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I believe the December 23 motion is a new one for Shumake.
As of 1/3/22 all parties still face charges.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=167360398
Just looked on pacers they never even heard the motion yet. They did accept the settlement fir Trucrowd and Birch
Yes!
Case 2:21-cv-12193-AJT-APP ECF No. 18, PageID.228 Filed 12/20/21 Page 1 of 10
Robert's attorney filed another appeal on 12/23.
Here is the main part of the SEC charges against Shumake.
Shumake Explores Various Means to Raise Money through Securities
Offerings
19. Following his guilty plea, but before the end of his probationary
period and the court order prohibiting him from having access to other people’s
money, Shumake began taking steps to raise money from the public to enter the
cannabis industries. Ultimately, he pursued crowdfunding offerings as a means to
raise funds.
20. Crowdfunding offerings are governed by the securities transaction
registration provisions of the Securities Act [17 U.S.C. §§ 77(a), et seq.] and
Regulation Crowdfunding thereunder [17 C.F.R. § 227.100, et seq.]. From 2018
through 2020—the years relevant to this Complaint—these crowdfunding
provisions allowed an unregistered offering of up to $1,070,000 through an
intermediary, in this case, a funding portal registered under Rule 400 of Regulation
Case 2:21-cv-12193-AJT-APP ECF No. 1, PageID.7 Filed 09/20/21 Page 7 of 40
- 8 -
Crowdfunding. Issuers could offer and sell their securities through the
intermediary’s platform on the internet. Prior to the start of the crowdfunding
offering, the issuer was required to file with the SEC a “Form C,” and disclose
certain information about the issuer and the offering through the Form C and
offering statement. For instance, issuers relying on the crowdfunding registration
exemption were required to disclose, among other information, the names of all the
issuer’s officers, directors, and persons occupying a similar status or performing a
similar function; the purpose and intended use of the offering proceeds; relatedparty transactions with the issuer’s officers and promoters that are, in the
aggregate, in excess of five percent of the aggregate capital that the issuer seeks to
raise; and any material information necessary in order to make the statements made
not misleading, in light of the circumstances under which they were made.
Regulation Crowdfunding also requires that the funding portal post the offering
statement for each issuer on its internet platform so that all prospective investors
have access to the same information relating to the issuer’s offering.
21. In September 2018, Shumake enlisted Birch, an attorney with whom
he was in a personal relationship, to form Transatlantic Real Estate, with Birch
holding the positions of CEO and sole member. Shumake also convinced Birch to
raise funds through a crowdfunding offering and to hide Shumake’s involvement.
Case 2:21-cv-12193-AJT-APP ECF No. 1, PageID.8 Filed 09/20/21 Page 8 of 40
- 9 -
22. Transatlantic Real Estate’s mailing address was a UPS store in Grosse
Pointe Farms, near where Shumake lived, rather than in Georgia where Birch lived.
23. Shumake set up Bangi in November 2018, while he was working with
Birch to conduct the Transatlantic Real Estate crowdfunding offering. Bangi’s
address at the time was the same UPS store in Grosse Pointe Farms that
Transatlantic Real Estate used.
24. According to its website, Bangi “acquires specialized assets including
hemp and cannabis farms, dispensaries, commercial real estate, industrial real
estate, and leases real estate to the multi-billion dollar and growing cannabis
industry.”
25. Shumake regularly attended and participated in Bangi Board
meetings, gave direction to the company’s officers and directors, and conducted
business on behalf of Bangi. Board minutes identify Shumake as the founder of
Bangi. Bangi Directors and Shumake discussed his criminal history and its
potential impact on prospective investors. Despite his involvement in the affairs of
Bangi, Shumake elected not to serve as an officer or director of the company. Nor
was he listed on Bangi’s website.
26. Shumake explored the possibility of Bangi conducting an offering
under SEC Regulation A+ [17 C.F.R. § 230.251, et seq.], which permitted higher
Case 2:21-cv-12193-AJT-APP ECF No. 1, PageID.9 Filed 09/20/21 Page 9 of 40
- 10 -
fundraising amounts than those allowed under Regulation Crowdfunding.
Ultimately, an offering for Bangi never occurred.
