SEC Charges Massachusetts Real Estate Developer with Making False Statements to Investors
Litigation Release No. 24177 / June 29, 2018
Securities and Exchange Commission v. Donato J. Dandreo III, Civil Action No. 1:18-cv-11366 (D. Mass.)
On June 29, 2018, the Securities and Exchange Commission charged a Massachusetts real-estate developer with making several false statements in his attempts to raise funds from potential investors.
The SEC's complaint, filed in the United States District Court for the District of Massachusetts, alleges that, from 2016-2017, Donato J. Dandreo made several misrepresentations to potential investors in his attempts to finance construction of residential homes through his real-estate development company Bounty Homes Corporation. The SEC's complaint alleges that Dandreo used an internet investment platform to attempt to raise funds. The complaint also alleges that in an attempt to convey the appearance of being a successful fundraiser, Dandreo claimed that Bounty Homes was an "opportunistic real estate investment company" and had "expert first-hand experience at every phase of the investment cycle." The complaint further alleges that Dandreo claimed to have raised almost $1.5 million from investors, despite having raised no money at all.
Without admitting or denying the SEC's allegations, Dandreo has agreed to the entry of a final judgment that enjoins him from future violations of Section 17(a)(3) of the Securities Act of 1933 and orders him to pay a civil penalty of $9,239. The settlement is subject to court approval.
The SEC's case was handled by David H. London, Susan Cooke Anderson, John McCann, and Michele Perillo of the SEC's Boston Office.