SEC probes startup Dream Exchange over alleged – Business News
The feds are probing a Chicago-based startup referred to as Dream Exchange and its alleged ties to the Church of Scientology after a whistleblower claimed the company misused investor funds, in response to a report.
The Securities and Exchange Commission in latest weeks has been interviewing ex-employees of Dream Exchange after the company utilized for SEC approval to operate as a stock exchange, The Wall Street Journal reported on Friday, citing unnamed sources.
Officials from the SEC’s Chicago workplace have additionally spoken to the previous staffers in regards to the company’s reported hyperlinks to Scientology-affiliated teams, in response to the report.
Dream Exchange founder and CEO is Joe Cecala (proper) Joe Cecala / LinkedIn
The SEC is now investigating the Chicago-based start-up Dream Exchange
The probe, which remains to be in its early levels, was sparked by an initial Journal exposé earlier this 12 months on Dream Exchange that described how staff had been made to learn the writings of church founder L. Ron Hubbard
It described how the nameless whistleblower filed a grievance to the SEC in February, which alleged that the company did not disclose its hyperlinks to Scientology to buyers.
The grievance additionally claimed that staff had been usually requested to do volunteer work on behalf of the Church.
Joe Cecala, the company’s founder and CEO, is a Scientologist and a main donor to the group, in response to the Journal.
Actor John Travolta is arguably the Church of Scientology’s most well-known member, alongside “Mission Impossible” star Tom Cruise. Getty Images for TCM
The newspaper stated that funds from Dream Exchange LLC had been shifted into an account held by its mother or father company, owned by Cecala, that made donations to Scientology-affiliated organizations, totalling tens of hundreds of {dollars} a month.
The startup claims to help Black and minority-owned companies by enabling them to listing shares and entice investor capital.
Dan Okay. Webb, a lawyer for Dream Exchange, stated “the claims made against Dream Exchange and its founder are false and meritless.”
Some overseas governments have labelled the church a cult, insisting it operates more like a business somewhat than a bona fide non secular establishment. Getty Images
The Post has approached the Church of Scientology for remark. An SEC spokesperson declined to remark.
Scientology was based in 1954 by science fiction author Hubbard, who died in 1986, and it enjoys tax-exempt standing as a faith within the US.
Foreign governments, together with France and Germany, have labelled it as a cult, and critics accuse Scientologists of harassing people who search to give up or those that hit out on the group.
Its followers embody “Saturday Night Fever” star John Travolta and “Mission: Impossible” actor Tom Cruise.
