Before this, I had a marijuana farm and before that I had a Bitcoin exchange business. There's a chance you've heard about Boxable. It's a company that promises to revolutionize housing by delivering a house in a box. The idea is simple: fold up all the Electrical Plumbing kitchen bathroom into the center of a 400 square foot house.

Fold It Up deliver the house as a folded up box, then unfold it. Now it's cheaper to manufacture because you could do it in a factory to ensure quality and consistency. You could unfold them and plop them down after having shipped them more inexpensively. And ultimately, you can finally help solve America's housing crisis.

Boxable claims that there are over 150 000 customers who say they're on a waiting list for one of these Casitas that you could get potentially for as little as fifty thousand dollars and millions of dollars of deposits for. Casitas Just like this have already moved from people's wallets to the bank account of Boxable with endless customers waiting for their Casita to finally show up. There's just one massive problem. Boxable appears to be a massive fraud and even Boxable themselves has no idea when you're ever going to get your boxable.

Casita The answer is, you know. So when am I going to get my Casita It's just uh. you know, you know we don't know, We're We're working hard to scale production where there's only so many times you can say you can say of course the the answer is I don't know I Mean the this list now has 150 000 names on it. Um, so that's that's the answer Uh, because guess what? Even if we get approvals which were just about to get yeah I I Just feel like you know the the approvals thing is like answering a question that's not necessarily being asked.

and for us it it gives an explanation for a question we can't answer and they're certainly not going to tell you what price you're going to get it for because they don't even know how much they're going to sell it to you for in the future and internally have debates about what to tell customers. I Was wondering, are you okay with us putting the price? Uh yeah. What does it say on the on the FAQ on the website? Is that what it says that we cannot guarantee the price due to inflation? Yeah, well. unfortunately, over 140 million dollars have been invested into this company, mostly by retail investors people like you and me and there's a chance it's all going to a complete fraud.

A fraud that we're going to break down in eight parts. We're going to talk about the legality of the units failed accounting practices exposed. We're going to talk about the Elon Musk myth. We'll talk about patents, influencer scams, and how influencers might be getting paid by Boxable.

To say great things about Boxable, we'll talk about how the executives are looting the company. Allegation number Seven will be talking about the valuation scam and how it compares to what actual industry insiders think the company is actually worth. And we'll talk about the flight of employees. We have a lot to talk about in this video and it's unfortunate that a company like this is allowed to register with the Security and Exchange Commission in America and defraud investors.

Now some background: I First interviewed: Galliano one of the executives at Boxable on June 27, 2021. I Expressed my dissatisfaction with the reality that Boxable units would likely cost a lot more than fifty thousand dollars since customers who order one might not realize they have to provide. Their Own Foundation Roof siding, electrical hookups, water hookups, sewer hookups, permitting fees, and much more. Meaning, someone's dream of having a home for fifty thousand dollars might end up costing them a hundred thousand hundred fifty thousand dollars.

Who knows. But those prices start rivaling what it costs to build a stick-built guest house. Keep in mind I'm a big fan of building more houses. I Ran for Governor in the state of California and my vision was build More Homes to solve the housing crisis.

That's a solution shortage. build more. Of course, building and permitting is very complicated and that's what Boxable is learning as well. Now, after expressing my dissatisfaction with Boxable after my interview in 2021, at one point Boxable offered to sponsor me, which I declined because I didn't believe in the company.

Since then, I've become more curious about the company since they continue to either reimburse or pay influencers to Peddle videos about the company boxable for example, here's a video by Ennis which we're not sure if Boxable paid to actually promote the video to get more views on the video or if the video just did really well because the way the NS video is provided where Ennis was reimbursed at least eight thousand dollars in expenses apparently to go make this video unboxable though there was also potentially rumor has it some talk that Ennis might even be paid as much as a hundred thousand dollars in stock options in Boxable for making a video on them. Who knows? that deal may have ended up falling through, but those are some of the things that we're hearing now Boxable as well. Tried to convince me to invest and sponsor Boxable, but I declined. However, recently, Boxable did invite me to tour their boxable Factory and after I toured the factory, they tweeted me that they expected me to make a quote bullish video on them.

after I posted my full factory tour with some criticisms. Rather than address my complaints, Boxable threatened to sue me on their Twitter and they chose to run ads against my video. and rather than defending the claims that I made in my prior Boxable video, the executive Suboxable decided to run attack ads against me as a person and content creator rather than address the actual concerns that I brought up about their company. Well after I posted that last video, I got a lot more information and it's even worse than I originally thought.

