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irony of life @InvestorSwan
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$LFIN 1. I am tired of tweeting on Longfin, so here is one last set to "full proof" that this company is going to $0, no matter what rabbits are pulled out. I will just focus on the @wsj article by @austenhufford and @cnbc article by @chengevelyn cnbc.com/2018/03/27/lon…
$lfin 2. The article states the following (see image). Free float is now above 5% as of March 11 due to expiration of lockup on consultant's stock holding.
$lfin 3. The CEO has disclosed information that was not publicly known. STRIKE 1 . If the shares were under lockup agreement by insiders and released for sale , they had to file Sec Form 4, within 2 business days of March 11. STRIKE 2.
$lfin 4. The IR confirmed on March 21 that the free float was 1.14 million. CEO or his team are lying. Misleading statement - STRIKE 3 But why waste time calling lairs by the name. It's their second nature
$lfin 5. The only reference of a consultant in all Longfin filings is a guy named Andy Altahawi. He helped the file the Reg-A IPO and market it through his company Adamson Brothers and website ipoflow.com. check this guy and his wife from 1.50 min to 2.40 min.
$lfin 6. Here is the link . From 1.5 to 2.3 min . Husband wife team
$lfin 7. there are a lot of conflicting information about this guys role in Lfin, including director position. Let's not worry about that. Longfin paid this guy $65,000 and 2.025 million "UNREGISTERED" shares to promote and market the IPO. bit.ly/2kdXBTt Page 28
$lfin 8. Based on Sept 25 2017 agreement formalized, 2.025 million are the only set of securities that meet the 6 month lock up requirement and can be "potentially" sold. For more info on this see RULE 144: sec.gov/reportspubs/in…
$lfin 9. These bozos are hoping to exploit the Non Affiliate rule for 3 months and 1yr holding period based on February issuance of the unregistered securities. They can claim the securities were issued in Feb 2017, and rule 144 regarding form-4 does not apply.
$lfin 10. So technically, Andy Altahawi could have sold 2.025 million shares starting Feb 2018 without disclosing to SEC and it can be considered legal. The float will be 1.14+ 2.025 = 3.165 million. The outstanding are 76,540,989. % float = 4.13 % , which is less than 5% float.
$lfin 11. Let's give them benefit of doubt and allow them to pull out additional 662k shares to reach the 5% threshold. If they can pull out 2 million , 662K should be piece of cake.
$lfin 12. So who is Mr Altahawi (husband wife team video) and does he meet the non-affiliate clause of Rule 144. To start off, he seems to be a political active guy at UN and also a DOCTOR of something. at 1:45 minutes.
$lfin 13. At this point it is also important to introduce Sarah Altahawi, his daughter. Sarah is the Office Secretary, according to CFO Mr. Ratakonda and Associate Vice President according to Sec filings . So daughter is INSIDER! Remember Non Affiliate Rule 144 clause.
$lfin 14. Father markets IPO, daughter is a Associate Vice President and still Andy Altahawi is a Non Affiliate. Sure, lets go with that claim!!
$lfin 15. A Sec letter seeking clarification on the IPO is directed to the CEO and Andy Altahawi. This still classified as an Non Affiliate?
$lfin 16. After filing tons of of form 1-A-Pos, it is finally acknowledged that Altahawi became "AFFILIATED" with the company and"CONSIDERED" to be a part of mgmt. Andy is with Longfin from day 1 and daughter is Ass Vice President. 7 July 2017 -STRIKE 5! sec.gov/Archives/edgar…
$lfin 17. Now we can say Andy is an Insider and Rule 144 applies to him. On 18 July 2017, Andy files an official response on behalf of Longfin to Sec. So an Affiliate? sec.gov/Archives/edgar…
$lfin 18. Let's revisit Rule 144 for affiliates. Andy is an affiliate and needs to hold the securities for at least 6 months, similar to other executives. Unfortunately in the 29 Sept filing, only the following entities are listed. Andy Altahawi or Adamson Brothers is MISSING!!!
$lfin 19. So after being an affiliate/insider, Andy is not bound to lock up agreement? Also the transfer of 2.025 securities does not appear until 29 sep Pos-1A filing. So it looks like the February transfer without a exact date was a back dated transaction - STRIKE 6.
$lfin 20. The first reference of 2.025 million unrestricted shares in the 29 Sept filing does NOT EXPLICITLY mention the word "NOT affiliated". Andy is with the company from inception but is just a service provider? His Non affiliation is implied?
