Tag Archives: selen katz

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Seaquake.io Fraud; So-Called Crypto Trading Firm Makes Investor Money Disappear

(Source: Law360.com ) Andrew R. Katz, aka Ross Katz, aka Stark Katz  an Arvada, Colorado man who is last known to reside in either of New York City or Southern California, and uses California, Colorado, Florida and New York drivers licenses while claiming to be a former FX trader for EFG Bank, and who now presents himself as co-founder of  Seaquake.io, a”digital asset infrastructure company”, along with Seaquake CFO Matthew J. Krueger of San Francisco, who claims to be a former PayPal “Finance Manager” and the former “Head of Finance” for Venmo, have both been named as Defendants in a Federal Court complaint alleging the two men advanced a systematic scheme to defraud a Florida-based investor group. Also named in the action is Dylan Knight, a UK man who is listed as a co-founder and Chief Technology Officer for the company. The Federal Court complaint cites multiple accounts of securities fraud, fraud in the inducement, and wire fraud.

THIS STORY UPDATED SEPTEMBER 2020 TO MARK THE FIRST ANNIVERSARY OF THIS EXCLUSIVE REPORT. CLICK HERE FOR THE UPDATE

According to a Zurich-based private equity fund manager who had been repeatedly approached by Katz to invest, “All of the patented elements of old-fashioned investor fraud have been perpetrated by these Seaquake characters, casting yet another shadow of skepticism on the entire digital asset industry. It is amazing how brazen these individuals are. Based on their apparent actions, one can hope that law enforcement officials will do their jobs and prosecute these people quickly. Even if the wheels of justice spin slow, anyone in the industry should be alert to these people and be aware they have already destroyed any future professional career in any industry.”

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Andrew R. Katz, Seaquake.io Founder (l), Matthew J. Krueger, Seaquake “CFO”

According to the Federal Court complaint, Katz lists former jobs at UBS Bank and EFG Capital in investor offering documents, the company’s website, as well as his Linkedin profile, despite Finra having no record of Katz being licensed by that securities industry regulator at any time, and despite EFG Capital having no record of his employment. More importantly, the court filings include a series of email communications, text messages, and group chat messages on Linkedin in which Katz and Krueger made a series of fraudulent representations that induced the investors to enter into a so-called “SAFE Agreement” with the company. Investors were of the belief the funds would be deployed to a high-frequency trading application that Seaquake principals, including so-called CTO Dylan Knight of the UK, claimed to be operating.

JANUARY 2021 UPDATE: SEAQUAKE CO-FOUNDER ANDREW KATZ CHARGED WITH FELONY ASSAULT AND GRAND LARCENY IN NEW YORK; FACES MINIMUM 2 YEAR PRISON SENTENCE

CLICK HERE FOR LATEST

THIS STORY UPDATED SEPTEMBER 2020 TO MARK THE FIRST ANNIVERSARY OF THIS EXCLUSIVE REPORT. CLICK HERE FOR THE UPDATE

According to the complaint, only several days after the investors executed the agreement with the company and wiring funds to a Seaquake account at Signature Bank in New York, Katz then informed the investors the high-frequency trading application was “not in fact in production and the [investor] funds would be placed into a money market account until such time as the software was ‘production ready.” Defendants Krueger and Katz also made a series of assertions as to pending institutional investors who committed to providing capital to Seaquake, all of which turned out to be false, according to the filing. According to court documents and independent background searches, it turns out that Katz has driver licenses in New York, Florida, Colorado, and California, and is also registered to vote in Florida.

UPDATE MARCH 2021: SEAQUAKE ENTITY ‘SEAQUAKE OPS LLC’, A WYOMING CORPORATE SHELL NOW SUSPECTED OF SBA LOAN FRAUD; APPLIED FOR AND RECEIVED PPP-RELATED LOAN

This latest charge adds to a pending list of other criminal matters, including a likely bank loan fraud perpetrated by Katz and Krueger in connection with Seaquake OPS LLC, a Wyoming entity that is part of the web of Seaquake companies. Recently discovered, Seaquale OPS LLC did in fact apply for and did receive a Paycheck Protection Loan of $22,813 through Wells Fargo Bank, National Association, which was approved in May, 2020. In that loan application, Selen Katz, former wife of Andrew Katz, and the victim identified in the felony assault charge is identified as an employee of Seaquake. Her title, according to a LinkedIn profile is “creative director” and her date of employment is the same month in which the PPP Loan was applied for.

