Richard Hong Quoted in Miami Herald on “Precarious State” of LifeWallet
Partner Richard Hong was quoted in a Miami Herald article entitled “UM Booster John Ruiz’s Company LifeWallet Admits ‘Substantial Doubt’ About Its Future.” The article discussed John Ruiz’s admission to investors last week that there is “substantial doubt” that his company LifeWallet will be able to continue operating.
LifeWallet reported that it brought in just over $300,000 in revenue between March and June – the least amount it reported in a quarter since first going public in May 2022. The company is the subject of ongoing investigations by the Justice Department and the U.S. Securities and Exchange Commission over its marketing to investors.
Richard, a former SEC trial lawyer and federal prosecutor for the U.S. Attorney’s Office in Miami and the U.S. Department of Justice in Washington, D.C., said the company’s admission showed that it is in a “precarious state.” He lauded the company for acknowledging that there are concerns about its ability to continue as a going concern and said he anticipates that more information will be coming soon.
“It’s only a matter of time before the company’s accountants issue a going concern letter, which specifies all the company’s financial troubles,” he said.
Read the full article here.
Contacts
- Richard Hong Partner
- rhong@morrisoncohen.com
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