Prescience Point Capital Management accuses Enphase Energy of fraud
Prescience Point Capital Management published a report which accuses the supplier of solar energy systems Enphase Energy (NASDAQ: ENPH) to manufacture at least $ 205.3 million in 2019 reported revenue. This represents 39% of 2019 US revenue, according to the report, and 33% of total 2019 revenue reported by Enphase.
Prescience Point Capital was founded by Eiad Asbahi in 2009 and has “earned a reputation for its expertise in short selling,” according to the company. Enphase Energy was the target of another report on short sellers in September 2019, when Citron Research said the new competition by Generac Corp. (NYSE: GNRC) take market share and drive the share price of Enphase and its competitors SolarEdge Technologies (NASDAQ: SEDG) down significantly. This prediction has yet to materialize.
The Prescience report states that at the end of fiscal 2018, Enphase “curiously outsourced key finance and accounting to India.” He indicates that, according to former employees in India, the company uses this finance and accounting team “to help prepare the books of the company under the direction of American executives.”
The report writes that, “according to former employees, Ahmad Chatila, the disgraced former CEO of SunEdison, works behind the scenes for ENPH and is” running the show behind the scenes at Enphase. “”
Prescience also suspects that recent insider sales may be related to its investigation. He said they “may also have heard of our private investigation, based on their urgent sale of 2.4 million shares, for $ 120.9 million, in connection with disposals on the free market “.
About 71% of these share sales are said to have been made by Director Thurman J. Rodgers through Trust or Charitable Trust. The company has yet to respond to the Prescience report.
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