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The Bilzerian scheme behind Ignite Brands

The U.S. Securities and Exchange Commission has filed charges against Ignite International Brands (CSE: BILZ), its financier Paul Bilzerian, and several other executives in connection with an alleged scheme to falsify financial records in 2020.

The lawsuit exposes the practices of a company led by Dan Bilzerian, a social media personality, and his father, Paul Bilzerian—a figure with a past of securities fraud and financial misconduct. The suit reveals a scheme involving fraudulent invoices, manipulation of financial records, and misleading investors about the financial health of Ignite.

You can read more on the matter here.

What’s going on?

• The Liberal Party Is Starting to Lean Heavily on Mark Carney (theDeepDive)

• Top shale boss says US ‘unusually vulnerable’ to Middle East oil shock (FT)

• Truckers See Ports Turn Into Ghost Towns, and Worry About Their Future (NYT)

• X Emerges as Last Haven for Russian Disinformation, Leaked Documents Reveal (theDeepDive)

• OPEC+ Makes No Changes to Plans for Reviving Oil Production (Bloomberg)

• Israel Launches Ground Operation in Southern Lebanon (theDeepDive)

• Stellantis U.S. auto sales extend free fall in third quarter (CNBC)

• Chrysler Building Owner Is Poised to Lose Control of Iconic Skyscraper (WSJ)

• NDP Surpasses Liberals for Second Place Outside Quebec, Conservatives Maintain Strong Lead (theDeepDive)

• Bloc’s demands for Trudeau government are both terrible ideas (Globe)

• Governor Newsom Signs Bill Allowing Amsterdam-Style Cannabis Cafes in California (theDeepDive)

• Appeals court greenlights betting on congressional elections (CNBC)

• FAA Requiring Investigation Into SpaceX Falcon 9 Rocket Mishap (Bloomberg)

What’s the latest?

• Liberals Struggle: The Liberal government is opposing the Bloc Québécois's bill, which seeks to raise benefits for seniors aged 65 to 74, arguing that it doesn't reflect the reality of Canadian seniors. This move has sparked political tension, with the Bloc threatening to support a non-confidence motion unless the bill is passed by October 29. Minister of Seniors Steven MacKinnon criticized the Bloc's position, accusing them of prioritizing separatism, while the Bloc and NDP support the bill, and the Conservatives are likely to vote in favor.

• Shock Therapy: Javier Milei's government in Argentina has shifted its approach from a sudden, official dollarization to an "endogenous dollarization" strategy, aimed at reducing the reliance on the peso by curtailing its supply and encouraging the use of dollars in everyday transactions. While dollar deposits in Argentine banks have risen significantly, economists caution that the gradual pace of dollarization could prolong economic challenges, and doubts remain about whether Argentina will fully adopt the U.S. currency.

• CCM Buyout: Swedish private equity firm Altor has agreed to acquire a significant majority stake in hockey equipment maker CCM Hockey from Birch Hill Equity Partners. As part of the deal, CCM’s management will reinvest in the company. Altor aims to support CCM in unlocking growth opportunities. The transaction is slated to close by year end.

• Port Strike: The Biden administration is urging U.S. port employers to improve their offer to end the dockworkers' strike, which has halted shipping across dozens of East and Gulf Coast ports, affecting goods from food to cars. The International Longshoremen's Association, representing 45,000 workers, is demanding higher wages and protections against port automation. The strike, which began on Tuesday, is causing significant shipping delays, with over 38 vessels backed up already.

• The Big Beaver: Shopify Inc. President Harley Finkelstein has urged Canada to tackle what he calls "the 600-pound beaver in the room"—a lack of ambition holding back the country's startups and tech ecosystem. He called on policymakers to consult industry leaders and remove barriers to growth.

Magna Mining’s PEA breakdown

The stock market and stuff

• Cerebras Files for $1 Billion IPO, Poised to Battle NVIDIA in AI Tech Race (theDeepDive)

• Carney warns net zero will mean ‘significant’ stranded property assets (FT)

• Eli Lilly to build $4.5 billion research and manufacturing center to propel drug pipeline (CNBC)

• Tesla Posts Q3 Vehicle Deliveries Of 462,890, Falls Short Of Analyst Estimates (theDeepDive)

• Saskatchewan faces major obstacles as it aims to compete with China in processing rare earth minerals (Globe)

• Character.ai abandons making AI models after $2.7bn Google deal (FT)

• Spoofing Scandal Costs TD Securities Over $15 Million in Penalties (theDeepDive)

In the juniors

• Anfield Energy To Be Acquired By IsoEnergy For $126.8 Million (theDeepDive)

• Fission Uranium Now Needs Approval From Federal Government To Proceed With Sale To Paladin Energy (theDeepDive)

• Plurilock Secures Critical Services Contracts Worth US$1.9 Million (theDeepDive)

• SEC Uncovers Massive Fraud Scheme Behind Dan Bilzerian’s Ignite Brands (theDeepDive)

FULL DISCLOSURE: Sterling Metals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Sterling Metals. The author has been compensated to cover Sterling Metals on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.