SEC Charges Tech CEO in $123M Fraudulent Scheme
The Securities and Exchange Commission recently filed an emergency action regarding an alleged fraudulent scheme that enabled a technology company called NS8, Inc. to raise about $123 million from investors. Morgan & Morgan’s securities attorneys are investigating claims regarding this and similar schemes.
According to the SEC, NS8 is a Las Vegas company that provides e-commerce merchants with fraud detection and prevention software. The SEC alleges that the former CEO of NS8, Adam Rogas, falsely claimed NS8 had collected millions of dollars in revenues.
According to the SEC’s complaint, Rogas changed NS8’s bank statements to falsely show millions of dollars in customer payments, and he did this from 2018 to mid 2020. These fraudulent bank statements were used to prepare NS8’s financial statements. The SEC alleges that NS8 and Rogas gave the false financial statements to investors and prospective investors, enabling NS8 to raise over $120 million. According to the SEC, Rogas kept more than $17 million for himself.
Rogas “falsely presented NS8 as a successful business by fabricating revenue figures and providing them to investors,” Kurt L. Gottschall, director of the SEC’s Denver Regional Office, said in a statement.
Gottschall stressed that investors are entitled to accurate information about a company’s financial condition.
The SEC charged Rogas with violating federal securities laws’ anti-fraud provisions.
If you have suffered losses relating to an investment in NS8, contact us today. Our experienced securities attorney are here to help. We help investors recover their losses on a contingency basis, which means we are only paid if we successfully recover money for you.