Boxabl, a manufacturer of foldable tiny homes, is promoting a pre-IPO offering aimed at raising $1 billion to scale production of its innovative and affordable Casita homes. The initiative is positioned as a disruptive force in the housing market by enhancing accessibility and affordability, which can empower marginalized groups.

Boxabl concluded a nearly year-long SEC investigation with no enforcement action recommended. The company emphasized its commitment to transparency, updated its code of ethics and business conduct, and enhanced corporate governance practices, signaling improved ethical standards and compliance.

On July 12, 2024, Boxabl received notification from the SEC that its investigation had concluded without recommending any enforcement action. The company emphasized its commitment to transparency and ethical governance by highlighting the implementation of new policies, a Code of Ethics, and enhanced corporate governance measures.

The SEC concluded its investigation into Boxabl on July 12, 2024, recommending no enforcement action after an extensive review of nearly half a million records. In response, Boxabl has bolstered its corporate governance by appointing a new Board of Directors, introducing a new Code of Ethics and Business Conduct, and enhancing its compliance measures.

Boxabl is facing heightened regulatory scrutiny as the SEC has questioned former employees following complaints from investors, customers, and ex-employees. The investigation has spotlighted issues including a lack of robust financial controls, conflict-of-interest concerns stemming from close personal ties between key management figures, and the controversial appointment (and subsequent removal) of board member Hamid Firooznia, whose past associations have raised additional red flags regarding corporate oversight.

Boxabl is under scrutiny for its questionable corporate governance practices and regulatory missteps. A lawsuit by a former executive, lavish salary hikes, conflicts of interest in financial oversight, and bypassing of proper state housing approvals have raised concerns over the firm’s accountability, ethical standards, and potential risks to taxpayers.

An in-depth investigation into Boxabl reveals a series of corporate governance and financial mismanagement issues. The report details inflated manufacturing costs for its Casita homes, lavish executive spending including a doubling of founder salaries amidst operating losses, a board dominated solely by the Tiramanis, and potential conflicts of interest with key financial overseers — including a controversial appointment of an individual accused of acting as an agent for the Iranian government. Additionally, regulatory missteps in Arizona, where the company bypassed approval processes for home certifications, highlight structural vulnerabilities and risks of regulatory capture.