The Securities and Exchange Commission (“SEC”) has charged two Florida residents, Peter Kirschner of Delray Beach and Stuart Rubens of North Miami, with securities fraud in connection with $2.4 million raised from approximately 200 investors under false pretenses.
According to the SEC, Thought Development Inc. (“TDI”), based in Miami Beach, hired Kirschner, Rubens and their company, Premiere Consulting, to solicit investors to help the Miami Beach-based company raise capital. The complaint states that TDI invented a laser-line system that generates a green line on a football field that is visible as a first-down marker not only on television, but also within the stadium to players, fans, and officials. TDI asserted that its technology would decrease the time needed by officials to determine first downs, so more time could be sold to television advertisers.
The SEC alleges that Kirschner and Rubens misrepresented to investors that their money would be used to develop TDI’s technology and fund a purported IPO of its stock. In reality, 75 percent of the capital raised was retained by Premiere Consulting or paid to sales agents through undisclosed commissions and fees. In addition, the complaint alleges that potential investors were told that TDI’s laser-line technology would be used during NFL games and the Super Bowl. According to the SEC, TDI did not have any agreements with the NFL or any team to use its technology during football games.
According to the SEC’s complaint, TDI terminated its relationship with Premiere Consulting, Kirschner, and Rubens in late 2011 when it found out about the lies being told to investors and the undisclosed commissions and other fees.
Kirschner, Rubens and Premiere Consulting have agreed to settle the charges, but the amount of any monetary penalties has not yet been determined.