2024-05-08 sec-litreleases litigation_release 65 KB 2,337 chars

SEC v. Pison Stream Solutions, Inc.; and Joseph James, Jr., No. LR-25999, Northern District of Ohio (May 8, 2024) — Press Release

raw: Pison Stream Solutions, Inc. and Joseph James, Jr., et al.

Pison Stream Solutions, Inc. and Joseph James, Jr., et al., No. 1:24-cv-00816 (May 8, 2024)

Caption
Randolph v. Captain Ds, LLC
Source PDF JSON
summary

The SEC charged Pison Stream Solutions, Inc. and CEO Joseph James, Jr. with defrauding investors of $32.5 million to fund personal luxuries, seeking injunctions and civil penalties.

paragraph

The SEC filed a litigated action against Pison Stream Solutions, Inc. and Joseph James, Jr. for raising approximately $32.5 million through fraudulent securities offerings. James is alleged to have diverted at least $10.8 million for personal use, including the purchase of a private jet, homes, and luxury automobiles. The defendants face charges for violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

narrative

The SEC has filed a civil action against Pison Stream Solutions, Inc. and its CEO, Joseph James, Jr., alleging a scheme to defraud investors between December 2017 and September 2022. According to the complaint, the defendants raised approximately $32.5 million through various securities offerings, but James diverted at least $10.8 million for his personal benefit. These misappropriated funds were used to finance luxury purchases, including two homes, a private jet, and a Rolls Royce. Additionally, the SEC alleges that James used two LLCs, Genacts LLC and Soisi LLC, to hold assets purchased with investor funds. The defendants are charged with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934. The SEC is seeking injunctive relief, disgorgement with prejudgment interest, civil penalties, and a bar against James serving as an officer or director of a public company.

Enriched metadata

Scheme
corporate-fraud (95%)
Court
Northern District of Ohio
Case No.
1:24-cv-00816
Victim loss
$32,500,000
Entity
Pison Stream Solutions, Inc.
Classified corporate-fraud(confidence 95%). EDGAR detection: forms 10-K/10-Q/8-K· recall 56% / precision 8%. detection rule →
Statutes
Section 17(a) of the Securities ActSection 10(b) of the Securities Exchange ActRule 10b-5
Parties
RandolphCaptain Ds, LLC
Keywords
jamespisonsecuritiespison streamstream solutionsjoseph jamesjames pisonsecurities exchangesecexchange commissionalleges jamesinvestor fundsstreamsolutionsinc

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 2
  • $32.50M $32.5 million $10M–$100M
  • $10.80M $10.8 million $10M–$100M
Entities 7
  • person injunctive relief
  • person Joseph James, Jr.
  • person litigated action
  • company Pison Stream Solutions, Inc.
  • organization Pison Stream Solutions, Inc.
  • agency Securities and Exchange Commission
  • organization Securities and Exchange Commission
Triples 10
  • Securities And Exchange Commission filed litigated action
  • Joseph James, Jr. engaged in scheme to siphon money
  • Pison Stream Solutions, Inc. raised $32.5 million
  • Joseph James, Jr. received $10.8 million
  • James and Pison spent millions of dollars
  • Genacts LLC and Soisi LLC received assets purchased with investor funds
  • Securities And Exchange Commission seeks injunctive relief
  • Securities And Exchange Commission charges Pison and James with violating antifraud provisions
  • Raven a. Winters and Ann Tushaus conducted investigation
  • Benjamin J. Hanauer and Christopher H. White will lead litigation
PDF (from attached: complaint)
PISON STREAM SOLUTIONS, INC. and : JUDGE ____________ · Source
Text layers
Extracted body text (2,337c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25999 / May 8, 2024 Securities and Exchange Commission v. Pison Stream Solutions, Inc. and Joseph James, Jr., et al., No. 1:24-cv-00816 (N.D. Ohio May 7, 2024) SEC Charges Ohio Company and Its CEO with Offering Fraud The Securities and Exchange Commission yesterday filed a litigated action charging Pison Stream Solutions, Inc. and Joseph James, Jr. with defrauding investors in Pison’s securities offerings. According to the SEC’s complaint, between at least December 2017 and September 2022, James engaged in a scheme to siphon money from investors in Pison, a private chemical coatings company James controls. The complaint alleges that James and Pison raised approximately $32.5 million through the offer and sale of various types of Pison securities. The complaint further alleges that James and Pison began diverting investor funds for James’s personal benefit no later than March 2018, and continued throughout the scheme. As alleged, James received net payments of at least $10.8 million from the scheme. Further, the complaint alleges that James and Pison spent millions of dollars of investor funds on undisclosed, personal purchases for James, including, among other things, buying two homes and a private jet, and leasing luxury automobiles, including a Rolls Royce. The complaint also alleges that relief defendants Genacts LLC and Soisi LLC, two limited liability companies James formed, received assets he purchased with investor funds to which they were not entitled. The SEC’s complaint, filed in the U.S. District Court for the Northern District of Ohio, charges Pison and James with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks injunctive relief, disgorgement with prejudgment interest, and a civil penalty against Pison and James; disgorgement with prejudgment interest against Genacts and Soisi; and a bar against James serving as an officer or director of a public company. The SEC’s investigation, which is ongoing, was conducted by Raven A. Winters and Ann Tushaus, and supervised by Amy S. Cotter of the Chicago Regional Office. Benjamin J. Hanauer and Christopher H. White will lead the litigation. SEC Complaint
OCR text (2,337c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25999 / May 8, 2024 Securities and Exchange Commission v. Pison Stream Solutions, Inc. and Joseph James, Jr., et al., No. 1:24-cv-00816 (N.D. Ohio May 7, 2024) SEC Charges Ohio Company and Its CEO with Offering Fraud The Securities and Exchange Commission yesterday filed a litigated action charging Pison Stream Solutions, Inc. and Joseph James, Jr. with defrauding investors in Pison’s securities offerings. According to the SEC’s complaint, between at least December 2017 and September 2022, James engaged in a scheme to siphon money from investors in Pison, a private chemical coatings company James controls. The complaint alleges that James and Pison raised approximately $32.5 million through the offer and sale of various types of Pison securities. The complaint further alleges that James and Pison began diverting investor funds for James’s personal benefit no later than March 2018, and continued throughout the scheme. As alleged, James received net payments of at least $10.8 million from the scheme. Further, the complaint alleges that James and Pison spent millions of dollars of investor funds on undisclosed, personal purchases for James, including, among other things, buying two homes and a private jet, and leasing luxury automobiles, including a Rolls Royce. The complaint also alleges that relief defendants Genacts LLC and Soisi LLC, two limited liability companies James formed, received assets he purchased with investor funds to which they were not entitled. The SEC’s complaint, filed in the U.S. District Court for the Northern District of Ohio, charges Pison and James with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks injunctive relief, disgorgement with prejudgment interest, and a civil penalty against Pison and James; disgorgement with prejudgment interest against Genacts and Soisi; and a bar against James serving as an officer or director of a public company. The SEC’s investigation, which is ongoing, was conducted by Raven A. Winters and Ann Tushaus, and supervised by Amy S. Cotter of the Chicago Regional Office. Benjamin J. Hanauer and Christopher H. White will lead the litigation. SEC Complaint

Related documents (1)