September 29, 2014

The SEC charged former Vision Broadcast Network CEO Erick Laszlo Mathe and consultant Ashif Jiwa with defrauding investors in a purported startup television network and production company by providing false information about its revenues and future prospects, including that former basketball star Michael Jordan planned to invest in the company.  Specifically, the SEC alleges the two raised at least $5.7 million in startup capital from approximately 100 investors by  misrepresenting that Vision Broadcast owned low-power television stations as well as 70 broadcast licenses to operate additional low power television stations estimated to be worth $400 million once the television stations became operational.  Vision Broadcast meanwhile funneled hundreds of thousands of dollars in investor funds to companies controlled by Mathe or Jiwa in the form of purported professional and consulting services that were never provided.  SEC

Tagged in: Misrepresentations, Securities Fraud,