$lfin 21. So Mr. Meenavalli is trying to exploit this non affiliation to support dumping of 2.025 million unrestricted shares to increase public float? All the evidence is provided to show Altahawi is an Insider and lockup clause apply to him. His daughter is locked with 0 shares
$lfin 22. OK . Ifs and buts, Andy is still a non affiliate . Rule 144 does not apply...etc. Remember, he was called affiliate, considered for mgmt position and directly communicated with SEC on behalf of Longfin. Non-affiliate stuff does not add up, right?
$lfin 23. Remember Adamson Brother, Andy Altahawi’s company doin business with Longfin? Compare its address and phone number to Longfin Corp. 205D Chubb Ave, Lyndhurst, NJ. Ph 201-281-2211. So Andy Altahawi still not “AFFILIATED” to Longfin? The 2.025 mil shares not insider?
$lfin 24. Social media profile of Andy Altahawi identifies everything correctly- Adamson Brothers, phone number, Phd/Doctor -remember the video. Should we doubt his title as Longfin Corp DIRECTOR? Is he not a insider? Rule 144 should apply to him, right?
$lfin 24. There is no doubt that Andy Altahawi is an Insider. The 2.025 million shares owned by him are restricted and need to follow the same rule as an Affiliated person under Rule 144. Any other interpretation by Venkat Meenavalli will be violation of securities law!
$lfin @ColonialStock 25. To conclude, @austenhufford @chengevelyn, go back to Venkat Meenavalli and as him about the consultant whose shares lockup period has expired.Also, ask why Rule 144 does not apply and if Colonial Stock Transfer remove the Restrictive Legend!
$Lfin 26. Longfin tours its own destruction on the Press release page of it's website. Check it out longfincorp.com/news.html 😂🤣😂🤣😱
$lfin 27. You must know what a Ponzi scheme is. Take from one pay other. Stampede capital owns 35.93% of Longfin. For now, make a note of related party and party transactions. Pay attention to Meridian HK.
$lfin 28. Stampede paid Meridian Tech INR 179,630,821. This roughly translates to $2.8 million.
$lfin 29. Longfin also paid Meridian a huge amount for absolutely nothing to show. They call this payment "data feed cost". The amount paid was $280,952 , about 10x lower.
$lfin 30. Stampede tradex Pte , another related party, paid $906,829 to Meridian in data feed cost. So about $4 million paid by all related parties.
$lfin 31. Now comes Ziddu.com. A platform owned my Meridian and purchased by $Lfin, 2 days after the IPO for 2 million shares of Longfin! The value then was close to $100-150 mil .Today the value is $70 mil.
$lfin 32. So what does this mean? Meridian can "claim" massive profits and write down the measly receivables of $4 million. Who cares when you get $100 mil in paper money. They should. be comfortable- parent stampede has no problems doing same. $2million written off
$lfin 33. Also shareholder money is for use at personal discretion.CEO and wife give and use money as they feel appropriate.
$lfin 34. Now that FTSE Russell has dropped Longfin, does anyone know if what Dow Index is doing? Has anyone heard anything about DOW making any such announcement? ETFs have been taken to cleaners. ftse.com/products/index…
$Lfin RACE to time ZERO. No 10-k filing, CEO lying publicly, IR not picking the phone or claiming it is a wrong number, Hudson Bay covenants breached, $5 million loss, Andy Altahawi, more of an insider. ColonialStock deceived into removing legend
$LFIN under SEC INVESTIGATION. Good luck! BTW, your website ziddu.com does not work !!!!
$lfin Hudson Bay will NOT be funding any activity of Longfin.
$Lfin 38. The company makes it money from where ? At the IPO it was from electronic trading and now in the 10-K it is from what? SELLING PHYSICAL COMMODITIES? What the hell is that?
$lfin 39. These guys are trying to play nice with us. Class B shares not part of shares outstanding? Are you kidding? You guys paid for Stampede using class A and B shares. This is a monetary expense. Class B has economic and voting rights. ! Class B don't count?
