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
A snippet of the case file against Sean Frank Cloud Equity (Source)

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.

23/12/2023 Update
As of now, Sean Frank Cloud Equity has not responded, nor has it apologized for its misdeeds. They have ignored our efforts to highlight the problems faced by their victims. Furthermore, they have only focused on propagating their fake PR.

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.

Sean Frank was sued for more than $3 million for fraud and breach of contract

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 :

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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.

Conclusion

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.

2.8Expert Score
Don't Trust Sean Frank of Cloud Equity Group

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.

Trust
3
Experience
3
Professionalism
2.5
Ethics
2.5
Pros
  • None
Cons
  • Sued for fraud
  • History of breach of contract
  • Unreliable

17 Comments
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  1. My savings have gone with them, this is because of my negligence to their criminal past, so take this article seriously for future investment.

  2. I have wasted a lot of money behind this company, and they have also scammed thousands of their investors, and business partners, so beware of this nefarious venture, need to select the perfect and safer option.

  3. Make sure you don’t into trouble after connecting to these fraudulent firms, it is very important to choose the perfect one.

  4. In the market, several other firms are proving to be very effective with their deals and providing the perfect services as claimed before investing.

  5. The biggest problem of the current phase is that they aren’t punished just after committing the crime, using the legal loopholes to keep themselves safe is better becoming an option for them, and we need to catch them up.

  6. The only problem with this man was his criminal past, where people have got to see his involvement in criminal activities, so make sure your money is safe with you and not handed over to this criminal, most of time they are never exposed to higher levels, but thanks to the author he kept the facts of this famous criminal.

  7. Sean has got all the required experience to promote his company and make them realize the importance of the promotional value of his company, he had advertised his company as one of the best companies of all time.

  8. Cloud Equity Group had promised the terms and conditions of annual income and how the distribution will be done with the plaintiff group.

  9. This company is a complete group of scammers where you will be cheated only but none of them will help you in making any profit for you.

  10. The stock market selling a business is full of risks where you will never get to know whether the company which has promised you for providing several profitable schemes may get into a loss.

  11. Here the mistake is of the people who made him superior after trusting all his schemes and also he was making false promises to his users, by the way, he is very well experienced in the field thus it is very well known that he is attached to the field when he was in his high schools.

  12. There should be special amendments for the cause like breaching contacts and not able to deliver the promised deal. Here he was not fulfilling the services he was obligated to.

  13. Frank was very hard-working and made transactions with ease thus his experience in the field has gained a lot of popularity in the market.

  14. Sean Frank has a quite motivational past where he developed a suit for his friend and charged him for some amount of money which is very creative though he was inspired by Andrew McKelvey who was also an inventor when he was in high school.

  15. These articles are really very helpful for the premature investors of people who aren’t aware of these scammers get to know about them.

  16. The type of educational experience that is trying to portray is just a part of bragging which is a traditional trait, now after reading this article I can guarantee many of the investors will not trust him anymore.

  17. HE is not a trustable person at all due to his notorious past we can not trust him due to the type of criminal records he is having are not at all a professional entrepreneur traits.

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