Moez Kassam – Probed by DOJ and SEC for Corruption

Moez Kassam is the founder and Chief Investment Officer of Anson Funds, a company being probed by the DOJ for insider trading and corruption.

Anson Funds tripped assets under management within 4 years. In each of the last 2 years, the company has generated returns of around 45%. 

Certainly, these numbers are extremely lucrative and they caused the Department of Justice and the SEC to take interest. 

Moez Kassam is a hedge fund manager. He claims Anson is a relatively conservative long-short company.

However, it has been in at least 5 legal battles so far. All of them alleged the company was deceptive. 

Moez Kassam’s Anson Funds have received allegations of insider trading. 

People with knowledge of its operations reveal that the firm bets that shares of cannabis companies would fall and later, participates in their secondary stock offerings. Such sales trigger price drops. 

Furthermore, Moez Kassam and Anson Funds have worked with several prominent researchers who have been the focus of investigations in the US. 

Before you trust Moez Kassam with your money, it would be best to go through the following points. Here, you’ll learn about his recent controversies and why investors have lost trust in him and Anson Funds:

When Bloomberg Exposed the Shady Operations of Moez Kassam:

Earlier this year, Bloomberg had published a detailed write-up on Moez and his firm, Anson Funds. 

moez kassam

(Source)

It points out how the yearly returns of Moez’s firm was 3 times more than the annual returns of other long-short funds. 

Furthermore, it highlights how Moez Kassam has created a philanthropic image and a robust network. 

In fact, Toronto Life had done a photo-spread on his 3-day wedding celebration. He also has over 5000 followers on his Instagram profile (MunchingMoez) where he shares snippets of his luxurious lifestyle. 

Moreover, the article mentions the various lawsuits Moez’s firm has faced. The plaintiffs of these lawsuits include short-selling researchers, the company they short-sell and even a company shareholder. 

Receiving Allegations of Spreading Misinformation:

In 2015, Nobilis Health Corp filed a lawsuit against Moez Kassam and Anson Funds for launching a “short assault” against the firm. 

Nobilis CEO said he had personally met with Anson representatives who were interested in investing. 

However, a few months later, a blog post popped up online criticizing the company. The man behind the post was a portfolio manager working under Moez.

Anson defended the article in court saying it only used publicly available information. Moreover, they filed a countersuit against Noblis claiming their lawsuit had caused defamation. 

The case’s docket reveals they have sorted out the dispute. 

Still, companies have begun taking bearish research quite seriously. They immediately take the critics to court. 

However, multiple hedge funds have built relationships with 3rd party researchers to resolve this issue. Firms like Anson Funds pay researchers to publish bearish articles on companies. 

Short sellers think of this as a usual business tactic while critics call it conspiring to take down companies. 

Moez Kassam has Worked Secretly with Researchers: 

moez kassam

(Source)

Moez Kassam’s hedge fund has worked with multiple researchers who have been at the focus of US investigators. 

These include Ben Axler (Spruce Point) and Andrew Left (Citron). 

Recently, Anon had filed a lawsuit against Robet Doxtator, another independent researcher. The lawsuit alleged defamation saying Robert had posted several posts attacking their trading strategies. 

He denied the allegations and revealed that the firm owed him for sharing with them a bearish report on General Electric Co. in 2019. 

In August 2019, Harry Markopolos had published research on the company causing its share price to drop. According to court documents, Moez Kassam’s firm said it had received diligence from Robert in that period. 

However, court documents don’t suggest Harry Markopolos had worked with Moez and Anson Funds.

Robert said Moez Kassam had promised him to give 15% of the profits they make on the trade. Court documents reveal Anson Funds made over $121,000, so they owed him $18,000.

This lawsuit hasn’t reached a conclusion. 

The Shady Bet of Moez Kassam:

Bloomberg’s article on Anson Funds reveals that Moez’s self-proclaimed “genius” trade has attracted a lot of controversy as well. 

The hedge fund had begun betting on Genius Brands in 2017. Genius Brands is a children’s television programming company. 

Later, in an interview, Moez Kassam revealed that he believed in the company’s production quality. 

Then, the hedge fund increased its stake in the firm. However, Genius Brands filed a lawsuit against them. There, they reveal that Anson Funds was among the investors who paid 21 cents a share with a promise not to sell for several months. 

At the same time, other investors had acquired stock with a lockup duration of 18 months. 

A few weeks later, Genius Brands’ share price sky-rocketed, going beyond $11. 

According to the lawsuit by Genius Brands, Anson and others made over $100 million on the stock’s climb. In response, Moez Kassam has asked the court to dismiss the case. 

