He said he could send money from a cellphone

The Securities and Exchange Commission on Tuesday (July 25) charged San Diegan John Anthony Giunti with perpetrating a securities fraud.

Giunti claimed he had developed an application that could send money from a cellphone. He raised nearly half a million dollars from 20 investors and was planning to raise another $5 million, with hopes of taking his company, Interactive Media Solutions, public in an initial public offering. Giunti assured investors that the money would be spent for business purposes, and the company had positive cash flow. He said he had an MBA from Columbia University.

But those claims were false, says the securities commission. He had no such Columbia degree, said the commission. Giunti spent the money on luxury vacations and private school tuition for his children. In federal court in San Diego, Giunti was charged with violating securities laws. Giunti agreed not to violate securities laws or be an officer of a public company, and to disgorge $483,000 while he and his company pay a civil penalty of $458,000.