SEC Compiled Documents On ZAGG For Law Enforcement Purposes

Feb. 08, 2013 11:02 AM ETZAGG1 Comment
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Contributor Since 2009

Worthless Pennies is written by Tony Erickson, a British native now residing in Southern California. Tony cut his teeth in the Private Equity business and now enjoys working with an elite group of associates to uncover incredible shorting opportunities.

Back in September I wrote and article (seekingalpha.com/instablog/500579-worthl...) arguing that ZAGG was likely the target of an SEC Investigation that was undisclosed by the company. Over four months has passed and ZAGG has still neither confirmed or denied whether there is an ongoing SEC investigation.

I recently received another letter from the SEC which I believe will make it impossible for ZAGG to keep their head buried in the sand and force them to comment on just what is going on with them and the SEC. The letter says that records "related to any past or current SEC Investigation of ZAGG, Inc." will not be turned over to me because they have been "compiled for law enforcement purposes" and the disclosure may "interfere with enforcement activity." The full letter can be read here:

www.scribd.com/doc/124211776/ZAGG-SEC-FOIA

This letter removes any doubt about whether or not there is an ongoing SEC investigation into ZAGG. It also, in my opinion, makes it highly likely that the situation is much more serious than just a SEC investigation. This document is likely to force ZAGG's management to disclose what exactly is going on with the company and the SEC (if this isn't material, I don't know what is!). Until that time I will let the reader examine the facts and draw their own conclusion.

Disclosure: I am short ZAGG.

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