Zeta Global (NYSE: ZETA) Has a Deeper Relationship with Kubient Fraudster Paul Roberts Than Reported – The Captain's Log
Zeta Global NYSE ZETA exposed: SEC investigation reveals deep ties to Kubient fraud, Paul Roberts connections, and questionable data harvesting practices in AI marketing tech sector
Zeta Global's CEO David Steinberg faces mounting evidence of concealed relationships with convicted fraudster Paul Roberts, as SEC subpoenas and website deletions suggest a desperate attempt to hide connections to Kubient's massive accounting fraud scheme.
Stock info:
- Ticker: ZETA (NYSE)
- Position: The Captain's Log indicates they hold a short position in ZETA
Why it matters:
- Zeta Global received SEC subpoenas related to Kubient's fraud investigation, contradicting CEO Steinberg's claims of only a "minimal relationship"
- Paul Roberts, former Kubient CEO who pled guilty to accounting fraud (94% of Kubient's IPO revenue was fraudulent), has extensive historical ties to Zeta's leadership
- Zeta's venture capital firm Caivis recently deleted its website, apparently to conceal evidence of long-term relationships with Roberts
- The company faces accusations of misleading revenue guidance, particularly around election-cycle revenue presented as sustainable growth
- Barclays downgraded Zeta from Overweight to Equal Weight (PT: $28) amid growing concerns
State of play:
- Zeta's leadership hastily removed the Caivis website on December 4, 2024, erasing evidence of investments in CenterPoint Media where Roberts was CEO
- DOJ charges against Roberts revealed Kubient's 2020 revenue was inflated by 45%, with three suspicious contracts involving an unnamed "Company-1" in digital advertising
- Zeta markets itself as an AI company while allegedly operating "consent farms" that harvest consumer data through questionable means like robocalling and SMS spam
- The company's "Zeta 2025 Plan" appears strategically timed to coincide with the US election cycle, potentially masking revenue volatility
- A data breach exposed approximately 15,000 customer records, raising additional concerns about operational integrity
FAQs:
What is the connection between Zeta Global and Paul Roberts?
Paul Roberts, who recently pled guilty to accounting fraud at Kubient, has a long history with Zeta Global's leadership. Evidence shows Roberts previously ran CenterPoint Media, which received investment from Caivis, the venture capital firm operated by Zeta's founders David Steinberg and John Sculley.
Why is the SEC investigating Zeta Global?
The SEC has issued subpoenas to Zeta Global executives as part of its investigation into Kubient's accounting fraud. Despite Zeta claiming only a minimal relationship with Kubient, evidence suggests deeper connections, including being a Kubient client.
What prompted Barclays to downgrade Zeta Global stock?
On October 18, 2024, Barclays downgraded Zeta from Overweight to Equal Weight with a $28 price target, citing concerns about the company's revenue guidance, operational practices, and ongoing regulatory scrutiny.
What is a "consent farm" and how is Zeta involved?
"Consent farms" allegedly harvest consumer opt-ins through questionable means. The report claims Zeta is linked to such operations, generating leads through robocalling, SMS spam, and political blog comment sections (including PredictIt via Disqus).
What evidence suggests Zeta is attempting to cover up its relationship with Paul Roberts?
The most compelling evidence is the recent removal of the Caivis website (operated by Zeta's leadership), which previously documented investments in companies connected to Roberts. This action, combined with evasive statements from CEO Steinberg regarding the relationship, suggests an attempt to conceal these connections.
How legitimate are Zeta's AI claims?
The report challenges Zeta's positioning as an AI-focused company, claiming products like "Aptroid" contain fraudulent marketing claims without substantive technological innovation. It also alleges Zeta engages in "double dipping" by both white-labeling and reselling services like Snowflake.
Disclaimer
This summary is based on research published by The Captain's Log, which maintains a short position in Zeta Global (NYSE: ZETA). The original research represents a more comprehensive analysis and can be found at: https://www.thecaptainslog.io/zeta-global-nyse-zeta-has-a-deeper-relationship-with-kubient-fraudster-paul-roberts-than-reported/
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