Ray C. Davis and Behavioral Recognition Systems, Inc., or BRS, Allegedly Made Solicitations of over $28 Million from Investors Involving Seven Equity Offerings
Ray Davis and Behavioral Recognition Systems, Inc., (BRS) allegedly made solicitations greater than $28 million from investors in seven equity offerings between from January 2013 through July 2015, according to an SEC Complaint currently under review by attorneys Joe Peiffer and James Booker.
Peiffer Wolf Carr & Kane securities practice lawyers are investigating Behavioral Recognition Systems, Inc.’s alleged fraudulent scheme.
Investors who believe they may have lost money in activity related to Behavioral Recognition Systems, Inc.’s alleged fraudulent scheme are encouraged to contact attorneys Joe Peiffer or James Booker with any useful information or for a free, no obligation discussion about their options.
BRS and Davis, in an effort to raise funds from investors, allegedly compiled material misrepresentations and misleading statements to investors with regard to BRS’s operating expenses, their intended use of investor proceeds, executive compensation programs, and transactions related to other parties, the Complaint states.
Davis allegedly Implemented Shell Corporations to Siphon Approximately $11 Million of BRS Investors’ Funds for His Personal Benefit; Davis, in an Alleged Effort to Legitimize Said Shell Companies, Purportedly Submitted Dozens of False Invoices Claiming the Companies Provided Services to BRS
Davis, from at least March of 2010, allegedly implemented shell corporations that he purportedly controlled to siphon approximately $11 million ($7.8 million during the relevant period of January 2013 and July 2015) of BRS investors’ funds for his own personal use, according to the aforementioned SEC Complaint under review by attorneys Joe Peiffer and James Booker.
Davis, to allegedly make the payments to the shell companies look legitimate, submitted, or caused to be submitted, to BRS dozens of invoices falsely claiming that these shell companies provided services to BRS, the Complaint notes.
For example, Davis also allegedly caused BRS to send an extra $679,000 to an antiques broker to pay for Davis’s personal purchases of ancient jewelry, gold, and other artifacts, including gold pendants, gold crosses, pearl bracelets, garnet pendants, and gold rings, the Complaint states.
Davis, purportedly attempting to make said payments appear legitimate, allegedly created a phony entity called “LS Farrow” and on at least three occasions submitted, or caused to be submitted, invoices to BRS that falsely claimed “LS Farrow” operated from Victoria, Australia and provided “financial services” to the company, the Complaint reports.
In truth, however, no such entity exists and no such services were ever provided, and the Victoria, Australia address Davis used on the invoices was actually the address for a cemetery in Australia where a person named LS Farrow is interred, the Complaint notes.
BRS and Davis, by allegedly engaging in the fraudulent and deceptive conduct described in the SEC Complaint, allegedly violated provisions of the federal securities laws, the Complaint states.
Securities Lawyers Investigating
The Peiffer Wolf Carr & Kane securities lawyers often represent investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Behavioral Recognition Systems, Inc.’s alleged fraudulent scheme. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of Behavioral Recognition Systems, Inc.’s alleged fraudulent scheme may contact the securities lawyers at Peiffer Wolf Carr & Kane, Joe Peiffer or James Booker, for a free no-obligation evaluation of their recovery options, at 504-523-2434 or via e-mail at jpeiffer@pwcklegal.com or jbooker@pwcklegal.com.