Newark, N.J. – In a shocking turn of events, Venkata Meenavalli, the CEO of Longfin Corp., has been charged with securities fraud in a $66 million accounting scheme.
Meenavalli, 49, of India, allegedly orchestrated a multimillion-dollar accounting fraud relating to Longfin Corp., a publicly traded commodities trading company, from 2017 to 2018.
According to documents filed in this case, Meenavalli and others recognized more than $66 million in fake revenue in the company’s public filings with the U.S. Securities and Exchange Commission (SEC).
Longfin reported as revenue millions of dollars of commodities transactions, which were actually sham events between Longfin and separate entities Meenavalli controlled, using phony bills of lading and other fraudulent documents.
The scam was allegedly used to make Longfin’s shares more attractive to potential investors, with the company falsely reporting million in accounts receivable in purported physical commodity sales that never occurred.
Meenavalli is charged with one count of securities fraud, which carries a maximum potential penalty of 20 years in prison and a $5 million fine.
The charge and allegations contained in the indictment are merely accusations, and Meenavalli is presumed innocent unless and until proven guilty.
The U.S. Attorney’s Office credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to charges announced today.
The U.S. Securities and Exchange Commission also filed a new fraud action against Longfin and Meenavalli for falsifying the company’s revenue and fraudulently securing the company’s listing on Nasdaq.
Meenavalli is expected to face the charges in court. The outcome of this case will undoubtedly have significant implications for the financial industry and the investors who were affected by this scheme.
In related news, the U.S. Securities and Exchange Commission also filed a new fraud action against Longfin and Meenavalli for falsifying the company’s revenue and fraudulently securing the company’s listing on Nasdaq.
The government is represented by Assistant U.S. Attorney Catherine Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit and Zach Intrater, Executive Assistant U.S. Attorney.
The charge against Meenavalli is a serious one, and we will be monitoring the case closely to ensure that justice is served.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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