Other investors haven’t been this lucky. Currently, the stock is back to its usual value of around $1. 

Anson Funds is Facing a $450-million Lawsuit in Canada:

moez kassam sec

Moez Kassam’s troubles don’t end there. 

In 2017, Catalyst Capital Group Inc. filed a lawsuit against Anson Funds Canada for launching a ‘manipulative’ shorting campaign. 

According to the lawsuit, plaintiffs claim Anson had targeted Catalyst’s subsidiary Callidus Capital Corp. Also, the lawsuit claims Moez Kassam and his associates worked as “Wolfpack Conspirators”. 

They filed the lawsuit in Ontario’s Superior Court of Justice. 

Also, the lawsuit claims they targeted Callidus with a shorting strategy where they coordinated several borrowers who defaulted on their loans to Callidus and began fighting to prevent the firm from collecting.

Callidus alleged Anson Funds was using news media to enhance their shorting campaign.

Furthermore, the lawsuit alleges the conspirators spread rumors in the industry that Catalyst and Callidus were the subject of OSC whistleblower complaints to reduce public confidence in the firm. 

However, there were no such complaints. 

Yet, Anson Funds sent this story to media outlets who published the same in 2017. 

Moez Kassam Reddit: What the Victims are Saying:

The dubious business tactics of Anson Funds and Moez Kassam have caused  lot of outrage. There is a dedicated Reddit community where victims of Moez Kassam and his firm share their experiences. 

There, you will find discussions about Anson Funds corruption and the SEC probe against them. 

I found multiple posts revealing how Moez Kassam and the firm ruined companies. 

anson funds corruption

Here, the post talks about the multiple companies which faced “short selling attacks” from Anson Funds. 

It reveals Moez has caused Zenabis, Aphria, Facedrive, Genius Brands and Tilray to suffer substantially. 

The post says Moez gives a lot of cash to small scale businesses only to short them horribly after their IPO. 

Furthermore, the reddit post claims Moez Kassam and Anson Funds use insider information to spread misinformation about their targets.

It highlights Moez had made a lot of profits by undercutting the management at APHA. He leaked insider information about the firm and announced they will be shorting it.

This caused people to crash the stock. When the stock jumped back up again, Moez made a lot of money. 

Surely, there are a ton of more posts on the subreddit. It’s called BurnedByAnson. You can check it out to see more posts about how Anson Funds has impacted people’s lives negatively. 

Conclusion

Currently, Moez Kassam promotes himself as a philanthropist. He runs the Moez Kassam and Marissa Kassam Foundation. It claims to help children and immigrant communities. 

While every philanthropic effort is welcome, it seems Moez is using his foundation to distract people from his shady professional history. 

After reviewing how Anson Funds and Moez operate, I don’t think it would be wise to trust them. 

Moreover, he is now the focus of a detailed DOJ and SEC investigation. 

There are a ton of examples of fraudsters who used insider trading to get rich but had to pay millions in penalties. For example, Hanif Lalani is a telecom exec who had to pay millions after the authorities caught him red-handed. 

Similarly, Ben Strebinger Vancouver is another fraudster who had to pay $1.5-million for running a penny stock scheme.

Due to these points, beware of Moez Kassam. 

2 Total Score
Untrustworthy

Moez Kassam is the founder of Anson Funds, a hedge fund being probed by the Department of Justice and the Securities and Exchange Commission. It has faced multiple lawsuits for defamation and spreading misinformation as well.

2.6Expert Score
Trust
2.8
Experience
2.9
Professionalism
2.5
Ethics
2.1
1.3User's score
Trust
2
Experience
1.5
Professionalism
1
Ethics
1
PROS
  • None
CONS
  • Facing lawsuits for running defamation campaings
  • Being probed by the DOJ
  • Facing an SEC investigation
  • Notorious for ruining companies
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2 Comments
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  1. 0.75
    Trust
    20
    Experience
    20
    Professionalism
    10
    Ethics
    10

    I lost my only source of income because of Anson funds and Moez Kassam. This man is a true sociopath. He doesn’t care about

    + PROS: .
    - CONS: Greedy Monster
    Helpful(2) Unhelpful(0)You have already voted this
  2. 0.6
    Trust
    20
    Experience
    10
    Professionalism
    10
    Ethics
    10

    Anson Funds is responsible for taking away jobs from innocent people. Moez Kassam should be ashamed of what he does. They target small companies and ruin them with their targeted campaigns.

    + PROS: None
    - CONS: Greedy Monster Criminal
    Helpful(2) Unhelpful(0)You have already voted this

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