At CWEB, we are always looking to expand our network of strategic investors and partners. If you're interested in exploring investment opportunities or discussing potential partnerships and serious inquiries. Contact:jacque@cweb.com
The Social Media Giant Facebook (NASDAQ:FB) won’t accept new political ads in the week heading into the U.S. presidential election in an effort to limit the spread of misinformation. The new rule only applies to purchases made that week, not ads purchased now and scheduled for that window. Facebook’s other new election efforts include partnering with Reuters to provide live, official election results and plans to add a label to any candidate or campaign post that tries to declare victory before the official declaration.
New York Hedge Fund Founder Arrested And Charged With Fraud, Extortion, And Obstruction Of Justice In Connection With Neiman Marcus Bankruptcy
Daniel Kamensky Allegedly Extorted a Rival Bidder to Abandon a Higher Bid and Engaged in Obstruction of Justice by Asking the Rival Bidder to Cover Up the Crime
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DANIEL KAMENSKY, the founder and manager of New York-based hedge fund Marble Ridge Capital (“Marble Ridge”), was charged in a Complaint in Manhattan federal court with securities fraud, wire fraud, extortion, and obstruction of justice. KAMENSKY’s alleged criminal acts occurred in connection with his scheme to pressure a rival bidder to abandon its higher bid for assets in connection with Neiman Marcus’s bankruptcy proceedings so that Marble Ridge could obtain those assets for a lower price. KAMENSKY then attempted to persuade the rival bidder to cover up the scheme. KAMENSKY was arrested today and is expected to be presented before Magistrate Judge James L. Cott this afternoon.
Acting Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Daniel Kamensky disregarded his fiduciary responsibility to unsecured creditors of Neiman Marcus — and broke the law — when he attempted to coerce a competitor to withdraw a higher bid for assets of the bankruptcy estate. As further alleged, acknowledging the illegality of his actions, Kamensky then attempted to obstruct an investigation by trying to persuade the competitor to change his account of the coercion, telling the competitor that otherwise ‘this is going to the U.S. Attorney’s Office.’ As today’s charges show, Kamensky was right about that.”
FBI Assistant Director-in-Charge William F. Sweeney said: “As alleged, Kamensky intentionally violated his fiduciary duty as a member of the Official Committee of Unsecured Creditors in the Neiman Marcus bankruptcy by preventing the sale of securities to an investment bank so he could acquire the same securities at a significantly lower price for his own fund. In a conversation with an employee of the investment bank, Kamensky went as far as to say, ‘Maybe I should go to jail.’ Today, we’ve removed the ‘maybe,’ and forced him to answer for his conduct.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
DANIEL KAMENSKY was the principal of Marble Ridge, a hedge fund with assets under management of more than $1 billion that invested in securities in distressed situations, including bankruptcies. Prior to opening Marble Ridge, KAMENSKY worked for many years as a bankruptcy attorney at a well-known international law firm, and as a distressed debt investor at prominent financial institutions.
The Neiman Marcus Bankruptcy
Neiman Marcus, an American chain of luxury department stores with stores located across the United States, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) in May 2020. At the outset of the bankruptcy, Marble Ridge, through KAMENSKY, applied to be on the Official Committee of Unsecured Creditors (the “Committee”) and was thereafter appointed to be a member of the Committee. As a member of the Committee, KAMENSKY had a fiduciary duty to represent the interests of all unsecured creditors as a group.
During the bankruptcy process, the Committee had negotiated with the owners of Neiman Marcus to obtain certain securities, known as MyTheresa Series B Shares (the “MYT Securities”), and ultimately, the Committee was successful in coming to a settlement to obtain 140 million shares of MYT Securities for the benefit of certain unsecured creditors of the bankruptcy estate. In July 2020, KAMENSKY was negotiating with the Committee for Marble Ridge to offer 20 cents per share to purchase MYT Securities from any unsecured creditor who preferred to receive cash, rather than MYT Securities, as part of that settlement.
KAMENSKY’s Fraudulent Scheme
On July 31, 2020, KAMENSKY learned that a diversified financial services company headquartered in New York, New York (the “Investment Bank”) had informed the Committee that it was interested in bidding a price between 30 and 40 cents per share — substantially higher than KAMENSKY’s bid — to purchase the MYT Securities from any unsecured creditor who was interested in receiving cash.
