Invictus Global Management LLC is providing $10 million in funding to cover the legal proceedings of NS8, a Las Vegas-based fraud prevention and cybersecurity company. This week, the company filed for Chapter 11 in a Delaware court.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Invictus Global Management LLC is providing $10 million in funding to cover the legal proceedings of NS8, a Las Vegas-based fraud prevention and cybersecurity company. This week, the company filed for Chapter 11 in a Delaware court.
Review Journal explains that NS8 CEO and co-founder Adam Rogas deliberately misstated its revenue, margins, and profitability to investors, the management team, board of directors, and corporate partners.
The bankruptcy declaration asserts that about $72 million of the $123 million in investor funds were used to repurchase shares and finance a tender offer. Rogas allegedly helped himself to over $17 million in investor funds under the guise of a share purchase.
Rogas was arrested last month on federal charges of using false bank statements to deceive investors. The FBI’s William F Sweeney Jr. noted the irony of a co-founder of a fraud prevention company engaging in fraud himself. The bankruptcy filing is expected to provide time for NS8 to resolve its existing debt.
