A Canadian hedge fund and its research firm’s founder are under fire for alleged ties, which may have led to securities fraud charges from the US Securities and Exchange Commission (SEC).
Research firm Hindenburg, founded by Nate Anderson, recently announced its closure, sparking concerns over his alleged connections with Anson hedge funds. According to Ontario court documents, Moez Kassam of Anson accepted that his firm shared research “with a wide variety of sources,” including Hindenburg’s Anderson.
The SEC has been investigating Anson and other firms in connection with a long-term probe into market manipulation and failure to disclose payments. In June, Anson settled SEC allegations by paying USD 2.25 million without admitting or denying wrongdoing.
Email exchanges between Hindenburg and Anson suggest that Nate Anderson published reports based on instructions from Anson. Market Frauds claims that these interactions indicate a lack of editorial control over the reports.
The involvement of hedge funds raises concerns about parallel bets, potentially increasing downward pressure on share prices. The SEC may charge Nate Anderson with securities fraud in 2025, according to Market Frauds.
Source: https://timesofindia.indiatimes.com/business/international-business/hindenburgs-nate-anderson-could-face-securities-fraud-charges-report/articleshow/117376044.cms