That afternoon, KAMENSKY sent messages to a senior trader at the Investment Bank (“IB Employee-1”) telling him not to place a bid, and followed those messages up with a phone call with IB Employee-1 and a senior analyst of the Investment Bank (“IB Employee-2,” and collectively the “Employees”). During that call, KAMENSKY asserted that Marble Ridge should have the exclusive right to purchase MYT Securities, and threatened to use his official role as co-chair of the Committee to prevent the Investment Bank from acquiring the MYT Securities. KAMENSKY also stated that Marble Ridge had been a client of the Investment Bank in the past but that if the Investment Bank moved forward with its bid, then Marble Ridge would cease doing business with the Investment Bank.
The Investment Bank thereafter decided to not make a bid to purchase MYT Securities, and informed the legal adviser to the Committee of its decision. The Investment Bank further told the legal adviser they made that decision because KAMENSKY — a client of the Investment Bank — had asked them not to.
Advisers to the Committee informed counsel for Marble Ridge of their call with the Employees, and after speaking with KAMENSKY, counsel for Marble Ridge falsely informed the advisers that KAMENSKY had not asked the Employees not to bid, but instead had told them to place a bid only if they were serious. Later that evening, KAMENSKY contacted IB Employee-1 and attempted to influence what IB Employee-1 would tell others, including the Committee and law enforcement, about KAMENSKY’s attempt to block the Investment Bank’s bid for the MYT Securities. KAMENSKY said at the outset of the call, in substance, “this conversation never happened.” During the call, KAMENSKY asked IB Employee-1 to falsely say that IB Employee-1 had been mistaken and that KAMENSKY had actually suggested that the Investment Bank bid only if it were serious, and made comments including the following: “Do you understand…I can go to jail?” “I pray you tell them that it was a huge misunderstanding, okay, and I’m going to invite you to bid and be part of the process.” “But I’m telling you…this is going to the U.S. Attorney’s Office. This is going to go to the court.” “[I]f you’re going to continue to tell them what you just told me, I’m going to jail, okay? Because they’re going to say that I abused my position as a fiduciary, which I probably did, right? Maybe I should go to jail. But I’m asking you not to put me in jail.”
During a subsequent interview with the Office of the United States Trustee, which was conducted under oath and in the presence of counsel, KAMENSKY stated that his calls to IB Employee-1 were a “terrible mistake” and “profound errors in lapses of judgment.”
After this series of events, Marble Ridge resigned from the Committee and has advised its investors that it intended to begin winding down operations and returning investor capital.
* * *
KAMENSKY, 47, of Roslyn, New York, is charged with one count of fraud in the offer or sale of securities, which carries a maximum sentence of five years in prison, one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of extortion and bribery in connection with a bankruptcy, which carries a maximum sentence of five years in prison, and one count of obstruction of justice, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the work of the FBI. Ms. Strauss further thanked the Office of United States Trustee and the Securities and Exchange Commission for their cooperation and assistance in this investigation. She added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper and Daniel Tracer are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Apple has helped create 300,000 new jobs since April 2019. Apple’s App Store allows opportunities for developers and anyone with an idea to support Apple’s customers. The IOS app has created 2.1 million jobs across the United States in all 50 states proving the app job growing. Apple offers coding curricula two colleges across the United States as well as coding Academies, entrepreneur camp and accelerators giving them the opportunity to help expand their business to Globe audience.
Apple is more than just a computer company making smartphones and computers. It also invests in renewable energy for our future. Apple has announced it will invest in onshore wind turbines, which is a source of clean renewable energy. The investment is located near the Danish town of Esbjerg. The data center has creative jobs with over 600 workers supporting its development. Apple also announced the decision to become carbon neutral within its manufacturing supply chain and business by the year 2030.
Apple’s iPhone in IOS operating system have consistently be rated at the top a customer satisfaction.
