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Behavioral Recognition Systems – Giant Gray – Investment Losses

Behavioral Recognition Systems

SEC files a complaint against Texas software company, Behavioral Recognition Systems (aka Giant Gray)

Have you suffered losses investing in Behavioral Recognition Systems Inc. (also known as Giant Gray) at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you recover your losses through FINRA Arbitration.

According to a press announcement on December 14, the Securities and Exchange Commission has charged Behavioral Recognition Systems, a Houston technology company, and its former CEO, with allegedly fraudulently raising approximately $28 million from investors. The SEC alleges $7.8 million of those proceeds were diverted for the former CEO’s personal benefit.

According to the SEC Complaint, Behavioral Recognition Systems Inc. (BRS) and CEO Ray C. Davis allegedly solicited over $28 million from hundreds of investors through repeated lies, such as that investor funds would only be used for working capital and BRS only paid Davis a nominal salary.

The complaint further alleges that Behavioral Recognition Systems Inc. and Davis secretly diverted millions of dollars of investor money for Davis’s personal use, including to purchase ancient jewelry, gold, and other artifacts and to fund Davis and his wife’s joint bank account.

Behavioral Recognition Systems and Davis also allegedly used fake invoices in the names of two shell companies Davis controlled, the Blackstone Group, Inc. and Afcon Communications, Inc., to cover their tracks.

Davis also allegedly invented a fake company and used fictitious invoices in that company’s name to cause Behavioral Recognition Systems to send payments to an antiques broker for Davis’ personal purchases. According to the complaint, the invoices listed a purported address for the company in Australia; however the address was for an Australian cemetery where an individual is buried with the name of the fake company.

The White Law Group is investigating potential claims involving FINRA registered broker dealers who may have recommended Behavioral Recognition Systems to investors.

When investors are taken advantage of by unscrupulous financial professionals, the brokerage firms that employ such individuals may be held liable for the losses. Brokerage firms have a responsibility to supervise the conduct of their brokers.

Free Consultation with a Securities Attorney

Did you lose money investing in Behavioral Recognition Systems or Giant Gary at the advice of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you recover your losses.  To speak to a securities attorney, please call The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, please visit our website at www.whitesecuritieslaw.com.


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