National investment loss and securities lawyers KlaymanToskes reports that the Securities and Exchange Commission (“SEC”) has charged Abraham Shafi, the founder and former CEO of Get Together Inc., a social media startup known as “IRL,” with defrauding investors out of $170 million. The SEC alleges that Shafi made false statements about the company’s growth and concealed personal expenses charged to company credit cards.
According to the SEC’s complaint, Shafi raised approximately $170 million by falsely presenting IRL as a viral social media platform with a rapidly growing user base. Contrary to these claims, IRL reportedly spent millions on ads that incentivized app downloads. Shafi allegedly hid these marketing expenses through misleading offering documents and third-party payment routing.
Moreover, the complaint asserts that Shafi and his fiancée, Barbara Woortmann, used company credit cards for personal purchases, including clothing, home furnishings, and travel, amounting to hundreds of thousands of dollars. These expenses were not disclosed to investors, leading to further misrepresentation of the company’s financial health.
If you suffered losses due to a brokerage firm/financial advisor’s recommendation to invest in IRL, or believe you have been a victim of broker/financial advisor misconduct, contact KlaymanToskes at 888-997-9956 or by email at investigations@klaymantoskes.com for a free and confidential consultation to discuss recovery options.
The SEC filed its complaint in the U.S. District Court for the Northern District of California, charging Shafi with violating antifraud provisions of federal securities laws. The SEC seeks permanent injunctive relief, civil money penalties, and an officer-and-director bar against Shafi. Woortmann is named as a relief defendant, with the SEC seeking disgorgement of personal expenses paid with investor funds.
In the SEC’s press release related to the matter, Monique C. Winkler, Director of the SEC’s San Francisco Regional Office, emphasized the need for vigilance among investors in the pre-IPO technology sector, highlighting the fraudulent practices used by Shafi to attract investments.
If you suffered losses as a result of an unsuitable recommendation to invest in IRL, or have concerns about potential misrepresentations of your investments, you may be entitled to recover your losses.
If you suffered losses as a result of an unsuitable recommendation to invest in IRL, or believe you have been a victim of broker/financial advisor misconduct, contact KlaymanToskes at 888-997-9956 or by email at investigations@klaymantoskes.com for a free and confidential consultation to discuss your recovery options. We do not collect attorneys fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm specializing in securities arbitration and litigation on behalf of retail and institutional investors. The firm has recovered over $600 million for clients in FINRA arbitrations and other securities litigation matters. With offices in California, Florida, New York, and Puerto Rico, KlaymanToskes is committed to helping investors recover their losses and hold brokerage firms accountable for their actions.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
investigations@klaymantoskes.com
www.klaymantoskes.com