Ram Reddy Master Criminal with Andy Powers
Ram Reddy, who is this guy? When I published the post, The Startup DCTech Crime Family, I was surprised by the pushback on naming Ram Reddy the Godfather. Reddy has spent a long time creating the image of a legitimate businessman. Since that post, additional information, a civil lawsuit confirms my suspicions.
The suit (see link Clique – Donahue v. Communiclique – Complaint) seeks actual and punitive damages and alleges constructive fraud in the inducement in the purchase and acquisition of stock in CommuniClique (dba CliqueAPI), alleging Ram Reddy and Andy Powers defrauded the plaintiff. For some inexplicable reason, the suit fails to name the company’s former CFO, Tim Lee.
The suit alleges that since 2006, Communiclique (DBA CliqueAPI) raised $23 million in equity through the offer and sale of stock shares to about 90 investors. The plaintiff alleges that Andy Powers, the CEO of the criminal enterprise CliqueAPI, posited that the company would end 2016 with revenue between $120 to $125 million. Powers claimed key customer wins included Uber, FedEx, Wilmer Hal, and Airbnb. Powers and by implication, Chairman of the Board member Ram Reddy and CFO Tim Lee reported 2015 revenue in excess of $71 million. While in fact, the State of Virginia found there was zero revenue which you would think the company’s, CEO – Andy Powers, Chairman of the Board – Ram Reddy and CFO – Tim Lee might have noticed this slight revenue rounding error.
Hey Folks, I didn’t graduate from Harvard, like Danny Boice (who is deeply entangled in the Communiclique story), I graduated from the University of Maryland with a non-math focused Liberal Arts degree. I am not the brightest bulb in the lamp. In fact, many of my fellow classmates at Maryland are grateful to this day that I helped them graduate in the top 85% of our class and yet even a math-challenged fellow such as I knows $0 is not in excess of $71 million.
The lawsuit alleges that the company supplied a fraudulent 3rd party valuation of $350 – $400. It is obvious that the company took a proposal to perform a valuation from a legitimate investment bank and doctored it to appear as if it was a valuation… again, remember I didn’t graduate with distinction from a top law school or from a law school or with distinction for that matter but this kind of feels to me like fraud and while I am not a legal scholar I did run one of the top corporate governance advisory firms in the country and it is my opinion that if Ram Reddy, Andy Powers, and Tim Lee’s defense is they didn’t know about the fraudulent valuation or other material misrepresentations, then they are guilty of gross criminal negligence.
The complaint asserts Ram Reddy’s son introduced the plaintiff to Ram. That Ram made representations about the firm multiple times, including during a sailing vacation with the Plaintiff, the Plaintiff’s son, Ram Reddy and his son about the value of the stock. The complaint states “Reddy then told the plaintive that shares of CommuniClique (DBA CliqueAPI) purchased at $5.76 were worth $25 to – $30 per share. Reddy claimed that at that valuation he was one of the wealthiest Indians living in the United States.” I wonder if Ram Reddy will be one of the wealthiest Indians in Federal Prison?
Reddy told the Plaintiff that Twilio was operating at a loss and CommuniClique was profitable so it would be more valuable over time than Twilio. Again, my math so take this with a grain of salt but I don’t believe a company with expenses and no revenue can be profitable.
Based on the representations of Reddy, the Plaintiff asserts he “invested” an additional $1,462,250 worth of shares purchased from 8 investors smart enough to dump this stock. In addition, the Plaintiff’s parents who are non-accredited, retired public school educators purchased $288 thousand shares at $5.76.
In December 2017 by Representatives of the Virginia State Corporation Commission contacted the Plaintiff about an investigation into Powers and Comunniclique. Subsequently, in April 2018, Powers sent a letter to CounniClique shareholders, in which powers denied the charges and offered to buy back any of the shareholders stock. Powers failed to follow through on this offer. Powers who in the near future will be known as Federal Prisoner #14432 never followed through on this offer.
At this time, Reddy turned into a ghost and the Plaintiff was unable to contact him.
Yet if the Plaintiff wanted to speak with Reddy he should have headed over to Rutgers because, in April 2018, Rutgers was awarding “The Richest Indian in the United States,” an alumni award. Wouldn’t it be great if Ram earned that award by donating worthless Clique stock?
The complaint seeks to recover cash and damages over $3.6 million and $288 thousand for his parents to include the cost of trial and attorney fees.
I can’t predict the outcome of this case and yet I can say this. A court in Virginia has already found that Communiclique, AKA CliqueAPI, AKA Clique, AKA Pile of Stinking Dung, is a criminal enterprise. A company that defrauded investors using investor money to enrich the principals. How much of that money if any, did Ram Reddy take? It isn’t clear. What is clear is that Reddy was the Chairman of the Board, and is responsible for pitching and selling worthless stock to the Plaintiff and many others, including a group of Silicon Valley-based Indian investors who if they did invest are not likely to be the richest Indians in America.
Ram Reddy has been involved in more than one Shady business and more than one shady character. He has rented his home to two crooks, Andy Powers and Danny Boice. While he was renting a home to these two crooks they were building Communiclique. Communiclique was the beneficiary of funding fraudulently obtained by The College Board. Before being fired for cause as a VP of the College Board, Danny Boice hired Powers and others to work on his side project Communiclique under the guise of software development for The College Board.
Was Ram Reddy as guilty as Andy Powers, the CEO or Tim Lee the CFO of this Dumpster Fire? As far as I’m concerned that question is like asking three pregnant men which one is more pregnant. Ram Ready was the Chaiman of the Board and is responsible for the crimes committed by the major executives… he’s just as pregnant as Tim Lee and Andy Powers.
Check out this video of Ram Reddy telling the story of how he got together with Andy Powers and listen to him pitch what we now know are a bunch of lies to a group at Rutgers University, gathered to honor a crook.
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.