Erick Laszlo Mathe and Ashif Jiwa Allegedly Swindled Investors into “Slam Dunk” Television Network Investment, Erroneously Stated that Michael Jordan Was Involved
Vision Broadcast Network‘s then-CEO Erick Laszlo Mathe and consultant Ashif Jiwa, of the Miami Beach area, raised at least $5.7 million in seed capital from August 2007 to February 2010, often using methods such as insinuating to investors that they had a shot to appear on a television show, the Securities and Exchange Commission (SEC) reports. In addition to offering breakthrough ground floor opportunities, according to the SEC’s complaint, Erick Laszlo Mathe and Ashif Jiwa told investors, over 100 whom were hoodwinked, that superstars such as the legendary Michael Jordan were committed investors, that an institutional investor had already sunk $25 million into the “slam dunk” project, and that Ashif Jiwa boasted that he was a $900 million hedge fund manager and the financial adviser to the Prince of Dubai. In sum, as one SEC regulator stated, “Defendants misrepresented nearly all aspects of Vision Broadcast’s purported assets and operations.”
Mathe and Jiwa Misrepresented Vision Broadcast as Having 70 Broadcast Licenses and $400 Million Value
Mathe and Jiwa, the SEC alleges, falsified claims to investors that Vision Broadcast owned low power television stations as well as 70 broadcast licenses needed to operate additional low power television stations, and that the estimated value of the stations and licenses would be in the neighborhood of $400 million once the television stations became functional. In addition, the SEC reports, the securities which were being offered were not registered with the SEC as required under the federal securities laws.
Mathe and Jiwa Allegedly Used Investors’ Cash for Golf Gear, Luxury Autos, and Boat
Mathe and Jiwa allegedly siphoned investors’ money out of Vision Broadcast and into other companies they controlled in the form of phony consulting services and personal expenses, the SEC reports, taking in more than $1.3 million that they never provided the company. Vision Broadcast reimbursed a relative of Jiwa $425,000 for personal expenses, and kicked back $84,000 to Jiwa for travel expenses, the SEC complaint further alleges. Vision Broadcast also paid personal expenses for Mathe and Jiwa that comprised more than three thousand dollars on golf equipment, lease payments on their luxury cars totaling $47,529, and nearly $2,500 in costs related to Mathe’s boat, the SEC reports.
Investment Fraud Lawyers Investigating
The Peiffer Rosca Wolf securities attorneys often represent investors who lose money as a result of investment fraud. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.