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Short Seller Aurelius Value Calls Pareteum 'Uninvestable'

Tanzeel Akhtar

Pareteum Corp (NASDAQ: TEUM) shares traded lower Friday morning after Aurelius Value issued a short report alleging fraudulent activity.

Aurelius Value said Pareteum management has extensive ties to previously alleged crypto frauds and failures.

"The biographies for [CEO Hal] Turner and TEUM’s COO fail to disclose their leadership positions at Catcher Holdings, a now worthless stock that was owned by a group that included an entity controlled by Barry Honig, the notorious stock operator charged by the SEC last October with fraud for alleged pump and dump schemes," said Aurelius Value.

"We see similarities between TEUM and the stock promotion at Catcher, where Turner repeatedly touted Catcher’s technology and growth prospects but investors ultimately were left with nothing."

Aurelius Value said that since the crypto-boom of late 2017, Pareteum has repeatedly hyped contracts tied to crypto-businesses, including a “Blockchain Technology Partnership” with “Airfox,” a crypto company that Pareteum named in at least eight press releases. Airfox settled charges with the SEC in November 2018 related to registration violations involving its sale of “AirTokens” and “agreed to return funds to harmed investors."

Pareteum did not respond to a request for comment from Benzinga.

Pareteum shares traded down 1.7 percent to $3.35 at time of publication.

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