SEC charges Ideanomics and executives with fraud for misleading financial disclosures from 2017 to 2019.
Ideanomics Inc. and three of its senior executives have been accused with fraud by the U.S. Securities and Exchange Commission (SEC) for misleading financial disclosures from 2017 to 2019.
Former Chairman and CEO Zheng (Bruno) Wu, current CEO Alfred Poor, and former CFO Federico Tovar were accused of exaggerating the company’s financial performance and neglecting to disclose critical information to investors.
In 2017, the organization inaccurately predicted $300 million in revenue, but it ultimately reported $144 million. Wu also concealed his personal interests in companies that were involved in transactions with Ideanomics.
The company inflated revenues by over $40 million in 2019 as a result of an improper accounting for a crypto asset transaction. Ideanomics consented to a compliance review and a payment of $1.4 million as part of a settlement.
Wu will be subject to a ten-year prohibition from serving as an officer or director and will be required to pay a sum exceeding $3.3 million. Poor and Tovar will each be required to pay $75,000 in penalties.
