Utherverse and Brian Shuster facing lawsuit for securities fraud
Utherverse, along with Brian Shuster, is currently facing a securities fraud lawsuit that was filed earlier this week. The lawsuit was brought forth by Josh Denne, Blockchain Alliance, and Jeremy Roma. Denne had previously filed a lawsuit against Shuster in California, but due to limited public access to state-level court filings in California, details were not readily available to the public.
Fortunately, a copy of Denne’s Complaint, filed on November 6th, 2024, has been made available to BehindMLM, allowing for more insight into the case. The lawsuit accuses Utherverse defendants, including Shuster, of engaging in fraudulent activities and misleading investors. The plaintiffs, including Nima Momayez, Blockchain Funding Inc., MasterNode Partners LLC, and Blockchain Alliance LLC, allege that the defendants deceived them into investing by promising significant returns, misrepresenting financial health, and exaggerating market success.
The Complaint outlines how the defendants misused investor funds for personal gain and other undisclosed purposes, causing financial harm to the plaintiffs. Additionally, the defendants misrepresented important financial metrics, further contributing to the plaintiffs’ losses. Denne, the lead plaintiff in the case, has taken legal action against Shuster and other defendants in response to their alleged fraudulent activities.
The lawsuit sheds light on a series of agreements between the plaintiffs and Utherverse defendants, including a Senior Secured Convertible Promissory Note and a SAFT Agreement. Denne claims that Shuster failed to honor these agreements, resulting in significant financial losses for the plaintiffs. Denne alleges that, as of September 2024, the tokens and shares purchased through these agreements would have been worth millions, had they been fulfilled as agreed upon.
One interesting aspect of the Complaint is the mention of Utherverse’s alleged ties to the pornography industry. Denne claims that after investing over a million dollars into Utherverse, Shuster’s involvement in the pornography industry tarnished the company’s reputation. This alleged association with adult content made it challenging for Utherverse to establish banking relationships, according to the lawsuit.
Despite these challenges, Denne claims to have assisted Utherverse in securing a banking relationship with Fresno Bank. The Complaint also references additional investments made by Denne in public relations and social media promotions following the fallout from Shuster’s alleged use of Utherverse in the adult entertainment industry.
Overall, the securities fraud lawsuit brought against Utherverse and Brian Shuster exposes a complex web of allegations and legal claims. The plaintiffs seek justice for their financial losses due to the defendants’ alleged fraudulent activities, misrepresentations, and misuse of investor funds. As the case unfolds, more details are likely to emerge, shedding further light on the extent of the alleged wrongdoing perpetrated by the Utherverse defendants.
