Ubiquity, Inc. (OTCPK: OTC:UBIQ) was the subject of a prior SA article authored by me on July 12, 2016. This post updates that article to reflect information that today became public. A reply to the prior article includes this information as well.
The SEC announced today that it had filed fraud charges against a San Francisco man and his investment advisory firm, identified as Nicholas M. Mitsakos and Matrix Capital Markets. The SEC alleged that Mitsakos and Matrix solicited investors for a purported hedge fund and claimed to have millions of assets under management, among other things. The SEC alleges that Mitsakos and his firm were provided $2 million by a client in September 2015, and stole approximately $800,000 and used most of it to pay for "unauthorized personal and business expenses." I was unable to locate a bio for Nicholas Mitsakos (of Ubiquity) that included his middle initial, and the biography for Nicholas Mitsakos of Ubiquity does not refer to his affiliation, if any, with Matrix.
However, Business Week's description of Mr. Mitsakos' background states, "Mr. Nicholas Mitsakos, also known as Nick, has been an Interim Chief Executive Officer of Ubiquity, Inc. since June 8, 2016. Mr. Mitsakos serves as the Chairman and Chief Executive Officer at Arcadia Holdings, Inc. Mr. Mitsakos is a Portfolio Manager at Matrix Capital Markets, LLC."
Importantly, the SEC's press release of today also states:
"In a parallel action, the U.S. Attorney's Office for the Southern District of New York today announced criminal charges against Mitsakos."
Mr. Mitsakos is, of course, the current CEO and board co-chair of Ubiquity, according to the disclosure most recently filed by Ubiquity. I would say this is a good indication that Ubiquity could soon face its own regulatory inquiries. Bob
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.