Ethics In The Accounting

Read SEC litigation Release 24492 dated June 5,2019 on Longfin Corp

What was the fraud accusation? Which element of the Fraud triangle was involved? Support your answer by using some of the language of the litigation release

Don't use plagiarized sources. Get Your Custom Essay on
Ethics In The Accounting
Just from $13/Page
Order Essay

The Securities and Exchange Commission today filed a new fraud action against Longfin
Corp. and its CEO for falsifying the company’s revenue and, together with a former
Longfin consultant, for fraudulently securing the company’s listing on Nasdaq. The SEC’s
prior charges against these defendants and two others resulted in a preliminary
injunction freezing more than $27 million in allegedly illegal trading proceeds from
unregistered distributions of Longfin stock.

The action filed today in federal district court in Manhattan alleges that Longfin and its
CEO, Venkata S. Meenavalli, conducted a fraudulent public offering of Longfin shares.
The complaint alleges that Longfin and Meenavalli obtained qualification for a Regulation
A+ offering by falsely representing in SEC filings that the company was principally
managed and operated in the U.S. when, in fact, the company’s operations, assets and
management remained offshore. Longfin and Meenavalli, as alleged, then engaged in a
fraudulent scheme by distributing over 400,000 shares of Longfin to insiders and
affiliates to meet certain Nasdaq listing criteria, without obtaining payment for any of
these shares and, along with Longfin consultant Andy Altahawi, misrepresented to
Nasdaq the number of qualifying shareholders and shares sold in the offering. The SEC’s
complaint alleges that Longfin and Meenavalli also engaged in an accounting fraud,
recording more than $66 million in sham revenue, representing nearly 90% of Longfin’s
total 2017 reported revenue. Longfin voluntarily delisted from Nasdaq in May 2018 and
shut down in November 2018.

The SEC’s actions charge Longfin, Meenavalli, and Altahawi with violations of the
antifraud provisions of Section 10(b) of the Securities and Exchange Act of 1934
(“Exchange Act”) and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of
1933. Longfin was also charged with violating the reporting, books-and-records, and
internal controls provisions of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the
Exchange Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder, while Meenavalli was
charged with violating the internal controls and books-and-records provisions of Section
13(b)(5) of the Exchange Act, the lying-to-accountants provision of Exchange Act Rule
13b2, and the certification provision of Exchange Act Rule 13a�14. Meenavalli was also
charged with aiding and abetted Longfin’s violations of the reporting, books-and-records,
and internal controls provisions of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the
Exchange Act and Exchange Act Rules 12b-20, 13a-1, 13a 11, and 13a-13.

In a parallel action, the U.S. Attorney’s Office for the District of New Jersey today
announced related criminal charges against Meenavalli.

SEC Complaint

SEC Adds Fraud Charges AgainstSEC Adds Fraud Charges Against
Purported Cryptocurrency CompanyPurported Cryptocurrency Company
Long9n, CEO, and ConsultantLong9n, CEO, and Consultant

Litigation Release No. 24492 / June 5, 2019Litigation Release No. 24492 / June 5, 2019

Securities and Exchange Commission v. Long9n Corp.Securities and Exchange Commission v. Long9n Corp.
and Venkata S. Meenavalliand Venkata S. Meenavalli, No. 19-cv-5296 (S.D.N.Y., No. 19-cv-5296 (S.D.N.Y.
9led June 5, 2019)9led June 5, 2019)

Securities and Exchange Commission v. Long9n et. alSecurities and Exchange Commission v. Long9n et. al,,
No. 18-cv-2977 No. 18-cv-2977 (S.D.N.Y. 9led April 6, 2018)(S.D.N.Y. 9led April 6, 2018)


Accounting and Auditing
Enforcement Releases


ALJ Initial Decisions

ALJ Orders

Amicus / Friend of the
Court Briefs

Delinquent Filings

Fair Funds

Information for Harmed

Litigation Releases

Opinions and
Adjudicatory Orders


Stop Orders

Trading Suspensions

Company Filings




Modified: June 6, 2019

Accessibility | Budget & Performance | Careers | Contact | Contracts | Data | FOIA | Inspector General | | No FEAR Act & EEO Data |
Ombudsman | Plain Writing | Privacy & Security | Related Sites | Site Map | | Votes | Whistleblower Protection

The SEC’s prior action alleged that Longfin, Meenavalli, Altahawi, and two affiliated
individuals, Dorababu Penumarthi and Suresh Tammineedi, illegally distributed and sold
more than $33 million of Longfin stock in unregistered transactions.

Altahawi, Penumarthi, and Tammineedi have agreed to settlements, subject to court
approval, that would fully resolve the SEC’s charges and have agreed to surrender the
previously frozen funds towards paying monetary relief. Without admitting or denying
the charges, Altahawi has agreed to settle the fraud charges and the prior charges of
trading in unregistered securities. The proposed settlement would require Altahawi to
return $21 million of allegedly ill-gotten gains, pay a $2.9 million penalty, and surrender
all his Longfin shares. Altahawi also agreed to be barred from serving as a public
company officer or director for five years, and to an industry bar to be issued in an
administrative proceeding.

Penumarthi and Tammineedi, without admitting or denying the charges, agreed to settle
all pending charges for trading in unregistered securities. The proposed settlements
require Penumarthi to pay more than $1.7 million and Tammineedi to pay more than
$241,000, in addition to injunctive relief.

The SEC’s investigation was conducted by Ernesto Amparo, Adam B. Gottlieb, Eric
Hubbs, and Robert Nesbitt, and supervised by Anita B. Bandy, Associate Director, and
Robert A. Cohen, Chief of the SEC’s Cyber Unit. Hope Augustini of the SEC’s Office of
General Counsel and Sarah Heaton Concannon of the Division of Enforcement provided
invaluable assistance. The litigation is being supervised by Stephan Schlegelmilch. The
SEC appreciates the assistance of the Federal Bureau of Investigation and the U.S.
Attorney’s Office for the District of New Jersey.

Achiever Essays
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code RESEARCH