SEC charges tech firm with $20 million fraud

SEATTLE (Reuters) - U.S. securities regulators charged virtual reality company 3001 AD on Tuesday with bilking $20 million from investors by fabricating plans for an initial public offering and falsely claiming support from tech giants Microsoft Corp (MSFT.O) and Apple Inc (AAPL.O).

The Florida-based company took cash from about 500 investors nationwide, the U.S. Securities and Exchange Commission claimed, promising profits from the sale of its helmet systems, which track players' head movements to provide a 360-degree view in a video game.

In reality, its plans to go public were a sham, according to the SEC.

"3001 AD promised a profitable future from the marketing and sale of its products, but instead was merely creating its own virtual reality for investors," said Glenn Gordon, associate director of the SEC's Miami office, in a statement.

The company could not immediately be reached for comment.

The SEC charged the company, its three principals and three former sales agents with making misrepresentations and omissions to investors who bought units in the company.

Despite telling investors it was gearing up for an IPO, the company "never had any audited financial statements, even though two years of audited financial statements are required to conduct an IPO," the SEC said.

The company also claimed to be on the verge of signing contracts with Microsoft, when in fact the larger company expressed no interest in 3001 AD's technology, the SEC said.

Potential interest from Apple was also fabricated, the SEC said, as was a claim that the company was the target of a possible buyout by former Walt Disney Co (DIS.N) Chief Executive Michael Eisner.

(Reporting by Bill Rigby; Editing by Richard Chang)