St. Louis Company, Fango, LLC Ordered to Pay Restitution, Civil Penalties After Misleading Investor
Jefferson City, MO (STL.News) Missouri Secretary of State Jay Ashcroft’s securities division issued a final cease and desist order awarding civil penalties, restitution and costs against a St. Louis start-up company, Fango, LLC and its founder Imani Butler.
Missouri Securities Commissioner David Minnick issued the order following a contested hearing in October 2021. The commissioner found that between August 2015 and April 2016, Butler raised $60,050 in start-up funding for Fango by selling stock to one St. Louis investor. Butler claimed his enterprise would facilitate interactive experiences between fans and celebrities and/or athletes via an internet website and mobile phone application. Once in possession of the investor’s money, Butler misappropriated a majority of the funds for his own personal benefit and made material untrue statements that misled the investor into providing Fango with additional funding.
Commissioner Minnick ordered Fango and Butler to pay restitution in the amount of $37,408.45 plus interest to accrue at 8% from April 2016 until paid in full, civil penalties in the amount of $30,000, and pay $16,510.88 in investigation costs.
“Always check out anyone who solicits investment opportunities or gives financial advice. If an offer seems ‘too good to be true, it probably is,” said Ashcroft. “Before you part with your hard-earned money, verify there are sufficient safeguards in place to assure your money will be used as you were told it would. Get it in writing.”