Ram Reddy Wants The World To Know He’s An Innocent Victim
If you are a follower of my blog and interested in the Communiclique story you might be familiar with Dr. Parvathareddy Balarami Reddy, commonly known as Ram Reddy. According to Ram’s own words, his LinkedIn profile before it was recently altered and his Business Card (an image of which can be found below). Ram Reddy was Chairman of the Board of Communiclique starting in 2007. But today, he wants people to believe he had nothing to do with the company except to have been an innocent victimized investor, who like so many other investors was duped by Andy Powers…. duped for over a decade.
Let’s look at the company. In July of 2018, a Virginia Court determined that CommuniClique, a company that was founded in 2006 and it’s CEO, Andy Powers found:
- The Defendants committed at least 108 violations of the Virginia Securities Act which makes it unlawful for persons offering and selling securities “[t]o obtain money or property by means of any untrue statement of a material fact.”;
- The Defendants violated § 12.1-13 of the Code by failing to comply with a Commission subpoena;
- The Defendants should be assessed the maximum civil penalty of $10,000 for each violation of the Act and an additional civil penalty of $10,000 for failing to comply with the Commission’s subpoena;
- The Defendants should be required to make restitution totaling $9,890,293 to the investors identified by the Division;
- The Defendants should be permanently enjoined from offering and selling securities in and from the Commonwealth of Virginia and from engaging other agents or affiliates to offer and sell securities in and from the Commonwealth of Virginia on their behalf; and
- The Defendants should be required the pay the costs of the Division’s investigation totaling $10,000.
The court then:
- Adopted the findings of this Report;
- Found the Defendants to be in default;
- Assessed civil penalties against the Defendants totaling $1,090,000;
- Directed the Defendants to make restitution to investors in the amount of $9,890,293;
After that, the company up and moved to Las Angeles where they hadn’t yet been banned from scamming investors.
Ram Reddy’s attorney, John P. Rowley III of SCHERTLER & ONORATO, LLP, recently sent me a registered letter in which he said,
“Dr. Reddy lost a substantial sum of money as a result of Powers’ deceit and he is one of the main victims of Powers’ fraud scheme.”
I replied seeking Mr. Rowley’s permission to allow me to publish this letter.
Rowley went on to say,
“You are hereby directed to immediately cease and desist defaming and slandering Dr. Reddy and remove the above references and all similar statements from your blog site. If you do not take corrective action within seven (7) days from receipt of this letter, an action for compensatory and punitive damages will be filed against Driven Forward LLC, and you personally, in the Circuit Court for Fairfax County.”
I checked my posts that referenced Ram Reddy. I made a few edits, ensured that all facts were either documented and backed up with evidence or informed opinions. After doing so I was confident that the facts were accurate and my opinions protected by a little thing called the constitution. I replied to that effect and invited Rowly or Reddy to post a response or to help me correct the record in any area I might have erred. I’m still waiting for a response.
But let me make this clear. Ram Reddy vehemently asserts his innocence. Ram like Nixon says, “I am not a crook,” and why would he lie? I mean, what would be in it for him? It’s not like he’s facing any liability… or maybe he is.
You may recall that in July of 2018, a complaint was filed naming Andy Powers, Parvathareddy “Ram” Reddy, and Communiclique alleging they were defrauded of millions of dollars.
11. In November 2016 .. Jason and his father, Robert, accompanied Reddy and bis son on a sailing vacation, during which Jason and his father had numerous conversations with Reddy about the company. its revenue, customer base. revenue growth, the company’s valuation, and the Evergreen Advisor report. Reddy essentially echoed the information Jason received from Powers. Reddy also told Jason that at the $5.76 purchase price, Donahue would be purchasing shares from CommuniClique; Donahue’s shares would be immediately worth five times what he paid for them; that Reddy believed the shares were worth $25 to $30 per share; and that, based on the value of Reddy’s CommuniClique shares, he believed he was one of the three or four wealthiest Indians living in the United States. Reddy further told Robert that CommuniClique’s competitors such as Twilio were operating at a loss and CommuniClique was not, so it would become much more valuable over time, and that Uber was a key customer and depended upon CommuniClique’s software. Because of the personal relationship and Reddy~s position as Board Chair, Jason and his father especially trusted the reliability of what was imparted to him. These conversations were material to convincing Jason and his father to invest in the company. According to CommuniClique’s website, Reddy “initiated a number of the group’s customer and investor relationships.” (emphasis added)
According to an attorney involved in the case, the defendants attempted to have the case dismissed in December of 2018 …. the court decided the case had merit and denied that attempt.
Did Ram Reddy pass on fraudulent facts that motivated people to invest in Communiclique? The Donahue complaint asserts and the court seemed to agree that Reddy passed on fraudulent data. The FBI’s criminal complaint states that someone, likely Reddy with the initials PR as in Parvathareddy “Ram” Reddy admitted he passed what was proven to be fraudulent information to investors.
“26. P.R. was interviewed by the FBI and advised that all of the information he passed along to investors came directly from POWERS.”
More documented evidence of Reddy repeating and passing on false facts are all over the web from multiple sources. In this video from a January 2016 speech, Ram makes claims that multiple courts have decided were lies.
Quotes from the video:
“I had a company before you know for which I exited in 2004. In 2006 we started a company Communiclique which is a conference bridging collaboration communication technology, The Communiclique platform is into cloud computing and we can make 20 million calls going out to clients in four-tenths of a second. That was a test done by Google about five years ago.
