Anti-ESG Presidential Candidate Is Sued by Former Employees Who Allege Securities Fraud

Story by Lily Meier •

https://www.msn.com/en-us/money/companies/anti-esg-presidential-candidate-is-sued-by-former-employees-who-allege-securities-fraud/ar-AA1fsA6c

Anti-ESG Presidential Candidate Is Sued by Former Employees Who Allege Securities Fraud

Ramaswamy allegedly was involved in trading securities on Twitter

Published |Updated

Lily Meier

https://www.msn.com/en-us/money/companies/anti-esg-presidential-candidate-is-sued-by-former-employees-who-allege-securities-fraud/ar-AA1fsA6c

"Vivek Ramaswamy, a 2024 Republican presidential candidate and co-founder of Strive Asset Management, has been sued twice by former employees of his company.

Ramaswamy has garnered media attention over his fight against environmental, social, and corporate governance, penning a book titled "Woke, Inc: Inside America's Social Justice Scam."

One of his former co-workers, Joyce Rosely, sued him and fellow co-founder, Anson Frericks, and Strive Asset Management, earlier this month in Union County, New Jersey, court records revealed.

Rosely alleged that Frericks and Ramaswamy "demand[ed]" her to break securities laws. This included telling new employees to begin sales before their licenses had transferred, allowing non-registered employees to talk with clients and moving on deals before products had been sufficiently registered.

The former employee also claimed that Ramaswamy and Frericks "themselves engaged in securities sales activities despite the fact that neither has a securities license," according to the complaint.

She also alleged that she was fired two months after reporting sexual harassment at the company.

Ramaswamy specifically was alleged to have been involved in securities dealings over Twitter. Strive said in a statement it "intends to vigorously defend itself" and cannot comment on ongoing litigation, according to Bloomberg

A representative of Ramaswamy did not immediately respond to The Messenger's request for comment via social media.

Another employee, John Phillips, sued the same group as well, in Johnson County district court in Kansas in June.

Phillips, who was also fired from Strive, was the senior vice president and Heartland Regional Director at Strive from October 2022 to March 2023, according to his LinkedIn profile.

Phillips claimed that the company was dishonest about its financial situation to investors as well as employees, according to Bloomberg."

Former Employees File Lawsuits Against Dublin Firm Co-Founded by Presidential Candidate Vivek Ramaswamy

Om Chaturvedi BY OM CHATURVEDI August 20, 2023

https://techstory.in/former-employees-file-lawsuits-against-dublin-firm-co-founded-by-presidential-candidate-vivek-ramaswamy/

"Dublin – Strive Asset Management, a Dublin-based investment firm co-founded by Republican presidential candidate Vivek Ramaswamy, finds itself entangled in legal woes as two former employees have recently filed lawsuits against the company and its founders. The plaintiffs allege that they were pressured into violating federal securities laws while employed at the firm. The lawsuits also bring to light claims of wrongful termination and age discrimination, further complicating the company’s reputation.

The litigation stems from events earlier this year when two employees were terminated in what the firm referred to as a reorganization. These former employees, John Phillips and Joyce Rosely, have taken legal action against Strive Asset Management, Vivek Ramaswamy, and co-founder Anson Frericks, leveling serious accusations against them.

One lawsuit also introduces a new layer of complexity by asserting that Rosely’s dismissal was a consequence of age discrimination. This allegation raises important questions about the company’s workplace culture and practices, potentially exposing a wider issue that could impact current and former employees.

Phillips, a former regional sales chief at the company, filed his lawsuit in June in Kansas. He claims that he was misled by representations made by the firm, prompting him to leave his well-paying position at JPMorgan Chase. Allegedly, Strive Asset Management provided inaccurate information about its financial stability and the intention of Vivek Ramaswamy to remain associated with the company. The lawsuit contends that these misrepresentations induced Phillips to make the transition, only to face an unexpected reorganization and subsequent dismissal.

In response to the lawsuits, Strive Asset Management has opted to remain silent on the matter, not commenting on the legal actions brought against them. Additionally, the firm has taken steps to counter the litigation, submitting a request for the dismissal of the initial lawsuit filed by John Phillips.

Vivek Ramaswamy’s presidential campaign clarified that he had stepped down from his role as executive chairman earlier in the year to focus on his political aspirations. This context raises questions about the timing of the legal actions and their potential implications on his candidacy.

Joyce Rosely, who held a prominent position in institutional sales at the company, filed her lawsuit in Union County, New Jersey. Rosely alleges that her termination was a result of her raising concerns about potential violations of securities laws within Strive Asset Management, as well as instances of sexual harassment. Her lawsuit claims that the firm’s sales materials made promises about future returns, while employees not registered for securities sales were permitted to engage in client interactions. Furthermore, she highlights alleged unlawful securities sales in Twitter posts attributed to Vivek Ramaswamy.

The second lawsuit also introduces a new layer of complexity by asserting that Rosely’s dismissal was a consequence of age discrimination. This allegation raises important questions about the company’s workplace culture and practices, potentially exposing a wider issue that could impact current and former employees.

As these legal proceedings unfold, they cast a spotlight on Strive Asset Management’s internal operations and practices. The allegations of federal securities law violations and the subsequent legal actions could tarnish the firm’s reputation and influence the public’s perception of both the company and its co-founder, Vivek Ramaswamy. The timing of these lawsuits, coinciding with Ramaswamy’s presidential campaign, adds a unique dimension to the unfolding narrative.

In conclusion, the lawsuits against Strive Asset Management and its co-founders raise serious legal and ethical questions about the firm’s practices. Accusations of securities law violations, wrongful termination, and age discrimination threaten to overshadow the company’s operations and its co-founder’s political ambitions. As the legal proceedings progress, the outcomes could have far-reaching consequences for both the financial industry and the political landscape."

Strive Asset Management Pitch Deck

"Strive Asset Management was launched in early 2022, by Vivek Ramaswamy and his high school friend Anson Frericks. The firm raised $20M from outside investors, including Peter Thiel, Bill Ackman, and Ohio Senator J.D. Vance.

Strive Asset Management's mission "is to restore the voices of everyday citizens in the American economy" and rejects making investment decisions based on Environmental, Social, and Corporate Governance (ESG) criteria. Instead, the "anti-ESG" firm focuses on excellence over politics.

As of early 2023, Strive Asset Management had eight exchange-traded funds (EFTs) and also provided proxy advisory services. In September 2023, Strive exceeded $1B in assets under management (AUM) within the one-year mark of the launch of it's first fund. Here's the presentation that Strive presented in a keynote around that time at the energy investment conference"

https://bestpitchdeck.com/strive-asset-management