Another Trustify Lawsuit – Anchorage Capital VS Trustify and Danny Boice
Another Trustify Lawsuit and big trouble for Danny Boice and Jen Mellon as this suit alleges fraud and embezzlement among other charges.
2. Anchorage has sound reason to believe that its substantial investment in Trustify is being squandered and its rights as a stockholder are being materially, irrevocably, and adversely affected through Trustify’s abandoning of its business and through the fraudulent and negligent actions of Trustify’s Chief Executive Officer, Daniel K. Boice (“Boice”), and its other officers (Cranky Not: Jen Mellon, you are an other officer a VP, a “Co-founder” and a board member).
3. In May 2017, Anchorage purchased 2,408,599 shares of Trustify’s Series A Preferred Stock at a price of $1.9721 per share, for an aggregate investment of $4,749,998.09.
5. Moreover, a number of Trustify’s board members have suddenly resigned and one has even retained separate counsel, Trustify’s corporate headquarters have been shuttered and abandoned, and Anchorage has uncovered malfeasance, mismanagement, breaches of fiduciary duty, and fraud relating to the funds received by Trustify as part of its stock offerings into which Anchorage has invested.
13. The majority of Trustify’s board members also resigned during this same time, including Boice’s co-founder and wife, Jennifer Mellon. While Trustify’s investors were able to communicate with the other known board member, Timothy Gentry, Mr. Gentry was unable to procure legitimate and verified information from Boice or access Trustify’s records,
14. Even this superficial access abruptly ended, however, when Anchorage was informed that Mr. Gentry had suddenly resigned from Trustify’s board and retained counsel. This was especially shocking as Mr. Gentry had also been one of Trustify’s earliest investors.
15. Anchorage also became aware of two lawsuits recently filed against Boice and Trustify, one of which was filed by Trustify employees and alleged (among other things) that Trustify had failed to pay its employees for the month of November 2018 and that Boice commingled and utilized Trustify’s funds for his personal use.
6. Anchorage further received independent confirmation—from its own sources and from another Trustify investor—that documentation existed establishing that Boice commingled and utilized Trustify’s funds for purely personal use, including annual transfers totaling at least $750,000 from Trustify’s accounts into a limited liability company that Boice created and maintained for his personal use.
25. As months went by without notice that the Series B round had met its minimum target for funding, Anchorage inquired regarding when and whether the round would close, and regarding the status and location of the $1,957,500.48 that Anchorage had wired to Trustify but for which it still had not received any stock.
26. Instead of receiving substantive responses, Boice made Trustify effectively “go dark,” evading and outright ignoring Anchorage’s repeated requests for information regarding the Series B round and Trustify’s general business and financial health.
32. Subsequent to the Virginia lawsuit’s commencement, Anchorage received independent documentation indicating that Boice has commingled and utilized Trustify’s funds for purely personal use. Anchorage was also informed by a principal of another entity invested in Trustify-Sovereign’s Capital-that it was in possession of emails from Trustify’s chief of staff which showed that Boice annually transferred $750,000 from Trustify’s accounts into a limited liability company that Boice created and maintained for his personal use.
33. Sovereign’s Capital also informed Anchorage that Boice had provided Sovereign’s Capital with certain copies of Trustify’s bank statements that had either been completely fabricated or had been “doctored” to show an inflated amount of funds in the account.
40. Anchorage has engaged Robert W. Seiden, Esq. to be the proposed appointed custodian/receiver for Trustify based on his strong, relevant experience. Mr. Seiden is a former Senior Prosecutor in the Manhattan District Attorney’s Office in New York, where he investigated and prosecuted cases of money laundering, fraud, embezzlement, and other white collar and violent crimes. Mr. Seiden practices as an attorney, restructuring professional, and global forensic investigator; importantly, Mr. Seiden has extensive experience as the receiver or custodian of corporations that “go dark” and whose assets are being misappropriated by officers and insiders. Mr. Seiden’s experience has lead him to regularly be appointed as sole custodian/receiver in such matters around the country, including at least ten such appointments by this Court in the last five years.
