Newark, N.J. – The CEO of a publicly traded commodities trading company has been indicted for orchestrating an elaborate $66 million accounting scheme to dupe investors, according to U.S. Attorney Craig Carpenito.
Defendant Venkata Meenavalli, 49, of India, is charged with securities fraud for his alleged role in inflating Longfin Corp.’s revenue through sham transactions and fraudulent documents.
In 2017 and 2018, Meenavalli, along with others, manipulated the books of Longfin, a company that claimed to engage in sophisticated commodities trading and ‘cryptocurrency’ transactions. In reality, the firm did not participate in any revenue-generating cryptocurrency activities or blockchain-powered solutions.
Longfin’s public filings with the U.S. Securities and Exchange Commission (SEC) falsely reported more than $66 million in revenue that was never earned, enticing potential investors with a more profitable image of the company. Meenavalli is accused of controlling several entities that purportedly did business with Longfin without disclosing these relationships.
Meenavalli’s securities fraud charge carries a maximum penalty of 20 years in prison and a $5 million fine. The SEC also filed a new fraud action against Longfin and Meenavalli for their role in falsifying the company’s revenue and securing its Nasdaq listing.
The investigation leading to these charges was conducted by the FBI under Special Agent in Charge Gregory W. Ehrie. The government is represented by Assistant U.S. Attorney Catherine Murphy of the Economic Crimes Unit.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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