Recent survey data shows that iPhone customers are not even contemplating switching brands today. In a December 2018 survey by Kantar, 90% of U.S.-based iPhone users said they planned to remain loyal to future Apple devices. Source Morningstar
In other news, Apple will launch the (super small) iPhone 12 Plus first with the iPhone 12 Pro and iPhone 12. Bloomberg reports that the iPhone 12 lineup will be released in stages, with the lower-end models coming out first in October.
The Apple Watch series 6 we’ll have stainless steel, titanium, ceramic and aluminum parts. Apple will make the switch to micro LEDs which draw less power on the battery with unexpected release date as far as 2023. Upon improving antenna performance and better Wi- Fi, there is a rumor about a liquid Crystal polymer to enhance wireless connectivity. The watch will also include blood oxygenation and sleep tracking features. The watch may also include mental health tracking including monitoring heart rate rhythms.
The new watch will have a cost somewhere between $400 and $1,400 depending on the band and the size the consumer chooses. The $399 price is assumed if Apple were to make a plastic version, but the cost be higher depending on the options a person would choose.
NASA Conducts SLS Booster Test for Future Artemis Missions
As NASA begins assembling the boosters for the Space Launch System (SLS) rocket that will power the first Artemis mission to the Moon, teams in Utah are evaluating materials and processes to improve rocket boosters for use on missions after Artemis III.
NASA completed a full-scale booster test for NASA’s Space Launch System rocket in Promontory, Utah, on Sept. 2. NASA and Northrop Grumman, the SLS booster lead contractor, will use data from the test to evaluate the motor’s performance using potential new materials and processes that can be incorporated into future boosters. NASA has a contract with Northrop Grumman to build boosters for future rocket flights.
“Landing the first woman and the next man on the Moon is just the beginning of NASA’s Artemis Program,” said NASA Administrator Jim Bridenstine. “The SLS flight support booster firing is a crucial part of sustaining missions to the Moon. NASA’s goal is to take what we learn living and working on the Moon and use it to send humans on the first missions to Mars.”
NASA and Northrop Grumman successfully complete the Flight Support Booster-1 (FSB-1) test in Promontory, Utah, on Sept. 2. The full-scale booster firing was conducted with new materials and processes that may be used for NASA’s Space Launch System (SLS) rocket boosters. NASA and Northrop Grumman, the SLS boosters lead contractor, will use data from the test to evaluate the motor’s performance using potential new materials and processes for Artemis missions beyond the initial Moon landing in 2024.The SLS boosters are the largest, most powerful boosters ever built for flight. The two boosters on the rocket provide more than 75% of the thrust needed to launch NASA’s future deep space missions through NASA’s Artemis lunar program. Northrop Grumman is the lead contractor for the SLS boosters.
For a little over two minutes – the same amount of time that the boosters power the SLS rocket during liftoff and flight for each Artemis mission – the five-segment flight support booster fired in the Utah desert, producing more than 3 million pounds of thrust.
NASA and Northrop Grumman have previously completed three development motor tests and two qualification motor tests. Today’s test, called Flight Support Booster-1 (FSB-1), builds on prior tests with the introduction of propellant ingredients from new suppliers for boosters on SLS rockets to support flights after Artemis III.
“NASA is simultaneously making progress on assembling and manufacturing the solid rocket boosters for the first three Artemis missions and looking ahead toward missions beyond the initial Moon landing,” said John Honeycutt, the SLS Program Manager at NASA’s Marshall Space Flight Center in Huntsville, Alabama. “Today marks the first flight support booster test to confirm the rocket motor’s performance using potential new materials for Artemis IV and beyond.”
The SLS boosters are the largest, most powerful boosters ever built for flight. The flight support booster used in the test is the same size and has the same power as the flight version of a five-segment solid rocket booster used for NASA’s Artemis missions. The Artemis I boosters are currently being prepared for launch at NASA’s Kennedy Space Center in Florida.
“This flight support booster test is the first motor firing NASA and Northrop Grumman have completed since qualifying the booster design for the Space Launch System rocket,” said Bruce Tiller, SLS Boosters Office Manager at Marshall. “Full-scale booster tests are rare, so NASA tries to test multiple objectives at one time so we are highly confident that any changes we make to the boosters will still enable them to perform as expected on launch day.”
