{"id":4825,"date":"2017-12-26T16:34:49","date_gmt":"2017-12-26T22:34:49","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4766"},"modified":"2022-03-22T15:07:57","modified_gmt":"2022-03-22T20:07:57","slug":"houston-technology-company-accused-28m-texas-securities-fraud","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/houston-technology-company-accused-28m-texas-securities-fraud\/","title":{"rendered":"Houston Technology Company is Accused of $28M Texas Securities Fraud"},"content":{"rendered":"

\t\t\t\tThe SEC has filed fraud charge against Behavioral Recognition Systems, Inc. and its former CEO Ray C. Davis. According to the Commission, the Houston-based technology company, and Davis solicited over $28M from hundreds of investors, diverting over $7.8M to the latter\u2019s personal use.<\/p>\n

Between 1\/2013 and 7\/2015, investors targeted in the alleged Texas securities scam <\/a>were solicited for funds and their involvement in seven equity securities offerings. \u201cMaterial misrepresentations and misleading statements\u201d were allegedly made to them about: how investor proceeds would be used, executive compensation, operating costs, and related party transactions.<\/p>\n

The regulator\u2019s complaint, claims that Behavioral Recognition Systems and Davis lied more than once in order to get investors to give them their money. Offering documents claimed that investor money would go toward \u201cworking capital,\u201d \u201cgrowth, \u201cmezzanine funding,\u201d and \u201cgeneral corporate purposes\u201d for Behavioral Recognition Systems. Instead, contends the SEC, Davis used shell companies under his control to divert about $11M of investor money for his own use–$7.8M of that money was allegedly diverted during the period at issue. Bogus invoices from the shell companies for services purportedly rendered were then generated to conceal the fraud.
\n Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The SEC has filed fraud charge against Behavioral Recognition Systems, Inc. and its former CEO Ray C. Davis. According to the Commission, the Houston-based technology company, and Davis solicited over $28M from hundreds of investors, diverting over $7.8M to the latter\u2019s personal use. Between 1\/2013 and 7\/2015, investors targeted in the alleged Texas securities scam […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3801,3760,3750,1],"tags":[],"class_list":["post-4825","post","type-post","status-publish","format-standard","hentry","category-sec","category-sec-enforcement","category-texas-securities-fraud","category-uncategorized"],"yoast_head":"\nHouston Technology Company is Accused of $28M Texas Securities Fraud — Investor Lawyers Blog — December 26, 2017<\/title>\n<meta name=\"description\" content=\"The SEC has filed fraud charge against Behavioral Recognition Systems, Inc. and its former CEO Ray C. Davis. 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