The lawsuit alleges that Heidi Ann Gamer used investors' money for vacations, shopping, rental housing and other personal expenses, The Gazette reported Thursday.
The suit also names as defendants two companies Gamer started: Gamer Economic Systems LLC of Colorado Springs and Gamer Media Partners Corp. of Atlanta.
Investors in California, Colorado, Connecticut, Kansas, Massachusetts, New Jersey, Virginia and Washington were told their money would be used to license, develop and market smartphone applications and other interactive technology.
The SEC asked that Gamer and her companies return investors' money and pay civil fines.
Gamer's Denver attorney, Bill Leone, said his client hoped to settle the lawsuit.
The SEC filed the suit last week in Atlanta federal court. Gamer moved to Atlanta to work with software developers there and start Gamer Media Partners.
In Colorado, Gamer promised to develop smartphone apps for political campaigns with a market potential of $10 million, the SEC said. In Georgia, she told investors her firm there had technology contracts with the NFL's Atlanta Falcons, an Ivy league university and India's film industry, according to the suit.
There were no such ventures, the agency said.
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