As most of our readers know, iFunding is no longer in business. Now the SEC is involved.
The complaint alleges that Skelley and Shah in fact diverted more than $1 million of investor funds for their personal use. The complaint also alleges that Skelley made materially false and misleading oral statements to investors and, in a later period, iFunding LLC and Skelley used two private placement memoranda to solicit investors that contained false statements about the use of funds and misrepresented the number of real estate projects that iFunding had financed, and the amount of funds that had been raised on iFunding’s portal.
The 506 Investor Group saw this coming years ago. In Fact in a post form April 2016, a member asked about investing in ifunding. Here is my response from
Apr 25, 2016, 9:02 AM:
I would not touch iFunding shares at 10% of the valuation of the last raise. I read the original offering and the assumptions were pure fantasy. They projected hockey stick growth (has not happened) and they claim to make 20%+ of an offering in fees. Upfront fees, 2% a year and the carry at the end. Investors and competition has not and will not allow that. That plus the management….. Turnover ( Scott Lichtman recently left and he was the most honest guy I knew there) and the CEO Bill S….. My mamma said if you can’t say anything nice, don’t say anything at all. The following 6 paragraphs will some up what I should say about Bill:
Not to mention the Fintech and VC bubble is busting before our very eyes.