SEC v. Aaron Verdugo, et al.

Aaron Verdugo, Verdugo Enterprizes, LLC dba BDaaSWorx and BDaaS Inc. (together, “BDX”) allegedly raised approximately $6.67 million from approximately 200 investors in an unregistered securities offering made primarily through BDX based on materially false and misleading statements from approximately August 2022 through January 2024. The defendants allegedly offered and sold to investors the opportunity to purchase computer chipset units and management services, purportedly to be deployed in BDX’s current infrastructure. According to the SEC, the defendants further made numerous materially false and misleading statements, including that BDX had established customer relationships with several large Fortune 500 technology companies and was providing data computation and/or storage services to them, when BDX had no customer contracts, provided no such services, and had no sources of revenue. The defendants allegedly promised investors monthly returns from purported customer payments and a “satisfaction guarantee,” but by early 2023, they reportedly ceased paying monthly returns to nearly all investors and failed to honor refunds for all but four investors, using investor funds for those refunds. Moreover, Verdugo is alleged to have misappropriated at least $6.1 million of investor funds, primarily for unauthorized operational expenses and compensation.

Summary generated from official Securities and Exchange Commission press release