SEC Sets Phaser on ‘Stun,’ Aims at L.A. Firm

Regulators say this enterprise won’t fly.

The Securities and Exchange Commission filed a lawsuit Friday to shut the operations and freeze the assets of a San Fernando Valley businessman accused of falsely telling investors that his company was endorsed by the actor who played Scotty on the original “Star Trek” TV series.

The SEC civil suit charges Nicholas L. Geranio, 41, and his Van Nuys firm, California Laser Co., with securities fraud, alleging misappropriation of more than $400,000 of investor funds. Proceeds were used to finance Geranio’s hobby of racing miniature cars, pay his mortgage and buy diamond jewelry for his wife, the SEC claims.

Mark Richardson, a Santa Monica lawyer for Geranio, could not be reached for comment.

The SEC alleges that Geranio’s sales team, starting in January 1998, used high-pressure tactics such as “cold calling,” or unsolicited phone pitches, to raise $2.3 million from more than 500 investors nationwide.

The SEC said some of that money was used to pay 25% commissions to employees, which was not disclosed to investors.

Investors were mailed videotapes purportedly showing that James Doohan, who played Scotty, the engineer on the star ship Enterprise, endorsed the company’s 3-D imaging projectors and laser tag technology. The tapes were allegedly spliced together without Doohan’s knowledge.

“The video of quote-unquote Scotty--you’d have to see it to believe it,” said Aimee Dominguez-Silvers, trial counsel at the SEC.

The SEC said California Laser’s project was compared to a “holodeck,” a virtual-reality feature on a later incarnation of “Star Trek” that simulated adventures for the space crew’s enjoyment and training.

Actor William Shatner, who played Capt. Kirk on “Star Trek,” has endorsed fast-growing Internet company Priceline.com, which might have helped heighten investor interest, the SEC said.