On June 11th, 2018, the Securities and Exchange Commission (SEC) announced publicly that it has obtained an emergency order to halt a securities offering from a South Florida-based company. Dragon-Click Corp, its president and former securities broker Isaac Grossman (CRD#: 2905125), and his wife Adriana Grossman have all been charged in connection with this fraudulent stock offering.
Notably, Mr. Grossman was barred from the securities industry in 2012 after he failed to cooperate with a FINRA investigation into allegations that he made material misrepresentations to investors. Here, our investment fraud lawyers provide a brief overview of the SEC complaint against Mr. Grossman, Mrs. Grossman, and their company Dragon-Click.
Stock Fraud Scheme: Isaac Grossman, Adriana Grossman, and Dragon-Click Corp.
The SEC Complaint, which was filed in the United States District Court for the Southern District of Florida, alleges that Isaac Grossman and Adriana Grossman actively solicited investors to buy stock in their company ‘Dragon-Click Corp.’ Investors were informed that this company was preparing to launch a revolutionary internet-based shopping application. Specifically, Mr. Grossman told investors that their upcoming smartphone application would allow shoppers to take a picture of any product and then immediately get access to the best prices on the internet.
Investors were promised huge profits and they were told that their money would be used for development of the application and marketing of the company. The investment in these unregistered securities was raised through a private placement offering. In all, Mr. and Mrs. Grossman took in more than $2.4 million from at least 26 investors throughout the United States. Most of the investors were elderly. Unfortunately, investor money was misused. The SEC alleges that at least $1.3 million was siphoned off to pay for the couple’s personal expenses and to fund Mr. Grossman gambling habit.
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If you or your family member lost money due to elder financial abuse or any other type of stock fraud, please contact our law office today for a free initial legal consultation. At Sonn Law Group, we work aggressively to protect the legal rights and financial interests of investors.
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