Startup Business Plan

Corporate Governance Requirements For Angel Investors

Angel Investing is inherently risky. Startups, in general, aren't for the weak at heart. It is even more perilous when investing with minimal leverage that comes with a small investment of $25 - $50 thousand. Over a 10 year period, I made 7 investments that returned 180 percent. Over the same period of time, the S&P returned 250 percent. Yes, I took 50 times the risk to get a fraction of the return. How could I have improved the returns? I should have insisted that companies followed certain corporate governance norms. And if I didn't have the leverage to dictate good governance, I should have invested alongside someone who had the power to mandate good corporate governance terms. Let's look at my investments to illustrate what I mean? Winners With Responsible Leadership Social Tables - Great Management Team, Frequent Credible Business Status, and Financial Reporting and Regular Board Supervision Veenome - Great Founder, Frequent Credible Business Status and regular investor conference calls seeking input. Sideways With Responsible Leadership TalkLocal - Great Management Team, Frequent Credible Business Status, and Financial Reporting and regular investor conference calls seeking input. Winners With Leadership Issues none Losers With Leadership Issues SpotFlux - Not sure, I invested...

Another Day, Another Day In Court For Andy Powers Communiclique CEO

For the past 2 months, for the past 3 court dates, Andy Powers, the co-founder, and former CEO of a criminal enterprise and $50 Million Ponzi Scheme known as Communiclique (AKA Clique API) promised the court he would have a new attorney in just a few weeks. He's been promising to show up with his dream legal team any day now. Well, boy did he not disappoint today.  At 10:55 AM, five minutes before his scheduled 11 AM Case Review. In walks Powers with a virtual "Dream Team" legal team. He's followed by super attorney Johnnie Cochrane, Justice, Oliver Wendell Holmes, Santa Clause, and the Easter Bunny. Of course, I'm kidding, there is no easter bunny and there is and probably never was a mythical LA Attorney who was going to defend Andy Powers. That was just a delaying tactic. For those of you who are not up to speed. Powers started a fake company, raised millions of dollars. Then used investor cash to fund a lavish lifestyle and totally cheated investors. If you're interested you can catch up here: Commonwealth of Virginia Court Finds Andy Powers Defrauded Investors Deleware Court Declares Communicliiquey Bankrupt Bankruptcy Judge Forwards Bankruptcy Fraud Charges to US...

Andy Powers’ Judge Is Not Having It

If you do a google search for the worst on-screen romantic chemistry, a few couples keep coming up. Katherine Heigl & Seth Rogen in Knocked Up Jessica Alba & Mike Myers in The Love Guru Charlize Theron & Woody Allen in Curse of the Jade Scorpion Julia Roberts & Woody Allen in Everyone Says I Love You Any Woman and Woody Allen Any Man and Woody Allen Any Human and Woody Allen Any Plant and Woody Allen Woody Allen's Hand and Woody Allen If what took place at 11 AM on September 6th, 2019, in the US Courthouse in Alexandria Virginia, was a film...

The Arraignment of Andy Powers Communicliqe

It's a warm muggy August morning, 10:37 AM in Alexandria VA as I enter the US 4th District Court House, sans phone, or any electronics (which is why I had to do the extremely competent, near-professional, artistic collage and rendering of the back of Powers' head as he faced the judge), show my ID, go through the scanner and up the escalator. In the courthouse second floor lobby, I am surprised to see Eugene Gorokhov of Burnham & Gorokhov, Andy Powers' former attorney assigned as a public defender. Former because Gorokhov represented Andy up until two weeks ago when Powers dismissed him. Andy who couldn't afford an attorney and was therefore assigned a public defender all of a sudden found the money to afford private counsel. Two weeks ago, this scum-sucking pig told the court he was firing Gorokhov, who was hired as a public defender in favor of a newly hired although still not yet hired, unnamed private attorney thus delaying the arraignment two weeks. That's why we're all here today (see more here). If you are not familiar, with the Powers case. In 2006, Andy Powers started Communiclique (aka Clique API). In summer 2018, a Commonwealth of Virginia Court found...

