Aggregated News From Investment Management Regulators

SEC Charges Vuuzle Media Corp. and Affiliated Individuals in Connection With $14 Million Offering Fraud

Report/Flag

Please complete the required fields.



Washington D.C., Jan. 27, 2021 —

The Securities and Exchange Commission today charged Vuuzle Media Corporation, a purported online live streaming and entertainment company, and its founder Ronald Shane Flynn (a.k.a. Ronnie Shane) with fraudulently offering over $14 million in securities to investors across the United States using an aggressive boiler room sales scheme.

The SEC’s complaint alleges that between 2016 and 2020, Vuuzle and Flynn raised more than $14 million from individual investors using a boiler room of salespeople employing high-pressure tactics, based primarily in the Philippines.  According to the complaint, Vuuzle and Flynn promised investors that Vuuzle was a legitimate and growing company and a “pre-IPO” investment opportunity when in fact Vuuzle has never made a profit and has never made a public offering on any stock exchange.  As alleged, only a small fraction of investor funds went towards the online streaming business.  The complaint further alleges that Flynn misappropriated $4.9 million of investor funds for his personal use, including by using it to pay for jewelry, luxury flights and hotel stays, subscriptions to dating websites, and nightclub visits.  Vuuzle and Flynn also allegedly used at least $5.5 million of investor funds to sustain the boiler room and pay commissions to Flynn and others for recruiting investors.  The complaint also charged Richard Marchitto with aiding and abetting Flynn and Vuuzle’s fraud by allegedly acting as their U.S. corporate and financial presence and maintaining a U.S. bank account, corporate credit cards, and a New York office address for Vuuzle.

“We are committed to taking action to protect investors and pursuing relief for those who have been harmed,” said Melissa Hodgman, Acting Director of the SEC’s Division of Enforcement.  “We will vigorously pursue fraudsters who enrich themselves at investors’ expense.”

“The defendants allegedly raised millions of dollars from investors through aggressive and deceptive sales techniques, and misappropriated the majority of those funds for personal use and to fund the boiler room operation,” said Jennifer S. Leete, Associate Director in the SEC’s Division of Enforcement.  “Investors should be on alert for red flags of investor fraud such as unsolicited calls and high pressure sales tactics.”

The complaint, filed in federal court in the District of New Jersey, charges Vuuzle and Flynn with violating the antifraud and registration provisions of the federal securities laws, and Marchitto with aiding and abetting Vuuzle and Flynn’s violations.  The SEC seeks permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties against each defendant. 

The SEC’s Office of Investor Education and Advocacy has issued investor alerts on the red flags of investment fraud.  Additional information is available on Investor.gov.

The SEC’s investigation was conducted by Devon Staren and Drew Grossman and was supervised by Stacy Bogert.  The SEC’s litigation is being led by Ms. Staren and Daniel Maher under the supervision of Stephan Schlegelmilch.  The SEC appreciates the assistance of the U.S. Attorney’s Office for the Central District of California and the Federal Bureau of Investigation. 

This news item was originally published by the US Securities and Exchange Commission (SEC US). For more information, see the Source Link.

Regulator Information

Abbreviation: SEC
Jurisdiction: United States

Recent Articles

Grand Trust Holdings United Kingdom

We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Announcement for the referral of a suspicion of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations...

In line with the Capital Market Authority's (CMA) responsibilities to protect the citizens and investors from unfair or unsound practices, and aiming to achieve...

Guidance on Application for Registration of a Virtual Assets Service Provider

Guidance Attachment: guidance_-_application_for_vasp_registration.pdf This news item was originally published by the British Virgin Islands Financial Services Commission (BVIFSC VG). For more information, please see the Source Link.

Virtual Assets Service Providers Guide to the Prevention of Money Laundering, Terrorist Financing and Proliferation Financing

Guidance Attachment: vasp_aml_cft_guidance.pdf This news item was originally published by the British Virgin Islands Financial Services Commission (BVIFSC VG). For more information, please see the Source...

2022 AML/CFT/CPF and other Supervisory Risk Data Collection exercise

We are asking all supervised businesses to provide us with their 2022 data between 1 February 2023 and 30 April 2023. This data informs our approach for risk-based...

Get the latest from Regulatory.News in your inbox!

×