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Last Post: 5/22/2022 5:18:20 PM - Followers: 444 - Board type: Free - Posts Today: 2

Bangi Inc.Case is SEC’s First Involving

Regulation Crowdfunding



DOCUMENTATION OF THE CASES




SEC Charges Crowdfunding Portal, Issuer, and


Related Individuals for Fraudulent Offerings

Case is SEC’s First Involving Regulation Crowdfunding


FOR IMMEDIATE RELEASE
2021-182
Washington D.C., Sept. 20, 2021 —
The Securities and Exchange Commission today charged three individuals and one issuer with conducting a fraudulent scheme to sell nearly $2 million of unregistered securities through two crowdfunding offerings. The SEC also charged the registered funding portal and its CEO, who placed the offerings on the portal’s platform.

According to the SEC's complaint, Robert Shumake, alongside associates Nicole Birch and Willard Jackson, conducted fraudulent and unregistered crowdfunding offerings through two cannabis and hemp companies, Transatlantic Real Estate LLC and 420 Real Estate LLC. Shumake, with assistance from Birch and Jackson, allegedly hid his involvement in the offerings from the public out of concern that his prior criminal conviction could deter prospective investors. The complaint alleges that Shumake and Birch raised $1,020,100 from retail investors through Transatlantic Real Estate, and Shumake and Jackson raised $888,180 through 420 Real Estate. Shumake, Birch, and Jackson allegedly diverted investor funds for personal use rather than using the funds for the purposes disclosed to investors. As alleged, TruCrowd Inc., a registered funding portal, and its CEO, Vincent Petrescu, hosted the Transatlantic Real Estate and 420 Real Estate offerings on TruCrowd's platform. Petrescu allegedly failed to address red flags including Shumake's criminal history and involvement in the crowdfunding offerings, and otherwise failed to reduce the risk of fraud to investors.

"Crowdfunding offerings enable issuers to cast a wide net for potential investors, emphasizing the importance of full and honest disclosure," said Gurbir S. Grewal, Director of the SEC's Division of Enforcement. "As companies continue to raise funds through crowdfunding offerings, we will hold issuers, gatekeepers, and individuals accountable and enforce the protections in place for all investors."

The SEC's complaint, which was filed in the U.S. District Court for the Eastern District of Michigan, charges Shumake, Birch, Jackson, and 420 Real Estate with violating the antifraud and registration provisions of the Securities Act of 1933 and Securities Exchange Act of 1934, and seeks disgorgement plus pre-judgment interest, penalties, permanent injunctions, and officer and director bars. The complaint also charges TruCrowd and Petrescu with violating the crowdfunding rules of the Securities Act and seeks disgorgement plus pre-judgment interest, penalties, and permanent injunctions.

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

The SEC's investigation was conducted by Jerrold H. Kohn, Dante A. Roldán, Pesach Glaser, and Kristine Rodriguez, and supervised by Ana D. Petrovic, and the litigation will be led by John Birkenheier, all of the Chicago Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.

https://www.sec.gov/litigation/complaints/2021/comp-pr2021-182.pdf

 

Case 2:21-cv-12193-AJT-APP ECF No. 21, PageID.251 Filed 12/23/21 Page 1 of 7

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION UNITED STATES SECURITIES AND EXCHANGE COMMISSION, Plaintiff, Case No. 21-cv-12193 Hon. Arthur J. Tarnow v. ROBERT SAMUEL SHUMAKE, JR., JURY TRIAL DEMANDED WILLARD L. JACKSON, NICOLE T. BIRCH, 420 REAL ESTATE, LLC, VICENT PETRESCU aka VINCENT PETRESCU, and TRUCROWD, INC. dba FUNDANNA, Defendants. 


https://www.sec.gov/litigation/litreleases/2022/judgment25298-petrescu.pdf

 

SEC Obtains Final Judgments Against Crowdfunding Issuer CEO and Registered Funding Portal and Its CEO

Litigation Release No. 25298 / January 3, 2022

Securities and Exchange Commission v. Robert Samuel Shumake, Jr., et al, No. 21-cv-12193 (E.D. Mich. filed September 20, 2021)

The Securities and Exchange Commission announced today the entry of final judgments against Nicole Birch, former CEO of crowdfunding issuer, Transatlantic Real Estate, LLC, SEC-registered crowdfunding portal, TruCrowd, Inc., and its CEO, Vincent Petrescu.

