Ray Davis & Behavioral Recognition Systems, Inc. (BRS) — Alleged Fraudulent Scheme Involving Material Misrepresentations
Ray C. Davis and Behavioral Recognition Systems, Inc., or BRS, Allegedly Solicited over $28 Million from Investors in Seven Equity Offerings between January 2013 and July 2015
Ray Davis and Behavioral Recognition Systems, Inc., or BRS, allegedly solicited over $28 million from investors in seven equity offerings between January 2013 and July 2015, according to an SEC Complaint currently under review by attorneys Joe Peiffer and James Booker.
Peiffer Wolf securities practice lawyers are investigating Behavioral Recognition Systems, Inc.’s alleged fraudulent scheme involving material misrepresentations.
Investors who believe they may have lost money in activity related to Behavioral Recognition Systems, Inc.’s alleged fraudulent scheme involving material misrepresentations are encouraged to contact attorneys Joe Peiffer or James Booker with any useful information or for a free, no obligation discussion about their options.
BRS (now known as Giant Gray, Inc.) allegedly made material misrepresentations and misleading statements to investors regarding BRS’s intended use of investor proceeds, executive compensation, related party transactions, and operating expenses, according to the aforementioned Complaint.
Davis also allegedly took part in and largely helped BRS’s material misstatements to investors, and was the highest-ranking executive at BRS and the executive in charge of fund raising, the Complaint notes.
Ray Davis Allegedly Siphoned $7.8 Million from Investors for His Own Person Use and Benefit
Ray Davis was also allegedly responsible for the company’s offering documents, which contained multiple false and misleading statements, and he also purportedly took part in drafting and approving said documents, authorized their distribution to prospective investors, and personally used them to raise funds for BRS from prospective investors, according to the aforementioned SEC Complaint under review by attorneys Joe Peiffer and James Booker.
BRS allegedly claimed in the offering documents that investor funds would be used for “growth,” “mezzanine funding,” “working capital,” and “general corporate purposes” to build BRS, but Davis instead allegedly siphoned approximately $7.8 million for his own use and benefit, the Complaint notes.
For example, in contrast to the statements in the offering documents, Davis allegedly made $5.2 million in transfers to Davis’s and his wife’s joint bank account, made purchases from an art gallery in Boca Raton, Florida, and made payments to a well- known auction house, the Complaint states.
Securities Lawyers Investigating
The Peiffer Wolf securities lawyers often represent investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Behavioral Recognition Systems, Inc.’s alleged fraudulent scheme involving material misrepresentations. 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 Behavioral Recognition Systems, Inc.’s alleged fraudulent scheme involving material misrepresentations may contact the securities lawyers at Peiffer Wolf, Joe Peiffer or James Booker, for a free no-obligation evaluation of their recovery options, at 504-523-2434 or via e-mail at firstname.lastname@example.org or email@example.com.