Former California man charged with $ 14 million boiler room scam

Santa Ana, Calif. (AP) — A former Southern California man was charged Wednesday for implementing a “boiler room” plan that charges $ 14 million to more than 100 investors.

Ronald Shane Flynn, who once lived in Orange County, was charged by a federal grand jury for 15 wire frauds, the county district attorney’s office said in a statement.

According to the district attorney’s office, 57-year-old Flynn is believed to have left the United States more than a decade ago and refused to comment on where he lives.

Flynn claims to be a streaming media and entertainment business with offices in New York, Las Vegas, and around the world, Vuuzle Media Corp. Was running.

The prosecution claimed to have offered the company an opportunity to invest in its business prior to its initial public offering since September 2016.

He was banned from offering securities in California and Ohio, according to the indictment, but carried out the plan while working in the Philippines, Dubai and elsewhere.

According to a complaint filed by the US Securities and Exchange Commission in New Jersey and a January lawsuit, Flynn set up a “boiler room” for sales representatives based primarily in the Philippines, using high-pressure tactics from investors. Raised about $ 14 million.

According to the indictment, Vuuzle never made a profit, Flynn never paid dividends to investors and did not intend to open the business.

According to the authorities, very little money was actually spent on the streaming business.

Instead, according to the SEC proceedings, about $ 5.5 million will be used to pay recruitment fees and expenses, and Flynn will fund luxury lifestyles such as buying jewelry and paying for resort stays and night club visits. I spent about $ 5 million.

If convicted of a criminal accusation, Flynn could be sentenced to up to 300 years in federal prison.

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