Federal investigators have a mountain of proof in opposition to Dan Bilzerian’s father, Paul Bilzerian, and the hashish firm the poker participant runs in a high-profile wire fraud case.
Paul Bilzerian and Ignite Worldwide Manufacturers, Ltd. had been charged final month with defrauding the US by allegedly falsifying who controls the enterprise and deceptive traders.
PokerNews has obtained a 40-page grievance filed in the US District Courtroom Southern District of New York that lays out the proof, which incorporates electronic mail exchanges and a timeline of the alleged criminality. Dan Bilzerian doesn’t personally face any prison expenses.
How is Dan Bilzerian Related?
Dan Bilzerian, whereas not chargeable for his father’s actions, is listed because the CEO of Ignite, which sells disposable vape pens and different nicotine e-liquid merchandise. However the Securities and Change Fee (SEC) disputes who really controls the corporate and have documentation they consider proves it.
Paul Bilzerian, 74, a convicted white-collar prison who was sentenced to 4 years in jail within the late Nineteen Eighties for fraud, by no means paid the SEC the $33.1 million judgment he misplaced in a civil go well with over 30 years in the past. That debt, with curiosity and costs accrued, now exceeds $180 million.
Some have recommended the youthful Bilzerian, a former GGPoker ambassador, constructed his wealth off an inheritance. Dan Bilzerian, nevertheless, claims he made his tens of millions by way of poker.
Both method, the SEC believes Paul Bilzerian has been hiding tens of millions by way of shell firms and Ignite, which additionally they declare he controls, not his son. Emails uncovered by federal investigators seem to again up that story.
The elder Bilzerian, in October 2018, emailed Ignite’s CEO: “Should you can rent Eddie tomorrow because the Vice President of Finance, or any momentary title that’s not an officer place which might delay our CSE approval, efficient October 1, 2018, on the phrases I despatched you earlier I’d be grateful. And if you’ll give Eddie authority to rent 4 non officers efficient no matter dates they will begin (Eddie or Scott [Rohleder] gives you these dates and the compensation phrases), we are going to then have our preliminary group in place.”
He emailed board members one month later informing them that he wished to host a Skype assembly to debate “monetary statements” and “create a price range for 2019.” The convicted felon additionally emailed Ignite’s then-president, stating, “you aren’t producing any earnings; you aren’t even near producing any outcomes that will point out you will get to interrupt even,” earlier than calling for a personal assembly with the previous government.
After calling for the firing of the previous president, Mr. Bilzerian emailed board members in August 2020, writing that he “want to have John Schaefer appointed President as he’s already the Chief Working Officer and make it clear we’re not in search of anybody else. I want to give John a wage enhance to replicate his new title however we’re engaged on what that ought to be. John works effectively with Scott [Rohleder] and me and we proceed to make nice progress reducing prices, positioning Ignite for fulfillment and a sale in 2022.”
Rohleder and Schaefer, each Ignite executives, are co-defendants.
Dan Bilzerian Lists Las Vegas Mansion for $25 Million
Did Paul Bilzerian Mislead Traders?
Ignite, a Canadian-based firm that’s publicly traded in the US (BILZ), started promoting merchandise out of Phoenix, Arizona throughout COVID.
The grievance alleges that from late 2020 to 2021, Ignite “—engaged in a scheme, orchestrated largely by recidivist [Paul Bilzerian], who controls Ignite, to fraudulently report income.”
Ignite reported in January 2021 income of about CAD $10.1 million (USD $7.9 million) for the fourth quarter of 2020. The corporate famous in a January 19, 2021 press launch they “exceeded income for the earlier three quarters mixed.” These optimistic numbers, as federal investigators declare, had been all bogus.
An investigation into Ignite’s financials allegedly found that the reported income was based mostly largely on three “fraudulent” invoices despatched to at least one firm (listed as “Firm 1” within the grievance). Firm 1’s president (“Particular person 1”), nevertheless, disputed the invoices and refused to pay for or obtain the merchandise listed on the invoices.
Ignite, allegedly on the route of Paul Bilzerian, continued peddling the false 2020 This fall revenues, and that prompted the inventory worth to spike considerably. On January 18, 2021, the inventory opened at $0.57 per share earlier than hitting $1.57 that very same day.
Ignite’s auditor and co-defendant, Accell Audit & Compliance, PA, started auditing Ignite’s 2020 financials in January 2021. When Accell tried to verify the fraudulent invoices with Firm 1, Particular person 1 wouldn’t verify the quantities said. Paul Bilzerian then, in accordance with court docket paperwork, modified course and directed Worldwide Investments, one other firm he controls, to nominally “buy” the stock listed within the questionable invoices.
In late February 2021, Ignite allegedly credited Firm 1 for USD $4.6 million whereas backdating the credit score notes to December 31, 2020. Ignite is claimed to have then backdated invoices to Worldwide Investments for a similar quantity to the identical date. The corporate didn’t regulate its 2020 monetary statements or right its January 2021 press launch.
Paul Bilzerian, a resident of St. Kitts, has claimed to stay in poverty for years. However the allegations in opposition to him inform a distinct story.
Dan Bilzerian’s Father, Hashish Firm Indicted on Federal Costs
