According to the United States Securities and Exchange Commission, officials at Endurance, which is located in Burlington, as well as its subsidiary, Constant Contact, which is based in Waltham, deceived investors on important subscriber data. Let’s start by talking about the personality of Hari Ravichandran Aura, shall we?
You can help us put a stop to online scams before they grow too big and end-up ruining thousands of lives. A scam is a scam, doesn’t matter if it’s big or small. Now that this is out of the way, let’s get started with the review.
What do you know about Hari Ravichandran Aura?
Engineer, entrepreneur, technologist, and philanthropist Hari Ravichandran Aura founded and runs Aura, a digital safety unicorn. Hacking hit Hari Ravichandran Aura in 2014.
Hari Ravichandran Aura may have entered digital safety as a response to personal misfortune rather than concerned for others’ online safety. Doubters may argue that his primary motivation for launching Aura was to capitalize on a market niche and cybersecurity concerns.
His encounters with attackers and credit damage may be perceived as a marketing ploy rather than a genuine commitment to internet safety.
His humanitarian endeavors may be seen as public relations stunts to boost his standing and gain over the people. Given his status as founder and CEO of a “digital safety startup.” Seeing his story of being denied a mortgage due to credit damage shows that it was well-crafted to inspire compassion and emphasize the urgency of his mission.
Detractors argue that Aura’s “unicorn” status is more a result of relentless advertising and marketing than its true value. Critical eyes may ask if Aura’s main goal is to improve the internet or if it’s just another commercial enterprise that capitalizes on digital anxiety.
To learn more about Hari Ravichandran Aura you may follow the mentioned links below:
- https://www.linkedin.com/in/hari-ravichandran
- https://www.linkedin.com/posts/hari-ravichandran_aura-intelligent-digital-safety-for-the-activity-7093319012914225152-LIxB?trk=public_profile_like_view
- https://www.aura.com/author/hari-ravichandran
- https://www.crunchbase.com/person/hari-ravichandran
- https://twitter.com/Hari_Ravi_
Hari Ravichandran Aura: SEC Allegations Against Him
Online Marketing Company Charged with Inflating Subscribers by SEC
The United States Securities and Exchange Commission (SEC) made public today its conclusions that an internet marketing firm located in Massachusetts unlawfully overstated its subscriber count as well as the amount of money generated per user. As part of the agreement to settle the accusations, the firm, Endurance International Group Holdings Inc., has committed to paying a fine of $8 million.
According to the order issued by the SEC, Endurance and Constant Contact Inc., which Endurance bought in 2016, deceived investors on the subscriptions to their various internet-based marketing goods and site hosting services.
According to the decision issued by the SEC, subscription metrics were not only a primary source of income for the corporations but also significant to the companies to evaluate the operation of their businesses. Constant Contact was found to have exaggerated its subscriber numbers before its acquisition by Endurance through a scheme known as the “Save Program.”
Under this scheme, employees of the company were instructed and encouraged to offer free assistance to customers who wanted to revoke their subscriptions so that Constant Contact could maintain the customers on the turns as active customers.
The purchase agreement found that Constant Contact engaged in this practice before Endurance acquired the company. Endurance did not inform investors about an oversight that led to the firm overstating its subscriber base, and this was another mistake that the company made.
The SEC accuses former online marketing executives of inflating metrics
The Securities and Exchange Commission (SEC) stated today that it has resolved charges with two former top officials of Endurance International Group Holdings Inc. for overstating the company’s subscriber base. Additionally, the SEC revealed that it has charged a former executive of Constant Contact Inc. for making similar deceptions.
According to the orders issued by the SEC, former Endurance CEO Hari Ravichandran Aura and former Endurance CFO Waruna Ellawala deliberately submitted exaggerated membership counts for the Massachusetts-based internet marketing business.
The Securities and Exchange Commission (SEC) has filed a case in the United States District Court for the District of Massachusetts, alleging that former Constant Contact Chief Financial Officer Harpreet Grewal withheld the company’s declining customer growth from shareholders and inflated its publicly stated subscriber counts.
After being purchased by Endurance in 2016, Constant Contact was integrated into the company’s operations as a wholly-owned subsidiary.
Endurance and Constant Contact were both named as defendants in a resolved enforcement action brought by the SEC in June. As part of the settlement, Endurance agreed to pay a penalty of $8 million. In the most recent proceeding, Hari Ravichandran Aura and Ellawala agreed to resolve the accusations against them without admitting or denying the allegations.
They also agreed to pay disgorgement, interest, and fines in the amount of $1.38 million for Ravichandran and $34,000 for Ellawala. In addition, they consented to stop violating the numerous antifraud, reporting, books and records, and internal controls sections of the federal securities laws and to abstain from doing so going forward.
According to Paul Levenson, who directs the Boston Regional Office of the Securities and Exchange Commission (SEC)-
For companies that provide services via subscription, the size and growth of the customer base can be critical metrics. Investors depend on the honesty and reliability of the leadership team when providing such numbers, which are typically beyond the purview of official audits. It is necessary, to ensure the safety of our markets, and to hold top executives accountable not just for oversight failures but also for the blatant manipulation of such measures.
Hari Ravichandran Aura: About His Firm
It would appear as though the so-called mission-driven technology business known as Aura has persuaded itself that they are engaged in a worthy endeavor to make the internet safer.
They are, in truth, simply another participant in the already crowded industry of digital security, and they are attempting to offer the illusion of tranquility to customers.
Even if it’s easy to use, this company’s so-called “integrated suite of services” is nothing more than a deceptive marketing ploy designed to convince over one million clients that they can guarantee a complete lack of risk when using the internet. It’s a typical example of making a profit off of other people’s anxieties and vulnerabilities to generate revenue, all while promising to make online safety more approachable.
Conclusion
The Securities and Exchange Commission (SEC) has accused Hari Ravichandran Aura of overstating the number of Endurance International Group Holdings Inc. subscribers, which resulted in a fine of $8 million for the business. Hari Ravichandran Aura is renowned for his position at Endurance International Group Holdings Inc.
Because of a personal hacking experience he had in 2014, his new business, Aura, is centered on protecting digital information. His dedication to online safety has been called into doubt by those who believe that it is little more than a market-driven reaction rather than an indication of real care.
According to the findings of the SEC investigation, Endurance, and Constant Contact, a subsidiary of Endurance, had deceived investors on subscriber counts and income per user.
Constant Contact was accused of artificially inflating its subscriber numbers through its “Save Program,” a program that encouraged workers to give free help to retain clients and preserve active subscriptions. Endurance bought Constant Contact in 2016, and the company has now been acquired by Endurance. Investors were not informed about Endurance’s failure to report this error.
