US short seller Nate Anderson, who announced the closure of his nearly eight-year-old research firm Hindenburg, has been accused of reports targeting companies, a Canadian portal said, citing documents filed before a court in Ontario. There are suspicions about Framing’s alleged ties to hedge funds.
In a set of documents filed in the Ontario Superior Court of Justice in a complex defamation lawsuit, Moez Kassam, the head of Canada’s Anson hedge fund, said his firm shared research “with a variety of sources,” including Hindenburg’s Nate Anderson. Is.
Market Fraud Portal said court documents allegedly showed that Hindenburg colluded with Anson while preparing a report. Preparing recession reports without disclosure of participation can be charged as securities fraud by the U.S. Securities and Exchange Commission (SEC).
Whereas short sellers borrow a security, sell it on the open market, and hope to repurchase it for less money after the stock declines following their damaging report against the company, hedge fund involvement raises eyebrows because They can also place parallel bets, putting down more. Pressure on stock prices.
Although Anson and Kassam could not be immediately reached, an email sent to Anderson remained unanswered.
“We know as a fact, from email conversations between Anderson and Anson Funds, that he was actually working for Anson and that everything from price targets to what should and should not be in reports, he told him. “They asked if they needed ‘more’ multiple times, and at no time were they told what to publish,” the website said. Said.
Market Fraud also shared screenshots of some email interactions between Hindenburg and Anson to support its allegation – which it claims to have accessed through documents available with an Ontario court.
“There are multiple cases of securities fraud involving both Anson Funds and Nate Anderson, and at the time of writing we have only looked into 5 percent of them,” it said. “From what we have read so far, it is almost certain that Nate Anderson will be charged with securities fraud in 2025 when the entire exchange between Hindenburg and Anson reaches the SEC.”
When the association first emerged, Hindenburg said it received “hundreds of leads every year from a variety of sources”, such as industry experts, whistleblowers and other investors. “We rigorously vet each lead and always maintain complete editorial independence over our work.”
In 2020, Hindenburg Research published a report on Facedrive, a Canadian company that went public through a reverse merger as an eco-friendly ride-sharing service, rebuking it for being overvalued and paying heavily to promoters. Anson allegedly exchanged emails with Mr Anderson on the report and court documents revealed the hedge fund was aware of when the report was to be published.
The filing follows separate years-long investigations by the U.S. Department of Justice and the Securities and Exchange Commission. In June, Anson Funds Management and Anson Advisors Inc., without admitting or denying any wrongdoing, agreed to pay $2.25 million to settle SEC claims that they diverted clients from payments to outside publishers of recession research. Failed to tell about.
Last week, Mr Anderson announced the closure of Hindenburg Research, which made global headlines in 2023 after publishing a report about Adani Group which denied all allegations.
He did not share any specific reasons for his decision, but expressed his desire to spend more time with friends and family in the future.
Announcing the decision, he wrote, “Through our work nearly 100 individuals have been charged civil or criminally by regulators, including billionaires and oligarchs. We shook up some of the empires we felt needed to be shaken.” Hui.”
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