The investor is betting that blank-check mergers continue to be an attractive alternative to traditional IPOs amid the current market volatility.
The deal will create the “only vertically-integrated pure-play sports betting and online gaming company based in the United States.”
To get a merger approved, the company, Ability, and two of its executives lied to investors about a "game changing" product, says the SEC.
The SEC says the lawyers played a "crucial role" in passing off at least 22 shell companies as legitimate startups.
The SEC says Sheldon Rose sold more than a dozen blank check companies disguised as promising startups to investors.
In the scheme, the SEC charges, the accused created as many as 22 blank check companies and passed them off as legitimate business enterprises.
