|The South Florida Sun Sentinel newspaper reports that the Security and Exchange Commission’s civil lawsuit filed last month against The Gaming Factory has already reaped results. A federal judge has reacted to the suit, filed for alleged fraudulent practices by The Gaming Factory over a period of time, with an injunction that freezes all of the company’s assets, the death knell for The Gaming Factory, a company attorney warned the developers and operators of www.playersgalaxy.com and www.mrsportsbook.com, two of the company’s websites.|
The SEC’s charges are unspecified, not an unusual circumstance in a fraud case, where details are the proof and usually come after interrogation. However the judge has seen fit to so hamper the company and has ordered a receiver to try to find and return money to investors, who allegedly lost it due to The Gaming Factory’s illegal business practices. However the SEC’s exact actions as to any investigation were not revealed.
The company also operated www.thegamingfactory.com and the delay in the opening its long awaited online casino may have brought about the SEC’s suspicions. The casino is allegedly licensed in Panama, but it operated in Florida and Costa Rica, not in Panama, and its websites are registered to Shook, Hary & Bacon, LLP, a law firm in Miami, according to Domain Registration Services. About 75 investors were attracted to the company’s claim of huge profits raked in by the draw of huge jackpots. They put in nearly $2 million based on the appeal of a slick website and the company’s 27-year old very confident president, Richard Onorato. But the feds felt this promotion from West Palm Beach “used a steady stream of lies, exaggerations and high-pressure sales tactics to lure investors. People were duped into believing they would walk away with astronomical returns on virtually risk-free investments, the U.S. Securities and Exchange Commission alleges,” the newspaper said.
The company was even claiming to be making in July “tremendous profit even though its Internet site didn't start taking bets until January.” Court documents that also apparently persuaded the judge to seize the company’s assets include those that indicate The Gaming Factory was financed with only $2,000, but that the company's stock, unregistered, had been valued at $400,000.