New York officialsannounced the conviction and sentencingof Nevada - base Sungame Corporation and its CEO Neil Chandran for wondrous larceny and surety fraud , saying the fraudsters would be forced to give up $ 2.8 million to redress hundreds of hoi polloi the company scammed with promises of free 3D tablet or go to jail . Chandran , who was previouslybarred from tradingby the Alberta Securities Commission in 2015 , will also be barred from doing so in New York state .
Sungame was a bizarre scam : The caller claimed that each $ 1,000 tablet , which was purportedly able of render content in 3-D without the consumption of a headset , would come with an“education subsidization ” rebatethat come back users a total of $ 1,500 . Then Sungame would provide to rent buyers keep the tablet or have the society resell it , passing back the earnings to the drug user , who would have purportedly already received the $ 1,500 . This mathematics clearly does not work , and Sungame touted the supposedly incredible deal in which they pay users on top of shipping them products as a means of force inventory to mass market place .
The New York Attorney General ’s officewrote that , of course , the money was going to other purposes than the promise rebate :
However , the consuming majority of these investors pick up neither their paying back of investiture capital nor their profit , as predict . Instead , their investiture Washington was used by Chandran for the unrevealed and unconventional purposes of repaying anterior investors , devote Chandran ’s personal and corporate liabilities , artificially inflating Sungame ’s publically - reported incarnate lucre , and funding the industry of extra pad , so as to promote the investment to yet more unwitting investors .
As the AG ’s office wrote , “ Sungame was a publicly - traded Las Vegas , Nevada - based technology house trading under symbol ‘ SGMZ ’ ” during the period where it was victimize customer , meaning that the scam became a securities fraud case as well .
Among the 100 of victims in the outline were “ several rabbis and their congregations,”according to the Journal News :
investigator started looking into Chandran when his scheme rip off a Nassau County resident for hundreds of thousands of dollars in 2014 . In that shell , Chandran and his Sungame corporation plead guilty in April to various counts of certificate fraud and grand thieving .
After the Nassau County allegation come up to light , the lawyer superior general ’s office then begin find dozens of dupe across the body politic , who collectively lose millions of dollar due to Sungame and Chandran ’s actions .
Chandran was cop in February 2017 at Los Angeles County Airport by U.S. Customs and Border patrol agentive role after come back from Hong Kong .
A2015 civil suitfrom some of Chandran ’s victim aver that Sungame never had the ability to deliver any computer tablets or gaming computer hardware at all , and that the chief operating officer gave customers the run - around when they pressed him . As theVerge noted , in 2016 , Sungame purchasedsome 9,000 Dlodlo VR headsets“to keep the demo running and the illusion inviolate . ”
If Chandran and/or Sungame fail “ to yield the court of justice - ordered restitution or otherwise dishonor the terms of his plea agreement , ” the AG ’s office wrote , Chandran could be re - sentenced for up to four years in prison house .
[ New York Attorney General ’s OfficeviaThe Verge , Journal News ]
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