Sep. 24, 2018
Dear SEC, I feel compelled to advise you of egregious and what I view as illegal acts in violation of the 1934 Act’s regulations regarding insider trading and market manipulation by a notorious hedge fund called Mangrove Partners, LP and its founder Nathaniel August. He is on public record admitting that he shorted shares of VirnetX ticker symbol VHC and he is further on public record acknowledging he filed IPR patent challenges against VirnetX’s patents that were specifically involved in patent infringement litigation against Apple ticker symbol AAPL. To short VirnetX’s stock and then file IPRs against the company’s patents that are involved in litigation against Apple was criminal. It violates insider trading regulations because only Nathaniel August knew he would be filing IPRs against VirnetX when he was shorting VirnetX's stock. It violates market manipulation regulations because by virtue of his actions and by design his IPRs resulted in VirnetX’s patents in suit against Apple being thrown into chaos completely undermining VirnetX's federal district court litigation. Incredibly the exact same IPRs with the exact same content were filed by Apple against VirnetX and were dismissed by the PTAB. Then RPX ticker symbol RPXC a patent holding company filed the exact same IPRs against VirnetX. Under oath in federal court both RPX and Apple denied any relationship whatsoever ultimately committing perjury and getting caught by VirnetX. It was only after VirnetX’s extensive metadata analysis that proved Apple in fact paid RPX 500,000 dollars to file those IPRs, did Apple and RPX admit guilt. The PTAB then denied RPX’s IPRs against VirnetX as a result of Apple admitting they were the true Real Party of Interest behind RPX’s IPRs against VirnetX. Then comes Mangrove Partners LP and Nathaniel August who just happened to be one of RPX’s largest shareholders file the exact same IPRs against VirnetX and low and behold Apple, despite being time barred from enjoining themselves to the IPRs by federal law are allowed to by the PTAB. Coincidentally a PTAB judge named Tierney who was involved in every IPR filed against VirnetX was a former Apple attorney who has never ruled against Apple in any Apple related patent challenge. Despite the Court of Appeals of the Federal Circuit already validating VirnetX’s patents, the PTAB under Tierney then went ahead and invalidated VirnetX’s patents through IPRs filed by Nathaniel August and Mangrove Partners LP. Mr. August and Mangrove Partners LP profited substantially by shorting VirnetX’s stock, then materially interfering in VirnetX’s federal lawsuit against Apple by imposing himself in the middle of VirnetX's patent litigation against Apple. If a hedge fund shorts a company’s stock then goes about destroying the company’s key assets to manipulate his short position profitable how can that not be illegal? Whether the asset is a factory, a storage center, company HQs, or the company’s patents, what is the difference? It is irrelevant whether the America’s Invents Act allows anyone to file IPRs against anyone else’s patents. The criminal act is when you use the IPR process to intentionally manipulate a publicly traded stock which according to the 1934 Act is illegal. The 1934 Act also states trading on inside information is also illegal yet that is exactly what Nathaniel August did, publicly no less in utter indifference to the laws he is obliged to uphold. This is not a one off event by Nathaniel August and his hedge fund. Nathaniel August has made a career of engaging in what can only be described as RICO violations. If the “mafia” engaged in the securities actions Nathaniel August has engaged in they would have been prosecuted and put in jail under the RICO statutes. Nathaniel August for some reason is allowed to grow a hedge fund empire by destroying honest companies he and his network of paid proxies have targeted for destruction. There is no doubt he manipulated the share price of VirnetX. There is no doubt he traded on inside information only he was privy to. There is no doubt he materially interfered in a federal district court trial he had no part in. There is no doubt he did all this for profit. I respectfully ask the SEC how is it possible for this to take place right under your noses with impunity? Please review the case below filed by Eros International PLC against Mangrove Partners LP and Nathaniel August and truly consider whether Nathaniel August does not warrant SEC investigation. The case below reads like a RICO prosecution playbook. I do not doubt the allegations levied by Eros because he is on public record already engaging in the same acts against VirnetX. I am certain you can obtain a copy of the case so I only included the information necessary to locate the case. After you read the allegations by Eros, and Mr. August's public record actions against VirnetX I pray you put him in jail for destroying countless lives for mere profit. FILED: NEW YORK COUNTY CLERK 09/29/2017 05:14 PM INDEX NO. 653096/2017 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 09/29/2017 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK EROS INTERNATIONAL PLC, Plaintiff, - against - MANGROVE PARTNERS, NATHANIEL H. AUGUST, MANUEL P. ASENSIO, ASENSIO & COMPANY, INC., MILL ROCK ADVISORS, INC., GEOINVESTING, LLC, CHRISTOPHER IRONS, DANIEL E. DAVID, FG ALPHA MANAGEMENT, LLC, FG ALPHA ADVISORS, FG ALPHA, L.P., CLARITYSPRING INC., CLARITYSPRING SECURITIES LLC, NATHAN Z. ANDERSON AND JOHN DOES NOS. 1-30, Defendants.