SEC Accuses Lottery.com and Executives of Fraudulent Revenue Practices

USA: SEC Accuses Lottery.com and Executives of Fraudulent Revenue Practices

The U.S. Securities and Exchange Commission filed a complaint on January 22, 2026, alleging that Lottery.com, Inc., its former chief executive officer Lawrence Anthony DiMatteo, two former executives, and the chief executive of the special purpose acquisition company Trident Acquisitions Corp., engaged in multiple fraudulent revenue schemes that misled investors ahead of a SPAC merger.

Alleged Revenue Schemes

The complaint states that Vadim Komissarov, the CEO of Trident Acquisitions Corp., coordinated with DiMatteo, Matthew Clemenson, and Ryan Dickinson to create a $9 million “revenue” transaction for customer data that the company claimed had no value. The funds were allegedly used to overpay for two Mexican businesses, after which the $9 million was returned to its source. A second scheme described in the filing involved a purported $30 million sale of advertising credits, followed by two additional bogus sales totaling more than $35 million after the merger closed.

Details of the SPAC Merger

The alleged misconduct occurred in the weeks leading up to and immediately after the merger of Lottery.com with Trident Acquisitions Corp., a transaction filed under case number 1:26‑cv‑00603 in the Southern District of New York. According to the SEC, the inflated revenue figures were presented to investors to portray a stronger financial position than actually existed.

Legal Violations Cited

The SEC’s complaint charges the defendants with violating Section 17(a) of the Securities Act of 1933, Sections 10(b) and 14(a) of the Securities Exchange Act of 1934, and related rules 10b‑5 and 14a‑9. Lottery.com is also accused of breaching Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act, while DiMatteo, Clemenson, and Dickinson face aiding‑and‑abetting allegations and a violation of Section 13(b)(5).

Potential Penalties

The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, civil monetary penalties, and officer‑and‑director bars for the individuals named in the complaint.

Impact on Investors

Investors who relied on the inflated financial statements are reported to have suffered substantial losses, according to the agency’s filing.

Next Steps in Litigation

The case will proceed in federal court in Manhattan, where the SEC intends to pursue the relief measures outlined in its complaint.

This report is based on information from SEC, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.