TruCrowd's 420 Real Estate & Transatlantic Real Estate Offerings

E.D. California

Court

1:23-cv-01775

Case number

05/07/2019

Class period Start

12/27/2023

Class period End

02/27/2024

Lead Plaintiff motion deadline

The SEC alleged that TruCrowd failed to conduct due diligence in the crowdfunding offerings, exposing investors to fraud. 

Specifically, the SEC alleged CEO Petrescu failed to address red flags regarding offerings of 420 Real Estate and Transatlantic Real Estate,  failing to reduce the risk of fraud to investors.

The SEC alleged Shumake, Birch, and Jackson made multiple false and misleading representations and omissions to investors in connection with the crowdfunding 420 Real Estate and Transatlantic Real Estate offerings. 
They concealed Shumake’s past criminal history and his leading role in both offerings. 
They diverted hundreds of $ thousands from the offering proceeds for their personal benefit. 
None of the money raised in either offering was used to acquire or improve cannabis real estate. 
None of the investors in either crowdfunding offering has received any return on their investment, and few investors have recovered any of the funds they invested.

Investors have reasons to suspect that thier rights were grossly violated and already initiated claim in California against accountable parties.

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management,

Service Provider

Security Type

Stocks

Trade Direction

Long

Shock Event Date

12/27/2023

Filing date

12/27/2023

Lead Plaintiff Deadline

02/27/2024

Judge

Hon. Stanley A. Boone

TruCrowd's 420 Real Estate & Transatlantic Real Estate Offerings

Collecting participants…