PrepaYd Inc. (fka PPDC)

[IKnowtheCEO]

PrepaYd, Inc., Bruce Berman under investigation by Regulators including California Department of Corporations. Federal and State regulatory agencies also investigating improper securities dealings at PrepaYd.

The charges being investigated by the CA DOC include:
1) Publishing false or misleading financial statements
2) Using improper methods of soliciting investors, and
3) Improperly compensating non-licensed equity salespeople.
4) Failure to act as a fiduciary

Mr. Berman willfully and intentionally failed to disclose this investigation or the nature thereof, to the investors in PPDC, and Mr. Berman raised new investor money without disclosing this investigation or discussing the potentially negative impact that such an investigation would have on the Company. Mr. Berman also used significant amounts of investor's money to retain attorneys in this matter, but did not address this use of funds in the Use of Proceeds section of any Private Placement memorandum, including the private offerings that was ongoing during the initial phase of the DOC inquiry.