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IDI: Strong Sell On Fraud Lawsuits, Bankruptcy And Technology Failure, -92.4% Downside

Jul. 21, 2015 12:31 PM ETFluent, Inc. (FLNT)FNRG, TRU51 Comments
The Pump Stopper profile picture
The Pump Stopper


  • Frost mixed up with “the wrong crowd” as Barry Honig and Michael Brauser have spun a tiny struggling debt collections business, acquired with $5.7m cash, into temporarily inflated ~$200m shell.
  • Chairman Brauser's biography has “interesting” omissions including bankruptcy, wipeout, and fraud lawsuits, with Equifax suing him alleging “fraudulent misrepresentations” with Softbank lawsuit alleging "various frauds".
  • IDI stock temporarily inflated from extensive yahoo message board stock-pumping scheme, touting IDI across dozens of boards with interconnected aliases, similar to halted and bankrupt FNRG.
  • IDI’s Transunion lawsuit could mean instant $0 for stock as IDI future apparently based on IP they don’t own, which Transunion acquired when IDI CSO Poulsen's last company went bankrupt.
  • Confluence of temporary factors above have inflated IDI stock to the obviously unsustainable valuation of ~$200m or >40x revenue, creating imminent -92.4% downside in "best case" scenario.

I believe Idi Inc. (IDI) is another worthless Brauser and Honig wipeout. This famous wipeout team has joined forces to temporarily resuscitate a fraud ridden shell with a tiny debt collections firm, acquired with $5.7m cash payment, to the unsustainable valuation of $200m or >40x revenue. In what appears a desperate attempt to salvage his failed fraud shell, Frost has clearly gotten involved with the "wrong crowd" and regrettably stained his reputation through association with what I believe is one of the worst penny stock wipeout teams in America.

Brauser's biography conveniently "forgets" to include a long track record of fraud lawsuits, bankruptcy and shareholder wipeouts. While touting involvement in Naviant, Brauser neglects to mention he was apparently sued by data fusion giant Equifax (EFX) for allegations including "fictitious receivables" and by Softbank for "various frauds" with apparent multimillion dollar payments to Equifax. Shockingly, the Naviant debacle barely scratches the surface and Barry Honig's background looks even worse.


(picture credit IDI)

IDI faces an insurmountable lawsuit while desperate for cash and with a $160m equity shelf filed IDI stock is now "coincidentally" being pumped with an apparent sketchy online Yahoo message board stock promotion campaign, similar to halted and bankrupt Forcefield Energy (OTC:FNRG) where the chairman was arrested for fraud.

IDI is eerily similar to the BVSN, VNRG, USEL, IZEA and DRNE wipeouts these people oversaw, With a huge amount of IDI shares becoming unlocked soon, a $160m shelf filed for IDI stock sales and an abusive $31m+ virtually free rsu payment to Brauser and Honig, IDI is at imminent risk of total wipeout.

It's not often you get to short a cash burning penny stock wipeout team with a declining, $5.7m cash acquisition trading at >40x revenue for <7% cost to borrow. I recommend you pour yourself a tall glass of

This article was written by

The Pump Stopper profile picture
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Analyst’s Disclosure: I am/we are short IDI. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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Comments (51)

Sad Day for many very unfortunate
who should one believe... check this out http://bit.ly/1VxoptD

also why have the lawyers after about the 3rd day close the investigation?
Buddha1010 profile picture
The latest scheme hatched by these scammers is COOL.
PMMike profile picture
16 Mar. 2017
It seems as though much of what was alleged in this article has been proven wrong at this point in time. Maybe the purchase of Fluent or Q-Interactive aided this. Maybe the launch and acceptance of ID-Core helped as well. But one thing for certain I am sure this article made a lot of investors jump ship contributing to the 40% drop. Now the stock trades on the Nasdaq under the name COGT as the company owning IDI, Fluent and Q-Interactive with sales over 200 million and gross profits last quarter of 33% and growing their business nicely.
usmc12341 profile picture
would love to see this author 's opinion on John McAfees new company MGT. Which, by the way will be changed from MGT to another name shortly. Interesting!
This is the best article on SA I have ever read! Phenomenal!

