PHILADELPHIA, Dec. 19, 2017 /PRNewswire/ -- Berger & Montague, P.C. announced today that the Securities and Exchange Commission ("SEC"), accused Behavioral Recognition Systems Inc. ("BRS" or the "Company") and its ex-CEO, Ray C. Davis ("Davis") (collectively, "Defendants"), of federal securities law violations in an action filed in the U.S. District Court for the Southern District of Texas. The SEC lawsuit was filed on behalf of investors who purchased or otherwise acquired BRS securities between January 2013 and July 2015.
If you purchased or otherwise acquired BRS securities and wish to discuss this action, please contact the investigating attorney, Michael Dell'Angelo of Berger & Montague, P.C. at 800-424-6690 or 215-875-3080, via email at firstname.lastname@example.org or by submitting a report.
BRS, now known as Giant Gray, Inc., is a Texas software company. The complaint alleges that Davis engaged in a fraudulent scheme to raise money from BRS investors and then diverted the money for his personal use.
Between January 2013 and July 2015, through his control of BRS, Davis allegedly raised money from the company's investors by using offering documents with material misstatements and omissions. Davis is then alleged to have used shell companies called Blackstone Group Inc. and Afcon Communications Inc. to siphon millions of dollars from the investors' funds for his personal benefit. BRS's investors believed their money was being used on legitimate corporate outlays. In total, the complaint alleges that Davis defrauded investors out of about $30 million and embezzled more than $7 million from BRS.
Berger & Montague, P.C. is a nationally recognized, full-service plaintiffs' class action law firm specializing in securities, antitrust and other complex litigation on behalf of institutions and other investor and individual plaintiffs. Attorney advertising. Prior results do not guarantee similar outcomes.
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