SEC Charges Beverly Hills-Based Entertainment Technology Company in $45 Million Offering Fraud
Litigation Release No. 24786 / April 2, 2020
Securities and Exchange Commission v. OwnZones Media Network, Inc., Daniel Goman, and Joseph Goman, No. 2:20-cv-03108 (C.D. Cal. filed April 2 , 2020)
The Securities and Exchange Commission today announced charges against OwnZones Media Network, Inc., its CEO, and a stock sales agent in connection with an ongoing illegal stock offering that has raised more than $45 million from retail investors.
The SEC's complaint alleges that from 2011 through the present, OwnZones, a Beverly Hills entertainment technology company, its CEO and president Dan Goman of California, and its stock sales agent Joe Goman of Arizona, who is Dan Goman's brother, conducted an unregistered securities offering in which they raised $45 million from more than one thousand investors. According to the SEC's complaint, Dan Goman and other OwnZones representatives made false and misleading statements to investors about OwnZones' potential IPO and the status of investment discussions with major companies. The complaint further alleges that Joe Goman made misstatements to investors, including claims that Mark Cuban and MGM had purchased OwnZones stock for $5 per share, that Google had offered to buy OwnZones for $500 million, and that OwnZones was about to go public and its IPO price would be many multiples higher than what investors were paying.
The SEC's complaint, which was filed in the Central District of California, charges OwnZones, Dan Goman and Joe Goman with violating the securities registration requirements of Sections 5(a) and 5(c) of the Securities Act of 1933 and the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint also charges Dan Goman as a control person under Section 20(a) for OwnZones' violations. The complaint seeks permanent injunctions, disgorgement, prejudgment interest, and civil penalties.
The SEC's investigation was conducted by Christopher Nowlin and Christopher Conte and supervised by Spencer Bendell. The litigation will be led by Lynn M. Dean and supervised by Amy J. Longo. The SEC acknowledges the assistance of the Arizona Corporation Commission, Securities Division.