October 2020 – Page 2 – Financial Treason & Crime

Grizzly Research, 09 October 2020

Celsius Holdings Inc. is a ﬁtness beverage company that has seen its stock skyrocket in 2020 on the back of sudden and unexpected revenue growth.

Investors have been led on by strong sales trends driving sky-high expectations for the future, though our analysis shows Europe, a substantial portion of the business, is not nearly as good as it looks, with far lower and potentially negative sequential growth across Q3-2019 to Q2-2020.

We ﬁnd Celsius’ acquisition of their Nordic distributor Func Foods concerning, and urge investors to question why management would commit resources to a non-core business approaching insolvency with a poor track record of successfully growing brands, serving a geography with declining sales.

Our search for a rationale revealed what appears to us to be several troublesome factors indicating Func may have been used for sales manipulation and/or channel stuﬃng. We highlight rising payables, beneﬁcial distribution terms, and strong hints at Multi-Level-Marketing Activities.
Continue reading “Article: Why We Don’t Trust Celsius Holdings Inc. (Nasdaq: CELH) Portrayed Growth”

10/08/202002/20/2021

Article: ACM Research (ACMR): Dirty Business

Article - Media, Publications

ACM Research (ACMR): Dirty Business

J Capital, 08 October 2020

We believe ACM Research (ACMR) is a fraud, over-reporting both revenue and profit. What real profit the company has is apparently being siphoned off to related parties.

ACMR faces a cash crunch even with a reported $86 mln in the bank. ACMR is borrowing at high rates of interest, and the company is pushing to IPO substantially all the company assets in Shanghai in order to raise cash. This will significantly dilute U.S. investors.

We visited ACMR sites in China, Korea, and California, accessed credit reports on ACMR subsidiaries, reviewed ACMR’s exchanges with Shanghai regulators, and conducted more than 40 interviews.
Continue reading “Article: ACM Research (ACMR): Dirty Business”

10/08/202002/20/2021

Article: ACM Research accused of fraud by short-seller J Capital

Article - Media, Publications

ACM Research accused of fraud by short-seller J Capital

ACMR, 08 October 2020

In a short report published on its website, J Capital Research’s Anne Stevenson-Yang said “We believe ACM Research (ACMR) is a fraud, over-reporting both revenue and profit. What real profit the company has is apparently being siphoned off to related parties… We have evidence that undisclosed related parties are diverting revenue and profit from the company Key means by which ACMR tunnels over-reported profit out of the company may be through about $20 mln in overstated inventory costs and through cash that is inflated or just compromised. We think least $11 mln in warranty and service costs are understated.
Continue reading “Article: ACM Research accused of fraud by short-seller J Capital”

10/08/202003/20/2021

Article: UK parliament committee says Huawei colludes with the Chinese state

Article - Media, Publications

UK parliament committee says Huawei colludes with the Chinese state

Reuters Staff, 08 October 2020

The British parliament’s defence committee said on Thursday that it had found clear evidence that telecoms giant Huawei had colluded with the Chinese state and said Britain may need to remove all Huawei equipment earlier than planned.

British Prime Minister Boris Johnson in July ordered Huawei equipment to be purged from the nascent 5G network by the end of 2027. U.S. President Donald Trump claimed credit for the British decision.

“The West must urgently unite to advance a counterweight to China’s tech dominance,” Tobias Ellwood, chairman of the defence committee, said. “We must not surrender our national security for the sake of short-term technological development.”

The committee did not go into detail about the exact nature of the ties but said it had seen clear evidence of Huawei collusion with “the Chinese Communist Party apparatus”.

Read Full Article

10/08/202002/24/2021

Article: Aurora Cannabis Inc. Investors: Company Investigated by the Portnoy Law Firm

Article - Media, Publications

Aurora Cannabis Inc. Investors: Company Investigated by the Portnoy Law Firm

GLOBE NEWSWIRE, 08 October 2020

A The Portnoy Law Firm advises Aurora Cannabis Inc. (“Aurora” or the “Company”) (NYSE: ACB) investors that the firm has initiated an investigation into possible securities fraud, and may file a class action on behalf of investors. The investigation focuses on allegations that Aurora may have issued misleading information to the investing public.

A press release was issued by Aurora on September 8, 2020, “announcing] an update on its business operations along with certain unaudited preliminary fiscal fourth-quarter 2020 results.” Aurora announced that the Company expected to record up to $1.8 billion in goodwill impairment charges in the fourth quarter of 2020. Aurora also announced that “previously announced fixed asset impairment charges [were] now expected to be up to $90 million, due to production facility rationalization, and a charge of approximately $140 million in the carrying value of certain inventory, predominantly trim, in order to align inventory on hand with near term expectations for demand.”
Continue reading “Article: Aurora Cannabis Inc. Investors: Company Investigated by the Portnoy Law Firm”

10/08/202002/22/2021

Article: CleanSpark Is A Failed Business Roll-Up In A Vicious Court Battle With Its Largest Shareholder – $3 Price Target

Article - Media, Publications

CleanSpark Is A Failed Business Roll-Up In A Vicious Court Battle With Its Largest Shareholder – $3 Price Target

WHITE DIAMOND, 08 October 2020

CleanSpark is a money losing company whose stock has risen 300%+ since early July on issuing many press releases.
Its press releases often reflect today’s hot sectors, but have led to miniscule revenues.

