This case was last updated from PACER on 03/28/2021 at 07:42:56 (UTC).

U.S. SECURITIES AND EXCHANGE COMMISSION v. VUUZLE MEDIA CORP. et al

Case Summary

On January 27, 2021, the United States Securities and Exchange Commission (“SEC”) represented by Daniel Joseph Maher, lawyer at the SEC, filed an ECF case against Vuuzle Media Corp. (together with its predecessor entities, hereinafter referred to as “Vuuzle”), Ronald Shane Flynn (“Flynn”) and Richard Marchitto (“Marchitto”) for allegedly fraudulently offering over $14 million in securities to investors across the United States using an aggressive boiler room sales scheme. This case was filed in U.S. District Court in the District of New Jersey with Judges  Katharine S. Hayden and Cathy L. Waldor presiding. 

 

According to the SEC in their complaint, Flynn allegedly falsely represented to investors that Vuuzle was a legitimate, successful, and growing company in the business of providing online live streaming and entertainment services and raised more than $14 million using a Flynn controlled boiler room of salespeople employing high-pressure tactics, which he allegedly misappropriated. The SEC alleged that Vuuzle had never made a profit and had never made a public offering on any stock exchange. The complaint also charged Richard Marchitto with allegedly aiding and abetting Flynn and Vuuzle’s fraud by allegedly acting as their U.S. corporate and financial presence and maintaining a U.S. bank account, corporate credit cards, and a New York office address for Vuuzle.

 

The SEC alleged that “Vuuzle, Flynn, and his subordinates told investors that Vuuzle would use their funds to grow and operate Vuuzle’s business. But instead, Flynn misappropriated the vast majority of what Vuuzle received. Of the $14 million investors gave Defendants, only approximately $2 million was used to operate Vuuzle – just enough to build and maintain superficial versions of the online streaming applications from which Vuuzle was purportedly going to earn revenue. These purported products were mere props Flynn used to raise additional investor funds.” 

 

SEC went on to allege that “Flynn diverted more than $10 million for his personal use and benefit and to support his boiler room operations, including paying commissions to himself and others.” In addition, the SEC also alleged that “Flynn used investor funds to pay more than $2.3 million in expenses that he incurred using corporate credit and debit cards.”

 

There are six claims for relief laid down by the SEC. The SEC charged Vuuzle and Flynn with alleged violation of Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5], Section 17(a) of the Securities Act [15 U.S.C. § 77q(a)] and Sections 5(a) and 5(c) of the Securities Act [15 U.S.C. §§ 77e(a) and 77e(c)]. The SEC charged Flynn, individually, for the alleged violation of Section 15(a)(1) of the Exchange Act [15 U.S.C. § 78o(a)(1)] and Marchitto was charged for allegedly Aiding and Abetting the Violation of Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5] and Section 17(a) of the Securities Act [15 U.S.C. § 77q(a)].

 

In its prayer for relief, the SEC seeks permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties against each defendant.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    2:21-CV-01226

  • Filing Date:

    01/27/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judge

Katharine S. Hayden

Referral Judge

Cathy L. Waldor

 

Party Details

Plaintiffs

SECURITIES AND EXCHANGE COMMISSION

U.S SECURITIES AND EXCHANGE COMMISSION

Defendants

VUUZLE MEDIA CORP.

RICHARD MARCHITTO

RONALD SHANE FLYNN

Attorney/Law Firm Details

Plaintiff Attorneys

DANIEL JOSEPH MAHER

Attorney at U.S. SECURITIES AND EXCHANGE COMMISSION

100 F Street, Ne

Washington, DC 20549

DEVON STAREN

Attorney at SECURITIES AND EXCHANGE COMMISSION

100 F Street Ne

Washington, DC 20549

DREW ISLER GROSSMAN

Attorney at SECURITIES AND EXCHANGE COMMISSION

100 F Street, N.E.

Washington, DC 20549

Defendant Attorneys

MELISSA ANN ALCANTARA

Attorney at DICKINSON WRIGHT PLLC

1825 Eye Street, Suite 1200

Washington, DC 20006

DONALD A. KLEIN

Attorney at WEINER LAW GROUP LLP

629 Parsippany Road

Parsippany, NJ 07054

JAY V. SURGENT

Attorney at WEINER LAW GROUP LLP

629 Parsippany Road, P.O. Box 438

Parsippany, NJ 07054-0438

 

Court Documents

#20

(#20) ORDER that Jacob S. Frenkel, Seth B. Waxman, and Aimee R. Gibbs are each permitted to appear pro hac vice in the above-captioned matter, re #18 Proposed Order. etc. Signed by Magistrate Judge Cathy L. Waldor on 3/26/2021. (qa, ) (Entered: 03/26/2021)