The SEC's complaint, filed on September 20, 2021 in the United States District Court for the Eastern District of Michigan, alleged that Shumake, alongside Birch, conducted a fraudulent and unregistered crowdfunding offering through Transatlantic Real Estate, a cannabis company. The complaint also alleged that Shumake and Birch raised $1,020,100 from retail investors through Transatlantic Real Estate. According to the complaint, Shumake, with assistance from Birch, hid his involvement in the offering from the public out of concern that his prior criminal conviction could deter prospective investors. Shumake and Birch allegedly diverted investor funds for personal use rather than using the funds for the purposes disclosed to investors. TruCrowd, and its CEO, Petrescu, allegedly hosted the Transatlantic Real Estate offering on TruCrowd's platform and hosted a crowdfunding offering for 420 Real Estate, LLC, a hemp company affiliated with Shumake and Willard Jackson. The complaint further alleged that Petrescu failed to address red flags including Shumake's criminal history and involvement in the crowdfunding offerings, and otherwise failed to reduce the risk of fraud to investors.

Without admitting or denying the allegations of the complaint, Birch consented to the entry of the judgment permanently enjoining her from violating the registration provisions of Section 5 of the Securities Act of 1933 and the antifraud provisions of Section 17(a) of the Securities Act and Sections 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Petrescu and TruCrowd, without admitting or denying the allegations in the complaint, consented to the entry of the judgments permanently enjoining them from violating the crowdfunding rules of Section 4A(a)(5) of the Securities Act and Rule 301(c)(2) thereunder. The judgments order: (i) civil penalties of $200,000, $9,700, and $97,500 against Birch, Petrescu, and TruCrowd, respectively; (2) disgorgement including prejudgment interest of $600,712 against Birch and $129,380 against TruCrowd; and (3) an officer and director bar against Birch.

In separate proceedings, based on the entry of their consent judgments, Birch and Petrescu also agreed to SEC orders entered on December 30, 2021. Birch was permanently suspended from appearing and practicing before the SEC as an attorney. The order prohibits Birch from representing clients in SEC matters, including investigations, litigation, or examinations, and from advising clients about SEC filing obligations or content. Petrescu was suspended from appearing and practicing before the SEC as an accountant, which includes not participating in the financial reporting or audits of public companies. The order permits Petrescu to apply for reinstatement after three years.

The SEC's litigation against Shumake, Jackson, and 420 Real Estate continues.

 



 

SEC Obtains Bifurcated Judgments Against Crowdfunding Issuer and Its CEO

Litigation Release No. 25323 / February 2, 2022

Securities and Exchange Commission v. Robert Samuel Shumake, Jr., et al, No. 2:21-cv-12193 (E.D. Mich. filed September 20, 2021)

The Securities and Exchange Commission announced today that, on January 28, 2022, the Court in SEC v. Shumake, et al, entered bifurcated judgments against crowdfunding issuer, 420 Real Estate, LLC, and its CEO, Willard Jackson.

The SEC's complaint, filed on September 20, 2021 in the United States District Court for the Eastern District of Michigan, alleged that Shumake, alongside Jackson, conducted a fraudulent and unregistered crowdfunding offering through 420 Real Estate, a hemp company, on TruCrowd, Inc., a registered crowdfunding portal. The complaint also alleged that Shumake and Jackson raised $888,180 from retail investors through 420 Real Estate. According to the complaint, Shumake, with assistance from Jackson, hid his involvement in the offering from the public out of concern that his prior criminal conviction could deter prospective investors. In addition, Shumake and Jackson allegedly diverted investor funds for personal use rather than using the funds for the purposes disclosed to investors.