$lfin 40. A 10-K filed pursuant to section 13 or 15(d), is required to be signed by MAJORITY of board of directors. Only the CEO and CFO has signed the document! What are the directors afraid of ? sec.gov/files/form10-k…
$lfin 41. Tomorrow's headline- Longfin founder found to be guilty of defrauding investors to time travel 2X the speed of light. wsj.com/amp/articles/m…
$LFIN 42. Time to rip apart 10-K? Lets do it at random. Class B stock granted to Meenavalli. What voting rights does it have relative to Class A? 1 vote or 10 votes ? Figure it out and let us know!
$Lfin 43. Plagiarizing in a 10-K is a bad idea. 10-K is not a road show. You are reporting finances not HOW STUPID YOU ARE. Find your image here. fobiss.com/artificial-int… or here wp.fobiss.com/wp-content/upl…
$lfin 44. So what exactly is the role of independent directors? Is this the reason they have not signed the 10-K?
$Lfin 45. Don't worry. This is our job. We are good at it. We do not consider you competent to detect fraud nor execute one without getting caught.
$lfin 46. Do not try to manipulate shares outstanding by talking about Class A shares as tradable and class B as restricted. They are together the "Common share" and B can be freely converted to class A.
$Lfin 47. So help me understand. You sell stuff to the related party. You take loans from your family, you give loans to your family. Do you deal with anyone outside your family?
$LFIN 48. So $128 of $145 million are intangible and goodwill assets. Basically, these assets are "invaluable" that their value can be considered ZERO?
$lfin 49. In your related party transaction, you paid 2.5 million shares valued at $12.5 million to yourself to acquire ziddu.com which you claim has $ ZERO carrying value ? Do you think we are morons?
$lfin 50. An SEC investigation has started and for a whole month, you did feel this is a material event that has to be shared with investors? Don't worry, we will ensure SEC has all the information to conclude securities law have been violated.
$lfin 51. Oh, by the way, how exactly do you "calculate the incalculable"? Ah.. Ha properties of matter based on quarks or is this the same as"to infinity and beyond"
$lfin 52. The auditors are basically saying we do not trust anything you are doing and reporting! A fair statement instead of this long interpretation?
$lfin 52. Without mincing words the auditors are saying you guys are INCOMPETENT. Your CFO is useless?
$lfin 53. Since this is a one-man show and does as he pleases , the company is a joke. There are no protocols, documentation, review process and controls in place to verify or challenge financial accounting
$LFIN 54. The story continues. A press release of the 10-K released! So what exactly does the company do? Sell "Physical Commodities" right? About 89% of their revenue. Don't trust me? Here it is
$Lfin 55. So Physical commodities it is. Do commodities have goodwill and intangible value to it? In Meenavelli world they do. How much? About 70% of their total assets. So they buy the commodity for $1 and sell it for 30 cents. They call the difference as goodwill and intangible
$lfin 56. So we have $26 million in stock-based compensation. The actual revenue (if real) is around $9 million. Profit on sale of a commodity is revenue, otherwise, it is called turnover. You need 3 years to just offset the stock comp. You call it one time and shrug it off?
$lfin 57. As pointed by my friend @effle, should we trust you about the viability of the company or should be trust the auditors? Your auditors are explicit in their concern and you are saying the auditors are fools?
$lfin 58. Here we go again. Time 2:15 min. cnbc.com/video/2018/04/…. SEC is asking about my Hudson Bay deal, my insider Ziddu.com acquisition, and my marketing of IPO(basically my deal with my consultant). They are not talking material weakness( fraud then?)
$lfin 59. cnbc.com/video/2018/04/… At 3:00- we do not have sufficient cash , I DO NOT need to follow US GAAP accounting. I prefer to create my own standard?
$lfin 60. 4:20 min We are not a big manpower company. We will "probably" have 10-12 people in US. Is it 10,11 or 12? On March 31, you had 18 employees. Where did the rest go? cnbc.com/video/2018/04/…
$lfin 61. 5:30 min our free float is 6 million. From where third party😱. WTF. Only class A listed ~44 million. My 30 mil class B are not listed. Did you forget to mention that class B can be "freely" converted to class A without complications of reporting to the audit committee?
$lfin 62. 5:40 min Ok 2 mil claw back from ex-CEO after dispute by colonial transfer. 2 mil issued to consultant Andy Altahawi in Sept 11. Now not under lock up and now part of free float right-7.11%? You and Andy may not know but Andy's daughter is your Assc VP-executive officer
$lfin 63. Coming back to Andy Althawi, you POS A states the deal was with Adamson Brother in Feb 2017. Where did Sept 11 come from. Also, you may not know but your Assoc VP (aka Andys daughter) is DIRECTOR at Adamson Brothers. Lockup expiry- 6 months AFTER IPO- May13,2018.