Katz has a history of criminal charges, from trespassing charges in New York to domestic abuse charges in Los Angeles. This private investigator’s background report is telling. Other background searches indicate that Katz, along with his mother, Alyson Katz of Arvada, Colorado were plaintiffs in a class action law suit brought against a Utah-based school for emotionally-challenged youth, a facility that Katz was apparently sent to by his parents and attended for at least two years while he was a teenager.

selen katz instagram seloupe andrew katz seaquake scamIf only Andrew Katz’s wife, Selen Katz, a Turkish national and Instagram Influencer who apparently works as a swimsuit model, didn’t need Katz to help her secure a Green Card. Otherwise, perhaps she’d realize that being married to a scam artist is not the path to a happy future in the U.S. More important, actions pending against Katz could raise eyebrows from US immigration authorities who will be evaluating her request for citizenship. She should hope that more recent frauds committed by her husband and his partner in connection with PPP loans don’t add fuel to the criminal investigation fire burning under their butts.

THIS STORY UPDATED SEPTEMBER 2020 TO MARK THE FIRST ANNIVERSARY OF THIS EXCLUSIVE REPORT. CLICK HERE FOR THE UPDATE

Back to the primary coverage….Once the investors realized they had been scammed and then demanded the return of the funds, Katz and Krueger took steps to dissolve “Seaquake Partners LP”, the corporate entity the investors sent their funds to, according to the corporate register agent. According to records in the filing, Defendants Katz and Krueger wrote to the investor informing “we will not communicate with your attorney and we have no obligation to provide any further information..” Concurrently, the Defendants transferred the investor funds from the company account at Signature Bank in New York to multiple, newly-created Seaquake entity accounts at a Compass Bank BBVA branch in California, near where Krueger lives. Thereafter, bank records indicate Katz and Krueger dispersed the funds to various internal company accounts, and then transferred a bulk of the investor’s funds to crypto exchange Coinbase, which they moved days later to crypto exchange and custody platform Binance.

As acknowledged by the defendants’ attorney, Yasin Daneshfar of Florida law firm Becker and Poliakoff, Katz and Krueger also moved tens of thousands of dollars to personal accounts the defendants established at Compass Bank. Attorney Daneshfar argued “the so-called “SAFE Agreement” did not preclude the defendants from dispersing the money as they saw fit.” Daneshfar further acknowledged in a recent court appearance that, in addition to the defendants enriching themselves with much of the investor’s funds, the investors’ funds have also been used by Katz and Krueger to pay the Becker law firm in their effort to defend themselves against the investors in federal court. When challenged with this use of funds by the federal court judge who pointed to the series of communications from Katz to the investors, Attorney Daneshfar was said to have responded to the judge with a smirk and a shrug of his shoulders.

While much of the information obtained in the federal court filings may seem to be the source of good fodder for a ten cent crime novel, according to one Switzerland-based venture capital executive who is focused on the digital currency space and who had also been solicited by Seaquake to serve as both an advisor and to provide investment funds, “All of the patented elements of old-fashioned investor fraud have been perpetrated by these Seaquake characters, casting yet another shadow of skepticism on the entire digital asset industry. It is amazing how brazen these individuals are. Based on their apparent actions, and whether or not they get caught by law enforcement officials, they have effectively destroyed any future professional career in any industry.”

david streltsoff-seaquakeDespite all of the shenanigans, David Streltsoff, a Senior Vice President for San Francisco broker-dealer “US Capital Global” and a former salesman for high-frequency trading firms was apparently not deterred from associating himself with Seaquake. According to his LinkedIn profile in the months of September through November 2019, Streltsoff served as “Business Development Executive” for the company, while also a registered broker-dealer for US Capital. Streltsoff’s rofile was updated at the end of November after Streltsoff was served with a federal court subpoena for information pertaining to his involvement with Seaquake. According to a former investigative journalist, now a due diligence advisor to fund managers evaluating crypto startups, Streltsoff told him “It took one too many days for me to figure out this company was peddling nothing more than vaporware, and the scam accusations against them were eye-opening, so I terminated my association with them.” Jeffrey Sweeney, the CEO of US Capital Global has not replied to inquiries.

Update: Since the litigation was filed, at least one other investor has been identified as having been scammed. That investor was apparently introduced to the company in June 2019 by a friend who was employed by Seaquake.io as “business development executive.” That friend sent the investor a so-called Safe Agreement, along with wire payment instructions to a Seaquake bank account held by a Bank of America branch in Colorado. Once that investor learned of the recent court action, the investor contacted Katz and demanded the return of the money sent to Seaquake in July. Katz replied via email stating “we have no record of having executed a Safe Agreement with you, and the former employee provided you with incorrect wire instructions, so we never received your money, and we don’t owe you anything.” When the investor provided Katz and Krueger with Bank of America correspondence that affirmed the Seaquake account information was correct and confirmation from the bank the wire payment had in fact been credited to the account Katz created, Katz ceased all further communication. That investor has since filed a criminal complaint and the former executive is said to be cooperating with law enforcement authorities. Perhaps Mr. William Bao Bean, a principal of SOSV Ventures / Chinaccelerator –which recently disclosed making an investment in “Seaquakes”, as did Jeremy Colless, Managing Partner of down-under VC “Artesian Capital” both failed to get the memo…(?)

