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Boxable Fraud Allegations Overview

Mar 13, 2025

Lecture Notes on Boxable Fraud Allegations

Introduction

  • Speaker's Background: Former marijuana farm owner and Bitcoin exchange business operator.
  • Boxable Overview: Company promising to revolutionize housing by delivering foldable houses.
    • Houses are 400 sq ft, delivered folded, then unfolded.
    • Claims to address America's housing crisis.
    • Over 150,000 customers on a waiting list.
    • Raised millions in deposits.
  • Main Issue: Alleged fraud with Boxable.

Allegations Against Boxable

1. Legal and Permitting Issues

  • No Legal Units: Boxable lacks necessary permits; units potentially illegal.
  • Failed Controls: Poor lamination and glue controls.
  • Stop Orders: Allegations of stop work orders due to non-compliance with building codes.
  • Rushed RV Certification: RVIA certification revoked.

2. Poor Accounting Practices

  • CPA Firm's Letter: Criticism of Boxable's accounting records as the worst for a company of its size.
  • Missing Records: Invoices and records missing or not provided.

3. Elon Musk Myth

  • Misleading Association: Myth that Elon Musk lives in a Boxable unit; reality is SpaceX bought various manufactured homes.
  • Failed Attempts to Re-engage: SpaceX not responding to further sales pitches.

4. Patent and Intellectual Property Issues

  • No Patents Owned: Patents owned by Paulo’s company, not Boxable.
  • Misleading Advertising: Company claims 60 patent filings; no actual ownership.

5. Influencer Manipulation

  • Paid Promotions: Influencers allegedly paid or reimbursed to promote Boxable.
  • Facebook Page Buyout: Removal of negative criticism.

6. Executive Spending and Salaries

  • Personal Real Estate Purchases: Executives bought personal real estate worth potentially more than company’s revenue.
  • Increased Salaries: Salaries doubled; potential misuse of funds.

7. Valuation Discrepancies

  • Investor Misleading: Different valuation terms for major investors vs. retail investors.
  • Low Professional Valuation: Professional valuation much lower than claimed.

8. Employee Turnover

  • Mass Exodus: Notable employees leaving the company.

Conclusion

  • Advice for Consumers: Verify information independently.
  • Speaker’s Opinion: Boxable is a potential fraud.
  • Call to Action: Consumers should do their own due diligence.

Note: These notes summarize a presentation on allegations against Boxable, capturing key issues and advice for potential investors.

Full transcript