SEC fined CEO of fintech company Longfin $ 400,000

The US Securities and Exchange Commission (SEC) reached an agreement with the CEO of a fintech companyLongfin in a case involving fraud allegations.

According to a press release, C.E.O.Longfin Venkata S. Meenavalli will pay $400,000 for violating Regulation A+ rules. Recall that Longfin's share price jumped by about 2,000% in 2017 after the company announced it would implement blockchain. In May 2018, Longfin was delisted from Nasdaq and closed six months later.

In June 2019, the SEC accused the company offalsification of income for the purpose of listing on the Nasdaq exchange. Previously, the Commission also accused the firm of distributing unregistered shares, which resulted in a preliminary injunction against the company.

“As stated in the complaint, Minavalliabused the “A +” position in carrying out its fraudulent offer and listing of Longfin on the Nasdaq exchange. He attracted investors by publishing falsified earnings information, ”said Anita B. Bandy, an SEC employee, in a press release.

In case of a positive court decision, Minavalliwill have to pay the state $ 159,000 - the equivalent of his salary at Longfin - and a fine of $ 232,000 with interest. The criminal case against Minavalli, initiated by the US Attorney's Office in New Jersey County, remains open.

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