Fraud Allegations Surface in Connection with Dan Bilzerian’s Family and Business
When it comes to Dan Bilzerian, controversy is never far behind. Known as the “King of Instagram,” Bilzerian is no stranger to legal issues. However, his latest scandal has attracted the attention of the FBI, signaling serious trouble ahead.
According to recent reports, the FBI has uncovered a fraud scheme involving Bilzerian’s company, Ignite, orchestrated by his father, Paul Bilzerian, and longtime accountant Scott Rohleder. The alleged scheme sought to conceal over $60 million in unpaid fines owed by Paul to the U.S. government, dating back to the 1990s.
How Ignite Got Entangled in Fraud
The FBI alleges that Paul Bilzerian moved stolen funds through offshore companies and funneled them into Ignite, appointing Dan as CEO while maintaining control behind the scenes. Although the Securities and Exchange Commission (SEC) believes that Dan acted as a figurehead, he is not expected to face criminal charges.
Suspicious Emails and Internal Operations
Ignite, known for selling disposable vapes and other consumer products, is now under scrutiny as a front company for Paul Bilzerian’s financial schemes. Key emails uncovered by the FBI reveal Paul’s involvement in the company’s day-to-day operations.
In October 2018, Paul emailed Dan:
“If you can hire Eddie tomorrow as CFO or any other temporary title (…) I’d appreciate it. And if you can give Eddie authority to hire four non-executive officers (…), we’ll have the team complete.”
As Paul grew concerned about Dan’s extravagant lifestyle, he issued a warning:
“The company isn’t making any profit, not even close to breaking even.”
In August 2020, following the resignation of the previous president, Paul wrote to the board:
“I’d like to see John Schaefer appointed as president since he’s already COO. (…) John works well with Scott Rohleder and me, and we’ll continue to advance Ignite and reduce costs, aiming for a sale in 2022.”
Allegations of Financial Misconduct: Boosting Stock Prices Through Fraud
The FBI’s complaint outlines that between 2020 and 2021, Ignite engaged in fraudulent reporting of non-existent revenue. This deception mirrored Dan Bilzerian’s public attempts to deflect criticism from his detractors. For instance, Ignite reported “positive” Q4 2020 results, which led to a dramatic spike in its stock price: on January 18, 2021, shares opened at $0.57 and surged to $1.57 by the same day.
What’s Next for Ignite and Dan Bilzerian?
With mounting evidence of fraud, the future of Ignite looks grim. The involvement of offshore accounts, internal email correspondence, and questionable revenue reports paints a troubling picture. While Dan Bilzerian may avoid criminal charges, the company’s reputation and stock performance are under significant threat.
