Founder Of Cyberfraud Prevention Company Pleads Guilty To Defrauding Investors Of Over $100 Million

Adam Rogas Raised $123 Million From Investors Using Financial Statements That Showed Tens of Millions of Dollars of Revenue and Assets that Did Not Exist

Damian Williams, the United States Attorney for the Southern District of New York, announced that ADAM ROGAS, the co-founder and former CEO, CFO, and member of the board of directors of Las Vegas-based cyberfraud prevention company NS8, Inc. (“NS8”), pled guilty today in Manhattan federal court to securities fraud.  ROGAS used fraudulent financial data to obtain over $123 million in financing for NS8, of which he personally obtained approximately $17.5 million. ROGAS pled guilty today before U.S. District Judge John P. Cronan, and is scheduled to be sentenced by Judge Cronan on August 10, 2022. 

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U.S. Attorney Damian Williams said:  “Today, Adam Rogas admitted to being the proverbial fox guarding the henhouse.  While claiming to be in the fraud prevention business, Rogas himself defrauded investors in his company of over $100 million.  Now Rogas will be held accountable for his fraudulent scheme.”

According to the Complaint, Indictment, and other publicly-filed documents: 

ADAM ROGAS was a co-founder of NS8, and served as its CEO, CFO, and a member of its board of directors.  ROGAS was also primarily responsible for the company’s fundraising activities.  NS8, which was based in Las Vegas, Nevada, was a cyberfraud prevention company that developed and sold electronic tools to help online vendors assess the fraud risks of customer transactions.  In the fall of 2019 and the spring of 2020, NS8 engaged in fundraising rounds through which it issued Series A Preferred Shares and obtained approximately $123 million in investor funds.

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ROGAS maintained control over a bank account into which NS8 received revenue from its customers, and periodically provided monthly statements from that account to NS8’s finance department so that NS8’s financial statements could be created.  ROGAS also maintained control over spreadsheets that purportedly tracked customer revenue, which were also used to generate NS8’s financial statements.

ROGAS altered the bank statements before providing them to NS8’s finance department to show tens of millions of dollars in both customer revenue and bank balances that did not exist.  In the period from January 2019 through February 2020, between at least approximately 40% and 95% of the purported total assets on NS8’s balance sheet were fictitious.  In that same period, the bank statements that ROGAS altered reflected over $40 million in fictitious revenue.

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Altered (L) and original (R) bank statements for NS8’s revenue account.  Rogas altered statements for the account to show tens of millions of dollars in revenue (deposits) that did not exist.

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ROGAS used these materially misleading financial statements to raise approximately $123 million from investors in the fall of 2019 and the spring of 2020.  During the fundraising process, ROGAS also provided the falsified bank records he had created to auditors who were conducting due diligence on behalf of potential investors.  After these fundraising rounds concluded, NS8 conducted a tender offer with the funds raised from investors, and ROGAS received $17.5 million in proceeds from that tender offer, personally and through a company he controlled.

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ROGAS, 44, of Las Vegas, Nevada, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

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Mr. Williams praised the outstanding investigative work of the FBI in this investigation.  Mr. Williams further thanked the Securities and Exchange Commission for its cooperation and assistance in this investigation.  

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Richard Cooper and Jared Lenow are in charge of the prosecution.  

Source-FBI

President of Rwanda, Paul Kagame has declared that the country has made progress as a result of the involvement of women in governance.

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President Kagame made this known on Tuesday in his message shared on twitter to celebrate the International Women’s Day.

‘’From the beginning, RPF has walked the talk by creating an environment that enabled women to take their rightful place. Gender equality has always been central to the politics of RPF. The progress we see in Rwanda today is the result of this commitment to inclusivity. ‘’

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‘’Equality is a right not a favour. We must challenge ourselves to do even more and better to ensure that the next generations of our daughters and granddaughters inherit a nation where their aspirations have no limits.’’ President Kagame tweeted.

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TO PUBLISH YOUR PRESS RELEASES/STATEMENTS ON THIS NEWS WEBSITE SEND ENQUIRIES TO-federationews2day@gmail.com

You gave us the necessary upbringing to confront the vicittiudes of life.

16 years gone by, stll in our minds, BISI, NIKE, FUNKE, TAYO

The impact by the Federal, State and Local Governments on the acceptable standards of education everywhere, is passive.

Indeed, each school ought to have a life and character of its own and be in touch with the people of its immediate neighborhood.

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Sadly, the quality of teachers recruited to teach in schools has overtime reflected , negatively, in the attitude, behavior and mode of dressing of pupils and students. The role of parents and guardians also feature prominently.

The affected schools lack the necessary amenities and facilitates to aid learning, while most parents and guardians and political representaitives watch helplessly as their children and wards receive fractured education.

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Overcrowding, poor sanitation and the poor conditions of service of teachers which has resulted in the poor quality of teaching and poor quality of products are among the life threatening traits of these schools.

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The menace of secret cults, hard drugs and examination malpractices are now integral parts of the schools, while the government at all levels, which have all the while played significant roles in the worrisome situation, feign ignorance.

