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.