The veneer of U.S. management has been integral to taking NQ’s fraud to a one-time value of $1.1 billion. Matthew Mathison, NQ’s vice president of capital markets, has recently led the effort to try to deflect fraud charges from both Muddy Waters and a China-based research firm called J Capital Research. However, Mr. Mathison has failed to disclose to investors his professional history with J Capital Research. He further seems not to have attempted to dispel misconceptions some investors might have about why he joined NQ. At the same time, Mr. Mathison has told investors contradicting stories about NQ’s largest purported revenue source, and undisclosed related party, Yidatong.
NQ has clearly needed Mr. Mathison’s aggression, as NQ’s “Co-CEO” Omar Khan has turned into the man who knew too little. Perhaps Mr. Khan’s memories of the feeling of having almost $100 million in NQ shares drive him to stick his neck out in defense of a company that he clearly does not understand.
However, before NQ went public and was able to offer a Samsung manager a pay package worth close to $100 million at peak and bring in a struggling hedge fund manager to inspire confidence in US investors, NQ’s US veneer was built around Justin Bieber, a Boca Raton, FL-based penny stock disaster, and a convicted racketeer.
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