The dirty truth behind XFC & CEO Steve Smith
With a reputation of a healthy, fast-growing promotion, Xtreme Fighting Championships has been home for many notable figures such as Poliana Botelho and Nick Newell. They are the first publicly traded premier international MMA organization in the world, meaning its ownership is organized via shares of stock. As many know, turning public comes with its pros and cons…
A number of months ago, former President Myron Molotky was reportedly forced to resign from his position in a bid to keep shareholders invested. The President had successfully managed to upset investors through unkept promises, while claims of fighters not being treated fairly made their way across the promotion’s backers. This news – which doesn’t seem to be public – has been confirmed to The Scrap by numerous sources.
If things couldn’t get worse for the promotion, their Chief Executive Officer, Steven Smith Jr., seems to be continuing this trend of running things to the ground, incessantly lying to stockholders while refusing to update filings. On top of that, a number of XFC’s roster have claimed they have yet to receive payment for their most recent fights.
Smith is no stranger to the marketing and entertainment game, having over 17 years experience working with the likes of WWE and Discovery Networks. His past positions farther push the message of his refusal to update filings isn’t a mere misunderstanding.
One stockholder, who wishes to remain anonymous, told The Scrap:
“I have [had] hundreds of thousands of shares since May 2020. Steve Smith perpetually lies and misleads us stockholders. He basically stole money from all his investors, paying the fighters in stock which is now worthless. Those poor fighters lost blood, skin, and money!”
“He had a good product but chose the unethical way instead of just filing. There is not a reason in the world why they shouldn’t be compliant unless they’re hiding something or lost money. He has promised us filings for the past two months! Now the ramifications for us stockholders and fighters have become almost fatal.”
They continued, explaining why they simply cannot sell their shares in the company.
“We’re locked in. [We] cannot sell because platforms have stopped transactions on this stock due to no filings and new SEC requirements. How does Steve Smith live with himself? All he had to do was the ethical and responsible [thing]. Now we’re left with losing a significant amount of money as this stock is close to being removed altogether.”
Stockholders have claimed that last year, Smith promised that he would file these reports publicly. He blamed all past mishaps on an accounting firm that previously dealt with the finances.
He has yet to fulfill this promise.
From September 28, the Security and Exchange Commission (SEC) were reportedly cracking down hard on those who fail to report their financials. If Smith stays set on his ways, shareholders may lose everything.
“Steve is a liar and is being charged in another law suit against another company” explained another stockholder. “I invested a lot into the organization on false pretenses that they would get current.”
This source shared documents that details Smith’s ongoing lawsuit.
Below: Screenshot of Steven Smith Jr’s lawsuit.
The document states that Spaceface LLC, an entertainment company which is working on an adventure mobile game, and Wookey Search Technologies Corporation are suing Steven A. Smith Jr., multiple other individuals and America’s Investment Company (AIC) for “actions arising from a fraudulent investment scheme and misappropriation of monies paid by Spaceface LLC and Wookey Search Technologies Corporation to America’s Investment Company and each of the Defendants named herein, to perform under written investment agreements.”
This document continues with the two companies accusing Smith and others of misappropriating $120,000 of their money. Allegedly, he also stole $60,000 from the company and refused to invest despite claiming his company, AIC, would be.
Above: A tweet from Smith’s Twitter account dating to April 18, 2018.
The Scrap was also informed that Smith’s refusal to update filings for DKMR isn’t the first time he’s manipulated shareholders. Eline Entertainment Group Inc. (EEGI) were left with a price of only .0001 when Smith opted to slither away from the company, with shareholders not being informed until months later. This has yet to be officially confirmed, however.
When assessing XFC’s marketing summary, their stock (DKMR) roughly floats between the region of .001. This is poor, with many online investors advising not to buy into the company. And once you hear the horror stories of unhappy shareholders, its not hard to see why.
Continuing with the document which was written by attorney and Spaceface LLC CEO Scott A. Kudler in April of 2019, the plaintiffs are seeking compensatory damages in “an amount according to proof but currently in excess of $1 million.”
It is presently unknown where the lawsuit is sitting and while he has yet to be formally charged with any account of fraud, the pattern is clear: wherever Steve Smith Jr. goes, a dubious trail follows.
Take a moment to examine Smith’s Twitter account for yourself; click on any post and the comments will be rammed with similarities.
“You can still make things right: FILINGS!!!” commented one user.
“Overpromise, under-deliver. Filings. Now. You said they were DONE 4 days ago, and they’ve been promised for weeks. Deliver,” read another.
Sports are no stranger to shady figures looking to make a quick buck off the back of sacrificial athletes and trusting investors, but this does not make it ethical. Smith must answer for his actions sooner or later, before the stock of XFC hits new lows and more fighters open up about their experiences.
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