Investigation Name:
Investigation into Ideanomics, Inc.'s Activities in China
Trend:
None
Type of investigation:
Internal
Whistleblower:
Unknown
Summary
Ideanomics, Inc. is U.S. based company that conducts its operations globally in two business units, Ideanomics Mobility and Ideanomics Capital. Ideanomics Mobility offers fleet operators a range of electric vehicles and associated charging systems, and Ideanomics Capital operates as the company's financial technology business unit, which focuses on improving efficiency, transparency, and profitability for the financial services industry.
In an 8-K filed on August 8, 2022, Ideanomics first disclosed the existence of an audit committee investigation into the company's China operations. This investigation was initiated due to the company's previous auditor, BDO, identifying certain material weaknesses following BDO's dismissal.
In a 10-Q filed on September 9, 2022, Ideanomics confirmed that the audit committee investigation involved possible FCPA-related misconduct. According to that same filing, on March 14, 2022, BDO informed the company that information related to the company’s operations in China indicated that an illegal act may have occurred. In response, the company’s audit committee engaged a major law firm and a nationally recognized forensics accounting firm to conduct a complete and thorough investigation. That investigation was completed on July 17, 2022, and found no improper or fraudulent actions or practices by the company or any of its officers or employees with respect to any matters, including those raised by BDO. Ideanomics further disclosed that the company's management believed that the current FCPA compliance program was consistent with standard industry policies and practices; however, the audit committee nevertheless requested management to conduct an assessment of the effectiveness of the current FCPA compliance program in the fourth quarter of 2022 with the objective of ensuring optimization of the program.
The filings contain no indication that the investigation was reported to the DOJ or SEC or if the agencies opened independent investigations into the company.
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