Sean Frank Cloud Equity: Accused of Bringing Lawsuits for a $3 Million Scam (Latest Update 2023)
Sean Frank Cloud Equity Group is a fraudster with a long history of criminal activities. He has faced a multi-million lawsuit for breach of contract and failure to deliver the services he was obligated to.
Before you consider doing business with Sean or his company, it would be best for you
Sean Frank of Cloud Equity Group has faced a multi-million lawsuit for fraud and breach of contract.
The write-up will help you to understand in-depth information about his criminal past. You can go through the article in case you want to have a better understanding of the past background of Sean Frank’s Equity.
Exposing the Criminal Past of Sean Frank Cloud Equity
Sean Frank Cloud Equity Group has faced lawsuits for his shady activities. The following section sheds light on the same:
The following facts are asserted to be true in Plaintiff’s Complaint and are accepted true for the reason to resolve the awaiting motions. A Delaware company named HFW, Inc. bought the assets of Plaintiff. It is known as an Illinois company, by an Asset and Stock Purchase Agreement which was carried out on August 29, 2014.
Ray and Mohan both are residents of Canada and directors of HFW, Inc. They had permission to conduct business and later on execute transactions in support of HFW, Inc.
After some time, a Promissory Note was carried out and deposited on 29th August 2014. Ray and Mohan both directors and residents of HFW, Inc., had permission to conduct business and later on execute transactions on behalf of HFW, Inc.
Afterward, a Promissory Note was carried out and then delivered on August 29, 2014, for $ 1,550,00 from HFW, Inc. to Plaintiff.
What is the definition of fraud as a crime?
Fraud is punishable by jail or a fine. A fraud conviction could result in a sentence of up to three years in jail. The maximum prison term for a more serious fraud, such as one committed against an agency of the government, is six years.
To protect the Promissory Note, HFW, Inc. took for Plaintiff a security interest in the assets sent in the Sock Purchase Agreement and Asset and committed all issued and outstanding shares of stock in HFW, Inc. via a Share Pledge Agreement.
The plaintiff filed suit in the Circuit Court of Cook Country, Chancery Division contrary to HFW, Inc. in the year December 14, 2016.
Mohan and Ray claimed they lost out on making payments under the Promissory Note. Plaintiff exercised its rights to quickly take ownership of outstanding and issued shares of HFW, Inc. agreeable to the Share Pledge Agreement. On January 26, 2017, Plaintiff and the defendants of the state court litigation signed a Litigation Stay Agreement to permit HFW, Inc., time to look for a third-party buyer.
“Cloud Equity Group”, made up of Cloud Equity Group SIM LLC; Cloud Equity Investors, Cloud Equity Group SPG LLC, and Cloud Equity Group, entire citizens of New York were completely secured as a buyer. Cloud and Frank Equity Group formed OCI. it is a Delaware liability company.
It was formed to purchase the assets of HFW, Inc. The purchase was fulfilled through an Asset Purchase Agreement carried out through an Asset Purchase Agreement and executed on March 23, 2017.
Plaintiff affirms that Ray, Frank, Mohan, and Cloud Equity Group defined to Plaintiff that the term name APA “Target Annual Revenue” would hold the actual annualized revenue of active service.
The Compliant further explains that the “final draft of the APA, got signed by Mohan, Ray, and Frank had never got approved.
HFW and Plaintiff fixed the issues in the previous litigation via a Settlement Agreement, permitting Mohan and Ray to distribute the assets of HFW, Inc. to the Cloud Equity Group. The plaintiff discovered that “the historical and actual revenue was somewhere between 10% and 20% lower than the Target Annual Income.
By Plaintiff the Target Annual Income was inflated in the APA to deceive Plaintiff. Furthermore, OCI and Cloud Equity Group completely failed to make the complete payment.
Furthermore, on January 4, 2019, Plaintiff filed suit in court and claimed 1) breach of contract in opposition to Cloud Equity Defendants for declining to fulfill the obligations under the APA 2) Secondly, fraud against Defendants for wrongly increasing the Target Annual Revenue to persuade Plaintiff to release its charges of stock and to enter into a Settlement Agreement in the previous litigation. 3) Conspiracy counter to Defendants to enter into the APA to plan to mislead Plaintiff about the historical and actual annualized revenue of active service at close to $3,603,000.00.
About Sean Frank Cloud Equity :
Sean Frank was born on June 17, 1989.
According to his paid PR articles, he is a philanthropist, entrepreneur, and investor. He is known as the founder of Cloud Equity Group.
It is a global investment firm in New York City. Apart from this, he served as the CEO of XE Technology Solutions.
Mr. Frank commenced his initial small business when he was 12 years old. He created websites for his friends and charged a small monthly fee.
During those days, he also started high school and earned good than his professors. Most importantly, he was notable among his peers. He drew his motivation from Andrew McKelvey, founder of Monster in high school.
After some days, Sean Frank began to reinvest his profits to speed up his company’s growth and soon became proficient in obtaining small businesses.
More About Sean Frank Cloud Equity and His Professional Experience:
In October 2013, Honest established Cloud Value Group, a Wall Street-based investment management firm that works in leveraged buyouts and confidential debt investments.
Before joining Cloud Equity Group, he was the CEO of XE Technology Solutions, a web services conglomerate. As a strategy administrator, Mr. Frank acquired extensive involvement in inorganic learning experiences through acquisitions and mergers.
As a Chief Executive Officer, he effectively executed and coordinated more than twelve transactions, both vertical and horizontal, throughout his skillful journey.
Frank has had public talking engagements as an industry expert at Harvard College. Other notable places he claims to have visited include the University of Chicago, the Alternative Investment Summit, and the Alternative Asset Summit to name a few.
Last but not least, you must have a great idea about the American entrepreneur.
Also, you must have understood how Mr. Sean Frank has contributed to his career, and at a very young age he has achieved a lot in his career.
He was not only into Cloud Equity Group but also gained great experience in inorganic growth opportunities.
Moreover, the article highlights the criminal past of Sean Frank Cloud Equity.
There are plenty of similar cases where scammers tried to get away with their illegal activities by abusing legal loopholes. Some examples include NJ Ayuk of Centurion Law Group, Andrea Riposati of Dante Labs, and Gennaro Lanza.
Sean Frank of the Cloud Equity Group is a shady businessman you should avoid dealing with. There are plenty of service providers with far better track records. Avoid him.
- Sued for fraud
- History of breach of contract