Toronto:
Nate Anderson, who announced the closure of his nearly eight-year-old research-investment company Hindenburg Research, is under scanner for his alleged links with ‘hedge funds’ in preparing reports targeting companies. A Canadian portal gave this information citing documents filed in an Ontario court. Hedge fund is an entity which receives money from big investors and invests in various items including securities to earn profits.
In a trove 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 company shared the research “with multiple sources,” including Hindenburg’s Nate Anderson.
Portal ‘Market Fraud’ said court documents allegedly revealed that Hindenburg had colluded with Anson while preparing the report. Preparing recession reports without disclosure of participation can result in charges of securities fraud by the US Securities and Exchange Commission (SEC).
Shares fall due to negative report
Where investment companies borrow securities and sell them on the open market, hoping to buy them back for less after the shares have fallen due to their negative reports against the company, the involvement of ‘hedge funds’ raises suspicions. Because they may also make parallel bets, which could put further pressure on share prices.
However, Anson and Kassam could not be immediately reached, and an email sent to Anderson also remained unanswered.
The website claimed, “From email conversations between Andersen and Anson Funds we know for a fact that he was actually working for Anson and published everything they told him, from target prices to reports.” Till what should happen and what should not happen. He asked them several times if they wanted ‘more’. From what we can see in dozens of stock exchanges, it shows that he never had editorial control. He was being told what to publish.”
Email communication between Hindenburg and Anson
Market Frauds has also shared screenshots of some email communications between Hindenburg and Anson to support its allegations, which it claims it obtained through documents available in an Ontario court.
It said, “There are multiple securities fraud cases against both Anson Funds and Nate Anderson, and at the time of writing we have investigated only five percent of the cases. “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 transaction between Hindenburg and Anson reaches the SEC.”
Last week, Andersen announced the closure of Hindenburg Research, which made global headlines after publishing an explosive report about billionaire Gautam Adani’s group, in January 2023. This gave rise to political controversies and the company suffered huge losses.
(This news has not been edited by the NewsDeskReport team. It is published directly from the syndicated feed.)