SEC Takes Enforcement Action Against South Florida Company
On June 24th, 2024, the Securities and Exchange Commission (SEC) announced enforcement action against a South Florida investment entity. In the case of BorrowMoney.com, Inc. and Aldo Piscitello, the SEC alleges fraud on the part of the company and its sole officer and majority shareholder. In this blog post, our Miami securities fraud attorney provides an overview of the allegations.
SEC Complaint: BorrowMoney.com, Inc. and Aldo Piscitello
In the United States District Court for the Southern District of Florida, the SEC has filed a complaint against BorrowMoney.com, Inc. and its principal Aldo Piscitello. The federal agency alleges a number of different securities law violations. BorrowMoney is a Florida-based corporation and Mr. Piscitello is a resident of Fort Lauderdale. He is the sole corporate officer and majority shareholder of the company. BorrowMoney markets itself as providing web-based match services for mortgage borrowers and mortgage loan providers.
The company’s common stock began trading on the “Pink Market” in 2019 under the ticker symbol BWMY. The Pink Market—also known as the Pink Sheets—is an over-the-counter (OTC) trading platform where stocks of smaller, less-regulated companies are traded. Notably, these stocks are frequently characterized by their lower levels of liquidity and higher level of risk. The company is still being traded. Though, the penny stock has lost 99.99 percent of its value since its 2020 peak.
SEC Alleges Misrepresentations in Financial Statements
The SEC’s complaint alleges that BorrowMoney.com falsely reported revenue in its 2019 filings and failed to meet revenue recognition criteria. The agency also contends while Mr. Piscitello did not disclose his beneficial ownership. Both the company and the individual owner are charged with violating multiple sections of the Securities Act and the Securities Exchange Act. The SEC is seeking a wide range of sanctions, including an injunction, disgorgement of ill-gotten gains, civil financial penalties, and an officer and director bar against Mr. Piscitello.
Investor Beware: Penny Stocks are Notoriously Risky Investments
Most investors should avoid penny stocks. These low-priced shares are often issued by small, unproven companies. Further, they traded on less regulated markets. Due to their lack of liquidity and transparency, penny stocks are highly susceptible to price manipulation and even outright fraud. Investors might face significant losses as these stocks can be extremely volatile and difficult to sell. Thorough research and caution are essential for anyone considering investing in penny stocks. If you suffered losses after getting a penny stock recommendation, you may have a claim against a broker or broker-dealer. Financial advisors must offer suitable investment guidance.
Contact Our Miami, FL Securities Fraud Lawyer Today
At Carlson & Associates, P.A., our Miami investment fraud attorneys have the professional expertise that you can trust in complex cases. Did you lose a large amount of money due to securities fraud? Get an attorney right away. Contact our investment fraud team today to get help with your legal claim. We are proud to represent investors in Miami, South Florida, and beyond.
Source:
sec.gov/enforcement-litigation/litigation-releases/lr-26038