SEC Charges Lottery.com Former CEO, Executives and SPAC CEO in Alleged Financial Fraud
The U.S. Securities and Exchange Commission has filed civil fraud charges against Lottery.com, its former CEO Lawrence Anthony DiMatteo, former executives Matthew Clemenson and Ryan Dickinson, and Vadim Komissarov, CEO of Trident Acquisitions Corp.
Allegations Linked to SPAC Merger
According to the SEC’s complaint, the defendants allegedly engaged in a series of improper revenue transactions connected to Lottery.com’s merger with a special purpose acquisition company. The regulator claims the company recorded revenue from transactions involving customer data and advertising credits that allegedly lacked economic value.
The SEC alleges these transactions materially inflated Lottery.com’s reported financial performance and were included in disclosures relied upon by investors.
Details of the Alleged Revenue Schemes
The enforcement action outlines several alleged schemes, including the recording of approximately $9 million in revenue from customer data transactions, as well as additional advertising-related arrangements before and after the merger. According to the SEC, these activities accounted for a significant portion of the company’s reported revenue during the relevant periods.
Enforcement Action and Remedies Sought
The SEC has charged the defendants with violations of federal securities laws, including antifraud, reporting, and internal controls provisions. The regulator is seeking permanent injunctions, disgorgement with interest, civil penalties, and bans preventing certain defendants from serving as officers or directors of public companies.
Two former executives have consented to settlements, subject to court approval, without admitting or denying the allegations.
Broader Regulatory Context
The case highlights heightened regulatory scrutiny of SPAC transactions, revenue recognition practices, and disclosure standards, reinforcing investor protection priorities across public companies, including those operating in gaming and lottery-related sectors.
