Public records published by the Securities and Exchange Commission (SEC) on June 11, 2018 indicate that the SEC has obtained a court order to halt an alleged ongoing fraud that involves stock in a company that “claimed to be developing a revolutionary internet shopping application and raised more than $2.4 million from at least 26 investors nationwide.” Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments in Dragon-Click Corporation.
According to the SEC, it has charged Dragon-Click Corporation; the company’s president, Isaac Grossman; Mr. Grossman’s wife, Adriana Grossman; and Ms. Grossman’s unregistered investment adviser, Dragon Management LLC, in connection with an “ongoing fraudulent offering of Dragon-Click stock and membership interests in Dragon Partners, LLC.” The SEC alleges that Dragon-Click and Mr. Grossman solicited investments in Dragon-Click stock from 2014 until 2018, and that they falsely represented that investors “would make huge profits” and that invested monies would finance the development and marketing of Dragon-Click’s product, an app for online shopping. They allegedly raised more than $2.4 million from at least 26 investors, according to the complaint, “most of them elderly.”
Contrary to their representations, the SEC alleges, Mr. and Mrs. Grossman “misused at least $1.3 million” in their investors’ funds to finance personal living expenses as well as their lifestyles, for instance, Mr. Grossman’s “gambling habits” and various luxury purchases. A list of items and services purchased, included the complaint, describes $35,000 spent on “Gambling at a casino”; $98,000 in “Payments for a Chevrolet Corvette and Chevrolet Tahoe”; $67,000 in “Mortgage payments on the Grossman family home”; $26,000 toward health and car insurance payments; $51,000 on “Jewelry, including a 3.8 carat yellow diamond”; and $16,800 in purchases at Wal-Mart. The defendants did not disclose to investors their misuse and misappropriation of investor funds, according to the complaint.
Dragon-Click Corp, Isaac Grossman, Adriana Grossman and Dragon Management have been charged with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The charges remain pending.
If you have complaints regarding investments in Dragon-Click Corp, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be entitled to recoup your losses. All cases are taken on contingency: we only receive payment if and when you recover money. You may have a limited window to file your complaint, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.