managed and operated in the U.S.”
From there, it’s worth noting that provided 400,000 shares to the CEO and other members of Longfin, and then lied about it to Nasdaq. On top of this, the SEC complaint notes that nearly all of Longfin’s 2017 revenue was the result of scams.
Anita B. Bandy, the Associate Director of the Division of Enforcement, commented on the matter:
“As alleged in our complaint, Meenavalli abused the Reg. A+ process to conduct a fraudulent offering, list Longfin on Nasdaq, and entice investors with falsified revenue. The SEC staff’s quick actions exposed the full scope of Meenavalli’s fraud and resulted in additional monetary and prophylactic relief to prevent him from defrauding U.S. investors in the future.”
This settlement still has yet to be approved by the court, but the details are there and we will likely see the results of this very soon. The company has been shut down since November of last year.