There are plenty of ways to make money in the market right now.
One of my favorite strategies to utilize is my Dollar Ace Strategy because it allows me to tap into the minds of the “smart money.”
There’s so much shady activity going on in the market, and my “insider” activity scanner allows me to uncover where some of the “smart money’s” best plays are.
If you don’t believe me when I say there’s wild activity in all pockets in the industry…
I want to show you one SEC case I came across because it highlights one of the problems my Dollar Ace Strategy solves.
The case involves four executives of a publicly-traded company… and how they got caught for a $100M fraud.
The Story Behind Four Executives And A $100M Accounting Fraud
Sometimes, rough patches show exactly what some people are made of.
Unfortunately, I am still at a loss for words trying to come up with anything positive to say about the four executives.
They thought they could steal, lie, and get away with it…
They were wrong.
The SEC is now stepping into the ring with this company after the FBI knocked the former CEO right into jail.
Not terribly long ago the FBI shook this company’s world more than it shakes the earth.
SAExploration Holdings Inc (the stock trades on the OTC Markets, under SAEXQ) is a seismic data company that had its eyes on the black gold under Alaskan soil.
But its deep lust for fracking through Alaska’s Arctic National Wildlife Refuge is not what landed it with $100 million accounting fraud charges from the SEC.
The SEC’s investigation kicked off in 2019. It would mark doom for this company and possibly more than one executive’s rights as free men.
Thanks to the SEC’s newest reveal we have a much better view of the chaotic happenings at SAE.
The men at the center of the drama are former- CEO Jeffery H. Hastings, CFO Brent N. Whitely, COO Brain A. Beatty, and VP of Operations Michael J. Scott.
Together the four were behind the SEC’s charges for a $100 million accounting fraud.
The tipping point for SAE would be from late 2014 till early 2015 for this company.
SAE had begun to struggle to simply retain adequate cash flow. This issue would only be made worse by the decline in oil prices.
From 2015 till 2019, the SAE executives worked their fingers to the bone, putting their scheme in motion.
A scheme that allowed them to claim over $100 million in revenue that existed as much as my imaginary friend from childhood.
How The Scheme Went Down
Hastings and Whiteley created a whole new business and SAE customer Alaskan Seismic Ventures (ASV) to help them pull it off. AVS was to be a completely independent company from SAE and came with lots of attractive benefits.
SAE would “sell” data to AVS. This move allowed SAE to fake revenue and allowed ASV to get in on juicy oil and gas exploration tax credits.
The end goal was to inflate SAE’s reported revenue artificially. They kept this doozy of secret hidden from everyone! Shareholders. Debtholders. Investors. And the Public.
The kicker was ASV was not actually paying SAE for anything. But that did not stop SAE from recognizing a very sexy $141 million in revenue from ASV between 2015 and 2016.
The scum executives also had another iron in the fire…. One that helped them misappropriated $12 million from their employer.
About half of this money they used to make a secret equity investment in ASV. A move that was used to entice banks and other financial institutions to hook ASV up with some sweet financing.
Soon the executives learned their dreams of rolling around in ill-gotten financing were NOT gonna happen… They moved on to their next crime. Sinking the money into paying down ASV outstanding debt. That debt being owed to SAE whom ASV had even not paid yet.
Together they sent this money on a round trip using shell companies to throw others off their scent.
Now there is still the matter of the $6 million they pocketed from SAE.
This money was divvied up between the four. CFO Whiteley taking a generous $3 million. CEO Hastings taking $2 million. Beatty and Scott got the scraps.
This also was not the only money taken illegally from SAE.
CFO Whiteley, being in a convenient spot for stealing, took $4 million from SAE by way of bogus invoices. He did not even bother with shell companies with this one. Instead just making up names and tacking on bills for services that never happened.
In 2019 when news of the SEC investigation broke SAE fired its CFO and suspended its CEO.
By this summer SAE filed for bankruptcy. Soon after the FBI announced a 14-page complaint against the former CEO. News that soon landed him in an Alaskan jail.
Now the SEC has come out swinging with charges for SAE and all 4 of its former executives. Charging them with $100 million accounting fraud AND has a 49-page complaint to back it up.
Listen, if you think this is the only shady activity that’s going on in the market, you’re terribly mistaken.
Millions of dollars being thrown at options plays that might appear like a reckless thing to novice traders.
You see, the playing field isn’t level in the trading game.
I want to show you how I compete with an edge like no other, and teach you how to uncover opportunities like this…