Andy Powers Communiclique Fraudulent Response
Updated May 6, 2019, with new evidence: On April 29th, Andy Power’s attorney submitted a Communiclique fraudulent response to the Involuntary Bankruptcy Petition (see this post for Bankruptcy Petition). After reading this Communiclique fraudulent response, I am confident that Andy Powers can add, Bankruptcy Fraud to a long list of crimes he and other board members and officers of Communiclique (aka Clique and CliqueAPI) perpetrated including, Security Fraud, Bank Fraud, Wire Fraud, Tax Fraud, Forgery, and Embezzlement.
The response features, what appears to be doctored, invoices and payment receipts to company vendors intended to prove the company is a legitimate business running a legitimate operation. It attempts to document that the company is solvent and responsibly dispatching its financial obligations (See Communiclique Fraudulent Response Here).
Updated: See the latest filing telling the judge that the invoices were doctored here (Communiclique Fraud Allegation):
The new filing states:
Alleged Debtors have defrauded investors, lenders, and vendors alike. Unfortunately, they have now defrauded this Court.
Concerned by known fraudulent conduct of the Alleged Debtors (and the known and potential negative repercussions thereof on their estates), the Petitioning Creditors opposed the Alleged Debtors attempt to extend the deadline to file answers to the Petitions. Ultimately, the Court entered a short, four-day extension. The brevity of this extension was born from the Petitioning Creditors’ concern about the Alleged Debtors’ lack of diligence and delay (and presumably with respect to the evidence of the dissipation and squandering of assets). Unbelievably, the Alleged Debtors repaid this Court’s courtesy by filing falsified evidence in support of the CommuniClique Answer.
Andy Power’s former executive assistant, Courtney Snell provided evidence that contradicts Communiclique’s response to the original lawsuit.
Here’s an example of the differences in the forged invoices from Andy Powers (in white) and the original real invoices from AWS (in green). Four of the AWS invoices submitted by Powers totaled, over $5 million while the originals were slightly over $11 thousand. Did that missing $5 million get sent to an offshore account in Powers name? Has Powers left the country yet? Also, notice that the invoices numbers are sequenced by date. When Andy changed dates, they were out of sequence. That’s just a bonehead move for a forger.
To give you some perspective, according to the recent Lyft public filing they plan on spending $7 million a month on AWS. Andy Powers tried to convince a just that he was doing 1/6th the AWS traffic as a successful company when in reality his bills are a rounding error.
See the forged changes circled in red.
Powers then typed up a “bank statement” on plain white paper, with no logos and produced this document as proof he paid those invoices.
As you can see by the enclosed Communiclique Fraudulent Response, Powers is asking the court to deny the request of the company’s creditors on technical grounds and then defends itself with fraudulent documentation. Unfortunately for Powers, the court can easily verify these payments by accessing the bank accounts. Unfortunately, there are numerous vendors who can attest that the company is not meeting its obligations. This wouldn’t be the first time a court found Andy had forged documents. Last year a court in Virginia found that Communiclique had misrepresented revenues by over $100 million and had forged an Investment Bank Valuation (see details here).
The Communiclique fraudulent response ends with this:
WHEREFORE, upon consideration of the facts presented, Debtor respectfully requests this honorable Court enter an Order:
A Denying Petitioning Debtors’ request for chapter 7 relief;
B. Ordering Petitioning Debtors pay a bond in the amount of Twenty Five Million Dollars
C. Award Debtor all fees, costs and attornies’ fees incurred in the defense of this involuntary
C. Such other relief as the court deems fair and equitable. (Nope, that’s not your Mr. Cranky mandatory typo. There are 2 Cs as in ABCC DEFG)
It is signed by Andy’s attorney in an interesting fashion:
Neil F. Dignon, Esquire
Bar Number 3625
Attorney for the Limited Purposes of
Drafting and Filing this Answer
Neil F. Dignon, Esquire, Attorney at Law
20771 Professional Park Blvd
Unit 1 2d Floor
Georgetown, DE 19947
Tel (302) 725-0288
Fax (800) 494-8413
Hmm, Attorney for the Limited Purposes of Drafting and Filing Answers. Mr. Dignon, apparently won’t be representing Mr. Powers in further actions. Perhaps he’s not comfortable providing forged documents.
On Friday, May 4th, a judge ordered that Andy Powers get his tattooed butt on a plane from his Los Angeles home to appear in a Deleware Court on Wednesday, May 8th. This has to be a worrying event for Communiclique CEO – Andy Powers, Chairman of the Board – Ram Reddy, and CFO – Tim Lee. Here’s to hoping that Powers leaves that courtroom in handcuffs. If Powers, holds to form, he will not show in Court. In the case in Virginia where he was proven to be a fraud and embezzler, he didn’t show up for court and packed up and moved the company from Virginia to California. I wouldn’t put it past him to be driving to Mexico right now.
This action is in addition to multiple shareholder suits against Powers including a $4 million suit claiming, breach of contract and constructive fraud against Powers and Communiclique Chairman of the Board, Ram Reddy (see this post).
Here’s hoping that people like Powers are held accountable for severely damaging the trust investors have in startups and hampering the ability of legitimate businesses to raise capital.