So the following eight allegations are going to be based on leaks from internal audio, former senior Executives audio, former employees audio and commentary, and other journalists in the field. They're also in part based on what I saw in my factory tour and its Securities filings both in Canada and the United States Given that the sources of this information are confidential and I have to of course invoke a journalistic privilege to protect them as sources. Because let me tell you, from what I'm hearing, what we're just now getting is just the tip of the iceberg, revealing the fraud that truly is going on at Boxable. And it's very important as a consumer that you understand the following: It's ultimately your responsibility to confirm the information and perspectives that I'm sharing I Think the best thing to do is to take this information and the opinions that I'm sharing you as starting points as ideas, and then do your own research.

Read the public filings, investigate the company, and see if some of the things that you heard here make sense, and if those red flags are something that might potentially prevent you from investing or not, but that opinion should be your own. This video is not personalized Financial Advice: It is not suggesting that Guaranteed Boxable is a fraud. that is my opinion, but it is only my opinion. and the information that I'm giving you looks really shady.

but hey, maybe maybe they're not a fraud I Don't know. I'm just going to give you all of the information that I received that I heard that I saw and provide my own perspectives and opinion. So the information and facts that you receive could have been fixed by the time that I heard about them. Maybe they were wrong, but by the time I got them in the first place.

or maybe I put them together wrong. So I want to be very clear, especially since Paulo the father of God Aliano the person that I've interviewed has already been talking about suing myself and Business Insider I want to be extremely clear. This video is my opinion and I'm giving you the information that I heard and it's up to you to make your own conclusions. Allegation Number one: Boxable has no legal unit.

In fact, here is an audio clip of Goliano talking to his staff suggesting that they're soon about to get permits, but they don't have them yet because that's why even if we get approvals which were just about to get yeah, I I Just feel like you know the the approvals thing is like answering a question that's not necessarily being asked and for us, gives an explanation for a question. notice. this is this is Yano agreeing that they still do not have permits for Boxable Casitas Based on employees and audio discussions within, Boxable, employees say that the units that Boxable has placed anywhere are completely illegal, that there are failed controls for laminations and the glue that are used for the units. and it wouldn't be surprising if some of the units essentially start falling apart and that any of the units stacked up for worker housing at an Arizona copper mine have actually and potentially received a stop work order because the units have been so poorly installed and don't actually meet ICC building code that the delivered units are now going to have to be removed by Boxable at Boxables cost.

Now Boxable has apparently been rushing to get a permit for a Rvia certification. It's basically an RV style permit that will permit these as an RV instead of an actual house. This is actually something Galliano talked about during my interview with him and he suggested oh we're already permitted as an RV. Well, apparently units were not able to actually be self-supported and didn't meet Plumbing in electric coats and now any Rvia certification has been revoked.

Insiders say Boxable sold products they knew companies would not be able to use as Workforce housing, but instead installed units and double stacked units to use as a marketing pitch to promote the scam and fraud at Boxable to get more investors investing thinking that Oh units are actually being delivered, but apparently these units are a not permitted B Unlikely to last the way people expect them to and C have now led to more revocations and more costs for the failures that Boxable has essentially incurred. Some employees allege it's so bad that these units are being manufactured without proper permits that they're just being stacked up into the back alley between the factories because they're not allowed to ship them anywhere. so they have unshippable products wrapped up in the backyard. now.

I Want to be clear: this is based on conversations within Boxable between people that I believe are former employees and other journalists in the field. I cannot personally verify these stop work orders the revocation of these permits, but what I encourage you to do is ask Boxable Hey Where's your RV permit? Hey, did you get a stop work order at the Arizona copper mine? Hey, have you delivered a single legal unit? That two-day where it stands is legal I am not going to provide a guaranteed answer on that because I don't know with certainty. All I know is these are the things that I'm hearing and the evidence that I'm being shown does not look good and it aligns with some of the questions that I had when I was at the Boxable Factory. For example, when I was at the Boxable Factory I Thought it was very odd that the water heater was going to be very in the Cabinetry and not serviceable within the actual unit and I was surprised that they wouldn't just go with a tankless water heater on the outside.

Listen to their response because the modular certs uh, based on the code, yeah, you can't be there. can't block the water heater. You need access to the water heater and even though we have it through an access panel, they were like it's not enough. The code says 30 inches.

So I was also really surprised to basically see a bundles of electric wiring wrapped together with a black tape. and I was concerned that that electrical wiring when it's actually used in a building load setting could potentially cause a fire. Because what happens with electrical wiring is when you bundle it together, you amplify the heat. Amongst all of those cables, they're not designed to be placed so tightly together.

