Search company, investor...
Search
LottoNet company logo

The profile is currenly unclaimed by the seller. All information is provided by CB Insights.

getlottonet.com

Stage

Unattributed | Alive

Total Raised

$610K

Last Raised

$610K | 7 yrs ago

About LottoNet

LottoNet is an online concierge service for purchasing and redeeming lotto tickets.

LottoNet Headquarters Location

49 N. Federal Highway Suite 240

Pompano Beach, Florida, 33062,

United States

844-568-8663

Predict your next investment

The CB Insights tech market intelligence platform analyzes millions of data points on venture capital, startups, patents , partnerships and news mentions to help you see tomorrow's opportunities, today.

Latest LottoNet News

SEC Uncovers Boiler Room Scheme in Florida Firm

Mar 28, 2017

Tweet The U.S. Securities and Exchange Commission (SEC) recently announced charges against a Florida-based company, its chief executive and its top sales agent in regards to conducting a boiler room scheme that solicits investments in a business purportedly facilitating online and cell phone sales of lottery tickets in various states. The agency obtained an emergency court order freezing the assets of LottoNet Operating Corp., David Gray and Joseph A. Vitale. According to the report, the SEC alleges that they misrepresented to investors that their money would be used to develop and market LottoNet and that sales agents did not receive commissions. At least 35% of investor proceeds were allegedly paid to boiler room sales agents in the form of commissions, and LottoNet allegedly siphoned investor funds for personal spending on clothing, wedding-related expenses and strip clubs. Among the pitches used in sales agent scripts prepared for cold calls to investors was “you’re looking at a monthly dividend payout of $8,500 every month” on a $25,000 investment if LottoNet reaches 1% market share. Also the scripts allegedly touted the purported safety of the investment, noting a 60% return as a “worst case” scenario if the company was ever sold. The SEC has alleged that while LottoNet has raised a total of roughly $4.8 million from investors, the company had only paid $10,525.43 in investment returns to investors through the end of February. Sales agents allegedly have been paid more than $1.1 million out of investor funds. Furthermore it was alleged that Vitale, who personally raised at least $1.4 million from investors, used the alias Donovan Kelly in an apparent attempt to hide from investors that he is permanently barred by the Financial Industry Regulatory Authority (FINRA). Eric I. Bustillo, director of the SEC’s Miami Regional Office, commented: As alleged in our complaint, little did investors know they were being duped with a script based on misrepresentations while investor funds were being spent in strip clubs. I'm interested in the

  • Where is LottoNet's headquarters?

    LottoNet's headquarters is located at 49 N. Federal Highway, Pompano Beach.

  • What is LottoNet's latest funding round?

    LottoNet's latest funding round is Unattributed.

  • How much did LottoNet raise?

    LottoNet raised a total of $610K.

Discover the right solution for your team

The CB Insights tech market intelligence platform analyzes millions of data points on vendors, products, partnerships, and patents to help your team find their next technology solution.

Request a demo

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.