In this follow-up report, we 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’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.
In the report shown below, we discuss why we believe:
- Ebix’s Accounting is Unreliable, Inaccurate, and Incomplete (there’s a large undisclosed related party loan, for starters)
- The Tax Strategy is a Sham in Fact or Sham in Substance
- Ebix’s Stock Deserves to be Halted, until the SEC filings are Reliable, Accurate, and Complete (the 2010 & 2011 10Ks were submitted before the Singapore subsidiary’s 2010 financial statements were signed off)
- Shares are Worth No More Than $5
- The Robin Raina Foundation’s IRS Filings Are Not Reliable, Accurate, or Complete