SEC Files Lawsuit Against Bratenahl Businessman for Allegedly Siphoning $10 Million from Investors
The U.S. Securities and Exchange Commission has filed a lawsuit against Bratenahl businessman Joseph James and his company, Pison Stream Solutions Inc., alleging that he misappropriated over $10 million in investors’ money for personal expenses.
According to the SEC filing, James raised $32.5 million from investors between December 2017 and September 2022 under the guise of funding his startup chemical coatings business. However, instead of using the funds for the intended purpose, James allegedly diverted over $10.8 million to finance his lavish lifestyle.
The lawsuit reveals that Pison made minimal revenue from its actual business operations, with only $6,800 in total revenues between 2018 and 2022. Despite the lack of income, James reportedly used investor funds to purchase luxury cars, a $2 million home in Bratenahl, and even a private jet.
James portrayed himself as independently wealthy and claimed he never took a salary from Pison, but the SEC suit alleges that he needed investor funds to sustain his extravagant lifestyle. The lawsuit also highlights Pison’s financial struggles, including eviction from its offices in Ohio and One World Trade Center in New York.
Between March 2018 and July 2023, James allegedly spent investors’ money on high-end items such as the private jet, the Bratenahl home, credit card expenses, home improvements, and even fish and aquarium expenses totaling $60,000.
Efforts to reach James for comment were unsuccessful, and court records do not list an attorney for him. The SEC’s lawsuit sheds light on the alleged misuse of investor funds and the extravagant spending habits of the Bratenahl businessman, leaving investors in 15 states at a loss.