27. In April 2019, Shumake enlisted Jackson, a friend and Bangi director,
to form 420 Real Estate, with Jackson as the CEO and sole member. Shumake
convinced Jackson to utilize 420 Real Estate as a vehicle for raising funds through
a crowdfunding offering (the “420 Real Estate offering”). Shumake also
convinced Jackson to hide Shumake’s involvement in the 420 Real Estate offering.
28. Shumake discussed with Jackson his plans to use money raised
through the 420 Real Estate offering to fund Bangi.
29. Shumake’s name was not on any of the offering documents for
Transatlantic Real Estate or 420 Real Estate. Shumake, Jackson, and Birch all
knew that the disclosure of Shumake’s criminal past could hinder fundraising.
Therefore, they concealed Shumake’s involvement, and Birch and Jackson falsely
held themselves out as the sole persons with authority over the offerings.
Did they deny his motion.
Litigation Release No. 25298 / January 3, 2022
The SEC's litigation against Shumake, Jackson, and 420 Real Estate continues.
https://www.sec.gov/litigation/litreleases/2022/lr25298.htm
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
I don’t see any denials looks like the motion is still open. With Birch admitting she took Funds and advised him. and the portal admitting they knew about his past and did the deal anyway it looks like they are the criminals
The SEC's litigation against Shumake, Jackson, and 420 Real Estate continues.
https://www.sec.gov/litigation/litreleases/2022/lr25298.htm
Shumake going to jail? Nikki to have additional charges?
Status
Active Member in Good Standing
Public Discipline
None on Record
Admit Date
06/17/2004
Law School
American University, Washington College of Law
https://www.gabar.org/MemberSearchDetail.cfm?ID=MDU3NDA0
Of course he did. He’s a real special sort of criminal.
Is Nikki still licensed to practice law?
Shumake filed to have all charges against him dismissed.
The court denied the motion.
Looks like a combined settlement of 1.1 mill 900k is remaining. Looks like shumake and jackson are the only ones left. If one or both accept the 900k it’s over
Technically it is trading. Only sells are allowed at best price.
The future????
Surfkast, you know more than anyone about this stuff, especially regarding BNGI. Like many others, I am stuck with shares, have done nothing with them.
Do you think it gets trading again some day even if it’s a few years away? Thanks.
I don't see any settlement for Shumake. I also found his appeal was filed on 12/20/2021.
Doing some research it appears that the settlement on December 17 was for the others.
Looks like a settlement has happened https://www.greenmarketreport.com/sec-files-charges-on-2-million-cannabis-crowdfunding-scheme/
Shumake convinced his then girlfriend, Nicole Birch, ................................................................
Rather, the only question before this Court is
whether the SEC has stated viable causes of action against the Defendant based on
its well-pled allegations. The SEC’s detailed factual allegations satisfy this
burden.
I called out this scam on many occasions. I also pointed out the changes before and after the offering was closed.
Investor notification of a Fundanna website change:
ORIGINAL BEFORE THE OFFERING WAS CLOSED.
Irregular Use of Proceeds
The Company may make Irregular Use of Proceeds. Such Irregular Use of Proceeds, which may be in material amounts in excess of $10,000, may include by way of example and not limitation: Vendor payments and salary made to management, business associates, relatives, related parties and/or affiliates thereof; expenses labeled "Administration Expenses" that are not strictly for administrative purposes; expenses labeled "Travel and Entertainment"; and expenses that are for the purposes of intercompany debt or back payments.
Without limiting the above, the Company may elect to vary from the proposed use of funds as circumstances or assessments of circumstances following the closing change.
Present
Use of Proceeds
The allocation of the use of proceeds among the categories of anticipated expenditures represents management’s best estimates based on the current status of the Company’s proposed operations, plans, investment objectives, capital requirements, and financial conditions. Future events, including changes in economic or competitive conditions of our business plan or the completion of less than the total Offering, may cause the Company to modify the above-described allocation of proceeds. The Company’s use of proceeds may vary significantly in the event any of the Company’s assumptions prove inaccurate. We will retain broad discretion in the allocation of the net proceeds from this Offering, reserve the right to change the allocation of net proceeds from the Offering as unanticipated events or opportunities arise and could utilize the proceeds in ways that do not necessarily improve our results of operations or enhance the value of our Common Stock. Additionally, the Company may from time to time need to raise more capital to address future needs that we may not have anticipated as of the date of this Offering Circular.
https://www.sec.gov/smallbusiness/exemptofferings/regcrowdfunding
SO THEY RUINED THE SHELL OR CAN THEY SELL IT TO A LEGIT R/M?
