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VICTIMS OF INVESTMENT FRAUD SCHEME SOUGHT BY SECRETARY OF STATE’S OFFICE
Posted Date: 4/30/2009
Scheme Solicited Investors for Business Selling Baby Products through Vending Machines; Investments in Non-Existent “TDB Vending” in Question

(Las Vegas, NV; April 30, 2009) - Investigators in the office of Secretary of State Ross Miller say there may be dozens of potential victims of a Las Vegas man who is now in custody, facing 39 securities-related felony counts. James B. Spungin was arrested April 29, 2009 in Las Vegas, and is charged with six counts of securities fraud against a person over 60 years old; seven other counts of securities fraud; 13 counts of offer or sale of unregistered securities; and, 13 counts of theft.

Investigators say Spungin told his victims he had patent rights to a vending machine that would dispense infant care products at public locations like airports and bus stations, and that Procter and Gamble had agreed to purchase Spungin’s patent right for $35,000,000. They say Spungin’s pitch to his victims included a forged copy of a contract with Procter and Gamble. He offered potential investors the opportunity to buy shares of stock in “TDB Vending,” although neither the company nor the stock is registered with the Nevada Secretary of State.

“We want to find any other victims of this scheme in order to make sure the perpetrator is brought to justice,” said Secretary of State Ross Miller. “We also want to again warn and remind Nevadans that before investing they can and should conduct due diligence. Our website, www.nvsos.gov, has loads of resources for quickly checking the background and licensing of anyone offering to sell investment products. If someone offers you an investment opportunity, and they don’t show up as a licensed broker, you should put the deal on hold and do further research, including contacting my office.”

Anyone with knowledge of any others who may have invested with Spungin, or anyone who believes they may be the victim of a fraudulent investment scheme, can contact the Secretary of State’s office at (702) 486-2440, or (775) 688-1855. As in all criminal matters, the office maintains that the allegations are merely accusations and individuals are presumed to be (more) innocent until proven guilty in a court of law.

For more information on how to choose an investment professional, go directly to http://www.nvsos.gov/securities/investors/publications/knowyourbroker.asp , or follow the Securities Center “investor education” links at www.nvsos.gov .
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