This case was last updated from PACER on 08/05/2021 at 06:36:56 (UTC).

Securities and Exchange Commission v. Uulala, Inc. et al

Case Summary

On August 4, 2021, the U.S. Securities and Exchange Commission (the “Commission”), represented by Daniel Oren Blau and Jasmine M. Starr, attorneys at the SEC’s Los Angeles regional office, filed a civil enforcement action against Uulala, Inc. (“Uulala”), Oscar Garcia, and Matthew Loughran (collectively, “Defendants”), seeking permanent injunction and civil penalties for alleged fraudulent, unregistered offer, sale of digital asset securities and for sale of promissory notes. This case was filed in the U.S. District Court in the Central District of California with Judges Jesus G. Bernal and Kenly Kiya Kato presiding.

 

In its complaint, the Commission alleged that, “This case involves the fraudulent and unregistered offer and sale of digital asset securities known as UULA tokens by Defendant Uulala, Inc. (“Uulala”), and its subsequent fraudulent and unregistered offer and sale of promissory notes that could be converted to equity (the “Convertible Notes”).Uulala represented to investors that it had developed a functional mobile phone application (“app”) that allows users to store, transfer, and borrow money, pay bills, make purchases, earn rewards for this activity, and establish a credit history to qualify for microcredit loans.”

 

The Commission further alleged that, “From December 2017 through January 2019, Uulala raised more than $9 million from over a thousand investors, including those in the U.S., through the sale of UULA tokens in an initial coin offering (ICO). The UULA tokens offered and sold to investors constituted a “security” under the federal securities laws. Uulala, Garcia, and Loughran promoted the UULA offering primarily through a white paper publicly available through Uulala’s website (the “UULA White Paper”). The UULA White Paper contained false claims about Uulala’s technology, including that it incorporated “Proprietary Patent Pending Decentralized Database Technology. This technology was actually owned and patented by a different company, Uulala had no rights to the technology, and Uulala had not in fact incorporated that technology at the time of the UULA offering.”

 

The Commission also alleged that, “Starting in 2019, Uulala and Garcia raised an additional $500,000 from four U.S. investors through its Convertible Notes offering. Garcia created a presentation slide deck to promote the offering, which they showed to potential investors. This offering document contained false financial information about Uulala, including claiming that it had over $250,000 in revenue in 2019, which Garcia admitted was false.”

 

The Commission has laid down five claims for relief dealing with alleged fraud in connection with the purchase or sale of securities in violation of Section 10(b) of the Exchange Act and Rule 10b-5 , alleged fraud in the offer or sale of securities in violation of Sections 17(a)(1), (2), and (3) of the Securities Act, alleged fraud in the offer or sale of securities in violation of Sections 17(a)(1) and (3) of the Securities Act, alleged fraud in the offer or sale of securities in violations of Sections 17(a)(3) of the Securities Act, and alleged unregistered offer and sale of securities in violation of Sections 5(a) and 5(c) of the Securities Act.

 

In its prayer for relief, the Commission has requested the Court to permanently enjoin Uulala and Garcia from participating in any unregistered offering of securities, including any digital asset security and Loughran from violating Sections 5 and 17(a)(3) of the Securities Act [15 U.S.C. §§ 77e, 77q(a)(3)], along with the payment of civil penalties under Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d) of the Exchange Act [15 U.S.C. § 78u(d)].

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    5:21-CV-01307

  • Filing Date:

    08/04/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Courthouse:

    California Central District

Judge Details

Presiding Judge

Jesus G. Bernal

Referral Judge

Kenly Kiya Kato

 

Party Details

Plaintiff

Securities and Exchange Commission

Defendants

Uulala, Inc.

