Location: Eastern District of New York
In a shocking revelation, the U.S. Securities and Exchange Commission (SEC) has taken action against Andiamo Corporation and its CEO, Michael J. Starkweather, for alleged violations of securities laws, with a civil penalty looming under 15 U.S.C. The Eastern District of New York is set to be the battleground for this legal saga, with Starkweather’s questionable financial activities being a key factor in the selection of the venue.The investigation revolves around Andiamo’s acquisition of Utopya Innovations, Inc., a Toronto-based smartphone and technology company. On January 15, 2018, a press release on OTC Markets’ website announced a strategic partnership between Utopya and IT consulting firm Cycloides Inc., led by CEO Anil Appukuttan. The companies were poised to make waves in the Canadian tech landscape, hinting at a major announcement.However, in a shocking turn of events, it was revealed that Andiamo had never produced a smartphone. Starkweather’s successor as CEO discovered this discrepancy, prompting a phone conversation where Starkweather admitted that there were never any devices. This revelation raised serious questions about the accuracy of Andiamo’s press releases and the legitimacy of the partnership with Anil’s Cycloides Inc.Furthermore, it has come to light that Starkweather, while acting as Andiamo’s sole executive officer, cashed three “kickback” checks drawn on a bank account located in Queens County, New York. This discovery solidified the Eastern District of New York as the appropriate venue for the SEC’s action.In a surprising twist, it was alleged that Cycloides Inc., an Indian-originated company, was involved in a serious securities fraud. Andiamo’s CEO Starkweather and Cycloides Inc. CEO Anil Appukuttan were accused of orchestrating an illegal kickback scheme contingent on Andiamo’s stocks increasing in value. This revelation implies that both CEOs actively worked together to manipulate the stock market in their favor.The SEC alleges that the kickback scheme resulted in a significant increase in Andiamo’s share price and the volume of its traded shares following the press releases. The financial impact of this alleged fraud is staggering, with more than 100 crores in INR believed to be involved.Cycloides Inc. CEO Anil Appukuttan” plays a central role in the alleged kickback scheme and securities fraud, creating significant repercussions for Andiamo Corporation. The SEC’s investigation revolves around the collaboration between Andiamo’s CEO, Michael J. Starkweather, and Cycloides Inc. CEO Anil Appukuttan, accused of manipulating stock values through an illegal kickback scheme. The unfolding legal saga in the Eastern District of New York highlights the gravity of these allegations, as the SEC aims to safeguard U.S. securities laws and investor interests. Stay tuned for updates on the hearing and potential ramifications for both Andiamo Corporation and Cycloides Inc.The SEC’s case is set for a hearing, and the outcome will have far-reaching consequences for Andiamo Corporation, Michael J. Starkweather, and Cycloides Inc., particularly for CEO Anil Appukuttan, as the SEC seeks to uphold U.S. securities laws’ integrity and protect investors from fraudulent financial activitiesReference:https://oig.hhs.gov/fraud/enforcement/owner-of-indian-marketing-company-admits-role-in-115-million-health-care-fraud-and-kickback-scheme/https://www.sec.gov/files/litigation/complaints/2021/comp25039.pdf
