On Tuesday, July 30, 2019, Echo Fox Founder and Co-Owner Rick Fox appeared on The Richard Lewis Show to share his side of the organization's forced sale of its LCS franchise.
The LCS had given Echo Fox 60 days to part ways with Raizada after the league's investigation concluded that alleged reports of racial abuse of Rick Fox and former CEO Jace Hall at the hands of Raizada were accurate.
Around 48 hours after Rick Fox's appearance on The Richard Lewis Show, representatives of Raizada provided Inven Global with a statement, which reads as follows:
“I am truly hurt and pained by the false and defamatory allegations made by Rick Fox in his Dexerto interview against me and all the investors in Echo Fox. At no time have I been anything except cooperative with Echo Fox and Riot Games. Unfortunately, I wrote an email in anger to Jace Hall, the CEO of Twin Galaxies, using language that was simply wrong and for which I’ve apologized. Profusely. That email had nothing to do with Echo Fox or Rick Fox, but he used it to vilify me in the media to the harm of the company. I’m a passive investor, and do not run the company. I have never been part of the General Partner – which is the equivalent of a CEO. Rick never invested any of his personal money into Echo Fox, and now he is blaming his investors and me for his failures as the head of Echo Fox.
In fact, Riot declared a default of the LCS agreement for several reasons, including multiple financial breaches that occurred while Rick was running the company. I did not place a gun to the company’s head nor was I a bully. The company was failing under Rick’s leadership after he removed Stratton Sclavos who built the company and created most if not all the value. Rick made several pleas to all investors for money to make payroll or pay players and teams. Rick not only approved the debt conversion and the waterfall changes about which he complains, but he sent multiple letters to the investors explaining that the transaction was good for the company, gave me an indemnity and full release of all claims. Rick and every investor in the company signed the amended partnership agreement that contained the waterfall change.
I am not the only investor who converted debt or purchased senior preferred equity in the company—all partners were asked to participate. Those transactions single handedly allowed the company to continue operating through today, as Rick had no other funding sources. I was rewarded by Rick falsely calling me a racist, blaming me and the other investors for his actions that essentially bankrupted the company, and accusing me of fraud in connection with covenants agreed to and signed by Rick and all the partners. The only person who is not a victim and is crying wolf is Rick Fox.”
This story will continue to be updated as new information becomes available.
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