SANTA ANA, Calif.: A former Southern California man was charged Wednesday with working a boiler room” scheme that bilked greater than 100 traders out of $14 million.
Ronald Shane Flynn, who as soon as lived in Orange County, was indicted by a federal grand jury on 15 counts of wire fraud, the county district lawyer’s workplace mentioned in an announcement.
Flynn, 57, is believed to have left the United States greater than a decade in the past, in accordance with the District Attorney’s workplace, which declined to touch upon the place he is likely to be residing.
Flynn ran Vuuzle Media Corp., which claimed to be a streaming media and leisure enterprise with places of work in New York, Las Vegas and worldwide.
Prosecutors alleged that starting in September 2016, the corporate provided what it claimed was a possibility to spend money on the enterprise earlier than its preliminary public inventory providing, prosecutors mentioned.
Although he was barred from providing securities in California and in addition in Ohio, Flynn ran the scheme whereas working from the Philippines, Dubai and elsewhere, in accordance with the indictment.
Flynn fielded a boiler room” of salespeople, primarily primarily based within the Philippines, that used high-pressure techniques to solicit about $14 million from traders, in accordance with the indictment and a January lawsuit filed in New Jersey by the U.S. Securities and Exchange Commission.
According to the indictment, Vuuzle by no means made a revenue, Flynn by no means paid dividends to traders, and he by no means meant to take the enterprise public.
Only a small share of the funds truly went towards the streaming enterprise, authorities mentioned.
Instead, in accordance with the SEC lawsuit, about $5.5 million was used to pay commissions and bills for the recruitment effort whereas Flynn used practically $5 million to finance a luxurious life-style that included shopping for jewellery and paying for resort stays and nightclub visits.
If convicted of the felony costs, Flynn may face a sentence of as much as 300 years in federal jail.
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