On June 22, 20,23, the U.S. District Court for the District of New Jersey rendered a final judgement against Vuuzle Media Corp., its executives Ronald Shane Flynn (Ronnie) and Richard Marchitto (Richard). The court found that they had raised over $25 million in fraudulently from investors through a boiler-room scheme.
The Securities and Exchange Commission has stated that Vuuzle and Flynn have used aggressive tactics in order to raise money between 2016 and 2022. They falsely stated that Vuuzle is a profitable business and offered investors an “pre-IPO” investment opportunity. The company, however, had never been profitable or listed on any stock exchange.
The SEC’s revised complaint reveals that only a small part of the funds raised went towards the online streaming company, with the remainder being used to fund the boiler-room’s operations, as well as commissions and personal expenses for Flynn and Marchitto. Even after the SEC brought a suit, the defendants kept up their fraudulent practices by offering a “VUCO security token” False promises made about its value.
Flynn is permanently barred from violating the anti-fraud provisions in securities laws. Also, it prohibits Vuuzle US Vuuzle UAE and Flynn to violate registration provisions. Marchitto is also prohibited from aiding or abetting any violations.
The court ordered Flynn to pay disgorgement and interest on pre-judgment judgments of $720.354.08. Marchitto’s disgorgement was $464 819, and the pre-judgment rate of interest was $12 974 41. Flynn was fined $25,807,490.73, Marchitto ($31.080), Vuuzle US (1,035,909) and Vuuzle UAE (1,035,909).
The U.S. Attorney for the Central District of California as well the Federal Bureau of Investigation provided support to the SEC’s Litigation Team, which was led by Devon Staren.
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SEC
Securities and Exchange Commission, or SEC for short, is a federal regulatory agency that oversees and enforces securities laws. Its primary goal is to safeguard investors, maintain fair, efficient markets, as well as facilitate capital formation.
The SEC accomplishes its goals by overseeing the securities sector, which includes exchanges, brokers-dealers and investment advisors. It is required that all companies provide relevant financial information, which ensures transparency and helps prevent fraud. The SEC investigates and prosecutes companies and individuals involved in securities violations.
The SEC also plays an important role in maintaining the integrity of the market by enforcing regulations against insider trading and market manipulation. The SEC also informs and educates investors on their rights, and helps them to make informed decisions about investments.
The SEC has a broad objective, which is to promote fairness and transparency in the financial markets. This will ultimately lead to a healthy economy.
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