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.
Innocent until proven guilty?
I am proud to say I was right from the start.
I’ve no idea. I did submit a complaint to the GA bar. No idea what ever happened if anything.
Did that help the SEC?
I started from day 1.
Holding emails to send to the court!
LoL. No kidding. I watched Nicole renovate her house in Roswell.
Shumake, Birch, and Jackson allegedly diverted investor funds for personal use rather than using the funds for the purposes disclosed to investors.
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
The fact they are trading at all is good by me. So what is the worst case scenario? There must be some assets?
Looks like selling, as most brokers will not allow trading or only selling.
Based on the PPS, selling is a good bet.
It would appear so. Unless it has been suspended, halted, delisted (gone private) then it trades.
The case filings and testimony are going to be absolutely hilarious given that we’ve already seen a preview of how the criminals are turning on each other.
They all struck me as amateurs years ago when this started. The recent news is just confirming my original analysis.
Surfkast, looks like 370K in volume today. Is it actually trading even if it’s only on the expert or Grey market? Thanks.
I wonder what they will say.
Hilarious. Nikki was his attorney in the seizure cases. No honor among thieves.
Robert Shumake threw Nikki and Willy under the bus! He filed for a dismissal stating that he knew nothing of what Nikki and Willy were doing.
He was only a marketing consultant. As an attorney and an experienced businessman they were in control.
The SEC advised that they would oppose said motion.
Definitely would like to follow that. It should make for interesting reading.
The Defendants must respond to the complaint by Monday the 22nd.
I called it from the beginning! I also caught the change in the disclaimer!
Also swingingRichard did some great DD!
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.
ORIGINAL BEFORE THE OFFERING WAS CLOSED.
Irregular Use of Proceeds
The Company may make Irregular Use of Proceeds. Such Irregular Use of Proceeds, which may be in material amounts in excess of $10,000, may include by way of example and not limitation: Vendor payments and salary made to management, business associates, relatives, related parties and/or affiliates thereof; expenses labeled "Administration Expenses" that are not strictly for administrative purposes; expenses labeled "Travel and Entertainment"; and expenses that are for the purposes of intercompany debt or back payments.
Without limiting the above, the Company may elect to vary from the proposed use of funds as circumstances or assessments of circumstances following the closing change.
Present
Use of Proceeds
The allocation of the use of proceeds among the categories of anticipated expenditures represents management’s best estimates based on the current status of the Company’s proposed operations, plans, investment objectives, capital requirements, and financial conditions. Future events, including changes in economic or competitive conditions of our business plan or the completion of less than the total Offering, may cause the Company to modify the above-described allocation of proceeds. The Company’s use of proceeds may vary significantly in the event any of the Company’s assumptions prove inaccurate. We will retain broad discretion in the allocation of the net proceeds from this Offering, reserve the right to change the allocation of net proceeds from the Offering as unanticipated events or opportunities arise and could utilize the proceeds in ways that do not necessarily improve our results of operations or enhance the value of our Common Stock. Additionally, the Company may from time to time need to raise more capital to address future needs that we may not have anticipated as of the date of this Offering Circular.
https://www.sec.gov/smallbusiness/exemptofferings/regcrowdfunding
surfkast Member Level Saturday, 06/05/21 03:33:51 PM
Re: Linedrive post# 60169 0
Post #
60170
of 60216
When will we see an indictment?
How about a disbarment?
swingingRichard Tuesday, 10/26/21 12:57:57 PM
Re: surfkast post# 60213 0
Post #
60214
of 60216
That is so awesome. I miss riding by Nikki’s house and seeing how she was spending the ill-gotten gains from this scam. Atlanta seems to be some sort of hub for pinky scammers.
