Healthcare Hype! Millions Stolen for Personal Pie!

SEC v. Dharma Teja Nukarapu, SharkDreams, Inc., D Dollar Inc. — U.S. Securities and Exchange Commission Litigation Release No. 26275, dated March 20, 2025.

The SEC charged Dharma Teja Nukarapu and two companies he controlled with defrauding investors out of approximately $3.35 million. Nukarapu and his companies allegedly made false claims about SharkDreams' valuation, customer orders, and investor returns. He also misappropriated funds raised for a subsidiary to prop up SharkDreams and for personal use.

In Plain English

Imagine someone is selling shares in a new company, like selling lemonade stand shares. They told people the lemonade stand was super popular, already making tons of money, and that other people were getting rich buying shares. But, they were lying. They took the money people gave them for the lemonade stand and used it to pay for other things, like their personal expenses or a different business they owned, instead of growing the lemonade stand. The court ordered them to pay back the money and a fine.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. False Promises for SharkDreams Dharma Teja Nukarapu, through his company SharkDreams, Inc., allegedly told investors that prior investors had doubled their money within a year and that SharkDreams was valued between $7 million and $30 million. These claims were made to entice investors between January 2018 and November 2019.
2. Fabricated Business Success Nukarapu also falsely claimed that SharkDreams had customer orders for its products and services. Additionally, he told investors that a large, unnamed investor was prepared to buy out all remaining shares, which would infuse capital into the company.
3. Misleading Investor Funds In 2019 and 2020, Nukarapu's other company, D Dollar Inc., raised at least $650,000 from investors. Investors were told these funds would be used for a D Dollar subsidiary.
4. Misappropriation of Funds However, Nukarapu allegedly diverted approximately $595,000 of the D Dollar investment proceeds. These funds were used to cover SharkDreams' operations and for Nukarapu's personal expenses.
5. Fraudulent Scheme Total Through these alleged misrepresentations and misappropriations, SharkDreams and D Dollar fraudulently raised approximately $2.7 million and at least $650,000, respectively, from over 20 investors.

The Enforcement Action

On March 6, 2025, the U.S. District Court for the Eastern District of North Carolina entered a final judgment against Dharma Teja Nukarapu and two companies he controlled, SharkDreams, Inc. and D Dollar Inc. The judgment permanently enjoins the defendants from violating securities laws and bars Nukarapu from serving as an officer or director of a public company for ten years. The court ordered Nukarapu, individually and jointly and severally with the companies, to pay disgorgement totaling $904,830, prejudgment interest of $246,278, and each defendant to pay a $300,000 civil penalty, for a total of $1,904,830 in monetary relief.

Named in this action: Dharma Teja Nukarapu, SharkDreams, Inc., D Dollar Inc..

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