Jumio, Inc., SEC Imposes Sanctions on Former CFO | Goodman & Nekvasil P.A. May Recover Investor Losses

Jumio, Inc., SEC Imposes Sanctions on Former CFO | Goodman & Nekvasil P.A. May Recover Investor Losses

Securities and Exchange Commission Imposes Sanctions on Former CFO of Jumio, Inc.

ACCORDING TO THE SEC: This matter involves Respondent Chad Starkey’s negligence in connection with a fraudulent scheme to provide false financial information to prospective investors in Jumio, Inc., a private, mobile payments start-up company, in order to convince those investors to purchase shares from Jumio employees – including Jumio’s senior executives – in a private, secondary market transaction. The scheme was carried out by Jumio’s founder and former Chief Executive Officer, Daniel Mattes, who overstated Jumio’s revenues by more than $90 million by including revenue that Jumio did not earn, causing Jumio to enter into a round-trip transaction that had no economic substance, and causing Jumio to recognize revenue sooner than it should have under Generally Accepted Accounting Principles (“GAAP”). From March 2014 through February 2015, Mattes used the false financial statements to sell Jumio shares owned by Jumio employees – including Mattes – to investors in the private market.

ACCORDING TO THE SEC: Starkey, Jumio’s former Chief Financial Officer, accepted Mattes’ inclusion of the roundtrip revenue in Jumio’s financial statements, even though he knew or should have known that it was not appropriate. Starkey also accepted Mattes’ practice of immediately recognizing as revenue the full amount of possible revenue under certain contracts, regardless of whether the services had been rendered or collectability of any amounts due, even though he knew, or should have known, that this did not comply with GAAP. Starkey also knew Mattes was putting the false financial statements into an electronic data room for prospective investors to review before they purchased Jumio shares, and signed stock purchase agreements that falsely represented that Jumio had waived its refusal rights over the shares (which enabled the shares to be sold to private market investors). Starkey sold some of his own shares in Jumio during this period, profiting $364,000. Jumio ultimately filed for bankruptcy in 2016, and all the shares bought by the secondary market purchasers became worthless.

Investors in Jumio, Inc. May Recover their Losses with Goodman & Nekvasil, P.A.

If you invested in Jumio, Inc., Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors. 

All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years. 

There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.

If you incurred investment losses in Jumio, Inc. and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.  

Investment Fraud Attorney, Stockbroker Misconduct Disciplinary Actions, Unsuitable Investment Advice, Investment Fraud, Churning, Misrepresentation and Omission of Material Facts, Elder Fraud, Unauthorized Trading, Theft, Selling Away, Unapproved Outside Business, Nationwide, PIABA, SEC, Securities Exchange Commission, NASD, National Association of Securities Dealers, NASDAQ, Dow Jones, Wall Street, New York Stock Exchange

Back to Blogs

Contact Us For a Free Consultation

 
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
9 + 11 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.