The U.S. Securities and Exchange Commission announced the filing of a complaint against Florida based LottoNet Operating Corp. , its CEO David Gray and Joseph A. Vitale, a sales agent for the company.
The SEC alleges that they misrepresented to investors how their money was to be used. According to the SEC about 35% of the money raised was paid to boiler room sales agents and LottoNet allegedly siphoned investor funds for personal spending on clothes, a wedding and strip clubs.
Investors were touted $8,500 monthly returns for a $25,000 investment. About $4.8 million was raised.
The SEC says that Vitale raised about $1.4 million from investors using the alias Donovan Kelly in an apparent attempt to conceal the fact that he had been permanently barred by FINRA. According to his FINRA record Vitale was permanently barred by FINRA in 10/2011. Vitale was last employed in the industry by J.P. Turner & Co.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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