Russian Stock Manipulation $MULN

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Mullen is under the influence of individuals with significant ties to foreign entities, including the Russian government and organized criminal groups. It is worth noting that Mullen is a publicly-traded US company listed on the NASDAQ. However, as of September 5, 2023, despite undergoing 1-25 and 1-10 reserve splits, it is projected to be relegated to pink sheets or over-the-counter trading, with an imminent delisting from the NASDAQ due to its share value plummeting well below one dollar.

Furthermore, Mullen is currently embroiled in a lawsuit against some of the world's largest brokerage firms, such as TD Ameritrade, Charles Schwab, and National Finance Services. These allegations center around accusations of stock manipulation, involving the sale of fictitious or fully paid shares.

The Mullen corporate family, which includes Mullen Technology, Mullen Automotive, and Net Element, is overseen by individuals with a history of associations with unsavory characters, failed companies, foreign influences, and outright fraud. Notably, David Michery, the Chief Operations Officer (CEO) of Mullen, and Kenes Rakishev, Chairman of Mullen Automotive and minority control stockholder, who is suspected of being utilized as operational assets by a Russian intelligence service.

The strategic significance of Mullen to Russian intelligence lies in its potential to serve as a source of information on key countries of interest to Russia. Additionally, Mullen's network could function as agents of influence within the United States, covertly manipulating U.S. public opinion at the direction of Russian intelligence.

Background:

Mullen, a company listed on NASDAQ under the ticker symbol MULN, was founded in Southern California and entered the public market on November 5th, 2021. However, its inception in 2014, orchestrated by CEO David Michery, marked the beginning of a troubled journey. Mullen Automotive, took shape through a questionable amalgamation, bringing together two entities, CODA Automotive and Mullen. This corporate family, if it can be called that, includes a host of subsidiaries, including Mullen Technologies, Mullen Funding Corporation, and CarHub, and Net Element all entangled in the web of Mullen's operations.

Ironically, amidst recent developments reported by the Global News Wire, Mullen has taken legal action by filing a lawsuit alleging stock manipulation in the United States District Court, specifically in the Southern District of New York. This lawsuit targets TD Ameritrade, Charles Schwab, National Finance Services, and other entities, asserting their involvement in a scheme to manipulate Mullen's securities' share price, with the primary aim of seeking compensatory damages. David Michery, the CEO, and chairman of Mullen has voiced his frustration regarding the stock's performance, which has seen a significant decline despite the company's positive announcements and achievements. Strongly suspecting illegal short-selling activities, Michery engaged Share Intel and the law firms of Christian Attar and Warshaw Burstein to conduct a comprehensive investigation. He claims that he hopes that this legal action will convey a clear message to anyone considering illegal trading of Mullen stock. In addition, Michery, inconsistent to previous actions, expressed his concern for shareholders who have suffered losses believed to be partially due to unlawful trading activities in the company's stock. He emphasized Mullen's illusory unwavering stance against manipulative trading practices and underscored the company's commitment to employing all available legal measures to halt illegal trading activities and protect the interests of the company and its shareholders.

This situation appears incongruent with the actions of the CEO and his financial stewardship of the company. David Michery's track record, along with much of the management team at Mullen, has raised concerns. While it may indeed be true that these prominent brokers engaged in selling fictitious or fully paid-for shares, which ultimately led to the 1-to-25 reverse and subsequently the 1-to-10 reverse, the market's response to the lawsuit has not necessarily been favorable. This may be due to the company's historical performance, or rather, the lack thereof. With the missed deadline of September 5th to keep Mullen’s stock price above the $1 mark, it is now headed to over-the-counter or pink slips, where fewer shareholders will stay interested.

On June 15, 2020, Mullen's operational utility to foreign entities grew pointedly with the announcement of a merger agreement with Net Element, Inc. (For those interested in the sordid details of Net Element, please refer to the Tactical Rabbit Intelligence product dedicated to Net Element).

In the early days of February 2022, Fuzzy Panda Research unmasked the disturbing truth behind Mullen Automotive's acquisition plans, focusing on Electric Last Mile Solutions (ELMS). This exposé revealed ELMS, slated for acquisition by Mullen, as a company with a penchant for deception. It unveiled ELMS's audacious masquerade as a legitimate American electric vehicle (EV) manufacturer, when in reality, it was peddling Chinese imports under the deceptive banner of "Made in the USA." Moreover, ELMS was exposed for artificially inflating its revenue by padding its sales figures with fully returnable products.