Andy Powers Arraignment Hearing

As of now it appears that Andy Powers, the CEO of Communiclique will appear in the before Judge Alston for Arraignment at the Alexandria Federal Court House, Room 601. I hope you can make it for the arraignment in the case, United States v. Defendant(s) Andrew B. Powers, Case Number 2018R02532 and Court Docket Number 19-CR-00213. The arraignment is scheduled before Judge Rossie Alston on August 16, 2019, 11:00 AM at Alexandria Courtroom 601, Federal Courthouse, 401 Courthouse Sq, Alexandria VA for the case which involves defendant Andrew B. Powers. The main purpose of this hearing is for the defendant to enter a plea to the charges filed in this case. Powers is charged with the following: Wire fraud, February 17, 2016 – $1,000,0011 Wire fraud, August 8, 2016 – $115,200 Wire fraud, September 6, 2017 – $100,005 Wire fraud, September 1, 2017 – $440,000  Mail fraud, April 4, 2017 Inducing interstate travel to defraud, November 29, 2016 Unlawful Monetary Transaction, September 21, 2015 – $75,308 to purchase a 2015 GMC Yukon Unlawful Monetary Transaction, September 25, 2015 – $157,050 to purchase a 2015 BMW i8      ...

I think I might have hurt Ram Reddy’s feelings

My Apology To Ram Reddy, Former Chairman of the Board of Communiclique Hi Ram, I just got the note from your Attorney (see PDF below). It sounds like I hurt your feelings and you think I've been telling untruths about you. I also was informed that it is your contention that you are a victim of the Communiclique fraud and if that is true I'm sorry that you were taken advantage of. I'm also sorry that you didn't know that you were repeating falsehoods (Because I'm feeling contrite and not Cranky you might have noticed that I just didn't call you a liar) when you told prospective investors of Clique's most excellent customer wins and boasted that revenue was in the tens of millions and that the company was growing and worth a billion dollars which might have motivated your friends and associates to invest and now those people join you as victims. Darn, I bet you wish you checked your facts. I know your trusted confidants who invested based on your word sure as shit wish you did. Well, buddy, your attorney seems to feel that I got the story wrong and if that's true, I'm really sorry. Probably not as...

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...

Communiclique CEO Andy Powers Strategy – Evade Obfuscate and Delay

Communiclique (AKA Clique API) CEO, Andy Powers appeared in Alexandra VA US District Court today. The hearing was scheduled at 11 AM. Powers entered the courtroom and took a seat in the middle section of the 3rd row and waited for the case precededing his  to conclude. He was accompanied by an anonymous civilian, perhaps his mysterious benefactor (more on that later). This was my first opportunity to observe Powers up close. He's a goofy little dufus just like Mr. Cranky. The short, physically unimpressive little man, was carefully dressed, in tan slacks, a grey shirt buttoned up high to the top button on his neck, a blue blazer, and glasses. He nearly successfully covered up 98% of his thug-life tattoos that scream...

Andy Powers Communiclique Court Delay

It appears that Andy Powers is still negotiating his plea bargain. It appears that the courts are not pursuing charges against the company's former CFO Tim Lee and Chairman of the Board Ram Reddy.  That's a head-scratcher, how could the Chairman of the Board and CFO not know their company barely had any revenues? How could they not know that the company was hemorrhaging cash?  Communiclique(aka Clique or Clique API) clearly appears to be a $50  - $70 million Ponzi scheme. I don't know if Tim Lee or Ram Reddy are guilty of any crime. Based on paragraph 26 of the criminal complaint (see below), someone with the initials PR, likely Ram Ready whose legal name is, Parvathareddy Balarami Reddy claimed he just passed on information. He didn't verify the accuracy? 26. P.R. was interviewed by the FBI and advised that all of the information he passed along to investors came directly from POWERS. It appears PR asserted he passed on information that came directly from Powers and it infers that PR didn't know the information he passed on to investors included bold-faced lies. An attorney, John P. Rowley III of  SCHERTLER & ONORATO, LLP, who claims to represent Ram Reddy in which R. Rowley asserts in a letter to...

Clique’s Andy Powers Securities Fraud Victim Letter

This week, victims of the Clique, Securities Fraud case were sent the following letter regarding the case and their status. If you are a victim of this fraud known as Communiclique (AKA Clique API) and didn't receive this email, you might want to get in touch with the Justice Department. I don't understand what happened to Ram Reddy, Clique API (AKA Communiclique) Chairman of the Board and Tim Lee the company's CFO. For instance, according to the lawsuit below Ram passed on fraudulent data in order to motivate others into purchasing shares of Communiclique. I'm not an attorney, but I was under the impression that gross lies about the revenue, client wins and valuation of a company in order to sell stock in a company was the definition of security fraud. It's hard to fathom that the CFO and Chairman of the Board for over a decade, had no visibility into the companies books. That's difficult to fathom but it's possible. Maybe he was just negligent or stupid. Ram Reddy categorically denies the allegations. According to John Rowley, Reddy's attorney, "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...