Freedom Holding, the Nasdaq-listed Kazakh financial firm that's been targeted by short sellers, is now under scrutiny by the Justice Department and federal regulators, CNBC has learned.
The SEC's Boston regional office has been probing Freedom for months, according to documents seen by CNBC and people familiar with the matter. The company, headquartered in Almaty, Kazakhstan, has a $5 billion market cap and is controlled and majority-owned by 35-year-old billionaire CEO Timur Turlov, a former Russian citizen.
Turlov and Freedom are aware of the SEC probe, which has been going on for months, a person familiar with the matter told CNBC. The Justice Department's involvement with these issues is more recent, documents show. Probes of this kind can take years and may not lead to criminal or civil charges. So far, there have been no formal charges or allegations of wrongdoing.
The Belizean entity, incorporated in 2014, is now named Freedom Securities Trading Belize, or FST Belize.with a publication in Kazakhstan."There is no reason for sanctions, if there is no involvement of U.S. representatives in the operation."Historically, negative reports from established short sellers will hurt a company's stock. Freedom shares dipped about 8% the two trading days that followed Hindenburg's report. They quickly rebounded, including a 25% jump on Aug.
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