PHOENIX, AZ – A Phoenix man, John R. Uranga and his three affiliated companies have been ordered by the Arizona Corporation Commission to pay $459,699 in restitution for committing securities fraud in connection with a sports betting fund.
The Commission has also issued a $100,000 administrative penalty.
The Corporation Commission found that Uranga and the three entities he controlled—NVSG702, LLC, NVSG702 LLC, Silverstate702, LLC—promoted the investment in a sports betting fund through social media posts, and in exchange for their investment, investors received membership interests in the respondent entities that entitled them to receive dividends. The Commission found Uranga claimed to have made significant profits and to have bought many assets from gambling revenues.
The Commission found a significant amount of income of Uranga’s entities was from investor funds and not profits from the sports betting fund. The Commission found Uranga told investors the sports betting fund complied with Nevada gaming law when the fund failed to meet the requirements of that law. The Commission also found the respondents failed to pay investors any principal or interest and to disclose to later investors that previous investors had not been paid.
In settling this matter, Uranga and his three affiliated companies admit to the Commission’s findings and agreed to the entry of the consent order.