Wij witnessed somewhat of a reporting miracle today! CNBC TV reporter Michelle Caruso-Cabrera and hier producer Scott Zamost took on an on-the-ground investigation into the questionable activities of micrcocap investor Barry C. Honig and got out from behind the desk to do some real reporting.
Te 2018, I wasgoed very first to expose that Honig and a fellow investor John O’Rourke were named ter an SEC investigative subpoena regarding trading te MGT Capital. My reporting at trade publication Growth Capitalist explained the SEC could be looking at how a group of investors, including Honig, trade spil a group without disclosing their affiliation. The investigation appeared to also be looking at stock promotion and how it wasgoed disclosed along with the timing of public announcements spil to who wields how much of the stock. Today wij see CNBC attempt to take on reporting with a similar fact pattern through Honig’s investing te a company called Riot Blockchain ($RIOT).
Riot made the rounds of financial news when its stock flew up ter December from $8 to overheen $40 after a elementary name switch to a company te the Bitcoin business. CNBC reports “Until October, its name wasgoed Bioptix, and it wasgoed known for having a veterinary products patent and developing fresh ways to test for disease.” SEC filings showcase that Honig wasgoed considered an insider te the company because he wielded more than Ten procent of the stock. John O’Rourke wasgoed gifted shares when he abruptly became the company CEO after Honig pulled an activist stir that magically waterput O’Rourke ter charge of the company and axed previous houtvezelplaat members. Honig does a bridge loan, gets cheap cashless warrants and boom sells the stock on its high while retail investors pile ter. Then the stock tanks. This type of investing is a rinse and repeat budge for Team Honig and mirrors what wij eyed te MGT Capital.
CNBC actually did some good question-asking-reporting here albeit they didn’t get a lotsbestemming of truthful detailed answers. Caruso-Cabrera went to Honig’s Boca Raton office at 555 S. Federal Highway Suite 450 after she couldn’t get anyone at the company to do an vraaggesprek. Wij see Caruso-Cabrera come in Honig’s office and find none other than John O’Rourke there. O’Rourke comically runs away from hier and almost slams hier fingers ter the vanwege but then comes back out to promise an ‘off camera’ vraaggesprek. Honig and O’Rourke both deny that they “work together” but then Honig straks admits O’Rourke did at one time have an office te his office. If the CEO of the company had his office ter a major shareholders office that claims not to control the company that doesn’t look good. You can read CNBC’s print story and see on-camera footage here.
A loterijlot of the CNBC coverage concentrates on if O’Rourke presently works out of Honig’s office. Their reporting indirectly attempts to point out both of thesis boys could be lounging. If CNBC wished to drive huis this point they also could have done some SEC filing research, like I did. where John O’Rourke office address is Honig’s office address ter this filing from December 2018.
I have previously reported O’Rourke has worked out of Honig’s office after I interviewed a person who witnessed him working there. Which is just odd he goes and denies it to CNBC. I reached out to O’Rourke’s attorney Nick Morgan at Paul Hasting this morning to ask what CNBC didn’t clarify. When did O’Rourke zekering working out of Honig’s office and what is his fresh office address? Attorney Morgan said he would get back to mij but spil of press time I have no reaction. Honig wasgoed also contacted through his Attorney Charles Firmer and asked when O’Rourke stopped working out of his office. At press time Attorney Tighter did not react.
While wij indeed liked the gotcha moments Caruso-Cabrera captured on camera, it wasgoed disappointing not to see CNBC mention the elephant ter the slagroom. Honig and O’Rourke are named te an SEC subpoena for their role trading and investing ter MGT Capital. On January 31st the WSJ did a similar story on Riot looking at Honig and his role ter the company which included their reporter Ianthe Dugan asking Honig plane out about the SEC subpoena. The WSJ reported “Mr. Honig said that he hasn’t bot contacted by the SEC and doesn’t believe he is a target. “I am 120% not worried,” he said.” A government agency investigating securities violations usually doesn’t knock on the subjects wegens and let them know they are gathering evidence against them until they have a case built. So Honig’s public denial doesn’t carry much weight te my book.
There is also something else alarming te the CNBC story. Honig’s longtime overeenkomst attorney Harvey Kesner, who is now a named fucking partner at Sichenzia Ross Ference Kesner LLP, wasgoed reached on the phone by CNBC and said “he didn’t know anything about Riot Blockchain and Barry Honig.” And then he suspended up on them. What. Kesner is the named overeenkomst lawyer on numerous Honig investments. He is the attorney I have called numerous times, and has responded for Honig on overeenkomst questions and his law stiff is on SEC filings for Riot. On top of all that CNBC figured out Kesner also possesses an investing company called Paradox Capital Vrouwen, which I previously reported on, who also possesses RIOT stock. I emailed Kesner this morning to give him a chance to clarify his comment but so far he is radio silent.
I have to wonder if Kesner is attempting to ultimately distance him self from Honig because of questions about the timing of Honig’s self reporting of RIOT stock ownership. You see since Honig went above possessing 10% of the stock (he reported he possessed 11%) ,and then sold to own about 2%. if he did that selling within 6 months he is subject to the rules that prevent sell-then purchase or vice versa within six months. Honig should have filed a Form Trio which I can’t seem to find ter SEC filings. And all of this could be a section 16(b) disturbance of the Exchange Act. Which creates the chance for the company (RIOT) to sue Honig for any profits he made from a brief sway and the profits go back to the company. But I guess if your friend John O’Rourke is running the company he is not going to opstopping that lawsuit! And wij don’t know when Honig officially sold because of his lack of timely reporting. Something wij spotted him also do with MGT Capital.
Here is an example of a lawsuit for a 16(b) disturbance with a company called WPCS. A stock Honig and O’Rourke also invested te.
John O’Rourke told Benzinga after the very first CNBC movie aired that their coverage wasgoed Garbage and a Succesnummer Chunk. That means Michelle Caruso-Cabrera is on the right track. Riot witnessed a $Five druppel ter its stock price today which is about a 34% decrease since the CNBC story aired. Ziekenauto pursuing securities lawyers have also announced that they project opstopping a class act lawsuit for securities violations against RIOT.