Market Frauds

Anson Funds Desperate For $350 Million Amid DOJ Investigation

Moez Kassam & Anson Funds

Moez Kassam & Anson Funds

Anson Funds Desperate For $350 Million Amid DOJ Investigation

The below update was copied from a poster on Reddit. We have verified most of the information to be accurate:

Moez Kassam continues with his end-of-the-world party strategy as the Anson empire crumbles around him, with legal fees now hitting close to $5 million a month, according to sources close to his operations, as lawsuits mount and regulatory pressure reaches the point of no return.

Performance hasn’t just been dull—it’s been atrocious, though unitholders are being fed a constant stream of untruths to keep them calm.

A key indicator is this: Anson has repeatedly delayed the release of its latest NAV because the numbers aren’t good—and no amount of fraudulent accounting can make them look good at this point.

Not all unitholders can be easily appeased. In fact, more and more are pulling funds as the DOJ and SEC investigations continue to gather steam. Sources close to Kassam are experiencing heightened anxiety as they become aware of his plans to cut and run to Dubai, for good, as soon as possible.

The latest news on the street is that brokers everywhere have been offered a 10% commission to help Anson raise $350 million—urgently. It sounds like the deal of a lifetime. Sources at brokerage firms say Anson is willing to pay 30% interest for a one-year term loan—and up to 50% interest in some circumstances. This is existential for Anson. If these funds don’t come in, the fund is finished.

The deal sounds unbelievably attractive for a lender, until it becomes clear that there would never be a return on investment. When the fund is frozen by the DOJ, all lender assets will be frozen along with it—and confiscated. This is the secret knowledge behind Kassam’s deal offering. He can offer up to 50% when he knows where it’s headed. That’s the risk premium.

Extensive due diligence on these offers among a multitude of finance sources has revealed that Anson is offering up a variety of pitches to a variety of potential lenders. But the primary cover story remains the same: Anson is telling potential investors that they have an opportunity to scoop up distressed assets for pennies on the dollar, and they are already in the money.

Anson just needs the funding to make this alleged once-in-a-lifetime deal happen. However, there is no opportunity. What we’re dealing with here is simply a fund that is about to go out of business and desperately needs funding to remain a going concern.

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