SEC v. John Feloni; and Stock Squirrel, Inc., No. LR-25871, District of Massachusetts (Sept. 29, 2023) — Press Release
raw: John Feloni and Stock Squirrel, Inc.
John Feloni and Stock Squirrel, Inc., No. 1:23-cv-12233 (Sept. 29, 2023)
The SEC charged John Feloni and Stock Squirrel, Inc. with defrauding investors of $1.6 million through an unregistered securities offering and a Ponzi-like scheme.
John Feloni and Stock Squirrel, Inc. are charged with defrauding approximately 180 retail investors of $1.6 million through an unregistered securities offering. Between 2019 and April 2023, the defendants raised nearly $2.5 million by promising high returns via promissory notes. The SEC is seeking injunctive relief, disgorgement, civil penalties, and an officer and director bar against Feloni for violating antifraud and registration provisions.
The SEC has charged John Feloni and his company, Stock Squirrel, Inc., with orchestrating an unregistered securities offering that defrauded approximately 180 retail investors. Between 2019 and April 2023, the defendants raised nearly $2.5 million by promising high returns of 20-24% through promissory notes to develop a youth-focused financial app. While claiming Feloni would forgo a salary, the defendants misappropriated $1.6 million for personal use and employed a Ponzi-like structure to pay earlier investors with new capital. The defendants face charges for violating antifraud and registration provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC is seeking injunctive relief, disgorgement with interest, and civil monetary penalties. Additionally, the SEC is pursuing an officer and director bar and a penny stock bar against Feloni.
Exhibits & Attached Documents (1)
Extracted insights
- $2.50M $2.5 million $1M–$10M
- $1.60M $1.6 Million $1M–$10M
- $1.60M $1.6 million $1M–$10M
- person David Fox
- person john feloni
- agency sec case
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- company Stock Squirrel, Inc.
- organization Stock Squirrel, Inc.
- Securities And Exchange Commission charged John Feloni
- John Feloni defrauded investors of $1.6 million
- Stock Squirrel, Inc. deceived 180 retail investors
- John Feloni misappropriated $1.6 million of investor funds
- Feloni And Stock Squirrel issued stock to investors
- Feloni And Stock Squirrel promised returns of 20-24% on investments
- Securities And Exchange Commission seeks injunctive relief and civil monetary penalties
- David Fox handles SEC case
- John Feloni violated antifraud provisions of Section 17(a) of the Securities Act
- Stock Squirrel, Inc. violated registration provisions of Sections 5(a) and 5(c) of the Securities Act
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25871 / September 29, 2023 Securities and Exchange Commission v. John Feloni et al., No. 1:23-cv-12233 (D. Mass. filed September 29, 2023) SEC Charges Massachusetts Resident in $1.6 Million Securities Fraud The Securities and Exchange Commission today charged Massachusetts-based company Stock Squirrel, Inc. and John Feloni, its president and CEO, with defrauding investors of approximately $1.6 million in an unregistered securities offering. According to the SEC’s complaint filed in the United States District Court for the District of Massachusetts, between at least 2019 and April 2023, Feloni and Stock Squirrel deceived approximately 180 retail investors into giving them almost $2.5 million. The complaint alleges that Feloni and Stock Squirrel falsely claimed they would use investors’ money for Stock Squirrel’s business, principally by developing a smartphone application offering financial services to the fast-growing youth sector, and that Feloni would not take a salary from Stock Squirrel. Instead, according to the complaint, Feloni misappropriated approximately $1.6 million of investor funds—66% of the total amount raised from investors—for his own use. The complaint alleges that, in return for investors’ money, Feloni and Stock Squirrel both issued stock in Stock Squirrel to the investors and promised them returns on their investments as high as 20-24% in short periods via promissory notes. Feloni and Stock Squirrel also allegedly used funds raised from new investors to make Ponzi-like payments to prior investors in furtherance of their fraudulent scheme. The SEC’s complaint charges Feloni and Stock Squirrel with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and the registration provisions of Sections 5(a) and 5(c) of the Securities Act. The complaint seeks injunctive relief, disgorgement plus prejudgment interest, and civil monetary penalties from Feloni and Stock Squirrel, and an officer and director bar and penny stock bar against Feloni. The SEC’s case is being handled by David Fox, David London, Kerry Vasta, and Amy Gwiazda of the Boston Regional Office. SEC Complaint
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25871 / September 29, 2023 Securities and Exchange Commission v. John Feloni et al., No. 1:23-cv-12233 (D. Mass. filed September 29, 2023) SEC Charges Massachusetts Resident in $1.6 Million Securities Fraud The Securities and Exchange Commission today charged Massachusetts-based company Stock Squirrel, Inc. and John Feloni, its president and CEO, with defrauding investors of approximately $1.6 million in an unregistered securities offering. According to the SEC’s complaint filed in the United States District Court for the District of Massachusetts, between at least 2019 and April 2023, Feloni and Stock Squirrel deceived approximately 180 retail investors into giving them almost $2.5 million. The complaint alleges that Feloni and Stock Squirrel falsely claimed they would use investors’ money for Stock Squirrel’s business, principally by developing a smartphone application offering financial services to the fast-growing youth sector, and that Feloni would not take a salary from Stock Squirrel. Instead, according to the complaint, Feloni misappropriated approximately $1.6 million of investor funds—66% of the total amount raised from investors—for his own use. The complaint alleges that, in return for investors’ money, Feloni and Stock Squirrel both issued stock in Stock Squirrel to the investors and promised them returns on their investments as high as 20-24% in short periods via promissory notes. Feloni and Stock Squirrel also allegedly used funds raised from new investors to make Ponzi-like payments to prior investors in furtherance of their fraudulent scheme. The SEC’s complaint charges Feloni and Stock Squirrel with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and the registration provisions of Sections 5(a) and 5(c) of the Securities Act. The complaint seeks injunctive relief, disgorgement plus prejudgment interest, and civil monetary penalties from Feloni and Stock Squirrel, and an officer and director bar and penny stock bar against Feloni. The SEC’s case is being handled by David Fox, David London, Kerry Vasta, and Amy Gwiazda of the Boston Regional Office. SEC Complaint