There are rules and laws that say how many cables can be placed closely together and how they should be spaced to prevent overheating of cabling. Of course, at my interview, Galliano said oh no, they're approved. Apparently that might not actually be true. So here's all your Romex going through.

Now, how do you guys handle the heat transfer on this? Because if all these loads are going, that's a lot of heat bundled. A potential accounting fraud and disaster happening at Boxable. This letter is insane. Listen to this and now I Want to also be clear that I was given this: I Do not have a way of verifying this letter, but the letter from May 9th, 2022 reads the following from this: CPA firm.

Wow. and this is too boxable. Note right here: Robert Fisher used to be the Uh, a General counsel for Boxable. However, he has just recently quit Boxable along with many other employees we'll talk about in just a moment.

Wow, That's all I can say. We have two separately signed engagement letters and sufficient evidence to support our work and time incurred. We have sufficient records to support our work and changes you made or changes made to your accounting records, so this is essential. A CPA letter saying hey, like pay us our bill is what this is about.

On that note, the accounting records of Boxable are some of the worst we have seen in any company of your size. For your information, there are countless records and invoices that are missing or could not be provided when we requested them. The accounting records at Boxable are in horrible shape and your accounting problems are significant. Shareholders and other decision makers need to be made aware of the poor condition of the accounting records at Boxable.

We are truly amazed that the lack of qualified accounting Prof Personnel lack of proper accounting policies and current abysmal condition of your counting records. It's unfortunate you've come to this baseless conclusion and your unrealistic expectations. Considering the condition of your accounting records, it seems this is a fight about an invoice. Despite your claims, we would like the opportunity to share our findings with someone within boxable that would have interest in to hear what we have encountered and discovered your accounting problems must be addressed and fixed in order to prevent further Financial issues and further Financial misrepresentations.

If our outstanding invoices are not Timely paid, we will pursue all legal Avenues available to us. Yikes! And this is n't true. but hearing from boxable insiders next, the Elon Musk myth. So Elon Musk has often been deemed as the person who's living inside a boxable unit.

It turns out that's not exactly true Elon Muska did with SpaceX purchase many different manufactured homes for Workforce housing at SpaceX in Boca Chico Texas Boxable wasn't unique, they were just one of many. In fact, we have audio from Galliano saying to that fact they were just one of many. Apparently the idea that Elon Musk himself was living in one of them was just a rumor that was built on top of the idea that well, SpaceX did buy a bunch of manufactured homes. Now Galliano is trying to sell more boxable units to SpaceX because they realize they got a massive amount of marketing and free publicity out of this room which they ran with.

Some allegations within the company suggest that the company raised 10 million dollars within 48 Hours of Elon Musk suggesting that he was living in a boxable unit where that rumor started. Elon Musk later made it clear that he was not living in a boxable, but that he found the company interesting which is true and he bought multiple different manufactured homes for SpaceX Let's listen to the clip from Galliano where Goliano is now trying to call SpaceX back to sell more boxable units to them. But guess what? Spacex's responses to Boxable: They have other tiny houses at SpaceX Yeah, they have the Airstream trailers. They have other type of eight and a half tiny houses.

Um so I I tried again a few months ago to sell them I didn't hear back basically I emailed them everyone on the team it was like Hey we're ready but the houses you still want to buy them so no response SpaceX is icing boxable were they ripped off? Did they get a product much like Guantanamo Bay in the Department of Defense or the Arizona mine that wasn't actually what was promised if this product was so good and Elon Musk wanted more Workforce housing or maybe even homes for the city he's trying to build outside of? Austin Texas Wouldn't he potentially be communicating again with Boxable? Allegation number four: No patents see patent filings are different from patents, but in my opinion, what's extremely weird is that you have a company that is willing to advertise on Instagram that Boxable has filed for over 60 patents and they show documents that look very official. to make it seem like Boxable has intellectual property. but when you actually look at the SEC filings for Boxable, you won't find an intellectual property rights section under assets. That's because it doesn't appear that Box Will actually owns any rights to any of these patent filings.

Instead, the father's company Paulo's company owns all the patents and the patent filing rights and instead would lease those patents to Boxable, receiving a one percent commission on all future Boxable sales. So if they sell a casita for fifty thousand dollars, Paulo will receive 500 for every single box of Casita they sell at that price because he owns the patent. Which means that individual investors do not own any patents in Boxable. Boxable has no intellectual property per their own SEC filings.

but that is not what they suggest online and this is why a lot of people say that seems fraudulent. How could you suggest you have your own intellectual property when you actually don't? We have over 60 patent filings. Wow on all the various stuff that we do here. Holy smokes.

