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Monday
Jun022014

NHDP - Boston Globe Today Reveals Troubling Facts: Scott Brown Cashes in with Shady FL Company

Experts Warn “Very, Very Risky” for Investors Brown Gets $1.3 Million in Stock
 
No Wonder Brown Failed To File Financial Disclosure Form
 
Concord, NH—The Boston Globe today reveals how Scott Brown cashed in with a shady Florida firm with no office, no revenue, no products, but looking to lure investors into what financial experts called a “very, very, risky” venture. Brown received $1.3 million in stock. 

"Scott Brown was cashing in when he said he was taking time off. And he cashed in with shady characters running a questionable company," said New Hampshire Democratic Party Communications Director Julie McClain. “No wonder Brown didn’t file his financial disclosure form.  He didn’t want New Hampshire to know."
 
According to the Boston Globe:
 
·     Scott Brown received stock worth $1.3 million from  Global Digital Solutions, Inc. (GDSI),  which announced with great fanfare that the former Massachusetts Senator would be joining its advisory board.

·     GDSI was founded as a beauty supply company in New Jersey, then the firm reinvented itself as a wireless data firm in California, then as a firearms maker and gun technology innovator in South Florida.
 
·      Despite current claims it is a firearms company, GDSI has “no revenue, no patents, no trademarks, no manufacturing facilities, and no experience developing weapons.” The firm has “scant assets and a shifting business model" and reported having four employees, $271,776 in cash and $19.7 million in losses as of March 31 of 2014.

·      The Boston Globe interviewed several accountants that confirmed that GDSI’s filings raised a number of serious red flags for investors. Howard M. Schilit, author of the book “Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports” confirmed that GDSI “is a very, very risky company for anybody to invest.” A lead lawyer at the SEC confirmed that the company’s actions raise issue that would concern regulators.

·      Brown has failed to file a financial disclosure form that would reveal how much money Brown made as a Fox News commentator, as part of a big Boston lobbying and law firm, as a paid speaker, and as a member of other corporate boards. 

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