Seeking Alpha

Ebix under investigation for money laundering, shares plummet

  • The U.S. government is investigating Ebix (EBIX -24.4%) for possible money laundering, Bloomberg reports. Shares have plunged below $9 on the news.
  • A Goldman affiliate terminated its planned acquisition of Ebix in June following news of a U.S. Attorney investigation. Ebix is also being investigated by the SEC.
  • SA contributor Gotham City Research has been taking aim at Ebix's accounting, and so has short-seller Marc Cohodes.
Comments (12)
  • Beans Counter
    , contributor
    Comments (16) | Send Message
    The source is a Nov 2012 Bloomberg article. Looks like some short sellers wanted out before an upped buyout announcement on Friday.
    6 Aug 2013, 02:02 PM Reply Like
  • RobbyRob
    , contributor
    Comments (361) | Send Message
    I saw Twitter as a source. Seems very suspicious given that earnings are being reported on Friday AM.
    6 Aug 2013, 02:05 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (5591) | Send Message
    Ebix Said to Be Reviewed by U.S. for Money Laundering:
    6 Aug 2013, 02:13 PM Reply Like
  • rungrandpa
    , contributor
    Comments (232) | Send Message
    SEC is one thing but FBI investigating is really bad news to me.
    6 Aug 2013, 02:17 PM Reply Like
  • bluedevilAK
    , contributor
    Comments (30) | Send Message
    same old source, no new information. seems like some shorts are a bit scared walking into earnings...
    6 Aug 2013, 02:25 PM Reply Like
  • Brandond
    , contributor
    Comments (397) | Send Message
    In my experience, I've made money buying on panic from SEC investigations. I always avoid FBI investigations as the FBI is usually only involved where there is a high likelihood of impropriety.
    6 Aug 2013, 02:45 PM Reply Like
  • Save2Play
    , contributor
    Comments (5) | Send Message
    bloomberg article appears to have been at 12:47 CST...
    6 Aug 2013, 02:57 PM Reply Like
  • Arq
    , contributor
    Comments (3) | Send Message
    Oh my god. There is literally no source to the story I dug through all the articles and not one posts a credible source. Oh other than "three people with knowledge of the matter".
    Too bad Ive no free capital to use up.
    PS. Long Ebix still.
    6 Aug 2013, 02:57 PM Reply Like
  • marin011
    , contributor
    Comment (1) | Send Message
    Again same old news. Nice time to buy some more before the earnings though.
    6 Aug 2013, 02:57 PM Reply Like
  • StopPrintinMoney
    , contributor
    Comments (265) | Send Message
    BBG is the source -
    6 Aug 2013, 04:13 PM Reply Like
  • FatBearHoneyLover
    , contributor
    Comments (183) | Send Message
    Stop panic people, FBI's interest is one of Ebix's shareholder, not much for the company itself. And we all know the raising concern about money laundering, it's one of the best tool for most government's agencies to target foreign entities. Other related questions are purely speculative. This ridiculous investigation and associated allegations are nothing unlike those on SAC capital. I really wonder if Bloomberg is a pusher behind the all this, particularly the civil suit and investigation on eBix.
    6 Aug 2013, 11:28 PM Reply Like
  • p2invest
    , contributor
    Comments (156) | Send Message
    Marc Cohodes and friends Sam Antar and Dan Yu have stakes in the Ebix short. Anything that they say has self interest written all over it. Greg Farrell is being fed information to write his articles.
    8 Sep 2013, 08:42 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs