Virtual reality biz actually imaginary
The Securities and Exchange Commission has charged 3001 AD, which claimed to be a virtual reality technology company, with fraud. The SEC claims the company was nothing more than a boiler room telemarketing scheme designed to fleece investors.
The SEC alleges that 3001 AD, LLC and these individuals raised approximately $20 million from about 500 investors nationwide through a maze of unregistered offerings that hyped the company’s supposedly promising virtual reality products, including a helmet system tracking players’ head movements to provide a 360-degree view in a video game. Investors were told in the offering materials that the sales commissions paid on their investments were dramatically less than they actually were. An imminent Initial Public Offering (IPO) was repeatedly hyped to investors while no steps were actually being taken toward going public. And prestigious business relationships between 3001 AD and Microsoft, Apple, and former Disney CEO Michael Eisner were touted to investors even though such relationships never existed.
Turns out the promised profits, like the professed products, were virtual.
Don Mecoy
Business Writer
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