The U.S. Securities and Exchange Commission (SEC) has reached a settlement with fintech company Longfin’s CEO, Venkata S. Meenavalli, on charges of fraud. )
According into a SEC press release Friday, Meenavalli has consented to cover $400,000 in both disgorgement and penalties related to some 2017 Regulation A+ supplying the SEC deemed deceptive. Longfin delisted in the Nasdaq in May 2018 and closed down the following November.
As CoinDesk reported October 2019, the SEC alleged Longfin lied to prospective investors concerning its public offering and Nasdaq list, finishing with a $3.5 million disgorgement and $3.2 million fine.
The SEC complaint against Longfin, that was later maintained by the Southern District Court of New York within an October 2019 indictment, based around Longfin’s promise to be “managed and operated” from the United States and “sham” commodities trades representing a few 90 percentage of their company’s 2017 reported earnings.
“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,” SEC officer Anita B. Bandy stated in Friday’s release.
If accepted by the overseeing court, Meenavalli will disgorge $159,000 — equal to his executive wages at Longfin — and a civil penalty of $232,000 with attention, according to the release. A criminal activity against Meenavalli from the U.S. Attorney’s Office for its District of New Jersey stays open.
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