I'm skeptical about what revenues and active business operations Data443 really has, but I haven't been following the press releases, emails, and tweets so I don't know exactly what Jason has said about the current Data443 business operations versus what he said as forward looking statements about what he'd like to see Data443 acheive in the future. Often what the company and CEO says can get twisted and exaggerated by investors/traders. So I can't say if Jason has lied about anything or not.
If he intentionally mislead investors into believing that ClassiDocs had revenues prior to March 31, 2018 or if he has mislead investors about the current state of the Data443 operations then yes that would be securities fraud and he could get in trouble for that.
As far as the whole reverse merger into the North Carolina entity mess goes. I think that Jason just got into a situation that he didn't fully understand and made some mistakes unknowingly at the time. He obviously didn't consult any competent attorneys at the time that he decided to acquire the LDSR shell or he would have been advised about the Issues that the LDSR shell presented at the time.
At this point all I can say for sure is that:
1) CassiDocs had no revenues as of March 31, 2018 2) Data443 didn't have a website before December 10, 2017 3) LDSR still had $121,250 in debt convertible into 2,425,000,000 free trading shares as of March 31, 2018
Outside of that I tried to lay out details about the reverse merger blunder and other issues with the LDSR shell in the following post:
Maybe Jason will eventually get the enough cleaned up to satisfy FINRA so that he can get his corporate action request (name/symbol change) approved. I'd imagine that he'd first have to complete the merger of Data443 into the LDSR shell as FINRA would be requesting merger documents to support the name/symbol change request.
If Jason really plans on still completing the merger it would be as simple as merging the North Carolina entity into the Nevada entity (just a reverse of his most recent cancelled plan).
Back to my first point. I'm skeptical about what revenues and active business operations Data443 really has. If Data443 was a strong cash positive company they would have just gone public through a nice clean IPO or by doing a reverse merger into a clean SEC reporting shell.
Prior to buying the LDSR shell Jason attempted to merge his businesses into an SEC reporting shell (APHD) and failed.
As integral pointed out APHD never filed an 8k or any audited financials for the merger (which would have been required since APHD was an SEC filer). Not only that but APHD failed to even mention the proposed merger in any SEC financial statements (10Qs, 10Ks). It's a curious thing. One might guess that there was never any real intent to do a merger and it was only mentioned in press releases to pump the APHD share price while the price was being dumped down because of dilution (see the chart in the above link). Or possible there were issues with doing an audit for Jason's company.
I really don't know. I just know it failed and Jason moved on to LDSR.
At this point, from what I've been reading on this forum, a lot of investors believe that Data443 is supposed to be some kind of multi-million company and Jason will eventually clean up the ugly debt situation by paying back the rest of the $125,000 Note instead of letting it be turned into 2,425,000,000 more free trading shares of stock.
Again it makes no sense to buy a shell with $125,000 in debt if the plan is to pay back the debt in cash. It would have cost way less than $125,000 to go public through an IPO.
It certainly makes you wonder what Jason was thinking back in December and makes you wonder what one can and cannot believe about Data443 at this point.
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