Why is Brauser not in jail?
SkyTides profile picture
Detailed rebuttal of IDI Short Attack http://bit.ly/1VQ7dyD
Michael Bachmann profile picture
All I had to do was skip to the bottom and see this: "We note that IDI estimates its addressable markets at $13.6 billion. If this estimate is accurate and IDI can succeed and obtain even just 10% of the data fusion market, then the fair market value of IDI should approach $1 billion."

You are mixing up revenue and market cap. Also if someone was willing to pay up to 180mil why would that make it worth $1 bil (not addressing that Transunion still ended up with some of the IP so you'd have to split that value).

Their most recent 10q showed losses of 3.98mil on revenues of 0.98mil. That's a billion dollar business?
SkyTides profile picture
Boxman, we are not mixing up revenues and market cap. We are simply implying a 1x revenue multiple would equal $1B.
SkyTides profile picture
You are implying Transunion received IP that is valuable. Our research indicates otherwise. Additionally, Transunion does not have the team that developed all of the IP being discussed. That IP is useless if you can't improve upon it as times passes by. The development team is primarily what makes IDI so valuable. Go ahead and look at historically top and bottom line results - those are the most meaningless metrics you could bring forth. IDI has not launched their primary product offering yet. Believe or don't believe, but with a team that has this track record, we are very willing to bet on them.
is this a good price to add to my short here

thank you
hahaha48 profile picture
My advice to people is never play the game with fraud or pump and dump. You are in the dark and the one that control the stock is always the winner. Never try to short them because again you are playing in a game that someone else controls.
As far as I know very few fraud or pump and dump ever lost money. It is always the outsider that get hurt. They can drive the price of the stock up with no fear because they know when to sell.
The market has voted and based on the current stock price being in the 9's it looks like FUD has lost here big time
Pharma Investor profile picture
I agree. Given that IDI management indicates they could have significant developments ahead, they are confident shorts will soon turn out to be their friend. I expect over time the smart money will see these articles as massive opportunities (as I think this one has been seen as)---particularly when management responds immediately and forcefully as IDI and CBMG both did. Effect will probably wane with each subsequent article as many educate themselves on this process and the calls are proven unreliable. Sure a few retail longs will get scared out of shares, a few retail shorts will try to jump on board shorting at the bottom--both these groups will lose. But I can just see any number of more sophisticated investors/hedge funds waiting a few hours, then buying up any dip and more educated longs holding through the fiasco. As this occurs, dips will likely become less pronounced and the game will have lost its luster.
No chatters today??? A bit too quiet, don't you think?
Look at the sec filings which are ontheirWebsite he bought at 245 pm all 15300 shares to keep from going to zero!!! If his motive was to buy low and sell high like most investors..... He missed big time lmao. He would have waited for the bottom then bought in, but obviously he was trying to prevent the crash. He definitely did with his interview and buying shares blah blah blah . U have to look at the whole picture and when it was done there was no buy signal at any of those prices executed plain and simple. There was obviously other motives. However it's gonna crash again tomorrow bc lawsuit is FILED now just investigation anymore. This was done post market 7/22.
Pharma Investor profile picture
Lawsuits? Based purely on this article. Have you done any due diligence about how these "lawsuits" pan out. Let's look at CBMG: after months they had one plaintiff who sold 100 shares. These aren't lawsuits, they are part of a bigger game being played. http://yhoo.it/1HLpbNB
How about the similar recent attack on CRMD. So far that lawsuit's lead plaintiff sold all of 50 shares. Seeing a trend here?
Stock up again this a.m...guess it's not panning out as you predicted. Maybe the market is getting wise to what is going on here with Rosen, et al and seeing these events as a buying opportunity.
IDI CEO responded to Pump Stopper. No comment from the Shorts here. I wonder why.
Here's the link of the CEO responding to Pump Stopper.
Lejun James Shao profile picture
hi, luckykid:

