The Securities and Exchange Commission (SEC) has charged Fusion Hotel Management, LLC, Fusion Hospitality Corporation, and the company’s founder, Denny T. Bhakta in connection with an alleged $15 Million Ponzi Scheme.
Denny Bhakta allegedly solicited investments for Fusion Hotel Management, LLC and Fusion Hospitality Corporation to use for his own personal gain without the knowledge of investors.
According to Bhakta, the investments would be used to purchase discounted blocks of hotel rooms from Hilton then resell them to United Airlines.
Instead of using the funds for what he promised, Bhakta used them for gambling, fabricated bank records and fake contracts to show to the investors.
“The SEC’s complaint charges Fusion Hotel Management, Fusion Hospitality Corporation, and Bhakta with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934, Rule 10b-5 thereunder. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against all of the defendants,” said the SEC.
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