NASA is working to land the first woman and next man on the Moon by 2024. The SLS rocket, Orion spacecraft, Gateway, and human landing system are part of NASA’s backbone for deep space exploration. The Artemis program is the next step in human space exploration as part of America’s broader Moon to Mars exploration approach. Experience gained at the Moon will enable humanity’s next giant leap: sending humans to Mars. SLS is the only rocket that can send Orion, astronauts and supplies to the Moon in a single mission.
With longer range and shorter charging times, battery technology will be at the forefront allowing more people to have the option to own an EV vehicle .
Startup EV (Electronic Vehicle) companies have turn to Special Purpose Acquisition Companies, (SPACs) to raise cash for their IPO’s and fund their vehicles for manufacturing to get their vehicles to market. Year to date over $21.5 billion has been raised for over 50 deals in the EV market.
Quantumscape uses a solid-state- lithium metal which is the next generation of batteries.by eliminating anode host material and manufacturing costs. The company is ready to debut its IPO in the New York Stock Exchange.
QuantumScape Corporation has entered into a definitive merger agreement with Kensington Capital Acquisition Corp. (NYSE: KCAC); upon closing, the combined company will remain listed on the New York Stock Exchange under the ticker symbol “QS.”
QuantumScape raises over $700 million in proceeds through the business combination, including a $500 million fully committed PIPE anchored by institutional investors including Fidelity Management & Research Company LLC and Janus Henderson Investors.
Transaction results in over $1 billion in cash and funding commitments, including QuantumScape’s Series F financing led by the Volkswagen Group and Qatar Investment Authority (QIA)
QuantumScape and Volkswagen have previously announced a joint venture to enable industrial-level production of solid-state batteries for use in VW’s vehicles.
Pro forma implied enterprise value of the combined company is approximately $3.3 billion. Source QuantaumScape Investor relations
Several companies are developing better and cheaper batteries that will hopefully make EVs a realistic option for every car owner. This video features QuantumScape, a manufacturer working to commercialize the next generation of battery technology. (I’m invested in their work both on my own and through Breakthrough Energy Ventures. Source Gates Notes
The Volkswagen Group is increasing its stake in QuantumScape and making an additional investment of up to US$200 million in the US battery specialist.
“Volkswagen is taking e-mobility to the mainstream. A strong position in the field of batteries is a decisive factor in this regard”, said Frank Blome, Head of the Battery Cell business, Volkswagen Group Components. “We are securing our global supply base with efficient producers, gradually building up manufacturing capacities and driving the development of cutting-edge solid-state battery technology. Our focus in this context is on long-term strategic partnerships.” Source Volkswagen
Last year saw a slight decrease in the global technology merger and acquisition activity from the blockbuster year that was before that–when IBM acquired Red Hat for a mind-blowing $33 billion, SAP bought Qualtrics for $8 billion, and Broadcom added CA technologies into their corner for $18.9 billion in cash.
What acquisitions does 2020 have in store? If the beginning of the year is any indication, then there will be no slowing of significant deals across the industry, with security being pretty hot right now.
Microsoft acquires CyberX
Matthew Manuel on Unsplash
CyberX was founded in 2013 that allows its customers to manage and improve the security of the IoT assets that can be anything from autonomous robots on a factory floor or a horde of consumer-centered smart doorbells. Microsoft announced its acquisition in June for an undisclosed amount. It will incorporate CyberX technology and its talent to its Azure cloud unit.
Facebook buys Giphy for $400m
Tim Bennett on Unsplash
Facebook announced in May that it would buy Giphy, the famous library where people search for movable images or gifs. Along with the team, the product will be rolled into the Instagram division of the social media giant. Giphy makes conversations interesting, and Facebook intends to integrate this library into other apps so that people can enjoy it everywhere.
Zoom acquires Keybase
Zoom has come under scrutiny during the pandemic since its usage saw an unprecedented increase, including its security credentials. Due to this, the CEO announced that these customer concerns would be addressed, and this acquisition is being positioned to that cause. Keybase specializes in end-to-end encryption, which is a cryptography method that ensures that content can’t be seen by anyone other than the parties involved, including the vendor itself.
