I have been following this company Aspirity holdings for a while. They do not have any publicity traded equity but they do issue subordinate notes to retail investors that have pretty high yields (7-16%). According to their income and balance sheets they are effectively insolvent and it looks like they only reason they continue to have cash is by selling these subordinate notes to unsuspecting buyers. Mean while they have been paying huge salaries to the insiders, who own all of the equity. They have also been paying hundreds of thousands of dollars in preferred dividends to the founder. The company recently exchanged the founders preferred equity to a 20% subordinate loan due in 2019, seems like they are almost about to go belly up and the executives are trying to squeeze every penny out.
I'm not sue if they are doing anything explicitly illegal but regardless am fairly confident a bunch of people are about to get screwed. Any suggestions on how to bring attention to this scam?
Here is a link to their SEC filings page, they have not released 4Q of 2016, i suspect because it will show they are close to being bankrupt. http://ift.tt/2omIcAW
Submitted April 11, 2017 at 01:02PM by Tenfive105 http://ift.tt/2ovRTz0