But then again, it's no surprise. According to Galliano himself, their research team includes three people. So is it mostly you and your dad who do the research or who all does the research? So is? uh, me, uh, Paulo my dad and Kyle Dennis the three of us together do the research. Yeah, we worked on it.

Um, that's it. Galliano Paolo and Kyle and most of their research is just conducted on Google or YouTube And where do you do all the research? I mean for like the next Gen product YouTube you're ready to stop I Swear to God Oh, that's awesome YouTube Google Calling people asking weird questions that's kind of what it's been the whole time and then testing stuff for real testing. Okay, got it. Some employees say there's nothing unique or proprietary about the way Boxable does business, that designs have existed for over 45 years for some of the products that they are using.

and when Galliano was confronted by me at the factory to reiterate why there is so much R D spend? Why are they spending millions of dollars on research and development but they're not showing any intellectual property on their balance sheet Galliano said oh well. now we have a big team, but nobody else is doing the research right now. Uh, we we? yeah, quite a lot of people are are doing research. Um, I Guess the core Direction comes from us, but that's not consistent with what he previously said and it seems to me like there might be a way Galliano and his father and Kyle are potentially able to siphon money or a higher salary out of research and development expenses to make it seem like they're researching when the reality is they're just looting their own company.

Allegation number Five Apparently, according to insiders, multiple influencers who were once critics of Boxable have been approached with stock offers, buyout offers, commissions, and affiliate links to turn them into fans. In addition to that, apparently, Boxable bought out their own Facebook page so that they could purposefully remove negative criticism. and Business Insider articles exposing some of the lavish spending that Galliano and Paulo are doing potentially with money that they're raising directly from investors. Consider the fact that Galliano sold five million dollars in shares at the highest valuation the company had just last year.

and then, um, at one point you sold some shares. Yeah, about five million dollars? Yeah, yeah, why just to live, you know, wanted to wanted to, uh, pocket some money and uh, you know it's it's about Paula did as well. It's about uh, one percent less than one percent of our of our total. Holdings Now Galliano tries to make it seem in dollars were dumped and if both of them dumped 5 5 million dollars of the 140 million dollars they raised, then they actually dumped about seven percent of the cash they raised to pay themselves so they could buy their own mansions.

On top of that, they then sold. If it's true, they both sold about one percent Galiano himself said it. Then they both sold more shares to make more cash go into their pockets than the company itself has in equipment. This is a manufacturing company that we're supposed to believe is worth 3.3 billion dollars.

yet their last balance sheet shows they have 6.2 million dollars. in plant property and Equipment even if they had 20 million dollars in plant property and equipment for a 3.3 billion dollar company, this is a joke to retail investors like you. And what did Galliano allegedly do with that five million dollars? Well, that brings us to looting the company. Allegation number six: Galliano According to Business Insider bought a 5 million dollar mansion and a an 870 000 house himself.

He left his name in the 870 000 house to make it seem like he was living in the 870 000 house but apparently actually lives in a house that one of his entities now owns and it's worth five million dollars that he just bought in 2022. Business Insider Claims that Paulo and Galliano spent more money on real estate for themselves than Boxable made in gross revenue in 2022. My opinion here is that Galliano and Paulo had a vision for solving housing in the world, but realized it's much easier to get influencers to Peddle a scam and promote a high valuation for a company that's straight up fraudulent and instead of actually providing a product live of Perpetual investor money raises. This is a big red flag, especially since the company does not appear to actually be fulfilling any of its promises.

Instead, now there are allegations that Boxable has purchased a 100 000 executive Escalade like a limo to chauffeur around. Quote: VIP influencers to say nice things about the company at the same time. Apparently their salaries have been increased from three to four hundred thousand dollars last year. That's the range they were paying themselves according to SEC filings last year to now in: New filings in Canada Apparently their salaries have been raised to eight hundred thousand dollars.

Now these are things that I'm hearing and being provided by confidential sources. So I can't personally verify some of this information. But again, you could use this information to ask Boxable directly and conduct your own fact checking. Allegation Number Seven: The scam of valuation.

Apparently Boxable is convinced that it's a wonderful thing to tell the world that Dr Horton one of the world's largest home builders invested in Boxable. But they don't tell everyone bluntly that Dr Horton invested at a substantially lower valuation, one that was about 10x lower than the previous Uh, or the current valuations that are being sold to retail investors today. DR Horton Investment you mentioned was during the convertible round that looked like it was at a valuation of about 10 to 15 times smaller than the valuation. Now, what changed? So that round basically ended before we had done anything.