Some interesting things here. Tim Gentry who according to this document was on the board of Trustify was also a senior executive of Communiclique (aka CliqueAPI). Seems that it’s time to investigate Tim Gentry! Update 4/12/2019: After some investigation the only thing I can confirm that Gentry is guilty of is being a poor judge of character.
The document also confirms that Jen Mellon resigned from the board.
The case alleges that Danny Boice was transferring $750 thousand a year into an LLC which he controls!
Anchorage is recommended the court appoint a former Southern District of New York prosecutor with experience prosecuting money laundering, fraud, embezzlement, and other white collar crimes to act as a receiver (when a company goes bankrupt or is in receivership the receiver oversees the sale and disbursements of the assets).
If I was a Limited Partner in Anchorage I’d be suing Anchorage. Why would these know-nothing clowns invest over $6 million in a company and not take a board seat or require annual independent audits by a reputable firm? If anyone deserved to be bilked of cash… it’s these idiots. I guess they never heard of google… Hey, Anchorage, let me google that for you. I warned them in this post on August 2017.
See the lawsuit here: Anchorage_v_Trustify_Receiver
Question? How stupid does an Investor have to be to Invest in Danny Boice and Trustify? Anchorage Invested in two rounds.
- Anchorage invested nearly $5 million in May 2017, these articles were already available on the web and could be found on Google. Did they check anything?
- March 2017 – Dis-Trustify: Is #DCTech’s Trustify Trustworthy?
- April 2017 – Real Entrepreneurs Don’t Need No Stinkin Harvard Diploma
- April 2017 – Fact Versus Fiction
- Then they invested another $2 million around June 0f 2018. Additional articles were available to them. Can they read?
- August 2017 –Definition Of A Stupid Investor Definition Is A Danny Boice Trustify Investor
- March 2018 – IRS Should Investigate Danny Boice
- March 2018 – Trustify High-Level Executive Turnover Screams Trouble
- May 2018 – Trustify Banned From Doing Business In Virginia
- May 2018 – Why Won’t Danny Boice And Jen Mellon Sue Me?
- May 2018 – The Danny Boice CollegeBoard Manifesto – @DannyBoice
- May 2018 – Crowd Sourcing The Trustify Staffing Puzzle
Anchorage deserved to be screwed… they didn’t do their homework… they deserve to be sued by their Limited Partners.
How bad are things for Danny Boice, Jen Mellon, and Trustify?
- March 2019 – Anchorage Capital Sues to install a receiver
- March 2019 – Court date for garnishment of over $260,000 by Landlord JBG Smith
- March 2019 – Danny Boice goes over the $45,000 in arrears mark in back child support. That’s a felony.
- January 2019 – Trustify Evicted. The company owes $57,829.50 in attorney fees and $205,648.21 in back rent.
- January 2019 – The Loudon County Court system is attempting to get this deadbeat dad to bay over $50K in back child support and legal fees
- January 2019 – Negative Glassdoor Reviews Pile Up to new lows
- January 2019 – Cash strapped Danny Boice and Jen Mellon forced to put their house for sale
- January 2019 – 8 Former Employees sue for $35,000 in back wages
- December 2018 – Trustify retroactive Co-Founder, and Danny Boice’s wife, Jen Mellon leaves Danny and the Company after a reported altercation where it is alleged that Danny struck Mellon
- December 2018 – Damaging article about Danny Boice Trustify appears in the Washingtonian
- November 2018 – Dini von Mueffling Communications LLC sues for $240 thousand
- November 2018 – Phone for Trustify are terminated
- November 2018 – In a not surprising turn of events, Danny Boice who originally sued his ex-wife, Joanne for full custody of their 2 children signs an out of court agreement awarding full custody to Joanne.
- November 2018 – Court sanctions Danny Boice for failing to comply with court-ordered discovery documents including tax information and company accounting books.
Yup! That’s the company that the fools at Anchorage Capital invested believed was a reasonable investment.
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