Investors were told that funds raised would be used by the companies to acquire interactive technology licensing rights for products such as smart-phone applications, or "apps," that the companies planned to develop and market. False statements about contracts and licensing deals that did not exist also were used to solicit investors. Throughout the fraud, significant amounts of investor funds were diverted for such non-business expenses as casino gambling, vacation travel, and shopping.
Named in the Complaint are:
The Complaint alleges:
* Beginning in 2011, Gamer began soliciting individuals for investments in GES, telling them that funds raised would be used as operating capital. Gamer falsely told prospective investors that GES had secured licensing rights for certain products. After investors provided their funds, Gamer diverted sizeable portions of the monies raised for her personal expenses, including gambling in
The complaint alleges that Gamer, GES and GMP by virtue of their conduct, directly or indirectly, violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, thereunder, and seeks injunctive relief, disgorgement of ill-gotten gains with pre-judgment interest and penalties against each of the defendants.
SEC Complaint (http://www.sec.gov/litigation/complaints/2014/comp23071.pdf)
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