On September 14, 2010, the Securities and Exchange Commission filed a complaint in the United States District Court for the Central District of California against Atlanta -based LADP Acquisition, Inc. (LADP Acquisition) and its principals, Atlanta residents William A. Goldstein and Marc E. Bercoon. The SEC alleges that LADP Acquisition, Goldstein and Bercoon are perpetrating an ongoing $3.2 million entertainment investment fraud. The court entered an order halting the alleged fraud and freezing the assets of LADP Acquisition, Goldstein and Bercoon.
The SEC charged LADP Acquisition, Goldstein and Bercoon for allegedly misappropriating investor funds in a “bait-and-switch” scheme. The SEC’s complaint alleges that LADP Acquisition, Goldstein and Bercoon misrepresented that investors would be investing in L.A. Digital Post, Inc. (L.A. Digital), a television and film post-production company with offices in Los Angeles and New York. The SEC’s complaint alleges that prospective investors were provided offering materials listing prominent motion picture studios and television networks that had been clients of L.A. Digital and a “client list” setting forth well-known television shows and movies for which L.A. Digital provided post-production services.
In reality, according to the SEC’s complaint, investors received worthless certificates representing “shares” in LADP Acquisition, an entity with no business operations. The SEC’s complaint further alleges that the defendants represented to potential investors that L.A. Digital is “going public” or going to be the subject of an initial public offering (IPO) within a short period of time, such as 60 or 90 days, and that its shares will be traded on the American Stock Exchange, or some other public exchange such as the New York Stock Exchange or NASDAQ. However, no public offering of L.A. Digital stock has occurred.
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