SEC Cases: Charges Filed Against Massachusetts Man Accused of Misappropriating Investor Funds to Pay Rent of Fiancée’s Restaurants & $2M Offering Fraud Allegedly Targeted 70 Non-Accredited Investors

Businessman Accused of Taking Investors’ Money That Was Supposed to Go Toward Fighting Cancer
In a complaint brought by the SEC, the regulator has filed securities fraud charges against Patrick Muraca, a Massachusetts businessmen, accusing him of misappropriating investments that were supposed to go toward helping to develop cancer diagnostic tests. Instead, Muraca, who raised almost $1.2M through MetaboRX LLC and NanoMolecularDX LLC, allegedly transferred $400K of these funds to pay the rent of his fiancées restaurant businesses as well as for other purchases.

Now, the regulator is charging Muraca and his companies with Securities Act of 1933, Section 17(a) violations and Securities Exchange Act of 1934 Section 10(b) and Rule 10b-5 violations. The SEC wants disgorgement of ill-gotten gains, interest, and penalties.

Meantime, prosecutors have brought related criminal charges against Muraca.

Mining Exploration Company Owner Claiming $30B of Properties is Accused of Taking Investors’ Money
The US Securities and Exchange Commission claims that Robert W. Wilson, a mining exploration company owner, used investor money to pay for his own expenses. Wilson and his two purported companies are accused in connection with a $2M offering fraud that involved over 70 non-accredited investors based mainly in California and the US.

According to the regulator, from 1/2015 to at least 8/2016, Robert W. Wilson and his Cash Capital, LLC and America’s Strategic Ore Properties, LLC told investors that property underlying mining claims that one of the companies had optioned held over 1.3 billion tons of different ores that were valued at first at more than $18B and then later at $30B. He also claimed that the money of investors was secure because there was a lien on the assets.

Now, however, the SEC is contending that such statements were false and that Wilson and his companies instead spent a healthy chunk of investor money on personal expenses, including a massage spa membership, rent, restaurant expenses, other bills, and payments to participants of past investment offerings. None of investors’ money allegedly went to the mining project. Instead, over $700K of investor funds were allegedly issued or withdrawn by Wilson or his wife.

If you suspect that your investment losses are due to securities fraud, please contact Shepherd Smith Edwards and Kantas, LTD LLP today.

SEC Complaint in the Wilson, Cash Capital, and America’s Strategic Ore Properties Case (PDF)

The SEC Complaint in the Muraca Case (PDF)