Global Internet Gaming, Inc., a Starnet licensee that operated the now defunct Via Casino, was recently targeted by the California Department of Corporations as part of the department's first boiler room task force sweep.
"Operation Tough Call" was a multi-agency task force set up to attack illegal and fraudulent telemarketing operations, commonly called "boiler rooms." Targeted companies offered stock, partnership interests and other investment opportunities.
Global Internet Gaming was cold calling people selling stock, according to CDC attorney Eric Benink, and allegedly raised $950,000 in this way. A civil complaint was filed against the company and owner Clark Shattuck on December 13,charging illegal and fraudulent offer and sale of securities, as well as violating a previous desist and refrain order.
The company, based of Marina del Rey, settled, agreeing to the terms of a restraining order as well agreeing to pay attorneys' fees, expenses and costs related to the investigation, prosecution or defense of the matter.
Shattuck did not respond to IGN's request for comments.
Supplemental Documents:
GIG Complaint
GIG Final Judgement
GIG Stipulation