they always do. check UNXL. Another perfect example the company management makes stories all the time and took investors money and nothing in return.
Not as forceful as this CEO of IDI; he and other Insiders added ( bought) more shares they already own. Like my Pappy use to say: Son, there are many reasons Insiders sell , but there is only one reason Insiders buy. And that is to make more money when opportunity arises. And don't let others make you think otherwise.
Anyway, thanks for the cheap shares, Shorties. No bankruptcy, dudes! :)
Pharma Investor profile picture
Thank you for the link. Very interesting rebuttal. Small wonder the stock popped back up 25% today. Wish I would have bought this a.m. like my gut told me too (no position).
I find it interesting that the while the author states that the TLO/Transunion lawsuit could take IDI to zero, the situation is that IDI's current technology/intellectual property is not based on the IP under litigation. Per IDI's assertions, it's almost exactly opposite to the way the author presents: no significant harm to IDI's operations if they lose, but huge potential gains if they win (royalty payments).
Will be watching to see how many form 4's come out in the next few days showing insider buying on this dip (as the interview asserts occurred).
I'm beginning to doubt this article when I noticed Insiders were buying shares on 7/21/2015. No BK dude or Shortie, if I may! Thanks anyway. I picked up some Cheap shares. :)
Lejun James Shao profile picture
Great article.

I have seen IDI promoters posted on many yahoo msg boards. It will be great if FBI can figure out who posted the messages and how much money they earned from doing it.

Wow. Eye popping.
Pharma Investor profile picture
Might be eye popping! Before jumping to the conclusion that these were "longs" posting on the Yahoo message boards, what if we contemplated that they were in fact shorts posing as longs. Who knows after all, these guys were anonymous. Maybe they were posting knowing an article such as this may one day come out? Could be a pretty sophisticated scheme, but I doubt I'm the first to think this could be the case.
Just as many believe there are paid "long" pumpers, I'm sure there are many paid "short" distorters too.
Fact is, no serious investor should put any stock in what shows up on Yahoo message boards (long or short).
This sounds personal... the company has been been operating for several years, filing with the SEC on time, and being as transparent as any public company can be... In addition, none of the management has every been charged with crime.
UNEMON1 profile picture
Let's all together welcome Ccapri1001! .... WELCOME. Finally IDI's defense joined the discussion. A brand new alias posting his own comment to support this shady company. I guess the Company is not the only thing looking shady here.
The Pump Stopper profile picture
welcome Ccapri!
Thank you for the welcome. ... I read your article several times, and did additional research on my own ... some of the allegations can be true .. but this is for the legal system to decide ... my concern is that companies can be publicly traded for several years, then get taken down with an article ... where is the SEC all those years if those individuals, (con artists) as you portray them, have been been defrauding retail investors for decades. I respect the effort you've put into this..
Pump Stoppers,

What do independent directors Steve Rubin, Robert Fried, Peter Benz and Robert Swayman get out of their involvement with IDI? Why would they risk harm to their reputations if this is a worthless company? Dr. Frost is building Opko Health into a legitimate diversified biotech via the purchase of Prolor, CytoChrome, Eirgen and BioReference Labs. Why is he involved here? He rarely sells stock of the companies where he's a major shareholder so I doubt he sold during the recent stock price increase. So it seems the risk to his reputation exceeds any possible benefits? Also, IDI is offering more than one product - batch processing and custom solutions in addition to their idiBasic product. Are these other products part of the lawsuit? Do you know what these products are and if they are fraudulent?
dancingmonkeys profile picture
Frost got involved with Tiger Media several years ago. Tiger was a well known Chinese RTO fraud. Given that Tiger is a fraud, its actual operating business is very poor. Just Google "Tiger Media and Fraud."
William Apel profile picture
Not everyday you see a legitimate company with a knowledgeable shareholder base fall 40%+ because of an article...

Good stuff exposing these clowns. Frost does this stuff all the time and seems to get away with it as well.
crazylikebudfox profile picture
If only this karma would extend to OPK, I could die a happy man. Great write-up.
should i add to my 8.46 short here....im think of adding to the short at 11 .....any advise
User 509088 profile picture
BANG! Great job, time well invested. Thank you.
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