/cloudfront-us-east-2.images.arcpublishing.com/reuters/BFUXSED2R5PHHGNCXXAJI46JCI.jpg)
People exit the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly
(Reuters) - California-based Parallax Health Sciences Inc and two of its executives have agreed to settle claims by the Securities and Exchange Commission that they misled investors about their efforts to fight COVID-19.
Parallax has agreed to pay $100,000, while Chief Executive Officer Paul Arena has agreed to pay $45,000 and Chief Technology Officer Nathaniel Bradley has agreed to pay $40,000, the SEC announced Wednesday. They have not admitted wrongdoing as part of the settlements, which must be approved by a judge, according to the agency.
The SEC had suspended trading in the company's stock in April.
"The company and its principals are pleased that they were able to resolve the allegations without an admission or denial, and look forward to the company moving forward and further building out its patented technologies in the digital healthcare space," said Jacob Frenkel of Dickinson Wright, who represents Parallax and Arena.
"Mr. Bradley is happy to have the matter behind him," said Bradley's lawyer, Juan Marcelino. He noted that Bradley was accused of acting negligently, not knowingly.
"We allege that Parallax misled investors that the company was positioned to capitalize on opportunities created by the COVID pandemic," Paul Levenson, director of the SEC's Boston regional office, said in a statement. "Such misinformation jeopardized investors at precisely the moment when investors were attempting to respond to the financial implications of a public health emergency."
In a complaint filed Wednesday in Manhattan federal court, the SEC said that Parallax issued a series of press releases in March and April 2020 falsely claiming that it had developed a COVID-19 screening test that would be "available soon" and that it was offering personal protective equipment for "immediate sale."
In fact, the SEC said, the company was insolvent, and even if it had funds, its own projections showed it would take more than a year to develop the test. The agency said the company did not have PPE, or the Food and Drug Administration approval it would need to sell it.
The defendants issued the misleading press releases in order to prop up the company's declining stock price, the SEC alleged. All of the defendants are accused of securities fraud.
As part of the settlements, Arena agreed to a five-year ban from acting as a public company officer or director, while Bradley agreed to a three-year ban, according to the SEC. Both will also be banned from taking part in any offer of penny stocks.
The case is the latest of several brought by the SEC over alleged COVID-related securities schemes. The agency previously accused a Canadian citizen of running a $25 million penny stock scheme seeking to capitalize on the pandemic, and a California trader with engaging in a "pump and dump" scheme involving a biotechnology company that misled investors about its COVID tests.
The case is U.S. Securities and Exchange Commission v. Parallax Health Sciences Inc, U.S. District Court, Southern District of New York, No. 21-cv-05812.
For the SEC: Andrew Palid and others at the SEC
For the Parallax and Arena: Jacob Frenkel of Dickinson Wright
For Bradley: Juan Marcelino
Read more:
U.S. cracks down on coronavirus-linked $25 million stock scheme
U.S. charges firm president, trader in COVID-19 fraud schemes
"claim" - Google News
July 08, 2021 at 04:03AM
https://ift.tt/36A7Yc5
California company, execs settle with SEC over COVID fraud claim - Reuters
"claim" - Google News
https://ift.tt/2FrzzOU
https://ift.tt/2VZxqTS
Bagikan Berita Ini
0 Response to "California company, execs settle with SEC over COVID fraud claim - Reuters"
Post a Comment