SEC investigating Dream Exchange over alleged Scientology ties, fund misuse
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The Securities and Exchange Commission has launched a civil probe into Dream Exchange, a Chicago-based startup seeking to become a new stock exchange, following whistleblower allegations about its financial practices and connections to the Church of Scientology, according to reporting by the Wall Street Journal.
Former Dream Exchange employees told the Journal that SEC investigators from the agency’s Chicago office have questioned them in recent weeks. The inquiry reportedly centers on claims that the firm misappropriated investor funds and maintained undisclosed links to Scientology-affiliated organizations.
The probe remains in its early stages and may not result in formal allegations of wrongdoing.
Dream Exchange, led by founder and chief executive Joe Cecala, has positioned itself as a platform to help Black and minority business owners access capital markets. Its name is meant to be evocative of Martin Luther King Jr.’s landmark speech in 1963.
The company has applied for an SEC license to launch its trading platform, with a decision expected by November.
According to the Journal, financial records show that funds moved from Dream Exchange into an account at its parent company, which is owned by Cecala. That account made donations to organizations affiliated with Scientology.
Dream Exchange’s legal counsel, Dan Webb, has denied any impropriety, stating that any donations were purely part of Cecala’s personal affairs of which the company had no knowledge. Webb also described the claims against Dream Exchange and its founder as “false and meritless.”
The Journal’s reporting indicates that several investors, including some who were unaware of the company’s religious connections, have requested their money back since the allegations surfaced.
Read more https://www.investmentnews.com/regulation-and-legislation/sec-investigating-dream-exchange-over-alleged-scientology-ties-fund-misuse/262387
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