Fund.com
| Company type | Public |
|---|---|
| Industry | Financial services, Internet |
| Founded | 2007 |
| Headquarters | New York City , United States |
| Products | Financial services information, fund platform (mutual funds, hedge funds, ETFs, closed-end funds, index funds, commodity funds) |
Fund.com Inc. is a United States-based publisher of financial services information and a fund platform dedicated to the fund management sector. Its objective was to develop an all-encompassing online portal for various investment products, including mutual funds, hedge funds, ETFs, closed-end funds, index funds, commodity funds, and other collective investment instruments.
Following an unsuccessful business transaction in late 2009, the company saw a sharp decline in its stock value and has since been traded exclusively over the counter on the pink sheets. Certain high-ranking officials were associated with Westmoore Capital, from which Fund.com secured $1.5 million in 2008; Westmoore was subsequently shut down by the SEC due to its involvement in a $53 million Ponzi scheme.
History
Fund.com emerged through a reverse merger in January 2008 with Eastern Services Group, a Nevada-based casino tax consultancy, after which it adopted the Fund.com name.
Domain name acquisition
In March 2008, Fund.com reportedly purchased the domain "Fund.com" in a cash-only transaction valued near $10 million—a sum considered a record at that time—although this amount was never officially verified and remains contested within the industry.
In 2008, Fund.com acquired a controlling 60% interest in AdvisorShares for $275,000. Soon after this acquisition, Arrow Funds initiated arbitration against AdvisorShares and Noah Hamman over alleged intellectual property infringements concerning AdvisorShares’ business strategy. Arrow also filed a petition with the SEC to prevent AdvisorShares from obtaining exemptive relief; this appeal was rejected in July 2009. The arbitration concluded with a settlement among all parties by March 2010.
Attempted Vensure Employer Services acquisition
On November 4, 2009, Fund.com announced it had acquired equity in Vensure Employer Services, Inc., based in Mesa, Arizona—a professional employer organization providing payroll and benefits administration, health and workers' compensation insurance, employee training programs, and retirement plans such as 401(k)s tailored for small to mid-sized enterprises. This investment was structured through $21.9 million of participating preferred stock.
Due to Fund.com's failure to fulfill contractual commitments, this deal was ultimately reversed.
Whyte Lyon Socratic acquisition
Also in November 2009, Fund.com completed the full acquisition of Whyte Lyon Socratic, Inc., a company specializing in creating online educational content for investors and financial professionals. Joseph J. Bianco, then president of Whyte Lyon, was appointed chairman of Fund.com's board.
Whyte Lyon focused on distance education aimed at improving financial literacy, enhancing money management capabilities, and supporting objectives such as homeownership and managing debt.
Decline
A reverse stock split at a ratio of 1-for-120 was executed in September 2011 but failed to prevent further depreciation of Fund.com's share price. That year alone, the company’s market value plummeted by 99%, reducing its market capitalization to roughly $8.4 million.
Recovery efforts
In late 2016, Thomas Braziel was designated receiver to liquidate Fund.com's remaining assets for the benefit of shareholders. His initiatives included reclaiming the fund.com domain name, which had been sold previously under circumstances alleged to involve fraudulent activity linked to John Galanis. Additionally, Fund.com resolved litigation with AdvisorShares regarding ownership disputes; AdvisorShares paid $2 million while Braziel continued pursuing an additional $2.2 million along with efforts to unseal confidential settlement documents.
By July 2018, Braziel had successfully regained control of the fund.com domain and continued asset recovery actions targeting former company insiders. In July 2024, Braziel was removed from his position as receiver.
See also
References
- Over-the-counter traded companies in the United States
- U.S. companies founded in 2007
- United States internet technology firms
- American web platforms
- Exchange-traded funds
- Digital enterprises
- Publicly listed firms headquartered in New York City
- New York City-based companies
- American companies established in 2007
- Companies of the United States by year of establishment