Debra Borchardt
The Securities and Exchange Commission (SEC) has reached a settlement with the regulator, according to a court filing Friday with TruCrowd Inc. as reported by Law360. TruCrowd, also known as Fundanna agreed to pay $243,747 in disgorgement, interest and penalties with regards to a claim that the company ignored red flags about businessman Robert Shumake Jr. In September, the SEC filed charges against three individuals and one issuer on a crowdfunding scheme for two cannabis companies that raised $2 million. The money was supposed to be used to buy and invest in cannabis properties, but no money was ever used for those purposes. Instead, the money was siphoned off for personal use. In addition to that, the SEC also charged the registered crowdfunding portal, TruCrowd, and its CEO Vincent Petrescu, who placed the offerings on the portal’s platform. For his part, Petrescu will pay a $9,700 fine as part of the settlement. Law360 reported that neither he nor TruCrowd admits or denies the SEC’s allegations against them.
In addition to those settlements, Shumake’s associate Nicole Birch has also agreed to settle the claims against her by paying more than $679,000 in disgorgement and interest as well as a $200,000 fine. The report also stated that she also neither admits nor denies the claims.
Scam Cannabis Real Estate Companies
According to the SEC’s complaint, Robert Shumake, alongside associates Nicole Birch and Willard Jackson, conducted fraudulent and unregistered crowdfunding offerings through two cannabis and hemp companies, Transatlantic Real Estate LLC and 420 Real Estate LLC. The complaint alleges that Shumake and Birch raised $1,020,100 from retail investors through Transatlantic Real Estate, while Shumake and Jackson raised $888,180 through 420 Real Estate. Shumake, Birch, and Jackson allegedly diverted investor funds for personal use rather than using the funds for the purposes disclosed to investors.
Birch was the CEO of Transatlantic Real Estate and Bangi, Inc. The complaint alleges that Birch facilitated the payment of money from the Transatlantic Real Estate offering to herself and to H.B. Associates. Birch is also CEO of Bangi, which is a publicly-traded company that supposedly specializes in the acquisition and leasing of properties that support the cannabis industry. Bangi’s common stock trades in the over-the-counter market under the symbol “BNGI.” Jackson was the CEO of 420 real Estate and is accused of Jackson taking the payment of money from the 420 Real Estate offering to the Jackson Entities. 420 Real Estate is a Houston TX LLC.
Shumake’s Criminal Past
Investors were unaware of Shumake’s criminal past when they invested in the real estate companies. According to the filing, in December 2017, Shumake pled guilty to two misdemeanor violations of the Michigan Credit Services Protection Act, and on behalf of his business, to two felony counts of obtaining money by false pretense, for improperly taking upfront fees for mortgage audit services that he promised, but failed to deliver (People v. Shumake, et al., Mich. 46th Jud. Dist. (Feb. 15, 2017)). The filing went on to say that the presiding court sentenced Shumake to a probationary period of 18 months, during which time Shumake was forbidden to work in a position where he could have “direct control over, or access to, another person’s money.” Before his probation ended in May 2019, he is said to have begun working with the Transatlantic Real Estate offering with Birch and set in motion the 420 Real Estate offering with Jackson.
The complaint suggested that Shunake’s personal relationship with Birch led them to create the crowdfunding scheme and hide Shumake’s involvement with the company. The complaint also says that “Shumake regularly attended and participated in Bangi Board meetings, gave direction to the company’s officers and directors, and conducted business on behalf of Bangi. Board minutes identify Shumake as the founder of Bangi. Bangi Directors and Shumake discussed his criminal history and its potential impact on prospective investors. Despite his involvement in the affairs of Bangi, Shumake elected not to serve as an officer or director of the company. Nor was he listed on Bangi’s website.”
Through the Bangi company, Shumake connected with Jackson to create 420 Real Estate and also hide his involvement with that company. The fear was that if investors became aware of Shunake’s criminal past they wouldn’t want to commit any money.
Lies To Investors
The SEC alleges that The Transatlantic Real Estate offering statement lied to potential investors. They claim that Transatlantic Real Estate told investors it had employed a senior management team that had significant experience in the real estate industry and sophisticated finance and capital markets expertise, which wasn’t the case. Investors were also told that Transatlantic Real Estate had acquired a 9-plus acre property with 80,000 Square Foot Green Houses located in California; and that Transatlantic Real Estate would use $584,220 of the proceeds for “property improvement.” None of which was true. 420 Real Estate is also being accused of making similar false claims to investors.
Shumake’s connection to the company was kept secret even though he directed communications with current and prospective investors, lined up a transfer agent for Transatlantic Real Estate, helped prepare documents and promote the offering, solicited Transatlantic Real Estate advertisements from third parties, and drafted advertising scripts for social media. Shumake is also accused of performing similar duties for 420 Real Estate without that being disclosed to investors.
TruCrowd is Not So Truthful
The crowdfunding site called TruCrowd is a registered funding portal. The SEC alleges that CEO Vincent Petrescu hosted the Transatlantic Real Estate and 420 Real Estate offerings on its platform but is accused of failing to address red flags including Shumake’s criminal history and involvement in the crowdfunding offerings, and otherwise failed to reduce the risk of fraud to investors. Some 2,000 investors from various states gave money to the companies without knowing that they were being given false information about the companies.
Petrescu is responsible for selecting the companies for his site. He also assisted in preparing the documents for the offerings. In exchange for its services in connection with the Transatlantic Real Estate and 420 Real Estate crowdfunding offerings, TruCrowd received $91,679 and $48,412, respectively. Petrescu was aware of Shumake’s deep involvement with the companies and continued to keep investors in the dark about his connections. Petrescu continued to work with Shumake despite learning of his past through a securities lawyer who declined to work with Shumake for a Reg-A offering proposed for Bangi.
Apparently, it didn’t take investors long to suspect they were being scammed and began sending complaints to Petrescu, who either ignored them or assured the investors that everything was okay. No registration statements were filed with the SEC.
The SEC’s complaint, which was filed in the U.S. District Court for the Eastern District of Michigan, charges Shumake, Birch, Jackson, and 420 Real Estate with violating the antifraud and registration provisions of the Securities Act of 1933 and Securities Exchange Act of 1934, and seeks disgorgement plus pre-judgment interest, penalties, permanent injunctions, and officer and director bars. The complaint also charges TruCrowd and Petrescu with violating the crowdfunding rules of the Securities Act and seeks disgorgement plus pre-judgment interest, penalties, and permanent injunctions.
60 comments
Christian Garcia
October 18, 2021 at 10:41 pm
If there is a class action lawsuit, I would like to participate. Need to recouped my investment money.
Edward B Gresham
October 25, 2021 at 10:13 am
Me too!
Samantha
January 26, 2022 at 11:53 am
Just hearing about this. Me as well!
Queen
April 6, 2022 at 12:55 pm
Let’s all of us get together
An
file
a
Huge Class Action Suit
Against
them
All
Stan
June 7, 2022 at 6:23 pm
Same here. Any new updates on this? Thank you
Denise Sparks
July 23, 2022 at 12:09 pm
Ii was scammed as well
Andrea Gomes
August 4, 2022 at 5:19 pm
I’m trying to do that email me
Andrea
August 24, 2022 at 6:56 pm
Hello We are trying to put together a class action lawsuit.
Sherman A. Mungin
November 14, 2023 at 11:37 pm
I was one of the ones who invested in Transatlantic Real Estate, LLC via Fundana at the behest of Roland Martin. How can I recover my $300 investment?
Richard Pinto
December 13, 2023 at 4:15 pm
Me Three!
Nia Foxx
December 8, 2021 at 10:26 am
I was one of the duped as well, lickily I only made a small investment to see how things would go but I still want my money back.
Damion Dickerson
February 23, 2022 at 4:20 pm
I got ripped off by them if I can get help please email me at mistadickerson@gmail.com
Queen
April 6, 2022 at 12:48 pm
I think we should take from them what they took from us let’s get
this
Class action suit
started multiple heads Is better than one
LTBRUCE
March 12, 2022 at 12:49 am
How are investors being informed of procedures to recoup investments or any class action suits?
Queen
June 20, 2022 at 1:59 pm
I would like to join forces
with
you and everyone on this page
On
filing
A
Class-action suit against these people
Please email me and let me know If you’re Interested
I think it’s better to have multiple people
than just one
Their not going to take a case with just one person
We need the group of us
Even starting out with a couple
of
Us
but we can’t let this go
I need that money with Intrest
Here Is my email
QueenAnitaEmpireInc@aol.com
To start the Law Suit
Robert Anglin
June 26, 2023 at 12:29 am
I Felt a deep sense of Disappointment, when i came across this story, After not hearing or being able to make contact with anyone from this establishment. I WOULD LIKE TO regain my investment with interest, please forward to me any information regarding this class action lawsuit….
Tamanie Pitts
March 18, 2022 at 1:28 pm
I just found this out by trying to reach TransAtlantic Real Estate, LLC. and found this article about it being a scam. I would like to participate in a class action law suit to recoup my investment with interest.