$lfin 64. On 18-Sep-2017, SEC specifically asked you about Andy Althawi (the director) and also his relationship to Sarah Althawi. You did not clarify this is your correspondence. How is ANDY, ADAMSON and SARAH not related parties? Why are lockup restriction different for them?
$lfin 65. So Sarah Altahawi, 3rd highest paid employee, daughter of Andy Altahawi, director at Adamson Brothers which owns 2,000,000 shares of Longfin, is not under lockup restrictions, since March 11, 2018? Really? You think SEC is on a dope?
$lfin 66.The auditor comment 1.Company lacks qualified personnel who understand GAAP reporting requirements, possess appropriate skills 2 identify and determine proper accounting for new,complex or unusual transactions or have a proficiency in the SEC reporting
$lfiin 2, certain segregation of duties issues exist (i.e., the same person performs the process and the control in certain areas) aka NO CHECKS AND BALANCES
$LFIN 67. the Company does not have any formal or documented accounting policies and procedures, including with respect to intangible assets and monitoring related parties AKA We do as we please,
$lfin 68. senior financial reporting personnel have the ability to make journal entries; AKA We COOK OUR BOOKS
$LFIN 69. there is no formal review process around journal entries recorded. AKA We indeed prefer to make entries that suit our needs.
$LFIN 70. Ziddu.com has a carrying value of $0. Since Dec 2017, it has 693 unique transactions. Last transaction was 29 DAYS AGO. All transactions likely executed by the same person. 🤣😂👇
$lfin 71. Longfins short interest is less than $100 million. Meenavalli likes to use the term turnover as revenues. Form him bear options conntracts * pricing = billion dollars short ? Seriously?
$lfin 72. This is SERIOUS. Company float according to CEO is 44 million. Watch at 6:00 min. cnbc.com/video/2018/04/…. Now let's check the website FAQ. longfincorp.com/qa.html who do you think are you dealing with?
$lfin 73. Longfin keeps on giving love. Remember Ziddu and parent MERIDIAN enterprise Pte LTD. These guys provide a lot of shit or IS THEIR BUSINESS PLAGARISM - The End? meridiantf.com/tradefin.html Compare it to tradefinanceanalytics.com/what-is-struct…
$LFIN 75. "Probably" my last tweet on Longfin. TEAM WE DID IT. 🍻🍺🍾 sec.gov/news/press-rel…
$lfin 76. Does not look like it will be the last. I will limit to 100 max. If you want to know who some of the crooks were- start watching at 1:50 , 3:10.
$lfin 77. @merlinvestor. You have the right to exercise the puts. ENSURE, you call your broker on the day of expiration to exercise those puts. After that you will be short. If there is nothing to trade, the broker will have to do a buyback or closeout. That's my understanding
$lfin 75. This reminds me of Nasdaq, FTSE, @NewYork_SEC and @CBOE . At no point did they bother to check what Longfin really does. How a cryptogammist saved the world! Go regulators... Keep up your work. You are lousy at it!
I know Reggae, you don't know Reg-A. Dear @SEC_Enforcement, I will teach you US securities law, you ignorant fool's. $lfin
$Lfin 76. The new auditor for Lfin is pretty cheap. $10-11 per hour. CohnReznick charged $250K for audits. The new auditor AJSH & Co. LLP can get it done for - 100-1000 hrs * $11 = $1100- 11,000? Nice job Venkat. Did you give the 20% discount coupon?
$lfin 77. This guy made over $300K, how much is Meenavalli going to pay him at $12 an hour. Just like the office of weworks- pay by the hour.
$lfin 78. A plumbers or electricians 1hr house visit costs around $150-250. This guy has to spend 20-25 hours to get the same return.
$lfin 79. Ok @Nasdaq @NasdaqTech You halted Lfin after SEC complaint, probably because of public interest concerns? You also say, your PRIMARY responsibility is towards PROSPECTIVE investors. So when you allowed Longfin IPO, you agree you failed your primary responsibility?
$lfin 80. Now that you failed your primary responsibility to prospective investors in Dec and only acted after Sec complaint, you failed your due diligence and fudiciary duty, inflicting undue harm to prospective investors in Dec and current investor with the halt. Trouble ahead?
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