The Securities and Exchange Commission has charged Vuuzle Media Corporation and its founder, Ronald Shane Flynn, with perpetrating an offering fraud that bilked $14 million from investors throughout the United States, according to a recent SEC Press Release.
The lawsuit alleges that Vuuzle, through its team of marketers, cold-called prospective investors and pressured them to purchase common stock in the company using aggressive, harassing, and deceptive tactics promising “BIG money!!!!!!!”.
The S.E.C. states that Vuuzle and its marketers represented to investors that Vuuzle was a legitimate and growing online streaming and entertainment services business on the brink of going public. Yet, according to the S.E.C., it was “little more than a front for a boiler room Flynn controlled.”
Investor funds were largely diverted to support and incentivize the sales team and to fund Flynn’s lavish lifestyle, including personal bank accounts and charges for personal items, such as dating and gambling applications, strip clubs, jewelry, gold bars, restaurants, and luxury travel. Contrary to representations made to investors, the S.E.C. found that only $2 million of investor funds was used to support Vuuzle’s operations.
If your investments are not as they were represented to you, we may be able to help. Please contact Fishman Haygood Securities Lawyers for an evaluation of your potential claims.