Securities Commissioner Travis J. Iles filed an emergency cease and desist order that accused Adrian Lamont Gunn, a resident of Lubbock, from perpetrating an illegal securities scheme. According to the order, Gunn is a convicted white-collar criminal. Before perpetrating his recent scheme, Gunn allegedly pleaded guilty to identity theft and fraud in connection with the use of access devices. In 2013, a federal court sentenced him to serve 61 months in federal prison followed by four years of supervised release. His term of supervised release ended earlier this year.
The order alleges Gunn and Whisky Sky, an affiliated party, were offering investments tied to a nightclub in Houston, Texas. According to the order, the investments cost as much as $100,000 and purportedly afforded investors the right to receive half of the nightclub’s profits. The parties allegedly claimed to own the nightclub and Gunn provided investors with forged documents falsely documenting their purchase of the nightclub. In other words, the order alleges Gunn was about to defraud Texans by selling something he simply does not own.
The order also accused Gunn of offering investments purportedly issued by a California entertainment company that planned to promote a music festival in Texas. These investments allegedly cost $50,000 and entitled investors profits derived from ticket sales, which Gunn claimed would be more than $100,000. According to the order, however, Gunn had no affiliation with the entertainment company – his claims were simply false and he was not, in fact, partnering with it to promote a music festival.
Also, Gunn has not been registered to offer or sell securities in Texas and the securities were not registered or permitted for sale in Texas.
The order directs Gunn to immediately cease and desist his illegal and fraudulent offer of investments to Texans. He was 30 days to challenge the order.
Contact – Joe Rotunda, Director of Enforcement, at jrotunda@ssb.texas.gov or at 512-305-8392.
