SEC probing Miami Beach facial-recognition tech firm over spending on condo, tennis
Alfi, a Miami Beach facial-recognition technology company that gained notoriety this summer as a meme stock and suspended or fired several top executives, is now facing a probe by the Securities and Exchange Commission.
According to a public filing, Alfi, which went public in May, has been asked to retain documents that date back to April 2018.
“On November 9, 2021, the Company received a letter from the staff of the Securities and Exchange Commission (the “SEC”) indicating that the Company, its affiliates and agents may possess documents and data relevant to an ongoing investigation being conducted by the staff of the SEC and notifying the Company that such documents and data should be reasonably preserved and retained until further notice,” it said.
Last month, the company placed its CEO, Paul Pereira, and its CFO, Dennis McIntosh, on leave pending its own internal investigation as it terminated its chief technology officer and Pereira’s son, Charles. The moves came in response to transactions involving a South Beach condominium purchased for $1.1 million and an agreement to sponsor a tennis event in the British Virgin Islands.
According to the filing, the documents the SEC is seeking focus on these transactions. The company intends to cooperate fully with the SEC in this matter, it said.
Alfi’s share price soared this summer to approximately six times its debut price to more than $17, but has since fallen back below $5. On Tuesday, it traded down 5% to $4.37.
This story was originally published November 16, 2021 at 11:43 AM.
