A complaint filed by the Securities and Exchange Commission charges Dragon-Click Corp, its president Isaac Grossman, his wife Adriana Grossman, and her unregistered investment adviser Dragon Management, LLC with an ongoing fraudulent offering of Dragon-Click stock and membership interests in Dragon Partners, LLC.
The SEC’s complaint alleges that from September 2014 through June 2018, Dragon-Click and Isaac Grossman raised more than $2.4 million from at least 26 investors across the country to purchase Dragon-Click stock, falsely telling investors that their money was going to go toward the development of an internet application that would allow a shopper to upload a photograph of any item and would then locate retailers and provide price-comparisons. Instead, according to the complaint, Grossman and his wife misappropriated at least $1.3 million in investor funds to pay their personal living expenses and to fund their lifestyle, which included $460,000 for Isaac Grossman’s gambling habits, $100,000+ for the purchase of luxury vehicles, and tens of thousands for jewelry, school tuition for their children, insurance payments, and other expenses. The SEC claims that the majority of Grossman’s defrauded investors were elderly.
Federal criminal fraud charges are certain to follow.
Read the complaint here: SEC Complaint