Further complicating matters, Longfin’s CEO and controlling shareholder, Venkata Meenavalli, issued over two million unregistered restricted shares. The primary share allocation was provided to Altahawi, a Longfin director and the company’s corporate secretary. Not to mention, tens of thousands of restricted shares were provided to Penumarthi and Tammineedi. Allegedly and most damning, all three recipients were acting as nominees for Meenavalli.
“We acted quickly to prevent more than $27 million in alleged illicit trading profits from being transferred out of the country,” said Robert Cohen, Chief of the SEC Enforcement Division’s Cyber Unit. “Preventing defendants from transferring this money offshore will ensure that these funds remain available as the case continues.”
Meenavalli, Altahawi, Penumarthi, and Tammineedi are charged with violating Section 5 of the Securities Act of 1933.