The disconcerting narrative grew deeper in April 2022 when Hindenburg Research issued a scathing report on Mullen. Hindenburg's indictment branded Mullen as a poster child for deceit in the electric vehicle industry, painting it as one of the most egregious examples of a hustle in recent memory. The report cast an ominous cloud over Mullen's practices and operational integrity, revealing a company steeped in deception and dubious dealings.

Despite these damning assessments, Mullen remained unapologetically audacious. In September 2022, it executed a questionable deal to secure a controlling stake in Bollinger Motors, a manufacturer of electric pickups and SUVs. This acquisition came at an exorbitant cost, a staggering $148.2 million, valuing Bollinger Motors at an eye-popping $247 million. It's vital to underscore that prior to this acquisition, Bollinger Motors teetered on the edge of financial abyss, with a meager month's worth of cash reserves to forestall its impending demise.

October 2022 witnessed Mullen's relentless pursuit of troubled assets as it absorbed the beleaguered ELMS, cementing its reputation as a vulture in the industry. Mullen Automotive's voracious appetite for acquisitions revealed its insatiable desire to accumulate a dubious portfolio. In addition to ELMS, it orchestrated a staggering $240 million acquisition of Electric Last Mile Solutions (ELMS). The company further entrenched itself in the electric vehicle market by securing a commanding 60.5% stake in Bollinger Motors, renowned for producing electric trucks that had yet to gain any traction.

Mullen Automotive opted for the well-trodden path of going public through Special Purpose Acquisition Company (SPAC) mergers. The SPAC bubble, which burst in 2021, precipitated a catastrophic downward spiral in the stock prices of these ill-fated ventures.

The tempestuous journey of Mullen Automotive was further marred by Hindenburg Research's scathing report, which not only exposed gaping chasms in the company's operations but also asserted that it was perpetrating fraudulent activities, including the shameless rebadging of Chinese vehicles under the guise of originality.

Chief among the litany of concerns plaguing Mullen Automotive is its relentless march towards financial ruin. Analysts have chronicled the company's harrowing financial descent, with its balance sheet growing ever more fragile. The relentless depletion of cash reserves has triggered alarm bells, casting a looming shadow of impending insolvency. The recent bankruptcy of Lordstown Motors has only added fuel to the fire, causing MULN stock prices to plummet to catastrophic lows.

The company's unquenchable thirst for cash, seemly taxes losses and its reckless spending habits presents a bleak outlook. In 2022, Mullen reported staggering losses that surpassed the $740 million mark, a monumental increase from the previous year's losses, which amounted to a mere $44 million. The latest 10-Q report from Mullen Automotive, chronicling zero revenue over the past three months while painting a chilling picture of an operating cash burn totaling $67.5 million. Shareholders, in the midst of this financial disaster, have been ruthlessly diluted, exacerbating their woes and cementing Mullen's projection as a sinking ship.

?In the annals of corporate infamy, Mullen Automotive stands as a stark testament to deception, mismanagement, and reckless ambition. Its legacy is one of relentless acquisition, unbridled greed, and financial freefall, leaving a trail of disillusioned investors and tarnished reputations in its wake. Mullen will likely go bankrupt in the coming years if not for the potential use of the company as a puppet for Russian-based sanctioned funds.

Key Players:

Source: Mullen Website David Michery

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David Michery, the Founder, Chairman & CEO of Mullen, has garnered a controversial reputation due to his involvement in a series of questionable enterprises. Over the years, he has taken the helm of numerous companies, leaving behind a cloud of doubt and skepticism. Currently, Mr. Michery occupies significant positions as Chairman, President & Chief Executive Officer at Mullen Automotive, Inc., and Chairman & Chief Executive Officer at Mullen Technologies, Inc., a subsidiary of Mullen Automotive, Inc. He also holds titles such as President & Chief Executive Officer of Primco Management, Inc. and Chief Executive Officer for Seven Arts Music, Inc. Throughout his career, David Michery has been associated with companies like iFinix Corp., Petro America Corp., GL Energy & Exploration, Inc., and American Southwest Music Distribution, Inc., among others. His questionable track record has consistently raised questions and suspicions, with his involvement often associated with activities that have left investors and observers wary of his business practices.

Prior to his involvement with Mullen, Michery served as the CEO of American Music Corporation. In 1999, he assumed the role of CEO at AMC American Music Corporation, a Pink Sheets-listed company that later merged with an OTC gold miner and allowed its corporate registration to lapse in California.