Without admitting or denying the allegations of the complaint, Jackson and 420 Real Estate consented to the entry of bifurcated judgments permanently enjoining them from violating the registration provisions of Section 5 of the Securities Act of 1933 and the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Jackson also consented to the entry of an officer and director bar. The Court will determine monetary relief at a later date.

The SEC previously obtained final judgments against Defendants TruCrowd, Vicent Petrescu, and Nicole Birch. The SEC's litigation continues.
 



SEC Temporary Suspension Announcement | 02/23/2021

 

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 91182 / February 22, 2021

The Securities and Exchange Commission announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934, of trading in the securities of Bangi, Inc. (BNGI) (CIK No. 0001327238), a defaulted Nevada corporation based in Grosse Pointe Farms, Michigan at 9:30 a.m. EST on February 23, 2021 and terminating at 11:59 p.m. EST on March 8, 2021.

The Commission temporarily suspended trading in the securities of BNGI because of questions regarding the accuracy and adequacy of information about BNGI and its securities in the marketplace concerning, among other things, BNGI's activities, and potentially fraudulent trading activity affecting the market for its securities, including: (a) since at least mid-January 2021, certain social media accounts may be engaged in a coordinated attempt to artificially influence BNGI's share price; and (b) BNGI's share price and trading volume have greatly increased since at least mid-January 2021 in the absence of any publicly available news from BNGI.

The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.

Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not it has complied with the rule, it should not enter any quotation but immediately contact the staff in the Division of Trading and Markets, Office of Interpretation and Guidance, at (202) 551-5777. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, it should refrain from entering quotations relating to BNGI securities until such time as it has familiarized itself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.

If any broker-dealer or other person has any information that may relate to this matter, they should immediately contact Ana D. Petrovic, Assistant Regional Director, at (312) 886-8176. The Commission appreciates the assistance of the Financial Industry Regulatory Authority.


 

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OTC Markets will resume the display of this security’s quotes once adequate current information is made available by the issuer pursuant to the Alternative Reporting Standard or by the SEC Reporting Standard, and until OTC Markets believes there is no longer a public interest concern. Investors are encouraged to use caution and due diligence in their investment decisions. Please read our Investor Protection page and OTC Markets Policy Regarding Caveat Emptor  for more information.

