Global Intel Hub — 9/3/2024 — LTRY is a public company rife with fraud, its a culture that starts from upper management that is supported by a Board of Directors that supports the fraud. CEO Mathew McGahan has gone from one business failure to another, always leaving victims in his rear view mirror. McGahan has started 13 UK companies over the past 15 years and 12 of them are dissolved, the 13th has no operations [1] . McGahan boasts that he ran the biggest Harley Davidson dealership in the UK and also represents that he runs a family office managing assets of high net worth individuals but none of it is true….
McGahan used his fathers death as an excuse to launch something called “mask our heros” with another board member, Tamer Hassan. Mask our heros is reported to have shut down and left it’s own victims as well. The company was formed during 2020 and also seems to be defunct https://www.maskourheroes.org.uk/
LTRY is a public company trading on Nasdaq run by McGahan and Amar Ali, a disgraced lawyer from Dallas that has creditors chasing him for millions of dollars. Amar Ali’s title is “corporate counsel” of LTRY and seems to have no current business other than his involvement with LTRY. Ali doesn’t seem to be able to defend himself very well, you have to wonder about hiring a lawyer who has personal judgements and has been accused of doing fraudulent transfers to avoid his creditors. Specra Bank and Endurance Assurance Corporation are among the many parties that hold judgements against Mr. Ali but have been unable to collect.
The combination of McGahan and Ali remain in control of LTRY because they have a “friendly” Board that has refused to act against management. The Board has been well compensated for their inaction. On Friday, there were several form 3 filed with the SEC to show freshly minted shares for Chris Gooding, Tamer Hassan, Warren Macal. Despite LTRY not having any operations, Mr McGahan rewarded himself 1.1 million shares in 2024. LTRY also issued Rob Stubblefield, the CFO and Greg Potts the COO shares as well. These share issuances are not legal, when you materially effect the ownership of a public company, you need shareholder approval to dilute the company. When you have a Board that rubber stamps crimes, you can temporarily wipe out current shareholders with the stroke of a pen. In all, several million shares have been issued with zero cost basis, and the stock has reacted by losing over 80 percent of it’s value.
There are currently 4 Federal lawsuits pending against LTRY and it’s management, all of them have fraud counts. The company has no cash, we believe the management, the officers and the Board are in a race to cash out whatever shares they can dump on the public before the authorities shut this scheme down. The board members Chris Gooding, Tamer Hassan, Warren Macal, Mathew McGahan and Paul Jordan are hoping to get a quick financial windfall so they have supported McGahan and Ali’s fraud.
One of the most troubling aspects of McGahan’s leadership is his history of failed businesses. His track record includes a string of ventures that ended in insolvency, leaving behind a trail of unpaid creditors and financial wreckage. For instance, Exclusive Grand Prix Events LLP, where McGahan was a director, went into liquidation after a shady £300,000 transaction for vehicles that were never delivered to a client. This episode, along with the liquidation of Southern Motorcycle Group Ltd, which lost its prestigious Harley-Davidson franchise under McGahan’s watch, highlights a pattern of poor judgment and mismanagement. Additionally, Thames Valley Motor Cycles Ltd, another McGahan-led company, faced regulatory action from the FCA for failing to comply with essential financial regulations. The FCA’s final notice against the company criticized it for being unfit to conduct business, further tarnishing McGahan’s reputation.
Chris Gooding is a retired lawyer who has had an impressive reading resume and has run into financial trouble after retirement. Tammer Hassan is an actor and former boxer who is a long time associate of McGahan, Mr Hassan has received shares for his Board seat and most likely has no input on company operations, Hassan has little to no business history. LTRY has appointed Hassan head of the compensation committee and has no experience that would be relevant for that role. Mr. Hassan also has a criminal record including jail time, LTRY has failed to make this disclosure. Paul Jordan, another “independent” director has a 30 year friendship with McGahan and has been assigned head of the Audit Committee. Mr Jordan is also a convicted felon, also has served time in prison and has no experience in accounting. But perhaps the most shocking figure among McGahan’s circle is Andrey Nikitin, also known as Andrey Ryzhenko. Nikitin’s past is as murky as they come—he is a former banker at the European Bank for Reconstruction and Development (EBRD), who was convicted and sentenced to six years in a UK prison for accepting over $3.5 million in bribes. Nikitin was also found guilty of money laundering, concealing, converting, and transferring criminal property. Despite his criminal history, McGahan brought Nikitin into Lottery.com’s fold, where he was granted 125,000 company shares, despite not having a formal contract with the company. This decision has fuelled speculation that Nikitin’s role was more about furthering McGahan’s personal interests than benefiting the company. Moreover, Andrey’s wife, Natalia Nikitina, is a senior partner at White & Case, which served as legal counsel for Lottery.com. She played a key role in crafting Lottery.com’s loan agreement with Woodford Finance, signed in June 2023, and is rumored to have been closely involved in drafting and negotiating contracts between Lottery.com and UCIL, a company linked to McGahan and Barney Battles. This suggests a deeper web of conflicts of interest involving Lottery.com, Andrey Nikitin, Matt McGahan, and White & Case.
We understand LTRY is about to be named in a shareholders lawsuit that would target both the company, the officers and directors and Amar Ali. The company has 2 valuable assets, the domain names, Lottery.com and Sports.com. Mr. McGahan has had an impossible time funding LTRY because nobody believes in his vision and his team of jokers. There is a high likelihood that the LTRY story will end up with indictments and bankruptcy. We also understand that the auditor has resigned but cannot confirm this. McGahan bought some advertisement on a fake YouTube interview [2] This was first posted with no disclosures, as you can see a smirking McGahan is strongly advising the public that this would be a great time to buy his shares, we would strongly advise just the opposite. We will monitor this story and expect to have a part 2 very soon.
McGahan has been accused of fraud by many people, he is currently being sued by Sharon McTurk in a federal lawsuit in Florida. McGahan is being accused of being a co conspirator with several others. McTurk claims McGahan stole over 1.7 million of her money and promised to issue her shares of LTRY, but the money is gone and McTurk never received her shares. McGahan is also being accused of defrauding another Boca Raton resident of over 500,000$. McGahan reportedly used this investors money in part to finance a yacht rental at the F1 event in 2023 in Monaco. McGahan currently is using LTRY funds for his personal rent in Boca Raton and to pay his personal credit card bills. McGahan is currently paying 25,000$ per month to rent a Florida mansion, despite LTRY having no operations and not being able to pay payroll.
McGahan has made several fraudulent announcements during his tenure as CEO of LTRY, the most blatant is the Dec 2023 announcement [3] There was once again no disclaimers on this news release, this was presented as a done deal, the financing was negotiated and completed. LTRY shares went up 200 percent that day but came right back down. As of August 2024 LTRY has not received the 18 million dollars and has not retracted this press release.
[2] https://m.youtube.com/watch?v=bJjUBIlEtSs
[3] https://finance.yahoo.com/news/lottery-com-inc-announces-18-180000177.html
