Andy Powers Communiclique (CliqueAPI) Criminal and Bankruptcy Court Update
According to Andy Medici of the Washington Business Journal, federal prosecutors are working with Andy Powers, CEO of Communiclique, AKA Clique API on a plea deal. The article which is behind a paywall states:
“The parties in this case are exploring a pre-indictment guilty plea,” the joint motion reads. “The parties are working diligently, however, the investigation in this case covers a period of several years and the financial evidence is voluminous.”
The government is represented in the case by Federal Prosecutor, Jack Handy. Powers’ requested a public defender, which is usually only supplied to indigent defendants. Powers is represented by Eugene Gorokhov of the white-collar criminal defense firm Burnham & Gorokhov. It is not clear if they Gorokhov was assigned the case as a public defender or if Powers is footing the bill (For more information about the case see this post).
Whoever is footing the bill appears to be getting their money’s worth as Powers has ceased many of his bonehead actions. Powers has clammed up. He did not respond to Andy Medici’s request for comment and he got rid of moronic blog posts in which he admitted his guilt. For instance, back in May of 2019, Andy Powers wrote a post, admitting he mislead investors titled, “I Screwed Up.” Recently that post was removed from Andy Powers personal web site at andypowers.com, I don’t want the world to lose this work of art so I have reproduced it word for word for my readers below:
I Screwed Up
I screwed up. I misled investors about our business model and the quality of our earnings. In 2006 when I started Clique, I engaged with mostly unsophisticated investors. They wrote small checks primarily to make themselves feel rich and like they had a part in something sophisticated that had the potential to make them actually rich. I took advantage of them, and I’m sorry that I wasted their time. Some of these people I would consider friends who I care about, and who care about my family and me. However, most are not.
You can read about the results of the investigation from the State of VA here. We chose not to contest the action. This was a civil case—not a criminal one—and it’s now closed. No one is going to jail. I’m working to rescind and fully repay the investors, as well as pay the fines assessed by the State of VA. We will have this behind us very soon, and the company is moving forward.
By Andy Powers, CEO Clique API
Bankruptcy Hearing Update
July 10, 2019 Update: The hearing was held early on July 10th and the motions were granted retaining Giuliano, Miller & Company as Accountants and Financial Advisors. Giuliano specializes in bankruptcy, restructuring, litigation support, and most importantly forensic accounting. These guys are the guys tasked to “Show Me the Money!” More importantly, than showing me the money, they’re going to dig and find where the money went. Did Andy Powers, Tim Lee, and Ram Reddy hide money and if so where? Let’s hope the trustees can recover some of the millions that disappeared.
Reddy was the Chairman of the Board and repeatedly boasted about his involvement in obtaining customers and growing revenue now claims on his LinkedIn Profile that he was not involved in the running and management of the company at all.
Got that? A man who claimed to help grow the business, capture customers and grow revenue, a man who was Chairman of the Board now claims to be only an investor who is not involved in running or management of the company at all. Reddy, through an attorney in a letter to me, claims to be nothing but a victim in this scam. According to paragraph 26 of the criminal complaint, (see below), someone with the initials PR, likely Ram Ready whose legal name is, Parvathareddy Balarami Reddy claimed to the FBI, “that all of the information he passed along to investors came directly from POWERS.”
The next event in the bankruptcy is scheduled on July 12, 2019. The presiding judge will be Kevin Gross. The courthouse is located at 824 North Market Street Wilmington, DE. For those of you who would like to watch, here’s the schedule.
6th Floor Courtroom 3
|Granted on 7/10||19-10573-KG CommuniClique, Inc. Ch. 7|
|Application/Motion to Employ/Retain Giuliano, Miller & Company, LLC as Accountants and Financial Advisors to Chapter 7 Trustee Filed by Alfred T. Giuliano. Hearing scheduled for 7/12/2019 at 10:00 AM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom Wilmington, Delaware. Objections due by 6/27/2019. (Attachments: # 1 Notice # 2 Proposed Form of Order # 3 Exhibit 1) (Carroll, John)|
|Granted on 7/10||19-10574-KG Andrew Brent Powers Ch. 7|
|Application/Motion to Employ/Retain Giuliano, Miller & Company, LLC as Accountants and Financial Advisors to Chapter 7 Trustee Filed by Alfred T. Giuliano. Hearing scheduled for 7/12/2019 at 10:00 AM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom Wilmington, Delaware. Objections due by 6/27/2019. (Attachments: # 1 Notice # 2 Proposed Form of Order # 3 Exhibit 1) (Carroll, John)
|Hearing Canceled||19-10573-KG CommuniClique, Inc. Ch. 7|
|Notice of Agenda of Matters Scheduled for Hearing Filed by Alfred T. Giuliano. Hearing scheduled for 7/12/2019 at 10:00 AM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom Wilmington, Delaware. (Carroll, John)
|Hearing Canceled||19-10574-KG Andrew Brent Powers Ch. 7|
|Notice of Agenda of Matters Scheduled for Hearing Filed by Alfred T. Giuliano. Hearing scheduled for 7/12/2019 at 10:00 AM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom Wilmington, Delaware. (Carroll, John)|
Rental Home Eviction
In February, Andy Powers’ Landlord filed to evict him and his family from his luxury home located at 340 Sufview Drive, Pacific Palisades CA (see filing and lease). A home for which Communiclique investors paid $35 thousand dollars a month in rent until Powers stopped paying rent in February. The property is not yet being offered for lease so I assume that the Powers family still resides in this space.
Looking for Information
Please continue to feed me tips regarding the status of multiple issues involving Andy Powers and Communiclique including:
- Has he been evicted from his Pacific Palisades home?
- Are there going to be federal charges filed against Communcilique Chairman of the Board, Ram Reddy?
- Are there going to be federal charges filed against Communiclique CFO, Tim Lee?
- Will Andy get a lighter sentence if he gives up the goods on his fellow coconspirators?
- Will Tim Lee and Ram Reddy race to see who can get to the US Attorney’s office first to cut a deal?
- Have Tim Lee and Ram Reddy already cut a deal
- Will Andy, who was an early investor in Trustify inform on Jen Mellon and Danny Boice in order to reduce his sentence?
- Are all these thieves about to turn on each other?
- What assets are recoverable to investors including stock and property accumulated by the corporate officers?