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Scam: #33

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3001 AD, LLC

Virtual Reality Game $18 Million Scheme

Delray Beach, Florida

According to federal agents, a company named "3001 AD, LLC" based out of Delray Beach pitched a first person shooter game and accessories to theme parks and homes to over 600 investors from 1999 through 2008.

According to authorities, the company sold equity interests in 3001AD and several affiliated entities based on false information that gave investors unrealistic expectations of profits. In fact, investors were led to believe that they would receive a $29,000 profit on each $5,000 they invested.

In the end, the company raised about $18 million from investors. However, very few of the virtual reality accessories were ever sold. The investors are also accused of using the investor's money to pay for unauthorized personal expenses.

The defendants Jimmy L. Barker, Jr., Theodore Ginocchio, Ronald Bowsky, Jack Maddock, Robert Pozsony, and Rodger Brownson each pleaded guilty on Dec. 4 to one count of conspiracy to commit mail and wire fraud in connection with the scheme

Codefendants Robert Ladrach and Marc Rifkin previously pleaded guilty to one count of conspiracy to commit mail and wire fraud and are awaiting sentencing.

A sentencing hearing has been set for February 12, 2010. At sentencing, each defendant faces a statutory maximum term of imprisonment of up to twenty years, according to authorities.""


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