Faulkner used investors' cash on extravagances including lavish meals, chartered planes, jewelry, strip clubs and female escort services, according to the SEC complaint. After investors had plowed funds into various other companies Faulkner created, the proceeds were illegally shifted back through Breitling, the SEC said. Executives and board members at Faulkner's companies did not adequately question the expenses, which were not disclosed to investors, the SEC said. Faulkner, Breitling and other companies named in the complaint did not respond to separate requests for comment. But after raising funds, Faulkner did little drilling and instead racked up millions in credit card charges, the SEC said.

Source: Huffington Post June 27, 2016 09:11 UTC