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The planned national population census by the Federal Government of Nigeria months to the 2023 general elections is borne out of sinister agenda revolving around self-interests by certain government officials.

This assertion was made an Ex-Officio of the Oyo state Council of the Trade Union Congress(TUC), who is also a former Chairman of the unions in the state, Comrade Andrew Emelieze.

‘’The Federal Government’s to conduct the national population census, several months to the 2023 general elections is suspicious and borne out of the self -centered agenda of certain government officials which is very sinister. When considerations given to the multifarious problems of the country, insecurity inclusive, the national census should not be the priority,’’ Comrade Emelieze stated.

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The lack of discipline could lead to a disintegration in society. It is imperative for leaders to live exemplary lifestyles, to become role models for others to emulate, to ensure that goodness remains in the society.

Leaders should respect the people’s perspective without been judgmental for them to accept their leaders as role models.

The Holy Bible in Matthew 7 : 1–2 emphasize this, ‘’1 Judge not, that ye be not judged.

2 For with what judgment ye judge, ye shall be judged: and with what measure ye mete, it shall be measured to you again.’’

The Holy Quran 5 : 8 also attests to this assertion on not been judgmental in assessing the general behavior of others. 

‘’O you who have believed, be persistently standing firm for Allah , witnesses in justice, and do not let the hatred of a people prevent you from being just. Be just; that is nearer to righteousness. And fear Allah ; indeed, Allah is Acquainted with what you do.’’

The best of human sensitivity to the plight of others revolves around the fact that an individual must look inwards and cleanse himself or herself of dirt before pointing accusing fingers at others weaknesses. Firstly, correct yourself in moral discipline before attempting to blame others.

Furthermore, the Holy Bible Matthew 7 : 3–5 sensitizes us on the essence of not to be judgmental.

‘’And why beholdest thou the mote that is in thy brother’s eye, but considerest not the beam that is in thine own eye?

4 Or how wilt thou say to thy brother, Let me pull out the mote out of thine eye; and, behold, a beam is in thine own eye?

5 Thou hypocrite, first cast out the beam out of thine own eye; and then shalt thou see clearly to cast out the mote out of thy brother’s eye.’’

In the same vein, the Holy Quran asserts in 4 : 135 on the need for self critical examination. ‘’Believers! Be upholders of justice,164 and bearers of witness to truth for the sake of Allah,165 even though it may either be against yourselves or against your parents and kinsmen, or the rich or the poor: for Allah is more concerned with their well-being than you are. Do not, then, follow your own desires lest you keep away from justice. If you twist or turn away from (the truth), know that Allah is well aware of all that you do.’’

The Holy Bible in Proverbs 25 : 28 states, ‘’He that hath no rule over his own spirit is like a city that is broken down, and without walls.’’

In summary, every evangelical mission, Jihad or Daawah, must be based on the tenets of the Holy Quran 16 : 125, ‘’Invite to the way of your Lord with wisdom and good instruction, and argue with them in a way that is best. Indeed, your Lord is most knowing of who has strayed from His way, and He is most knowing of who is [rightly] guided.’’

Let us be scripture compliant by saying it and living by it, for the world to be safe, secured and habitable.

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Preventive measures ensures cleanliness and sanitation, the provision, most especially, in the formative years of childhood, the care and feeding which strengthens the body’s resistance against diseases. This is in addition to curative measures that facilitates treatment from diseases.

The Health departments of Local Governments have been found wanting as regards the above mentioned, even though there are regular advancements in social conscience and medical knowledge.

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The unavailability of supply of potable water in several communities in Local Governments is a major challenge.

Residents resort to doubtful sources to meet their water needs. Constructed boreholes are yet to meet the expectations of the people.

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Most communities are dirty and unkempt as a result of the docile nature of Local Government workers.

Refuse are dumped indiscriminately and everyone carry on as if all is well.

Children and expectant Mothers have tales of woes to tell at the Primary Health Care centers, while Governments at all levels keep mum.

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The dearth of qualified Medical Professionals in several Local Government Areas of the Federation is a set back, even as the reduction of the incidence of malaria by 80 per cent is a mirage.

Indeed, the Primary Health Care program ought to be the cornerstone of the health policy of a focused administration, however, the lack of appropriate skills by primary health workers is just one among the several pointers that this is not so.

-Government Workers-A Subject of Debate

Discrimination, according to researchers is the basis of promoting the slave trade when special consideration is given to differences in language and color.
The United Nations charter on the fundamental Human Rights charter was equally vehement against acts of discrimination because it is considered as an act of making unjustified distinctions between people based on their beliefs, groups, classes, and other categories as perceived by the oppressors.

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People may be discriminated against on the basis of a race which is divine, gender which is a social construct, age, and religion.
Discrimination goes against an individual's rights simply because of who they are or what they believe in.

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It, therefore, promotes inequality. In a number of instances, acts of discrimination may emerge when there are intentions to resolve controversial matters.
For any nation, therefore, to experience rapid growth, there must be the right to freedom from discrimination-a citizen that belongs to a particular community, ethnic group, place of origin, sex, religion, or political opinion ought not to be discriminated against.
Developing nations must work in this direction to liberate their citizens from the clutches of backwardness.

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