Oscar Garcia

Matthew Loughran

Attorney/Law Firm Details

Plaintiff Attorneys

Jasmine M Starr

Attorney at Securities and Exchange Commission

444 S. Flower Street, Suite 900

Los Angeles, CA 90071

Daniel Oren Blau

Attorney at US Securities and Exchange Commission

444 South Flower Street Suite 900

Los Angeles, CA 90071

 

Court Documents

#10

(#10) 21 DAY Summons issued re Complaint #1 as to defendants Oscar Garcia, Matthew Loughran, Uulala, Inc. (esa) (Entered: 08/04/2021)

#9

(#9) Notice to Counsel Re Consent to Proceed Before a United States Magistrate Judge. (esa) (Entered: 08/04/2021)

#8

(#8) NOTICE TO PARTIES OF COURT-DIRECTED ADR PROGRAM filed. (esa) (Entered: 08/04/2021)

#7

(#7) NOTICE OF ASSIGNMENT to District Judge Jesus G. Bernal and Magistrate Judge Kenly Kiya Kato. (esa) (Entered: 08/04/2021)

6 #1

[Proposed] Final Judgment

6 #6

Main Document

5 #1

[Proposed] Final Judgment

5 #5

Main Document

4 #1

[Proposed] Final Judgment

4 #4

Main Document

#3

(#3) Request for Clerk to Issue Summons on Complaint (Attorney Civil Case Opening) #1 filed by Plaintiff Securities and Exchange Commission. (Blau, Daniel) (Entered: 08/04/2021)

#2

(#2) CIVIL COVER SHEET filed by Plaintiff Securities and Exchange Commission. (Blau, Daniel) (Entered: 08/04/2021)

#1

(#1) COMPLAINT No Fee Required - US Government, filed by Plaintiff Securities and Exchange Commission. (Attorney Daniel Oren Blau added to party Securities and Exchange Commission(pty:pla))(Blau, Daniel) (Entered: 08/04/2021)

4 More Documents Available
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Docket Entries

  • 08/04/2021
  • View Court Documents
  • Docket(#10) 21 DAY Summons issued re Complaint #1 as to defendants Oscar Garcia, Matthew Loughran, Uulala, Inc. (esa) (Entered: 08/04/2021)

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  • 08/04/2021
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  • Docket(#9) Notice to Counsel Re Consent to Proceed Before a United States Magistrate Judge. (esa) (Entered: 08/04/2021)

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  • 08/04/2021
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  • Docket(#8) NOTICE TO PARTIES OF COURT-DIRECTED ADR PROGRAM filed. (esa) (Entered: 08/04/2021)

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  • 08/04/2021
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  • Docket(#7) NOTICE OF ASSIGNMENT to District Judge Jesus G. Bernal and Magistrate Judge Kenly Kiya Kato. (esa) (Entered: 08/04/2021)

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  • 08/04/2021
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  • Docket(#6) STIPULATION for Settlement Consent of Defendant Matthew Loughran filed by Plaintiff Securities and Exchange Commission. (Attachments: #1 [Proposed] Final Judgment)(Blau, Daniel) (Entered: 08/04/2021)

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  • 08/04/2021
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  • Docket(#5) STIPULATION for Settlement Consent of Defendant Oscar Garcia filed by Plaintiff Securities and Exchange Commission. (Attachments: #1 [Proposed] Final Judgment)(Blau, Daniel) (Entered: 08/04/2021)

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  • 08/04/2021
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  • Docket(#4) STIPULATION for Settlement Consent of Defendant Uulala, Inc. filed by Plaintiff Securities and Exchange Commission. (Attachments: #1 [Proposed] Final Judgment)(Blau, Daniel) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
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  • Docket(#3) Request for Clerk to Issue Summons on Complaint (Attorney Civil Case Opening) #1 filed by Plaintiff Securities and Exchange Commission. (Blau, Daniel) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#2) CIVIL COVER SHEET filed by Plaintiff Securities and Exchange Commission. (Blau, Daniel) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#1) COMPLAINT No Fee Required - US Government, filed by Plaintiff Securities and Exchange Commission. (Attorney Daniel Oren Blau added to party Securities and Exchange Commission(pty:pla))(Blau, Daniel) (Entered: 08/04/2021)

    Read MoreRead Less
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