?In 2004, Michery became the CEO of American Southwest Music Distribution, Inc. (formerly known as GL Energy and Exploration, Inc.). During his tenure, the company faced legal challenges, including a lawsuit by Vestcom, Ltd. in 2005 alleging fraudulent asset transfers, which was settled in 2006. By 2008, the company's SEC filings became less clear, culminating in the termination of stock registrations and a merger agreement with other entities. Two years later, one of the individuals involved in this merger, Owen Hawkins, was indicted for securities fraud and later sentenced to 30 years in prison.

?In 2012, Michery was involved in a deal with Seven Arts Entertainment, acquiring sound recordings and taking on roles as a director and CEO of a subsidiary. However, the company faced severe financial challenges, with its securities registration terminated in 2015. In 2013, Michery joined Primco Management, Inc., which later had its securities revoked by the SEC due to a failure to file required reports. In 2014, Michery assumed the position of CEO and President of Shades Holdings, a luxury sunglasses company that had its SEC registration revoked within two years for failing to file periodic reports. Another major Mullen shareholder, Esousa Holdings, LLC, is controlled by Michael Wachs, who had a criminal history related to bank fraud and appears to have pled guilty in 1997 to defrauding Chase Manhattan Bank for $20 million. Wachs did this by using his high-ranking position at the bank to jump in between asset sales by using a front company he secretly controlled.

?Furthermore, Mullen's history involves going public by merging with Net Element. Tactical Rabbit has a finished intelligence product highlighting that Net Element, a publicly-traded U.S. and Russian company led by CEO Oleg Firer, presents a major security risk to the United States. Operating with offices in both nations, the company's activities have raised concerns regarding potential U.S. SEC violations, insider trading, and direct connections to multiple Russian organized criminal groups. These networks have engaged in unlawful activities within the U.S., causing economic harm and financial losses. This complex web of associations and illicit practices underscores the risk posed by Firer and Net Element. Moreover, there is a strong likelihood that both Firer and Net Element may be utilized by Russian intelligence as operational assets, providing valuable insights on countries of interest to Russia and covertly influencing U.S. public opinion. Their associations with a prominent Russian businessman may have facilitated the secretive acquisition of restricted U.S. technology in the battery and electric vehicle sectors for transfer to Russia. These factors collectively highlight the significant security implications associated with Net Element and its CEO for the United States. (For information on Firer please read the complete intelligence report)

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Kenes Rakishev

Kenes Rakishev DOB 14 July 1979, a businessman from Kazakhstan with close ties to the head of the Chechen Republic, Ramzan Kadyrov, and Kadyrov's deputy, ?Adam Delimkhanov. Included in the Forbes Top 50 influential entrepreneurs in Kazakhstan, his personal wealth is estimated at $960 million. He owns and operates a network of companies, with interests in the US, Kazakhstan, Russia, China, Israel and the EU, with his main financial vehicle BTA Bank. Rakishev is a participant and beneficiary of fraudulent business schemes aimed at creating illegal sources of income for corrupt politicians. Known for acting as a front man in settling disputes with troubled companies and seizing their assets through networks of offshore companies.

The merger between Mullen and Net Element involved several key stakeholders. This is what brought in Rakishev, who served as Mullen Automotive's chairman, and held a minority control with a 3.87% stake in the company. David Michery, the CEO of Mullen Automotive, had a 3.11% stake, while Mike Zoi, who was a director of Mullen Automotive from 2012 to 2014, owned 2.70% of the company's stock. Notably, Zoi had previously served as a director of ENER1 and Net Element, the predecessor of Mullen Automotive. These ownership stakes and roles underscore the dynamics at play in the merger.

Kenes Rakishev's majority control of Mullen now grants him access to significant technology and resources, further enhancing his influence and capabilities. Rakishev, a prominent figure in the Russian intelligence community and oligarchy circles, is renowned as one of Kazakhstan's wealthiest individuals. He has faced scrutiny, including inquiries by the House Oversight Committee, regarding potential ties to Joe Biden. Rakishev maintains close connections with the Kazakh military, notably through his father-in-law Imangali Tasmagambetov, a former defense minister with involvement in a company that supplied military trucks to Russia. Additionally, Rakzan Kadyrov, the head of the Chechen Republic under US sanctions for his role in Putin's Ukraine invasion, has referred to Rakishev as a “prince” “dear brother” and patron of important projects. Given these associations, it is plausible that Rakishev, either independently or at Moscow's behest, may utilize his relationships and companies like MULN to conduct influence operations and source information in the United States.