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PostSubject
#60196  Sticky Note SEC Charges Crowdfunding Portal, Issuer, and Related Individuals samsamsamiam 09/20/21 11:19:56 AM
#60285   P&D would not concern many. Criminal actions may. ;-) surfkast 05/22/22 05:18:20 PM
#60284   Out cycling yesterday, about 30 miles and ended swingingRichard 05/22/22 04:31:45 PM
#60283   When will the RICO indictment be handed down? surfkast 05/19/22 08:17:52 AM
#60282   Since she represented him, she should be indicted surfkast 05/03/22 12:12:51 PM
#60281   The jacka$$ lawyer should be disbarred. She has swingingRichard 05/02/22 05:06:24 PM
#60280   Well the SEC has gotten some settlements is surfkast 05/01/22 08:45:22 PM
#60279   Is it coming to life or somebody is janum 05/01/22 01:06:31 PM
#60278   Wednesday, April 20, 2022 surfkast 04/29/22 10:46:43 AM
#60277   What? surfkast 04/26/22 07:39:08 AM
#60276   I feel like jelly roll…. Somebody save me newlevel87 04/25/22 08:39:14 PM
#60275   I believe multiple agencies received complaints from many individuals. surfkast 04/07/22 10:08:36 AM
#60274   It is nice to see that they are swingingRichard 04/06/22 05:24:05 PM
#60273   DEFENDANTS 11. Robert S. Shumake, age 53, resides surfkast 04/06/22 03:29:50 PM
#60272   Nothing new. surfkast 03/29/22 07:15:04 PM
#60271   No updates. Possibly waiting on the Shumake hearing. surfkast 03/15/22 11:01:36 AM
#60270   Can the conspiritorts face federal charges for fraud surfkast 03/07/22 10:19:15 AM
#60269   Penalties for Securities Fraud surfkast 03/01/22 09:56:43 AM
#60268   U.S. District Court surfkast 02/22/22 11:49:36 AM
#60267   What is penalty for securities fraud? surfkast 02/22/22 11:42:35 AM
#60266   The SEC's litigation continues. surfkast 02/22/22 11:40:22 AM
#60265   GLTY! surfkast 02/21/22 06:05:40 PM
#60264   I hear you. They posted what, at least RockyW 02/21/22 06:04:35 PM
#60263   Probably never will trade again. Even if it surfkast 02/21/22 05:53:42 PM
#60262   I still own shares. I hope they fix RockyW 02/21/22 11:30:31 AM
#60261   Will there be federal indictments coming for fraud surfkast 02/21/22 10:37:10 AM
#60260   Robert Shumake case is ongoing. So are other surfkast 02/10/22 02:09:20 PM
#60259   That’s what I told the ga bar swingingRichard 02/04/22 08:46:30 PM
#60258   Did Nicole Birch in fact violate the surfkast 02/03/22 02:48:32 PM
#60257   That’s unfortunate swingingRichard 01/28/22 06:36:29 AM
#60256   No updates on Pacer or the Georgia Bar. surfkast 01/24/22 01:33:58 PM
#60255   I documented Birch's remodel of her property in swingingRichard 01/23/22 08:20:10 PM
#60254   Shumake, with assistance from Birch and Jackson, allegedly surfkast 01/11/22 10:40:47 AM
#60253   TRANSACTIONS WITH PERSONS OTHER THAN CLIENTS surfkast 01/05/22 04:20:08 PM
#60252   All grievances, investigations of grievances and private discipline surfkast 01/05/22 04:06:52 PM
#60251   I believe the December 23 motion is a surfkast 01/03/22 09:33:19 PM
#60250   Just looked on pacers they never even heard Burntcheeze 01/03/22 09:13:45 PM
#60249   Yes! Case 2:21-cv-12193-AJT-APP ECF No. 18, PageID.228 Filed 12/20/21 surfkast 01/03/22 09:06:09 PM
#60248   Did they deny his motion. Burntcheeze 01/03/22 08:32:07 PM
#60247   Litigation Release No. 25298 / January 3, 2022 surfkast 01/03/22 08:29:48 PM
#60246   I don’t see any denials looks like the Burntcheeze 01/03/22 08:20:41 PM
#60245   The SEC's litigation against Shumake, Jackson, and 420 surfkast 01/03/22 02:36:10 PM
#60244   Shumake going to jail? Nikki to have additional charges? surfkast 12/31/21 09:52:44 AM
#60243   Status Active Member in Good Standing surfkast 12/27/21 12:37:45 PM
#60242   Of course he did. He’s a real special swingingRichard 12/25/21 11:09:15 AM
#60241   Shumake filed to have all charges against him dismissed. surfkast 12/24/21 11:29:40 AM
#60240   Looks like a combined settlement of 1.1 mill Burntcheeze 12/23/21 10:29:56 PM
#60239   Technically it is trading. Only sells are allowed surfkast 12/22/21 05:24:21 PM
#60238   Surfkast, you know more than anyone about this RockyW 12/22/21 05:13:11 PM
#60237   I don't see any settlement for Shumake. I surfkast 12/22/21 11:38:15 AM
#60236   Looks like a settlement has happened https://www.greenmarketreport.com/sec-files Burntcheeze 12/22/21 11:02:33 AM
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