Press Release Complaint Filed Against Unlicensed Broker Dealer for Fraudulently Selling Millions of Dollars in Unregistered Securities to Coloradans

Denver - November 8, 2024 - Colorado Securities Commissioner Tung Chan filed civil fraud charges against Market4Caster, LLC and owner Eric Gemelli for misleading hundreds of Colorado investors. The Commissioner alleges that the defendants were unlicensed to sell securities, sold unregistered securities, and misrepresented and omitted material facts to investors.

According to the complaint, Gemelli allegedly sold more than $3 million in securities to Colorado investors from 2016 to 2022. He collected $1 million in commissions and solicited investments from friends, students and women he met through dating apps. The investments included penny stocks issued from several different entities and investments in mining operations.

Gemelli allegedly told investors funds would be used for the business operations when in fact money was misappropriated and used for personal expenses. Defendants also failed to disclose that Gemelli wasn't licensed to sell securities in Colorado nor that he earned significant commissions from the sales. Further, consumers weren't aware that the State of California issued two cease and desist orders against Gemelli for violating securities law.

"We allege Mr. Gemelli took advantage of investors by painting a rosy picture of his investment opportunities and omitting key information," said Commissioner Chan. "We want to remind consumers always to check the background of anyone offering securities at Investor.Gov."

If you or someone you know has been scammed or has invested with Market4Caster, LLC or Eric Gemelli, please contact the Colorado Division of Securities at [email protected] or 303-894-2320 or file a complaint online at the Division's website.

Access the complaint here.

About DORA and the Division of Securities

DORA is the state's umbrella regulatory agency, charged with managing licensing and registration for multiple professions and businesses, implementing balanced regulation for Colorado industries, and protecting consumers. Our nearly 600 employees are dedicated to preserving the integrity of the marketplace and promoting a fair and competitive business environment throughout Colorado.
The Division of Securities exists to protect investors and maintain confidence in the securities market, while avoiding unreasonable burdens on the marketplace by licensing securities professionals, enforcing securities law violations, and helping Coloradans become more informed investors. Visit securities.colorado.gov to learn more.