Intel acquires Israeli start-up Moovit for $1b
Moovit is a mobility data specialist and journey planner founded in 2012. Intel has been a strategic investor in the start-up from the beginning leading up to this acquisition. Moovit provides real-time traffic update to third-party ride-hailing services and transit authorities by using its mobile app. The chipmaker will bring Moovit into its Mobileye mobility unit, which offers driver assistance to 60 million vehicles and is working on autonomous vehicle technology.
This is just the tip of the iceberg on the merger and acquisitions front in 2020. There are more that have happened, and more to follow that will change the face of technology rapidly.
DraftKings stock skyrocketed in early morning trading Wednesday when the sports betting company announced Michael Jordan will become an advisor and investor. The equity that Michael Jordan will take has not been disclosed. He will have a key part in advising the board on product development and strategy. Michael Jordan recently starred in The Last Dance ESPN documentary, which highlighted is his gambling trips to Atlantic City and New Jersey in the early 1993 eastern conference finals. The documentary can now be seen on Netflix.
DraftKings has not been without controversy. The IRS believes that DraftKings entry fees on wagers fall under an existing excise tax on sports betting which amounts to 0.25% of the contest fee. DraftKings is expected to challenge the IRS decision in court.
Michael Jordan is an American former professional basketball player who is the principal owner of the Charlotte Hornets of the National Basketball Association (NBA). He played 15 seasons in the NBA, winning six championships with the Chicago Bulls. His biography on the official NBA website states: “By acclamation, Michael Jordan is the greatest basketball player of all time. He was integral in helping to popularize the NBA around the world in the 1980s and 1990s,[6] becoming an American and global cultural icon in the process. Source Wikinews
About DraftKings
DraftKings Inc. (Nasdaq: DKNG) is a digital sports entertainment and gaming company created to fuel the competitive spirits of sports fans with products that range across daily fantasy, regulated gaming and digital media DraftKings is the official daily fantasy partner of the NFL, MLB and the PGA TOUR as well as an authorized gaming operator of the NBA and MLB and an official betting operator of the PGA TOUR. Source DraftKings
Zoom stock has been on fire lately with gains this past Tuesday and a quarterly report sending the stock up more than 30%. Today, however. the stock retreated down 6.5 percent as of 11:20 AM. The company has a market cap of $120 billion dollars. But can it survive among the competition from companies such as Google and Microsoft?
Today however the stock pulled back. The stock has gained 520% year-to-date and it’s not surprising investors are starting to take their profits. The company has a lofty evaluation with shares trading 115 times sales and 250 times its future earnings. While these are impressive growth numbers, the stock remains extremely volatile. Guidance targets for Zoom Technologies calls for revenue of 2.7 billion above the company revenue reported for fiscal 2020 of $622.7 million in sales.
Could a Zoom sale be in the picture? Who would buy it ? Perfect suitors for Zoom would be a Microsoft or Google takeover. Zoom technologies is an infrastructure company which could attract companies like Amazon, and IBM to take a stake. Microsoft would be the number one player as well as Salesforce– as it’s very successful with its data integration (MuleSoft) and data visualization (Tableau) units.
The royal couple just signed a mega eal Netflix to produce a series. The mega deal content about their new nonprofit, Archewell. Since stepping down from the royal family and moving to Los Angeles the Duke and Duchess of Sussex will make films, television shows, children’s series, and documentaries with Netflix .
The couple is well suited to begin their new life in Hollywood. They just purchased a home in Santa Barbara area in the town of Montecito for $14.65 million. The new home has 18,671-square-feet, 16 bathrooms and 9 bedrooms on 7 Acres of property. The home is just around the corner from celebrity, Oprah Winfrey, Gwyneth Paltrow , and Ellen DeGeneres.
Zillow reports the listing 765 Rockbridge Rd, Santa Barbara, CA 93108- Sold: $14,650,000 Sold on 06/17/20.
The home sector is on watch after President Donald Trump administration implemented a national moratorium on residential evictions through the end of the year. The new ban covers tenants who certify that they have lost “substantial” income; that they expect to make no more than $99,000 in 2020 or received a stimulus check; and that they are making their “best efforts” to pay as much of their rent as they can. When the moratorium expires at the end of 2020, renters who received protection will still need to make up missed payments to their landlords.
_(cropped).jpg){kind=link}