The Securities and Exchange Commission (SEC) is going after a Florida-based virtual reality videogame accessory maker with charges of violating federal security laws.
Filed September 29,2009 in the U.S. District Court, Southern District of Florida, the SEC named six plaintiffs from 3001 AD, LLC: Jimmy L. Barker (CEO), Robert J. Ladrach, Mark S. Rifkin, Ronald B. Bowsky, Jack Maddock and Michael Weidgans.
3001 AD ran a series of gaming installations called Beta Zones, which were first launched in theme parks around the country. These installations promised to showcase “the newest and most advanced forms of interactive entertainment” using virtual reality technology. 3001 AD also created the Trimersion First Person Shooter Gaming Accessory (pictured), a virtual reality system for use in the home with either a gaming console or PC.
The complaint alleges that 3001 AD raised around $20.0 million from 500 or more investors over the period of 1998 through April 2008 through the “unregistered and fraudulent offerings of securities.” The company also apparently utilized radio ads and telemarketers to offer and sell 3001 AD securities for $5,000 apiece, even though 3001 AD had never registered with the SEC in “any capacity.”
3001 AD is also charged with misleading investors that an IPO was imminent. Additional accusations stem from misrepresenting to investors the interest of Microsoft, Apple and Michael Eisner in using, licensing or purchasing 3001 AD’s technology.
The full complaint is available on the SEC website.
Comments
Re: Reality Bites: Game-Focused Virtual Reality Firm ...
These types of schemes are fairly common- there are plenty of faux businessmen (who look and act every bit as slimy as you would guess) out there looking to swindle people by making grand promises. I've come across dudes like this quite a bit in the last few years. They have some bullshit idea that they promise will become the next big thing- and they always say the IPO is right around the corner.
This reminds me of the things Infinitum Labs was accused of doing with their Phantom console. In fact, everything about their product, facilities, and R&D turned out to be fabrications- and yet they still found gullable idiots to give them money. I also recall that many of the founders of the company had prior records of financial scamming.
"a fool and his money are easily parted"
Re: Reality Bites: Game-Focused Virtual Reality Firm ...
The Gizmondo was another one. I still feel bad for that car that was crashed by the "CEO".