Categories: Business

Nate Anderson of Hindenburg could face securities fraud charges: report

Nathan Andersonwhich recently announced the closure of its research firm Hindenburg, is under scrutiny over alleged links to hedge funds in preparing reports for target companies, a Canadian portal reports citing submitted documents in an Ontario court.
Documents filed with the Ontario Superior Court of Justice reveal that Moez Kassam, who runs Canadian hedge fund Anson, acknowledged that his company shared its research “with a wide variety of sources,” including Hindenburg’s Anderson .
According to the Market Frauds portal, court documents suggest collaboration between Hindenburg and Anson during the preparation of the report. Such bearish report preparation without proper disclosure of ownership interest could potentially lead to securities fraud fees of the United States Securities and Exchange Commission (SEC).
“We know for a fact from email conversations between Anderson and Anson Funds that he was indeed working for Anson and that he was publishing everything they told him, from the price target to what should and should not be in the report He asked “They did it several times if they needed ‘more’. From what we can see in the dozens of exchanges, at no point was he told what to post,” the website claimed.
Market Frauds also shared screenshots of alleged email exchanges between Hindenburg and Anson, which it claims to have obtained from Ontario court documents, to support its allegations.
“There are multiple counts of securities fraud for Anson Funds and Nate Anderson, and we have only reviewed 5% of what is there at the time of writing this article. From what we’ve read so far, it’s almost certain that “When the entire trading between Hindenburg and Anson reaches the SEC, Nate Anderson will be charged with securities fraud in 2025,” he said. he added.
Short sellers typically borrow securities, sell them on the open market, and aim to repurchase them at lower prices following their negative reports. There are concerns about hedge funds’ involvement as they could place side bets, which could increase downward pressure on stock prices.
Hindenburg Research published a report in 2020 on Facedrive, a Canadian company that went public through a reverse merger, promoting itself as an environmentally friendly ride-sharing service. The report criticizes its excessive valuation and generous payments to developers. Court records indicate Anson communicated with Anderson about the report and knew the timeline for its release.
These legal documents follow a separate, long-term investigation by the U.S. Department of Justice and the Securities and Exchange Commission. In June, Anson Funds Management and Anson Advisors Inc settled SEC allegations by paying $2.25 million, without accepting or denying wrongdoing, for failing to disclose payments to outside publishers of negative research.
When it was founded, Hindenburg said it received “hundreds of leads each year from a variety of sources,” including industry experts, tipsters and other investors. “We rigorously review every lead and have always maintained complete editorial independence over our work.”
Anderson announced the closure of Hindenburg Search last week. He gave no specific explanation for his decision but expressed a desire to devote more time to personal relationships.
“Nearly 100 people have been charged civilly or criminally by regulators, at least in part as a result of our work, including billionaires and oligarchs. We have shaken some empires that we thought should be shaken,” he said. he declared in his closure announcement.

remon Buul

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