Its largest shareholder, Discover Growth Fund, is fighting a vicious court battle to potentially receive millions of convertible bonds at a $1.50 exercise price.

CleanSpark stated in its complaint that Discover’s actions “threaten to destroy CleanSpark’s ability to survive as a company”.
Continue reading “Article: CleanSpark Is A Failed Business Roll-Up In A Vicious Court Battle With Its Largest Shareholder – $3 Price Target”

10/06/202002/22/2021

Article: Investor Alert: Kaplan Fox Investigates FuelCell Energy, Inc. For Potential Securities Fraud

Article - Media, Publications

Investor Alert: Kaplan Fox Investigates FuelCell Energy, Inc. For Potential Securities Fraud

Kaplan Fox & Kilsheimer LLP, 06 October 2020

NEW YORK, Oct. 6, 2020 /PRNewswire/ — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors who purchased shares of FuelCell Energy, Inc. (“FuelCell Energy” or the “Company”) (NASDAQ: FCEL), a manufacturer of fuel cell power plants for electric power generation.

In 2017, FuelCell Energy reportedly won three significant contract awards from PSEG Long Island worth up to $800 million in future revenue potential over the life of the contracts. On October 2, 2020, FuelCell Energy closed a secondary public offering of stock by selling about 50 million shares of common stock at $2.10 per share.
Continue reading “Article: Investor Alert: Kaplan Fox Investigates FuelCell Energy, Inc. For Potential Securities Fraud”

10/06/202002/22/2021

Article: FuelCell Energy Disputes Misleading Claims of Short Seller

Article - Media, Publications

FuelCell Energy Disputes Misleading Claims of Short Seller

FuelCell Energy, Inc., 06 October 2020

DANBURY, Conn., Oct. 06, 2020 (GLOBE NEWSWIRE) — FuelCell Energy, Inc. (Nasdaq: FCEL) (“FuelCell Energy” or the “Company”) yesterday became aware of claims made by an apparent short seller about the Company that are misleading and contain factual inaccuracies. FuelCell Energy emphatically denies these claims related to its disclosures with respect to the LIPA 2 and LIPA 3 power project awards.

These awards are not, and never have been, part of FuelCell Energy’s backlog, and have no impact on the Company’s 2022 financial goals, including revenue growth and adjusted EBITDA. As FuelCell Energy has consistently reported, its LIPA Yaphank project, currently under construction and for which there is a signed power purchase agreement, is included in the backlog and 2022 revenue projections.
Continue reading “Article: FuelCell Energy Disputes Misleading Claims of Short Seller”

10/06/202003/11/2021

Article: A sentence for money laundering from a fraudulent scheme with budgetary funds was announced in the Moscow region in Russia

Article - Media, Publications

A sentence for money laundering from a fraudulent scheme with budgetary funds was announced in the Moscow region in Russia

Eurasian Group, 06 November 2020

The Moscow Regional Court announced a verdict in a criminal case against the head of a commercial firm who had been committed crimes under part 4 of article 159 of the Criminal Code of the Russian Federation (fraud) and subparagraph “a” and “b” paragraph 4 of article 174.1 of the Criminal Code of the Russian Federation (legalization (laundering) of money or other property acquired by a person as a result of himself committed crime).

During the preliminary investigation O. pled guilty to the commission of the incriminated offences and a pre-trial cooperation agreement was concluded with him. Therefore the criminal case was considered in a special trial. Continue reading “Article: A sentence for money laundering from a fraudulent scheme with budgetary funds was announced in the Moscow region in Russia”

10/05/202002/24/2021

Article: Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces Investigation of Aurora Cannabis, Inc. (ACB) on Behalf of Investors

Publications

Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces Investigation of Aurora Cannabis, Inc. (ACB) on Behalf of Investors

BUSINESS WIRE, 05 October 2020

Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Aurora Cannabis, Inc. (“Aurora” or the “Company”) (NYSE: ACB) investors concerning the Company’s possible violations of the federal securities laws.

On September 8, 2020, the Company announced that it expected to record up to $1.8 billion in goodwill impairment charges in fourth quarter 2020. According to Aurora’s press release, these charges included “up to $90 million” in fixed asset impairment charges “due to production facility rationalization, and a charge of approximately $140 million in the carrying value of certain inventory, predominantly trim, in order to align inventory on hand with near term expectations for demand.”
Continue reading “Article: Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces Investigation of Aurora Cannabis, Inc. (ACB) on Behalf of Investors”

10/04/202002/25/2021

Article: NAMASTE: CITRON HAS EXPOSED COMPLETE FRAUD THAT UNDERPINS THE ‘BUSINESS’ OF NAMASTE.

