Fantasy Aces Daily Fantasy Sports Corp FASDF

RE:glad I passed on this one.

[pennylane101]

Luckily I didn't lose that much and I've already made back my losses on other stocks.  The point is we shouldn't allow this sort of thing to happen.

Is there anyway we could have known?  The company had just closed a private placement. You trust the auditors to be competent and provide reasonable assurance that the financial statements are not materially misstated.  One of the requirements for listing with Canadian exchanges is that the auditor must verify the accuracy of the internal control statement just as they verify the accuracy of the financial statements.  

According the now defunct Fantasy Aces website:

Are you looking for a more exciting way to play fantasy sports? Then you’ve come to the right place, where you can use your knowledge of professional athletes to win real cash and have the confidence of knowing your funds are safe!  Fantasy Aces LLC is a US based fantasy sports website owned and operated in Southern California and our members funds are held in a segregated US bank account, separated from our operational accounts.


If management was raiding funds from the segregated account dating back to 2015, why was this not reported to users of the financial statements?  The interim reports have to be reviewed by the auditors before it's submitted to regulators.  Didn't alarm bells go off???  This  company had an audit committee, where was their oversight of the audit engagement?  This is absolute gross negligence!