U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23071 / August 19, 2014
Securities and Exchange Commission v. Heidi Ann Gamer, Gamer Economic Systems, LLC, and Gamer Media Partners Corp., Civil Action No. 1:14-cv-02650-ODE (N.D. Ga.)
SEC Charges Colorado Resident with Offering Fraud Involving Smart-Phone App Technology
On August 15, 2014, the Securities and Exchange Commission ("SEC") filed an action in federal court in Atlanta charging a Colorado Springs, Colorado resident and her two companies with running a $771,900 offering fraud targeting investors in various states. Victims of the scheme included, among others, individuals who participated in substance-abuse support programs.
Investors were told that funds raised would be used by the companies to acquire interactive technology licensing rights for products such as smart-phone applications, or "apps," that the companies planned to develop and market. False statements about contracts and licensing deals that did not exist also were used to solicit investors. Throughout the fraud, significant amounts of investor funds were diverted for such non-business expenses as casino gambling, vacation travel, and shopping.
Named in the Complaint are:
The Complaint alleges:
The complaint alleges that Gamer, GES and GMP by virtue of their conduct, directly or indirectly, violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, thereunder, and seeks injunctive relief, disgorgement of ill-gotten gains with pre-judgment interest and penalties against each of the defendants.
The SEC's investigation was conducted by Brian M. Basinger with assistance from Stephen E. Donahue and Robert F. Schroeder in the Atlanta Regional Office. The Commission acknowledges the assistance and cooperation of the Massachusetts Securities Division.