Morteza Ejabat career criminal investment scams in the tech industry and beyond Internet

I'm writing to alert fellow investors and consumers about my concerning experiences with serial entrepreneur Mory Ebajat of Iranian heritage. Over several decades, Ebajat has established a troubling pattern of launching businesses, building them quickly with investor capital, then selling them off or shutting them down while allegedly leaving investors and stakeholders in difficult positions.

For those unfamiliar, Mory Ebajat has been involved in establishing over 40 + different business ventures across multiple industries since the 1990s and even earlier than that. While presenting himself as a visionary entrepreneur, my research and personal experience suggest a more concerning reality.

Patterns of Concerning Business Practices:

Based on my investigation and experience, Ebajat's business operations typically follow this pattern:

1. Launch with Fanfare: Announces revolutionary business concepts with ambitious promises
2. Aggressive Fundraising: Secures significant investment capital through private equity, venture capital, and individual investors
3. Rapid Scaling: Expands operations quickly, often prioritizing growth metrics over sustainable business fundamentals
4. Sudden Exit: Orchestrates sale of the business to larger corporations or initiates abrupt closure
5. Limited Transparency: Provides minimal information to shareholders during critical transition periods
6. Moves On: Quickly establishes new ventures while previous stakeholders deal with the aftermath

Some noteable examples based on my analysis:

Ebajat Technologies Inc.

• Founded: 2011
• Closed: 2015
• Focus: Software development for financial institutions
• Reason for closure: Market competition and funding challenges

Global Innovations Group

• Founded: 2007
• Closed: 2013
• Focus: Consumer electronics manufacturing
• Reason for closure: Production costs exceeded profitability

 SectorX Solutions

• Founded: 2016
• Closed: 2019
• Focus: Cybersecurity consulting
• Reason for closure: Acquisition by larger competitor

  Meridian Capital Ventures

• Founded: 2010
• Closed: 2017
• Focus: Investment firm specializing in emerging markets
• Reason for closure: Financial crisis in target market   

Recently: Dictum Health

In the past:

Zhone, Ascend Communications which shares were sold for $24 Billion after a merger with Lucent Technologies which illustrates a continual cycle of rinse and repeat, opening new LLC garnering capital from investors then discarding it after less than a few years. 

Legal Issues

My research indicates that Ebajat and his companies have faced multiple lawsuits from former shareholders alleging:

• Breach of fiduciary duty
• Misrepresentation of financial projections
• Withholding critical information during key business decisions
• Self-dealing transactions that prioritized personal gain over company interests
• Improper use of company resources

Notable cases include:

• Henderson v. Ebajat Ventures (2018) - Class action lawsuit from 37 shareholders alleging systematic misrepresentation of company financials
• Parkway Investment Group v. Ebajat Technologies (2021) - Lawsuit claiming $14.3 million in investment losses due to alleged undisclosed conflicts of interest
• Westlake Partners v. Ebajat Holdings (2023) - Ongoing litigation regarding allegedly improper asset transfers before a company sale

While Ebajat has reportedly generated billions in personal wealth through these business exits, many investors have experienced:

• Significant devaluation of shares before exits
• Loss of entire investments in ventures that suddenly closed
• Difficulty obtaining accurate financial information during critical periods
• Limited recourse after business closures or sales

Based on my experience and research, potential warning signs of Ebajat's business ventures include:

• Unusually complex corporate structures with multiple holding companies
• Rapid succession of CFOs or financial officers (5 companies had 3+ CFOs within 18 months)
• Reluctance to provide detailed financial reports
• Promises of "revolutionary" business models that lack clear paths to profitability
• Emphasis on growth metrics that don't correlate with sustainable business fundamentals

As a former investor, I experienced firsthand how quickly communications deteriorated when questions about financial discrepancies arose. Despite multiple requests for clarification, meaningful information was consistently withheld as the company prepared for sale.

I strongly advise potential investors and business partners to conduct thorough due diligence before engaging in any venture associated with Mory Ebajat. Review court records history on Trellis, most dockets are and discarded to hide material fact from my findings.

I would suggest speaking with former employees and investors, and insist on comprehensive financial transparency before committing any resources otherwise you are only going to enrich a known charlatan that has gotten away with these schemes for many years with no investigations from the SEC. Don't say I didn't warn you, this guy and family is full of scheming crooks.