So our conference calls is in cloud and it can be scalable. For example, Uber started in 2009 for its taxi service we connect the clients and the passengers all on our application. Our APIs are integrated with the Uber which is now a almost a $70 Billion company about 6 or 7 years old company. So that is the kind of scaling we can do in a product like that.
So our scaling also we’re in AirBnB and Federal Express and Apple. So our enterprise clients are great and our valuation is almost a billion dollars now and we’re still growing 50 – 60% a year. So we continue to grow and we opened our office in Tirupati a couple of months ago now.
Contrary to this speech, multiple courts found these claims to be lies, including:
- Uber was never a customer
- AirBnB was never a customer
- Federal Express was never a customer
- Apple was never a customer
- The “almost a billion dollar” fraudulent valuation was based on a forged proposal from an investment bank
In a video interview on The Washington Current Review from July 2, 2015, self-proclaimed Communiclique Chairman of the Board, Ram Reddy made many false claims including,
“I think this week we signed the largest enterprise system, obviously, we can’t announce it and we’re acquiring another company this week. It is an emergency response system. So with acquisitions and our own growth and with FedEx they did a survey of those four thousand clients we got a 96% approval rating. And so they are really happy compared to other services available. So their four thousand could grow to 100 to 500 thousand to all of their clients.So if that goes FedEx alone the revenue could be $150 – 200 million per year for us.”
The FBI and the Commonwealth of Virginia found that FedEx was not a client. It appears that they couldn’t find evidence that anyone was a client.
As late as August 2018, in an interview in India Abroad, Communiclique Chairman of the Board, Reddy was quoted stating grossly inflated Communiclique, revenue numbers,
Reddy told India Abroad how “we both grew the company from no income in 2007 to $166 million last year  with a present pre-market valuation of more than $1 billion.”
And in a July 2011 an article in the publication India-West that asks and answers the question of Reddy’s involvement with Communiclique
Ram Reddy Catalyst for CommuniClique’s Success, Says CEO
Would McLean, Va.-based CommuniClique, Inc., be where it is today without Ram Reddy? Most certainly not, the company’s co-founder and co-CEO Andy Powers emphatically told India-West recently.
The article goes on to describe the success of the company and Reddy’s contributions to the company including:
“CommuniClique’s advantage is that “conference calls go out 12 minutes faster than anyone else,” Reddy said. One of the ancillary advantages is that the company’s technology can “extract key words and send targeted advertising,” a capability that is drawing interest from Google, among others, he added.
CommuniClique has about 12,000 customers and about a half million free users through its Speek Web-based teleconferencing system. Powers said.
Revenue has been growing by about 300 percent a year and the company has raised more than $3.5 million.
Powers said he and his co-founder and co-CEO Danny Boice consider Reddy “the adult of the group.”
In these interviews and others, Reddy speaks of his intimate involvement in the company’s operations. Yet today, Ram Reddy disavows any active management of the company. He asserts he was an uninvolved investor, totally innocent of any intentional wrongdoing. Well maybe that is true yet it is clear that he made false claims that motivated people to invest in a scam. Maybe he didn’t know it was a scam. Yet no matter his claims today, there is little doubt that Ram Reddy was the Chairman of the Board of this company from 2007 until sometime in 2019 when he changed his LinkedIn status from Communiclique Chairman of the Board…
to passive, uninvolved investor who now claims he was “not involved in running and management of the company at any time.” (see the image from Reddy’s LinkedIn profile below)
Here are the facts:
- Ram Reddy was the Chairman of the Board of Communiclique from 2007 until 2019 when he downgraded his involvement from Chairman of the Board to passive disengaged investor.
- Numerous times, he made documented representations of his active involvement in growing the company, acquiring customers and growing revenue.
- It is documented that he passed on to prospective and existing investors fraudulent valuation reports, revenue claims, and customer wins that multiple courts have found to be untrue.
This guy was the Chairman of the Board of Communiclique for over a decade. It is the fiduciary responsibility of a Chairman of the Board to provide oversight of the company. Oversight!
The board, especially the Chairman of the Board have a fiduciary responsibility to the company’s shareholders. It is the Board’s fiduciary responsibility to be sure that they are overseeing the corporate policies and procedures, and make sure they are being followed. Oversight also means taking more than a cursory look at financial reports, committee reports, and other documents. Board directors need to understand the reports, ask questions and challenge the information provided. It is the fiduciary responsibility of the Board and especially the Chairman of the Board to:
- Review financial statements
- Oversee Audits
- Overseeing investments
- Set reasonable compensation for the executive director and to review their performance
- Ask hard questions and not succumb to groupthink
- Understand and ensure federal, state and local laws are followed
- Monitor against conflicts of interest
- Hold company executives accountable
- Ensure access to information during an investigation
- Ensure consistent filing of disclosures
Is he a criminal? Maybe not. He says he Isn’t. If he’s not guilty of a crime he appears guilty of gross negligence of his fiduciary responsibilities as a Chairman of the Board.
Disclaimer: I volunteer my time and am an independent contractor for many organizations. The Views on my blog post are my own and do not represent the views of any of the organizations with whom I dedicate my time. That includes my clients in my coaching practice, the members of my Driven Forward ThinkTank, the University of Maryland. Mach37, The Founders Institute. These views also do not reflect the opinions for any organization that I was formerly associated with including, James Monroe Elementary School, where I graduated with distinction from 6th grade, Lexitron which I left in 1982, Montgomery Youth Hockey or Vistage an organization was grateful to be a part of and of which I happily parted ways in 2014.