18 #4

Certification of Aimee R. Gibbs in Support of Application for Admission Pro Hac

18 #3

Certification of Seth B. Waxman in Support of Application for Admission Pro Hac

18 #2

Certification of Jacob S. Frenkel in Support of Application for Admission Pro H

18 #1

Certification of Sponsoring Attorney

#18

(#18) Proposed Order for Admission Pro Hac Vice on Consent by VUUZLE MEDIA CORP.. (Attachments: #1 Certification of Sponsoring Attorney, #2 Certification of Jacob S. Frenkel in Support of Application for Admission Pro Hac Vice, #3 Certification of Seth B. Waxman in Support of Application for Admission Pro Hac Vice, #4 Certification of Aimee R. Gibbs in Support of Application for Admission Pro Hac Vice)(ALCANTARA, MELISSA) (Entered: 03/24/2021)

17 #3

Certificate of Service

17 #2

Text of Proposed Order

17 #1

Brief in Support of Motion to Dismiss

9 #16

Exhibit

#9

(#9) Ex Parte MOTION Alternative Service on Defendant Ronald Shane Flynn by U.S SECURITIES AND EXCHANGE COMMISSION. (Attachments: #1 Brief, #2 Declaration, #3 Exhibit, #4 Exhibit, #5 Exhibit, #6 Exhibit, #7 Exhibit, #8 Exhibit, #9 Exhibit, #10 Exhibit, #11 Exhibit, #12 Exhibit, #13 Exhibit, #14 Exhibit, #15 Exhibit, #16 Exhibit, #17 Exhibit, #18 Exhibit, #19 Exhibit, #20 Exhibit, #21 Exhibit, #22 Exhibit, #23 Exhibit, #24 Text of Proposed Order)(STAREN, DEVON) (Entered: 02/16/2021)

#8

(#8) Proposed Order for Consent Extending Time to Answer or Otherwise Respond by RICHARD MARCHITTO. (SURGENT, JAY) (Entered: 02/12/2021)

#7

(#7) SUMMONS Returned Executed by U.S SECURITIES AND EXCHANGE COMMISSION. VUUZLE MEDIA CORP. served on 2/9/2021, answer due 3/2/2021. (STAREN, DEVON) (Entered: 02/10/2021)

#6

(#6) NOTICE of Appearance by JAY V. SURGENT on behalf of RICHARD MARCHITTO (SURGENT, JAY) (Entered: 02/10/2021)

#5

(#5) SUMMONS Returned Executed by U.S SECURITIES AND EXCHANGE COMMISSION. VUUZLE MEDIA CORP. served on 1/31/2021, answer due 2/22/2021. (MAHER, DANIEL) (Entered: 02/03/2021)

#4

(#4) SUMMONS Returned Executed by U.S SECURITIES AND EXCHANGE COMMISSION. RICHARD MARCHITTO served on 1/31/2021, answer due 2/22/2021. (MAHER, DANIEL) (Entered: 02/03/2021)

#3

(#3) SUMMONS ISSUED as to RONALD SHANE FLYNN, RICHARD MARCHITTO, VUUZLE MEDIA CORP.. Attached is the official court Summons, please fill out Defendant and Plaintiffs attorney information and serve. (qa, ) (Entered: 01/29/2021)

#2

(#2) NOTICE of Appearance by DEVON STAREN on behalf of SECURITIES AND EXCHANGE COMMISSION (STAREN, DEVON) (Entered: 01/29/2021)

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Docket Entries

  • 03/26/2021
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  • Docket(#20) ORDER that Jacob S. Frenkel, Seth B. Waxman, and Aimee R. Gibbs are each permitted to appear pro hac vice in the above-captioned matter, re #18 Proposed Order. etc. Signed by Magistrate Judge Cathy L. Waldor on 3/26/2021. (qa, ) (Entered: 03/26/2021)

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  • 03/25/2021
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  • DocketSet Deadlines as to #17 MOTION to Dismiss Plaintiff's Complaint. Motion set for 4/19/2021 before Judge Katharine S. Hayden. Unless otherwise directed by the Court, this motion will be decided on the papers and no appearances are required. Note that this is an automatically generated message from the Clerk`s Office and does not supersede any previous or subsequent orders from the Court. (qa, ) (Entered: 03/25/2021)

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  • 03/24/2021
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  • Docket(#19) ANSWER to Complaint with JURY DEMAND and Affirmative Defenses by VUUZLE MEDIA CORP..(ALCANTARA, MELISSA) (Entered: 03/24/2021)

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  • 03/24/2021
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  • Docket(#18) Proposed Order for Admission Pro Hac Vice on Consent by VUUZLE MEDIA CORP.. (Attachments: #1 Certification of Sponsoring Attorney, #2 Certification of Jacob S. Frenkel in Support of Application for Admission Pro Hac Vice, #3 Certification of Seth B. Waxman in Support of Application for Admission Pro Hac Vice, #4 Certification of Aimee R. Gibbs in Support of Application for Admission Pro Hac Vice)(ALCANTARA, MELISSA) (Entered: 03/24/2021)