Article - Media, Publications

NAMASTE: CITRON HAS EXPOSED COMPLETE FRAUD THAT UNDERPINS THE ‘BUSINESS’ OF NAMASTE.

Citron Research, 04 October 2020

Let us start by explaining to readers that in our 17 years of publishing, Citron has exposed more corporate fraud than any non-government agency in the world. Rarely in its history has Citron seen a fraud so blatant: for context, we honestly view Sean Dollinger as a walking securities violation. If Namaste was a US traded company it would be halted and Dollinger would probably face criminal charges. Citron hopes that in the best interest of protecting investors, the TSXV halts trading until questions can be answered relating to direct fraud that is illustrated in this report. This will most certainly reach the hands of Namaste’s new auditors (which have joined at an odd time).
Continue reading “Article: NAMASTE: CITRON HAS EXPOSED COMPLETE FRAUD THAT UNDERPINS THE ‘BUSINESS’ OF NAMASTE.”

10/02/202003/21/2021

Article: Gold price manipulation is real; JPMorgan’s spoofing case explained

Article - Media, Publications

Gold price manipulation is real; JPMorgan’s spoofing case explained

David Lin, 02 October 2020

JPMorgan settled a $920 million fine with U.S. authorities on charges of precious metals price manipulation last week. This is significant because rumors and speculation about metals manipulation is confirmed in such a large profile case for the first time, said Will Rhind, CEO of GraniteShares.

“Throughout my career, there have always been these kind of mutterings of manipulation of the gold market. A lot of people that were talking about that were really written off as fringe or conspiracy theorists [with an] extreme view, and those people have been right,” Rhind told Kitco News.

Spoofing entails putting in fake orders in the markets to buy or sell and then withdrawing those orders before they are executed with the intention of moving the price.

“I think it’s the largest fine that’s ever been paid for spoofing and market manipulation in this particular order and really sets a massive precedent,” Rhind said.

Regulatory changes are likely to follow after this case, Rhind added.

“Hopefully it doesn’t happen again. $920 million is not a small amount, even for a bank of the size of JPMorgan. I’m sure you will see wholesale changes made on the compliance side and all sorts of other controls put in place to make sure that this doesn’t happen again,” he said.

Rhind noted that the extent to which spoofing has significantly suppressed the free market movement of precious metals prices is “almost impossible to determine.”

Read Full Article

10/02/202003/18/2021

Article: JPMorgan Chase Fined US$920 Million For Market Manipulation

Article - Media, Publications

JPMorgan Chase Fined US$920 Million For Market Manipulation

MSHERELYN GOH, 02 October 2020

Just like in an episode of Billions, only Bobby Axelrod would actually have to pay up, JPMorgan Chase has to fork out US$920 million to settle US civil and criminal charges over fake trades in precious metals and Treasury futures designed to manipulate the market,. The settlement comes as the largest bank in the US reached a deferred prosecution agreement with the Justice Department to resolve criminal fraud charges over the long-running schemes.

In one of the schemes, JPMorgan traders in New York, London and Singapore between 2008 and 2016 commissioned tens of thousands of orders for gold, silver, platinum and palladium futures that were placed in order to be cancelled to deceive other market participants, wrote the Department of Justice (DOJ), one of three agencies involved in the case, in a press release. Continue reading “Article: JPMorgan Chase Fined US$920 Million For Market Manipulation”

10/01/202002/20/2021

Article: Problems at Celsius Holdings (CELH)

Article - Media, Publications

Problems at Celsius Holdings (CELH)

Edwin Dorsey, 01 October 2020

Celsius Holdings (NASDAQ: CELH — $1.63 billion) is a company like no other. The company allegedly makes healthy energy drinks and its stock is up nearly 900% in the last five years. Its investors include indicted bankers involved in 1MDB, hip-hop producer Russell Simmons, and a shark from Shark Tank. The company uses an auditor not used by any other NYSE or NASDAQ listed company and has told the SEC it does “not expect that our disclosure controls or internal controls will prevent all error and all fraud.”

Celsius is in the business of development, marketing, sale and distribution of healthy fitness drinks under the Celsius brand name. The company, based in Boca Raton, Florida, is valued at roughly 16x its trailing twelve month sales of approximately $100 million. Part of the reason for this rich valuation has been incredible revenue growth. For its most recent quarter, Q2 2020, Celsius’s revenue grew 86% compared to Q2 2019. A major contributor to this growth was European revenue, which in Q2 2020 was approximately $8.8 million, up 595% from Q2 2019 revenue of $1.3 million.
Continue reading “Article: Problems at Celsius Holdings (CELH)”