New Fraud Allegations Against Danny Boice, CEO Trustify
Anchorage Capital is suing Danny Boice, Jennifer Mellon and Trustify for fraud and embezzlement in this filing. New fraud allegations against Danny Boice, CEO Trustify.
According to the original filing,
5. Trustify’s CEO, Daniel K. Boice (“Boice”), solicited Anchorage to participate in the Series B round. Unlike the Series A round, Boice wanted to raise at least $15 million (with a maximum of $20 million) during the Series B round before the round would close and the Series B Preferred Stock would be issued.
6. Boice told Anchorage that the Series B round had a lead investor Nfluence Partners (“Nfluence”), a well-established boutique investment bank for technology, media, and telecom transactions. Nevertheless, Boice and other Trustify officers simultaneously voiced uncertainty as to whether the Series B round would reach its $15 million target minimum raise, and thus actually close and issue Series B Preferred Stock.
7. Due to this uncertainty, Anchorage told Boice that it would only wire funds as pa1i of the Series B round after Nfluence had done the same. Boice and Anchorage also agreed that any funds Anchorage wired to Trustify would be kept in a specific Series B-related bank account with Square 1 Bank in New York and that such funds would be returned directly to Anchorage if the Series B round did not meet its minimum investment target.
8. After both Boice and Nfluence’s Managing Partner, Gary Moon, told Anchorage that Nfluence had wired funds to Trustify as Nfluence’s participation in the Series B round, Anchorage wired $1,957,500.48 to Trustify with the understanding that Anchorage would receive 642,292 shares of Series B Preferred Stock at a price of $3.04768 per share if the Series B round met its minimum target-or Anchorage would receive its money back.
9. Subsequent to Anchorage’s wire to Trustify for the Series B round, and while the round’s funding was still ongoing, Trustify’s Amended and Restated Stockholders Agreement dated as of June 14, 2018, revealed that Nfluence had in fact not wired any funds or participated in any Series of Trustify stock.
10. Anchorage raised concerns to Boice and other Trustify officers regarding Nfluence’s alleged participation but received no response or explanation.
An amended complaint implies new fraud allegations against Danny Boice, CEO Trustify. Apparently Gary Moon of Nfluence.co wrote an email to Anchorage confirming a $7.5 million dollar investment. Based on that email, Anchorage carelessly wired $1.9 million to Trustify in May 2017. Unfortunately for Anchorage, Gary Moon of Nfluence.com did not write that email. There is a difference between Nfluence.co and the real Nfluence URL Nfluince.com. A search of the domain registry for the Nfluence.co reveals the URL was registered anonymously on August 18, 2016. If that was Danny that created the account, why did he create it 8 months before weaponizing it against Anchorage? Did he defraud other investors using this account?
It wouldn’t be the first time an entity lobbed fraud allegations against Danny Boice, CEO Trustify. Trustify’s PR firm, Dini Von Mueffling (DVM) is suing Trustify for $240 in unpaid fees. In that case, it is alleged that Boice sent a fraudulent receipt (see more about that case here). DVM asserts in their complaint,
21. DVM’s good faith began to rupture when, on October 15, 2018, Mr. Boice sent DVM’s principal a fake and intentionally falsified receipt purporting to be from bill.com and showing that Invoices #694 and 710 (referenced above) had been paid on September 1 and October 1, 2018, respectively.
Looks like forgery is one of Danny’s talents. I wonder how many other examples of fraud we can find. I wonder how many investors or other people were duped by the fake Nfluence email account. All these fraud allegations against Danny Boice, CEO Trustify appear to be justified.