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  • 03/24/2021
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  • Docket(#17) MOTION to Dismiss Plaintiff's Complaint by RICHARD MARCHITTO. Responses due by 4/5/2021 (Attachments: #1 Brief in Support of Motion to Dismiss, #2 Text of Proposed Order, #3 Certificate of Service)(SURGENT, JAY) (Entered: 03/24/2021)

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  • 03/03/2021
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  • DocketAnswer Due Deadline Update - The document #15 Letter, submitted by VUUZLE MEDIA CORP. has been GRANTED. The answer due date has been set for 3/24/2021. (qa, ) (Entered: 03/03/2021)

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  • 03/03/2021
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  • Docket(#16) CONSENT ORDER that Vuuzle's time to answer, move against, and/or otherwise respond to SEC's Complaint is extended through and including March 24, 2021. Signed by Magistrate Judge Cathy L. Waldor on 3/3/2021. (qa, ) (Entered: 03/03/2021)

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  • 03/02/2021
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  • Docket(#15) Letter from Melissa Alcantara, Esq., pursuant to Local Civil Rule 6.1, and with the consent of Plaintiff, requesting an extension of Defendant Vuuzle Media Corp.'s time to answer, move or otherwise reply to the Complaint re #1 Complaint. (Attachments: #1 Proposed Consent Order for Extension of Time to Answer)(ALCANTARA, MELISSA) (Entered: 03/02/2021)

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  • 03/02/2021
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  • Docket(#14) NOTICE of Appearance by MELISSA ANN ALCANTARA on behalf of VUUZLE MEDIA CORP. (ALCANTARA, MELISSA) (Entered: 03/02/2021)

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  • 02/26/2021
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  • Docket(#13) NOTICE of Appearance by DONALD A. KLEIN on behalf of RICHARD MARCHITTO (KLEIN, DONALD) (Entered: 02/26/2021)

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5 More Docket Entries
  • 02/16/2021
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  • Docket(#9) Ex Parte MOTION Alternative Service on Defendant Ronald Shane Flynn by U.S SECURITIES AND EXCHANGE COMMISSION. (Attachments: #1 Brief, #2 Declaration, #3 Exhibit, #4 Exhibit, #5 Exhibit, #6 Exhibit, #7 Exhibit, #8 Exhibit, #9 Exhibit, #10 Exhibit, #11 Exhibit, #12 Exhibit, #13 Exhibit, #14 Exhibit, #15 Exhibit, #16 Exhibit, #17 Exhibit, #18 Exhibit, #19 Exhibit, #20 Exhibit, #21 Exhibit, #22 Exhibit, #23 Exhibit, #24 Text of Proposed Order)(STAREN, DEVON) (Entered: 02/16/2021)

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  • 02/12/2021
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  • Docket(#8) Proposed Order for Consent Extending Time to Answer or Otherwise Respond by RICHARD MARCHITTO. (SURGENT, JAY) (Entered: 02/12/2021)

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  • 02/10/2021
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  • Docket(#7) SUMMONS Returned Executed by U.S SECURITIES AND EXCHANGE COMMISSION. VUUZLE MEDIA CORP. served on 2/9/2021, answer due 3/2/2021. (STAREN, DEVON) (Entered: 02/10/2021)

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  • 02/10/2021
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  • Docket(#6) NOTICE of Appearance by JAY V. SURGENT on behalf of RICHARD MARCHITTO (SURGENT, JAY) (Entered: 02/10/2021)

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  • 02/03/2021
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  • Docket(#5) SUMMONS Returned Executed by U.S SECURITIES AND EXCHANGE COMMISSION. VUUZLE MEDIA CORP. served on 1/31/2021, answer due 2/22/2021. (MAHER, DANIEL) (Entered: 02/03/2021)

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  • 02/03/2021
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  • Docket(#4) SUMMONS Returned Executed by U.S SECURITIES AND EXCHANGE COMMISSION. RICHARD MARCHITTO served on 1/31/2021, answer due 2/22/2021. (MAHER, DANIEL) (Entered: 02/03/2021)

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  • 01/29/2021
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  • Docket(#3) SUMMONS ISSUED as to RONALD SHANE FLYNN, RICHARD MARCHITTO, VUUZLE MEDIA CORP.. Attached is the official court Summons, please fill out Defendant and Plaintiffs attorney information and serve. (qa, ) (Entered: 01/29/2021)

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  • 01/29/2021
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  • Docket(#2) NOTICE of Appearance by DEVON STAREN on behalf of SECURITIES AND EXCHANGE COMMISSION (STAREN, DEVON) (Entered: 01/29/2021)

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  • 01/27/2021
  • DocketJudge Katharine S. Hayden and Magistrate Judge Cathy L. Waldor added. (ps) (Entered: 01/27/2021)

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  • 01/27/2021
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  • Docket(#1) COMPLAINT against RONALD SHANE FLYNN, RICHARD MARCHITTO, VUUZLE MEDIA CORP. with JURY DEMAND, filed by SECURITIES AND EXCHANGE COMMISSION. (Attachments: #1 Civil Cover Sheet)(MAHER, DANIEL) (Entered: 01/27/2021)

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