Ebix Inc (NASDAQ:EBIX)’s accounting was questioned by Gotham City Research in a report released several days ago. The SEC Ebix fell close to 25% on the report from Gotham City. Ebix Inc (NASDAQ:EBIX)’s accounting has supposedly been questioned by the SEC according to a report from November 2012. issued a rebuttal on every point raised by the research firm. Now Gotham has a follow up report on the company.
In this follow-up report, they discuss how:
- Ebix Singapore & Ebix Australia’s financial statements for 2009 do not support CEO Robin Raina’s claim that an intercompany loan to Australia was moved to Singapore in 2009.
- The 2010 Singapore long-lived asset numbers are misstated by at least $67 million (94% of 2011 earnings), contrary to Robin Raina’s claim that the “numbers did not change.”
- CEO Raina completely ignored some our more serious claims, e.g. organic growth is negative, Ebix’s tax strategy is a sham, and the Robin Raina Foundation’s IRS filings are full of material accounting irregularities.
- Ebix Inc (NASDAQ:EBIX)’’s stock should be halted immediately, as (i) the financial statements remain materially unreliable, inaccurate, and incomplete and (ii) Ebix’s CEO appears to be intentionally misleading investors, rather than addressing the issues we and others have identified.