Analysis:

Mullen (MULN) is assessed to be on the road to bankruptcy unless they win the recent lawsuit. A chronic road of no production and puppeteering by Michery has finally visualized with yet another failed company. Investors have stood patiently by and waited as Mullen Automotive stock has gradually moved toward its death.

Mullen's fable is one of a company with little to no actual value that occasionally surges on short squeeze speculation only to fall even harder. Between the company's checkered past and its inability to meet deadlines, there is no reason to bet on Mullen's recovery.

The doomsday clock has struck as MULN stock approaches delisting. Having missed the September 5th deadline, Mullen has failed to regain Nasdaq compliance, and it is too late for it to successfully trade at $1 for 10 days. Mullen had already used its last-ditch effort to stay above delisting criteria with two reverse stock splits, this artificially increased the price of each share, but it did not solve the underlying problem of the company's low share price. Delisted stocks often end up trading on an over-the-counter (OTC) exchange. But descending to OTC status doesn't help a stock's credibility. Investors should also tread carefully when it comes to Mullen's leadership.

On to some of the key players, in particular Michery, Rakishev, and Net Element. Michery's variable history should solidify his desires outweighing those of his investors. His documented repetitive failures and associates emphasize his untrustworthy nature and question his motivation. Rakishev is playing a game on a knife's edge, dealing in the front rooms of American society and business while operating in the back rooms of the Russian intelligence apparatus. It's plausible that his involvement is blessed by, if not directed by, Russian intelligence with national security implications. His current investigation by the House Oversight Committee is likely the tip of the iceberg as a vigilant eye should be turned to his other dealings, associates, and next business endeavors.

Per our previous reporting, Net Element leadership has likely violated numerous Securities and Exchange Commission (SEC) rules and regulations. Previous CEO Firer and his associated businesses have a pattern of mergers, purchases, subscriptions, and formation of new companies that were, more than likely, carried out by Net Element to obfuscate illegal and illicit activities. This largely seems to mirror Michery's moves at Mullen and is likely to the same ends of obfuscating immoral, unethical, and illegal activities. More disturbing is the fact that we assess that they are being utilized by either the Russian foreign intelligence service (SVR) or the Russian military intelligence service (GRU) in an operational role.

Conclusion:

In conclusion, Mullen Automotive is facing several challenges that could likely lead to bankruptcy. The company has a history of failed projects and missed deadlines, and its stock price has been declining steadily. It is projected to in fact be delisted with the Nasdaq Listing Qualifications Department (QLD) issuing a notice that the company's stock is subject to delisting. Dependent on the lawsuit outcome we assess it’s unlikely to regain Nasdaq compliance.

The leadership of Mullen is also a cause for concern. The company's CEO, David Michery, has a history of skeptical business dealings. He has repeatedly misled investors about his financial situation, and he has yet to produce any results. While Rakishev is a participant and beneficiary of fraudulent business schemes aimed at creating illegal sources of income. He was embroiled in a DOJ investigation of alleged breaches of the Foreign Corrupt Practices Act but was not charged and is still under investigation by the House Oversight Committee. He must be investigated, and finances tracked to eliminate risk to national security and dismantle this influence network.

[i] (Mullenusa, n.d.)

[ii] (Global News Wire, 2023)

[iii] (Allen, 2023)

[iv] (Net Element Enters into a Letter of Intent to Merge with Electric Vehicle Company Mullen Technologies , 2020)

[v] (ELMS – EV Pretender – Passing Off Chinese Imports as “Made in the USA”; Booking Fake Revenue of Fully Returnable Products?, 2022)

[vi] (Mullen Automotive: Yet Another Fast Talking EV Hustle, 2022)

[vii] (Nyaga, 2023)

[viii] (Nyaga, 2023)

[ix] (Nyaga, 2023)

[x] (Business Leaders, n.d.)

[xi] (SEC, n.d.)

[xii] (Hindenburg Research , 2022)

[xiii] (4:10-cr-00332-ODS, 2010)

[xiv] (Hindenburg Research , 2022)

[xv] (Hindenburg Research , 2022)

[xvi] (Alpert, 2003)

[xvii] (htt)

[xviii] (Forbes, n.d.)

[xix] (Dutta, 2022)

[xx] (James, 2023)

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