Kazakhstan-based Freedom Holding is being investigated by the U.S. Department of Justice and Securities and Exchange Commission counsel over compliance issues, insider stock moves, and an offshore affiliate tied to sanctioned individuals, CNBC reported on Friday.
The SEC’s Boston regional office has been probing Freedom for months, the report said, citing documents seen by CNBC and people familiar with the matter.
In August, Freedom was under attack from Hindenburg that said its research into the company had revealed “hallmark signs of fake revenue” and market manipulation in both its investments and stock, as well as evidence it “brazenly skirts sanctions”.
The allegations in the Hindenburg report are without merit, Freedom had said then.
The U.S. Attorney’s Office for Massachusetts is also making preliminary inquiries into Freedom, the CNBC report added.
The SEC declined to comment on the existence or nonexistence of a possible investigation, whereas the Department of Justice and Freedom did not immediately respond to Reuters requests for comment.