SEC Charges Florida Fraudsters over “Spongebuddy” Penny Stocks
The Securities and Exchange Commission (SEC) brought charges against two Coral Springs, Florida residents for defrauding elderly investors in a penny stock scheme involving a product called “Spongebuddy.”
In its complaint, the SEC alleged that Joseph A. Rubbo and Angela Beckom Rubbo Monaco raised at least $5.4 million from approximately 11 elderly investors to fund their entertainment businesses—VIP TV LLC, VIP Television, Inc., and The Spongebuddy LLC—and to develop a sponge-like glove called “Spongebuddy.”
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The Rubbos used nearly $2.6 million of investor funds for personal expenses.
As part of their scheme, the Rubbos hired individuals to cold-call these elderly investors and pitch investments for VIP. The cold-callers made false statements regarding the investments and Spongebuddy product in order to lure investments from the elderly investors.
For example, on at least one occasion, the cold-callers claimed that Spongebuddy would be featured on the reality show “Shark Tank” and marketed on QVC. Contrary to the representations made to the elderly investors, the Rubbos used nearly $2.6 million of investor funds for personal expenses including luxury cars and credit card bills.
If you have suffered significant financial losses in a scheme perpetuated by the Rubbos or a similar alleged fraud, the attorneys of the Business Trial Group may be able to help. Backed by the largest Plaintiff’s law firm in the country, our clients pay no upfront fees or retainers, and we only receive a fee if we successfully recover compensation on your behalf.
For a no cost and no obligation case review of your investor fraud lawsuit, please call us at (877) 599-3102 or fill out our case review form.