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
When I find outabout dates for the SEC case I have information.
That is so awesome. I miss riding by Nikki’s house and seeing how she was spending the ill-gotten gains from this scam. Atlanta seems to be some sort of hub for pinky scammers.
Probably in hiding! JMHO, he belongs in jail!
According to the SEC, Shumake had conspired with Jackson and Nicole Birch in making fraudulent crowdfunded securities offerings for two cannabis and hemp companies, Transatlantic Real Estate LLC and 420 Real Estate LLC.Sep 22, 2021
Ex-Ebony CEO allegedly pocketed money raised for ...
https://www.marketwatch.com/story/ex-ebony-ceo-allegedly-pocketed-money-raised-for-marijuana-businesses-to-help-keep-magazine-afloat-sec-11632162933#:~:text=According%20to%20the%20SEC%2C%20Shumake,and%20420%20Real%20Estate%20LLC.
Judge calls businessman Robert Shumake 'a criminal'
By Rob Wolchek and Rob WolchekPublished March 1, 2018 Hall of Shame FOX 2 Detroit
https://www.fox2detroit.com/news/judge-calls-businessman-robert-shumake-a-criminal.
$252K seized from Southfield businessman Robert Shumakehttps://www.freep.com › local › oakland › 2018/12/28
Dec 28, 2018 — Shumake is embroiled in a forfeiture case in Charlotte, North Carolina, involving $252000 seized from his carry-on luggage.
He claimed diplomatic immunity. Feds at the Charlotte airport ...https://www.charlotteobserver.com › article222946285
Dec 28, 2018 — Along with the forfeiture cases in Atlanta and Los Angeles, Shumake was charged in Michigan with obtaining money under false pretenses, the ...
SEC brings landmark crowdfunding charges against two $2M ...https://coingeek.com › sec-brings-landmark-crowdfund...
Sep 22, 2021 — Robert Shumake, Willard Jackson, and Nicole Birch are accused of conducting the two fraudulent crowdfunding offerings.
SEC Brings Charges Over Cannabis Crowdfunding - Agriculturehttps://lawstreetmedia.com › news › sec-brings-charges-...
Sep 22, 2021 — On Monday, the Securities and Exchange Commission filed a complaint in the Eastern District of Michigan against Robert Shumake, ...
Schuette: Oakland County Mortgage Auditor Pleads Guilty in ...https://www.michigan.gov › ...
Dec 20, 2017 — Attorney General - Robert Shumake will be required to pay ... that will be dispersed to the victims that are included in these charges.
SEC files enforcement action against alleged crowdfunding ...https://thecoin.news › post
Sep 21, 2021 — The Securities and Exchange Commission (SEC) has charged those involved with ... In an announcement today, the agency claims Robert Shumake, ...
lol. The “in your face smoking gun” was Shumake trying to smuggle money in a shoebox. Well, maybe there was more than one thing. Maybe more like a couple of dozen things. Where is Shumake today?
Scam and loser pay on this one. Moved on a while ago to get my losses back.
I called it from day 1.
Need to sticky that one.
I filed a complaint with the GA Bar years(?) ago.
surfkast Member Level Thursday, 11/29/18 12:29:46 PM
Re: mr_sano post# 143307 0
Post #
143308
of 191190
COBI/BNGI inc hopefully gets one of the authorities attention with its $40 million marijuana farm claim along with Fundanna and its questionable cast of characters..
State Bar of Georgia is working.
https://www.gabar.org/
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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.
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.
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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The Expert Market is a private market to serve broker-dealer pricing and best execution needs in securities that are restricted from public quoting or trading. Restrictions can be based on issuer requirements, security attributes, investor accreditation and/or suitability risks.OTC Markets Group Inc. ("OTC Markets") has discontinued the display of quotes on www.otcmarkets.com for this security because it has been labeled Caveat Emptor (Buyer Beware). OTC Markets Group designates certain securities as “Caveat Emptor” and places a skull and crossbones icon next to the stock symbol to inform investors that there may be reason to exercise additional caution and perform thorough due diligence before making an investment decision in that security.
The Caveat Emptor Designation may be assigned when OTC Markets becomes aware of one or more of the following:
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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