Queen
April 6, 2022 at 12:43 pm
I was scam by Investing In this company because
I thought this was legit
Because It was recommended
by
Roland Martin from Unfiltered
that’s
The only reason why
I Invested
cuz
I am one of his followers on his YouTube shows
I don’t believe
Roland Martin
knew It was a scam
I think he might have been scam as well
but
I found out about this a couple of months ago
when
I was trying to find out about the update on
my
Investments
I would like to know
If
there’s a
Class Action Suit
I want to be a part
of
It
I want to sue the pants off these people
I don’t want just want
My Invested
I want the Interest of the Investment that they promised me that
It was supposed to mature after a certain amount of time and the
Interest of the years that they lied to us
and
The Interest on the stress pain and suffering
they
Took mines
So
I wanna take
theirs
All you people on here
who’s looking to start
A Class-Action Suit
let’s do It
I’m down
Stan
June 7, 2022 at 6:24 pm
Count me in.
Andrea
August 24, 2022 at 6:57 pm
We are talking to a lawyer we need as many people an we can get
Kyle
September 30, 2022 at 1:14 am
Count me in I want to join the lawsuit as well.
Kena
February 27, 2023 at 2:00 pm
I would like to join this CALS as well.
Robert Anglin
June 26, 2023 at 12:34 am
If you are seeking counsel advise, I’m in, please let me know the outcome…
Stephanie Mathis
October 18, 2022 at 8:10 am
I just found out about the “SCAM ” it makes me extremely upset that this was all a scam! I invested a lot of money and would “LOVE” to be part of a class action law suit! Please let me know via email if this will be taken place!!!!
Modest Green
October 1, 2023 at 7:09 pm
I certainly want to participate in a class action suit. People and the lies and greed. Steal from people who are trying to get by and or a little ahead. SMH
Pam Muncie
April 8, 2022 at 4:30 pm
Count me in as well, for a class action lawsuit. This scam was NO accident, they took from the little people and did it intentionally. There is a certain place in hell for them. I hope because they “agreed” or admitted to the fraud, they won’t dodge the bullet and not serve any time. I invested $1,200 and I need that money SO bad now because of the pandemic. Keep my posted about what you hear.
Queen
April 20, 2022 at 9:39 pm
Yes
Please
Anyone
Everyone Count Me
In
If
There’s A Class Action Suit
Please
Email
me
@
QueenAnitaEmpireInc@aol.com
Blessings to u all
Pam Muncie
April 8, 2022 at 4:39 pm
These people knew exactly what they were doing and how it was going to hurt people. They didn’t care. They took our money and drove off into the sunset. They deserve to go to jail for a few years and lose everything they have. The whole thing is sickening and we have to keep remembering, while they were out, living the high-life, we were trying to keep our heads above water. I want the money that I invested, back to me, and see these people behind bars.
Jonathan Jefferson
April 9, 2022 at 9:08 am
They got me as well. As a veteran, I thought this would be a good investment and a way of helping other combat veterans such as myself. I would like to be compensated for all of my losses.
S. Rigby
May 10, 2022 at 11:21 am
Please let me know of any class action lawsuit as I was part of this scam!
Stan
June 7, 2022 at 6:26 pm
Count me in.
Lee Nora Glover Holloway
June 8, 2022 at 1:32 pm
I invested in 2019 I have copies of statements, letters and such from every source that was behind TRUcrowd and 420 Real Estate LLC.
Does anyone know of any attorneys and how can we get SEC to protect us and get our money back? SEC is a government funded commission government ; funded meaning our tax money funds them so how can we get them to get our money back with interest?
Debra Borchardt
June 9, 2022 at 8:50 am
The SEC is not an enforcement agency. Your best solution is to hire an attorney and sue the parties involved. The SEC mostly hands out fines or barrs people from serving in executive positions. If it’s really bad they may turn it over to the FBI, who is an enforcement agency. However, they have limited staff for these types of offences.
Eva S
June 18, 2022 at 5:15 pm
I invested and bought two shares. please email me at esiakam@yahoo.com. I want to sue them. A class action law suit is in order
Andrea
August 24, 2022 at 6:59 pm
Email me
Andrea Gomes
August 4, 2022 at 5:13 pm
Hello my name is Andrea I contacted a law firm called Morgan and Morgan to see if they can help here is their number maybe if Everyone call we can make something happen.
800-555-6666
I am filling out paperwork today stating what happened.
Tyrone Gardner
July 25, 2023 at 12:33 pm
Hello I am Tyrone and I would like any information on the law suit against Transatlantic Realestate I made a investment as well and would like to joint the suit.