THIS STORY UPDATED SEPTEMBER 2020 TO MARK THE FIRST ANNIVERSARY OF THIS EXCLUSIVE REPORT. CLICK HERE FOR THE UPDATE

In November, the federal court judge lifted the temporary restraining order on bank accounts controlled by Seaquake principals Katz and Krueger, and cited concerns as to whether the Florida court was the appropriate jurisdiction to litigate the action. Plaintiffs are expected to continue the litigation.

Katz was last seen in December at the Hotel Kai Tulum resort in Cabo San Lucas vacationing with his wife, who posted an assortment of photos baring ‘birthday bling’ while sipping margaritas.

THIS STORY UPDATED SEPTEMBER 2020 TO MARK THE FIRST ANNIVERSARY OF THIS EXCLUSIVE REPORT. CLICK HERE FOR THE UPDATE

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Trump to Shut Dept of State and Open Dept of Sex; Melania To Head

TRUMP CAMPAIGN SPECIAL REPORT: GOP NOMINEE VOWS TO SHUT US DEPT OF STATE AND REPLACE WITH US DEPT OF SEX;  FIRST LADY MELANIA TO GIVE HEAD AND “LEND A HAND”

DONALD TRUMP TWEETS “MY NEW US DEPARTMENT  WILL BE PROFITABLE STARTING DAY ONE!”

(MarketsMuse Exclusive)- Donald Trump, the GOP Presidential Nominee announced today “Because our foreign policy is such a disaster, during my first 100 days as President, I will not only build a really big wall along the Mexico border, I hereby vow to shut the U.S. Department of State until someone can figure out what the heck is going on with our foreign policy and at the same time, I will appoint my wife and First Lady Melania Trump to sit on my staff as Secretary and lead a newly-created US Department of Sex.” Mr. Trump vowed this would be a Cabinet-level role and “unlike every money-losing US Government agency, my new department will be “profitable starting day one!”

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Selen Katz, “Creative Director” for Seaquake.io

IF YOU LIKE THIS COVERAGE, CLICK ON TO READ ABOUT SEAQUAKE CRYPTO SCAM UNCOVERED BY MARKETSMUSE: 

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photo by Ale de Basseville

In a series of 140-character tweets pushed out late Saturday night by Donald Trump after the NY Post revealed uncovered the plan, the Republican candidate eviscerated the foreign policy strategy initiatives of the Obama administration and declared, “Let’s face it folks, #SEX is the ultimate influencer when it comes to global diplomacy. All of the world’s great leaders have been swayed by legions of  Eastern European models and consorts, and Melania is well-trained to lend a hand to my administration; trust me!.” Added Trump, ” We will immediately reward the vast number of under-educated white males in our country who have been so cheated by the rigged system and whose votes are so important to our country!” Trump went further to state ” I hereby pledge that my wife Melania will administer hand jobs to every single uneducated white male who votes for me in the national election.” In a follow-up tweet, Trump stated, “These will be the GREATEST hand jobs ever administered, and you can trust me when I make this promise!”

Trump also suggested that Estonia Government Bonds issued in 1927, long considered to have little value after Russia annexed the country in 1940, would “soon be worth much more than original face value, much more!”

Despite the fact that Mr. Trump has been a direct party to more than 3700 civil law suits during his business career, he insists that the promise to have his wife perform manual sex on under-educated white male voters is “a legal contract that I swear on my son Baron’s head, is a binding agreement that I will co-sign and one that I will not breach and she will not breach!”

In a late-breaking tweet made Sunday morning, Donald Trump said “This promise does not have to be limited to only under-educated white males, Melania will also provide manual sex to any woman who votes for me! This proves that I truly love and respect all women!”

Trump advisor Paul Manafort confirmed that “Donald Trump’s plan to create a revenue-producing US Federal Department of Sex could easily wipe out trillions in US national debt within the first two years of a Trump administration.”

Steve Mnuchin, a former Goldman Sachs partner who was recently appointed National Finance Chairman to the Trump Campaign

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Trump Finance Head Steve Mnuchin (c)

stated, “Winning and making money and making America great again is our focus. Many people on Wall Street know that Melania is a perfect role model who can lend her own hands to lead a profitable US Government initiative that can wipe out the national debt in a few easy strokes! Mnunchin added, I personally hope that other Trump family members will want to join in this program!”

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Donald Trump offering Hitler-style salute

How this latest pledge on the part of Donald Trump’s effort to be elected will impact financial markets remains unclear. According to one CNBC commentator, “From a global macro perspective, I don’t know how the markets will react to Trump’s promise, but I can tell you that most of our Squawk Box talking heads are going to putting out buy recommendations on this new plan and most viewers of CNBC will likely be impressed!”