SEC Says Virtual Reality Company Was Playing Head Games

bike helmet

The SEC is going after a “virtual reality” company that marketed a helmet system that would track head movements to provide players a 360-degree view in a video game. 

The company, 3001 AD, solicited investors through phone calls made from a boiler room in Delray Beach, FL, the SEC said today in a press release.  The complaint, which also names 3001 AD’s principals, raised approximately $20 million from 1998 until 2008 through “the unregistered and fraudulent offering” of securities.

The company and its principals allegedly lied to investors about negotiating business relationships with Microsoft, Apple and former Disney CEO Michael Eisner.  3001 AD also failed to disclose that it was paying sales commissions of as much as 40% and repeatedly falsely indicated that an IPO was imminent, the complaint says.

3001ad.com is not functioning and the company phone number is disconnected, but here is a 2007 press release describing 3001 AD and some of its products. 

 

3001 AD SEC Complaint

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