Queen W-Hardy
August 31, 2022 at 10:00 am
Yes Me & Ms Andrea Gomes
JOIN US IN THIS CLASS ACTION SUIT
Have spoke to a law firm and they said that we need more people to join in on the class action in order for them to take the case please feel free to get in contact with us here is my email address if you want to join the lawsuit with me and Ms Andrea
QueenAnitaEmpireInc@aol.com
Mortez B
January 10, 2023 at 8:53 am
Hello. My name is Mortez. I’m contacting you to find out if you’ve had any success since the class action lawsuit has been completed. Maybe you can assist me with getting my money back that was invested. I’ve contacted the same attorney’s office as you have. I’m now awaiting a call back. Obviously I’m referring to the Fundanna crowd funding scheme/Trucrowd. Any information would be greatly appreciated.
Thank you. Have a great day.
Veronica Washington Robinson
July 11, 2023 at 3:10 pm
I just came across this story, After not hearing or being able to make contact with anyone from this establishment. please include me in this class action lawsuit….
Debra Borchardt
July 11, 2023 at 3:16 pm
You will need to reach out to the legal group. We only report the story.
Michelle Marshall
January 27, 2023 at 11:19 am
I would like to get my money back as well. I invested in Transatlantic Real Estate LLC I would like to be a part of the lawsuit.
Marie
February 3, 2023 at 3:18 am
No sabía de nada de esto que puedo hacer aún tengo acciones de BNGI que puedo hacer alguien que me oriente como puedo aportar ala demanda colectiva
Shenee Phillips
February 5, 2023 at 4:47 am
I also invested money. And I would like to be included in any class action lawsuit that takes place. Sphillips37.sp@gmail.com
Marcia
February 14, 2023 at 7:04 pm
I knew something was really wrong when I received a clipart version of a stock certificate with somebody else’s name on it! Please add/contact me regarding any and ALL class actions suits related to this scam. Thank you.
Nadar
March 13, 2023 at 8:49 am
Please count me in, I knew sooner or later that this would catch up with those crooks.
Nadar
March 13, 2023 at 8:50 am
I still have the fake certificate
Alley Dariah
May 20, 2023 at 5:34 pm
Hello,
I would like to be part of the class action suit against Fundanna/TruCrowd.
Thanks!
E. Dugans
May 31, 2023 at 7:42 pm
Hello Ms. Borchardt,
My name is Edith Dugans and I also made an investment sometime in 2019. Is there anyway to recoup the money that I put in?
Thank you for the article, I was just trying to find out who to contact at the Transatlantic Real Estate and I ran across your article.
Please let let me know.
Tressa
June 26, 2023 at 8:59 pm
Hi my name is Tressa I would like to get my money back too I just ran across this article cuz I was trying to find information what was going on.i didn’t think that it was all a scam transatlantic real estate can someone please email me let me know what I need to do thank you.
Randall
July 18, 2023 at 9:11 pm
I just found out about this. I was checking on my investments and was getting no where. Then I realized I got scammed!!! I am definitely onboard with joining a Class Action Lawsuit. I too invested because of Roland’s suggestion.
Ronald
August 14, 2023 at 9:13 pm
i also would like too know whats going on with my investment
Rodrick Mitchell
September 7, 2023 at 12:43 am
Hello all. I was scammed also, I definitely would love to join the class action lawsuit. email @ralphey12367@gmail.com
Modest Green
October 1, 2023 at 7:12 pm
I certainly want to participate in a class action suit. People lie, cheat and steal from us.
Comedia L English-Terry
October 3, 2023 at 9:49 am
To whom this may concern-I just came across this and would like also to be apart of the class action suit. I too made an investment with this company.
Ken
October 3, 2023 at 4:36 pm
Any word on this lawsuit? Just found out about it.
Adrian Jackson
November 19, 2023 at 11:05 pm
I invested also. If there is a class action suit I would like to be contacted. Adrianj28@msn.com
DEVIN D DESVIGNE
December 5, 2023 at 8:09 am
I invested because of Roland Martin. Can you give me an update on whats taking place as far as the Class action lawsuit? 09/28/19 was the day I invested.
Charles
December 29, 2023 at 4:06 pm
Just finding out about this and would like to participate in the class action lawsuit if it’s not too late. I usually don’t fall for these scams but trusted Roland Martin. My email is lil_cw@yahoo.com.
Debra Borchardt
January 1, 2024 at 4:27 pm
You would need to pursue locating the legal team. We have nothing to do with this. We’re just reporting it.