Securities and Exchange Commission v. Fusion Hotel Management LLC

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

11 SECURITIES AND EXCHANGE Case No. 3:21-cv-02085-L-MSB

COMMISSION,

ORDER DENYING MOTION TO

13 Plaintiff, DISMISS vs. 14 [ECF No. 12]

FUSION HOTEL MANAGEMENT

LLC, et al., Defendants.

In this enforcement action filed by the United States Securities and Exchange Commission (“SEC” or “Commission”), Defendants Fusion Hotel Management LLC (“FHM”), Fusion Hospitality Corporation (“FHC,” FHM and FHC collectively, “Fusion”), and Denny T. Bhakta (“Bhakta”) filed a motion to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). (ECF No. 12.) The Court decides the matter on the papers submitted and without oral argument. See Civ. L. R. 7.1(d.1). For the reasons stated below, Defendants’ motion is denied. I. Background According to the Complaint (ECF no. 1, “Compl.”), Bhakta is a former employee of an international hotel chain in San Diego. After his hotel employment Bhakta raised over $15 million from more than 40 investors by selling “Capital Notes”…