The Movie Studio Inc. (MVES)

[Eurotradr]

According to the SEC's complaint, from approximately August 2016 to March 2021, The Movie Studio and Venters issued materially misleading press releases regarding The Movie Studio's ownership, production, distribution, and licensing of films. The Movie Studio also allegedly hired sales agents, trained and supervised by Venters, to solicit investors using scripts provided by Venters. The complaint alleges that The Movie Studio falsely made itself appear more successful than it really was. Among other misrepresentations, the complaint alleges The Movie Studio and Venters:

exaggerated the number of films The Movie Studio owned;

made it appear that films would be released soon when, in fact, The Movie Studio had filmed only enough content to make a trailer;

falsely claimed to own a production studio; and

represented, without any basis, that The Movie Studio utilized blockchain technology in the distribution and licensing of films.

The complaint further alleges that The Movie Studio and Venters dumped shares of The Movie Studio stock on the public markets after issuing at least one misleading press release. As alleged, only a fraction of investor funds went towards The Movie Studio's film production business. The complaint further alleges that Venters misappropriated investor funds for his personal use and to pay commissions to sales agents for recruiting investors.