1847holdings LLC (Ellery Roberts) Ellery Roberts This is a Fraudulent Company Trading on the NYSE AMEX that rises to the level of a Ponzi Scheme New York New York
1847 Holdings:
CEO Ellery Roberts is a serial fraudster
1847 Holdings is a holding company that acquires small businesses, primarily mom-and-pop shops, and deploys resources to support and grow them. In turn, 1847 Holdings can either sell the business for a profit, spin it off into its own public entity, or hold onto it in perpetuity. The issue is that these outcomes are not feasible because the company is, in fact, a scam. The company uses false financial statements and deceptive press releases to create the false appearance of something legitimate. A component of the fraud is to set up an LLC in Delaware and a corporate headquarters in NYC and use subsidiaries for loans to pay the parent company. In a metaphorical twist, the child company (the subsidiaries) is loaning money to the parent company (1847 Holdings). The loans are not income and, therefore, not tax-deductible. As soon as 1847 Holdings acquires a new business, they immediately leverage the company’s assets to take out loans. Instead of using the money from the loans to enhance the business, leaders use the loans to lead lavish lifestyles and enrich themselves. The CEO has a 7 million dollar home is Rancha Santa California.
The loans are taken out in the form of a promissory note with a convertible clause. For perception purposes, 1847 Holdings will pay the loans for a few months and then default on the loans-afterward. As soon as the loans default, the lender can convert the debt to common shares, eviscerating shareholder equity.
Ellery Roberts is in bed with the lenders and all of the convertible notes have a pre planned default. Check Mast Hill, Lane Murphy - this is there go to lender.
The scheme's foundation is that the parent company, 1847 Holdings, presents a false appearance of profitability by seeking investments from new sources rather than earning profits from assets already invested. Even if the scheme was somewhat cloaked by purported legitimate activities (the subsidiaries exist), the absence of any legitimate business connected to the investment program, the unrealistic promises of low risk and high returns, the comingling of investor money, the use of agents and brokers who are paid high commissions to perpetuate the scheme, and the misuse of investor funds all point to the fact that the business was fraudulently conducting itself. This misuse of investor funds is a breach of trust and a betrayal of the investors' confidence.