John Giunti Charged with Securities Offering Fraud

John Giunti - Fraud

On July 25, 2017, the Securities and Exchange Commission (“SEC”) charged Interactive Media Solutions, LLC and its sole principal John Giunti with perpetuating a securities offering fraud.

According to the SEC’s complaint, IMS claimed to have developed a mobile phone application that could send money from a cellphone. The complaint alleges that from July 2015 through November 2016, IMS and Giunti raised nearly half a million dollars from more than 20 investors and had plans to raise an additional $5 million with hopes of a possible IPO. To lure investors, John Giunti allegedly told them that investor funds would be spent for business purposes, IMS had positive cash flow, and IMS had a business partnership with Google and offices at its Los Angeles location. The SEC alleges that all of these statements were false. In reality, as alleged in the complaint, instead of using investor funds as represented for business purposes, IMS and John Giunti used investor funds for John Giunti’s retail purchases, large cash withdrawals, private-school tuition for his children, luxury vacations, and political contributions. Moreover, IMS allegedly had no revenue from operations, nor did it have any connection with Google. Rather, as alleged in the complaint, IMS was based at Giunti’s home and a San Diego business center.The SEC’s complaint, filed in the U.S. District Court for the Southern District of California, charges IMS and Giunti with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and RuleA 10b-5 thereunder. Without admitting or denying the allegations in the SEC’s complaint, IMS and Giunti consented to the entry of a final judgment that permanently enjoins them from violating the charged provisions of the federal securities laws, orders them to jointly and severally disgorge ill-gotten gains of $457,960 plus pre-judgment interest of $25,053, orders John Giunti to pay a civil penalty of $457,960, and prohibits John Giunti from serving as an officer or director of a public company or from raising money from investors in any securities offering. The proposed settlement is subject to approval by the court.

For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, or [email protected].  This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855