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Two Directors of XNT[Exante], Malta's Controversial Investment Firm

Jensen22 — Sat, 11 May 2024 05:45:29 -07:00

In the world of finance, shadows lurk where transparency should reign. And Malta-based investment firm XNT Limited, formerly known as Exante, seems to be dancing in those shadows with a dubious ensemble of characters and a history that reads like a financial thriller. Recent revelations have shone a light on two key figures within XNT, Alexey Kirienko and Anatoly Knyazev, both of whom obtained Maltese citizenship during years of significant controversy surrounding their company. Let's delve into the murky waters of XNT and its intertwined connections to political figures and regulatory mishaps. The Players: Kirienko, Knyazev, and the Company Alexey Kirienko and Anatoly Knyazev aren't just faces in the crowd; they are directors of XNT Limited, a Malta-based investment firm. Both their names popped up in the Maltese government's list of new citizens, in 2016 and 2019 respectively, courtesy of Malta's contentious citizenship by investment scheme. XNT Limited, once known as Exante, has been no stranger to controversy. From charges by the US Securities Exchange Commission (SEC) to being blacklisted by the Russian Central Bank, the company has faced its fair share of legal and regulatory woes. A significant revelation linked XNT to Aron Mifsud Bonnici, a close associate of disgraced former Minister Konrad Mizzi. Mifsud Bonnici's association with XNT raised questions, especially after large sums of money were transferred to his accounts within the company. A History of Shadows The tale of XNT is one of intrigue and suspicion. From its inception in 2011 to its various run-ins with regulators and law enforcement agencies, the company has been embroiled in controversies that paint a troubling picture. US SEC charges related to insider trading and alleged profits from online hacking rings, money laundering accusations, and regulatory fines have all been part of XNT's narrative. What's more, the company's political connections in Malta raise eyebrows. Photos of directors Kirienko and Knyazev hobnobbing with prominent Maltese figures, including former President Marie Louise Coleiro Preca and Prime Minister Joseph Muscat, only add to the intrigue. The Failed Blockchain Island Dream In 2017, XNT found itself in the spotlight once again as it became involved in Malta's ambitious "Blockchain Island" project, championed by then-Prime Minister Joseph Muscat and Minister Silvio Schembri. The project aimed to position Malta as a global hub for blockchain and cryptocurrency businesses. Despite its involvement and apparent political support, XNT's shady past continued to haunt it. And it wasn't just a matter of history; fresh controversies seemed to emerge regularly, including a blacklisting by the Russian Central Bank and fines from Malta's Financial Intelligence Analysis Unit (FIAU). The Role of Regulatory Oversight One might expect such a troubled company to face stringent regulatory scrutiny. However, XNT seemed to slip through the cracks repeatedly. The FIAU, responsible for overseeing financial compliance in Malta, found itself under scrutiny for its handling of XNT-related matters. A case in point is the €250,000 fine levied against XNT, which was overturned by Malta's constitutional court, citing unconstitutional practices by the FIAU.
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Education First Alliance Slaon Rachmuth & its controversies

Jensen22 — Fri, 12 May 2023 06:33:24 -07:00

The Education First Alliance (EFA) is a conservative group that advocates for parental choice in education. It was founded by Sloan Rachmuth, a former lawyer and education reform advocate. However, in August 2021, a lawsuit was filed by Kari Donovan, accusing Rachmuth of not paying her for research she did for EFA. Donovan also accused Rachmuth of spreading lies to get her fired from her job as a writer for The Gateway Pundit website. This has caused a lot of controversy and conflict between the two individuals. The allegations made by Donovan against Rachmuth are serious and could have a significant impact on the credibility of EFA. The lack of payment for services rendered is not only unethical but also illegal. Rachmuth’s alleged actions to spread lies about Donovan could also harm her reputation and credibility as a journalist. The conflict between Rachmuth and Donovan has also spread into the school board election. Donovan announced she would seek the District 9 seat in western Wake, where Rachmuth has endorsed Michele Morrow, a conservative activist. Morrow was in D.C. on Jan. 6, 2021, but says she did not take part in the riot at the Capitol with other Trump supporters. This endorsement by Rachmuth has caused controversy, as Morrow’s attendance at the Capitol during the riot has raised concerns about her judgment and ability to serve on the school board. The Education First Alliance’s mission is to advocate for parental choice in education, but the conflict between its founder and a former employee could undermine its credibility. It is essential that EFA address the allegations made by Donovan and ensure that all individuals associated with the or ganization are held to high ethical standards. The conflict between Sloan Rachmuth and Kari Donovan has raised serious concerns about the credibility of the Education First Alliance. The allegations made by Donovan against Rachmuth are serious and could harm the organization’s reputation. It is crucial that EFA addresses these allegations and takes steps to ensure that all individuals associated with the organization are held to high ethical standards.
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PIMCO Settles with SEC for $9 Million

Jensen22 — Wed, 26 Jul 2023 03:09:45 -07:00

In recent news, the Securities and Exchange Commission (SEC) has charged Pacific Investment Management Company LLC (PIMCO), a registered investment advisor, with serious disclosure and policies and procedures violations related to two of its funds. PIMCO, headquartered in Newport Beach, California, and managing approximately $2.24 trillion in regulatory assets, has agreed to pay $9 million to settle the enforcement actions. The SEC's investigation revealed that from September 2014 to August 2016, PIMCO allegedly failed to disclose crucial information to investors concerning the use of interest rate swaps in the PIMCO Global Stocks PLUS & Income Fund (PGP) and their significant impact on the fund's dividend. These paired interest rate swaps reportedly became a major source of distributable income for PGP, enabling PIMCO to maintain its dividend rate. However, the continued use of these swaps also contributed to a decline in the net asset value (NAV) of PGP. The failure to disclose that a significant portion of PGP's distributions came from paired interest rate swaps is said to be in violation of Section 34(b) of the Investment Company Act and Section 206(4) of the Advisers Act, along with Rule 206(4)-8. In a second action, the SEC alleged that between April 2011 and November 2017, PIMCO failed to waive approximately $27 million of advisory fees, as stipulated in its agreement with the PIMCO All Asset All Authority Fund. Furthermore, the SEC found that PIMCO did not have adequate written policies and procedures to oversee advisory fee calculations and fee waivers until at least 2018. As part of the settlement agreement, PIMCO has reportedly agreed to a cease-and-desist order and a censure in relation to each action. The firm has also committed to paying a combined $9 million penalty to resolve the SEC's charges. Additionally, to rectify the second violation, PIMCO has disbursed the $27 million in fees that should have been waived, along with interest and a performance adjustment, to the affected investors. This settlement highlights the importance of transparency and full disclosure in the investment management industry. Investors rely on accurate and complete information to make informed decisions about their investments. Failing to disclose material information can lead to misunderstandings and undermine the trust that investors place in their advisors. The case also underscores the significance of having robust policies and procedures in place to ensure compliance with regulatory requirements. In this instance, PIMCO's lack of adequate written policies and oversight concerning advisory fee calculations resulted in substantial financial consequences and reputational damage. For the investment management industry as a whole, this case serves as a reminder that regulatory bodies like the SEC are vigilant in enforcing compliance. It emphasizes the need for firms to prioritize regulatory adherence, internal controls, and investor protection. This case should prompt other investment management firms to reevaluate their own practices and ensure that they are in full compliance with regulatory requirements. Investors, too, should be encouraged to exercise due diligence and seek transparency from their investment advisors.
Learn more: PIMCO Settles with SEC for $9 Million