Furthermore, the Commission alleged that Flynn misused $4.9 million in investors’ funds for his personal use including paying for jewelry. luxury flights and hotel stays, subscriptions to dating websites, and nightclub visits.
Moreover, Flynn allegedly used at least $5.5 million of investor funds to sustain the boiler room and pay commissions to himself and others for recruiting investors.
The Commission also filed charges against Richard Marchitto for aiding and abetting Flynn and Vuuzle in defrauding investors. Marchitto, a former dentist allegedly maintained the company’s and Flynn’s presence in the United States. He opened and maintained the company’s U.S. bank account.
They used the bank account to receive and disburse investors’ funds, maintain a New York office space, and facilitate the transfer of funds to Flynn’s overseas accounts, opening and maintaining corporate credit cards, etc. Marchitto is the sole signatory of Vuuzle’s U.S. bank account.
Flynn and Vuuzle violated the federal securities laws by committing a fraudulent securities offering. Marchitto also violated securities laws by aiding and abetting their wrongdoing, according to the Commission in the complaint.
SEC agressively pursues fraudsters
In a statement, SEC’s Division of Enforcement Acting Director Melissa Hodgman said, “We are committed to taking action to protect investors and pursuing relief for those who have been harmed. We will vigorously pursue fraudsters who enrich themselves at investors’ expense.”
