US Authorities Bar Mikhail Kokorich from Momentus Space Product Development

Momentus Space’s controversial CEO once again finds himself the subject of the US regulators who have ruled that he must distance himself from his own company’s product design

US Authorities Bar Mikhail Kororich from Momentus Space Product Development

For a CEO as involved with his company’s product development as Mikhail Kororich, being told by the US government that he must have no contact with his new Momentus Space project’s research and development must come as a blow. The timing may present the entrepreneur with further difficulties, as the company is due to go public on the NASDAQ stock exchange in Q1 2020 at an estimated value of $1.2 billion. Momentus develops technology for orbital satellite systems, causing federal US authorities to investigate a conflict of interest between the potential military applications of the company’s products and Kororich’s foreign influence.

Kororich Separated from all Momentus Project Development

The ruling originates from the US government’s Securities and Exchange Commission (SEC). It took action since Momentus was bought out in October by the Stable Road Capital venture group through the formation of a special-purpose acquisition company (SPAC). Some critics have pointed to the use of SPACs as trojan horses for those looking to sidestep the usual scrutiny traditionally associated with a public flotation. Keeping Kororich away from the company’s products won’t immediately impact Momentus’ profitability. Still, it is impossible to imagine a similar company like SpaceX prospering without the technical input of Elon Musk.

Kokorich’s Legal Issues Past and Present

This year’s ruling by the SEC is not the first time that Kokorich has found himself in the US regulator’s crosshairs. In 2019, he faced an investigation over export control practices regarding companies he was associated with (either as an investor or executive) that failed to pass foreign influence regulations. Prior to this, in 2018, he was forced to divest himself of holdings in the Astro Digital company for similar reasons. Kokorich seems to have repeatedly struggled to assure the Committee for Foreign Investment in the US (CFIUS) that his business interests haven’t placed the US geopolitical standards in jeopardy. This has proven extremely difficult given how intertwined space and military industrial development remain in the US and abroad. He has previously gained CFIUS blessing for the launch of his first American company Canopus in 2012 in a joint venture with American company Stellar Exploration. Soon, however, trouble with investors and his own CEO forced him to depart the company that would eventually go on to become Astro Digital.

Conclusion: Is Time Running Out for Kokorich’s Latest Project?

To date, Kokorich has not been formally prosecuted by any government institution in the US. However, his litany of conflicts with regulators over the years must be of serious concern to prospective shareholders. Especially since neither he nor partners at Stable Road Capital have formally addressed his current situation with the US regulator’s latest rulings. Kokorich desperately needs to find a way to circumvent the foreign influence laws that have repeatedly undermined his efforts to do business in the US. Otherwise, these clashes with the authorities will certainly continue. Of more pressing concern for Momentus executives and investors alike is that without Kokorich’s production expertise, the company’s stock will plummet by the time it goes public next year.