Okay, so you know I think uh, it was a convertible note. So uh, I think it's around 200 million valuations? Something like that. But Galiano makes a further Point That's potentially even more damaging. He argues that they are able to use Dr Horton's Supply chains to get materials cheaper.

Uh, so so they just, you know, invested, you know, cash in the company at the same terms as everyone else, at the same terms as all their keys. A million dollars? Okay, and then they, uh, place an order for 100 units and then they also hooked us into a bunch of other resources at their company, like including their supply chain. Okay, so for example, we can now buy stuff at their pricing. They're the biggest builder of like cabinet toilets, so it's it's pretty good.

but internally employees recognize the company spends most of their money at Lowe's in Home Depot and it would take a quote team of forensic accountants to actually figure out where they spend all the money that they do for Boxable that things are so messy. they don't feel comfortable even acknowledging where products are really coming from. But the reality is it appears per allegations inside the company that Dr Horton doesn't provide any supply chain support to boxable. So this is a question I would pose to Boxable as well.

On top of that, here are some pictures of emails that were exchanged between Galliano who is pitching the company and then a firm that was valuing Boxable Galliano apparently wanted to spack Boxable, try to raise as much money as possible, and the company came back and said, hey, we know you're basically raising money at 3.3 billion dollars. But even with generous expectations for forward Revenue, we're only able to Value you at 300 million dollars. This means a professional valuation firm thinks boxable is worth 3 hundred million dollars. And that's before all of these latest findings where at the same time the company was selling shares at 10 times the price.

Now Galliano thinks it would be crazy to actually raise money at a one-to-one valuation or a lower valuation. He seems convinced that the best thing to do is just see what the Market's willing to pay and basically take advantage of retail investors who don't understand they are being diluted away to virtually nothingness. In fact, when I estimated how much I would invest in Boxable and how much that would turn into cash, that is how much cash value would I have at the company. Quick math I did suggested if I put one million dollars into a company that's that was selling for let's say two times cash value then I'd know I would be paying about five hundred thousand dollars in cash for the company.

That's how much my money would be worth. My million dollars would be representative of 500k in cash and 500k in company or brand value. When I I did that math for Boxable I realized a million dollars would really only leave me with about 320 dollars of cash to show for it and the other 999, 700, 600-ish dollars somewhere around there would actually be worth the brand value for the company I'd be paying that much money for the company. Now that is risky when it seems like a lot of the elements that the company is selling.

in terms of the vision, the permitting and the legality of the units is potentially a straight up fraud. Now again, I Want to be extremely clear: I Want Boxable to succeed because I think we need affordable housing and there are ways that Boxable could solve these problems. They could be honest about what's going on with the permits. Hey, kill the rumors, Show us the permits, or at least be honest and tell us you don't have any permits and that your RV permit got revoked.

Number two: Show us what intellectual property Boxable actually owns, not your dad's company. Number three show us how you're fixing your accounting. Number four: Prove that anyone is actually reordering from you. So far, it doesn't seem like the Department of Defense the Arizona mine or SpaceX is wanting to real order from you, which to me if it's such a great deal seems odd and instead it seems like you're perpetuating a fraud.

Number five: Disclose which influencers you've given shares and payments to. Number six disclose how much you've actually been paid, your salaries doubled. but your financials show that you might be actually making a lot more money than just your salaries, not only in stock based comp, but also what's going on with that R D Who really is on the R D team research and Dev team number seven disclose that Dr Horton didn't invest that the same valuation as regular investors. They were paid 10 interest in the convertible round, which Goliano confirmed that Dr Horton invested in the convertible round which according to public filings appears means DR Horton was actually paid a 10 interest on the money they invested before interest rates skyrocketed.

which means 10 was actually a really, really good deal and revealed the truth around the terms of this investment that you got. Then number eight: Why are your employees fleeing? Why did your Chief legal counsel just leave? Why did Hannah just leave? Why did Hunter a structural engineer and number four employee and designer? just leave? Why did your general counsel just leave? And why are many more employees bailing out of Boxable? What's actually going on at Boxville I Don't know all of the answers, but I encourage you to do your own due diligence because I'm concerned and it is my opinion that Boxable is a fraud I Don't have a way of verifying the information in this video beyond what I've presented to you. So it's entirely possible that all of this information is wrong. Maybe Boxable has fixed these things.

Maybe these are just bitter employees or bitter journalists trying to bag on Boxable that's entire Fairly possible I Don't know, but some things just don't smell right.