SEC Obtains Emergency Order Halting Securities Offering Scheme
Litigation Release No. 24162 / June 11, 2018
Securities and Exchange Commission v. Isaac Grossman, Adriana Grossman, Dragon-Click Corp., and Dragon Management, LLC, No. 18-cv- 61234 (S.D. Fla., filed June 4, 2018)
June 11, 2018 - The Securities and Exchange Commission today announced it has obtained a court order halting an ongoing fraud involving stock in a South Florida-based company that claimed to be developing a revolutionary internet shopping application and raised more than $2.4 million from at least 26 investors nationwide. The court also approved an emergency asset freeze.
An SEC complaint unsealed today charges Dragon-Click Corp, its president Isaac Grossman, his wife Adriana Grossman, and her unregistered investment adviser Dragon Management, LLC in connection with an ongoing fraudulent offering of Dragon-Click stock and membership interests in Dragon Partners, LLC. The SEC's complaint alleges that from September 2014 through the filing of the complaint, Dragon-Click and Isaac Grossman solicited investors to purchase Dragon-Click stock, falsely claiming that investors would make huge profits and their money would be used to pay for the development and marketing of Dragon-Click's internet shopping application. Instead, according to the complaint, Isaac Grossman and his wife misused at least $1.3 million in investor funds to pay their personal living expenses and to fund their lifestyle, which included funding Isaac Grossman's gambling habits as well as the purchase of luxury vehicles and jewelry.
The SEC's complaint charges Dragon-Click Corp, Isaac Grossman, Adriana Grossman and Dragon Management, LLC with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and 10b-5(c) thereunder, and charges Dragon-Click Corp and Isaac Grossman with additional violations of Section 10(b) of the Exchange Act and Rule 10b-5(b) thereunder.
The SEC's investigation was conducted in the Miami office by Terence Tennant, under the supervision of Elisha Frank and by Fernando Torres. The litigation is being led by Amie Riggle Berlin.