There is no greater villain right now that fraudsters trying to profit from the COVID-19 pandemic. The Securities and Exchange Commission is more than willing to go after these bad guys.
Trading Suspension
According to speech last week by Steven Peiken, the SEC’s Co-Chief of Enforcement, the SEC has suspended trading in the securities of more than 30 issuers as a result of questions about the adequacy and accuracy of coronavirus-related information since early February. .
Do you have masks?
Praxsyn Corporation claimed to be able to obtain large quantities of N95 masks used to protect you from COVID-19. The SEC suspended trading in the company’s shares. It turns out that that Praxsyn had been offered millions of masks from a Mexican company. Turns out the masks were no good.
Do you have test kits?
Applied BioSciences Corp. issued a press release on March 31 stating that it had begun offering and shipping supposed finger-prick COVID-19 tests to the general public that could be used for “Homes, Schools, Hospitals, Law Enforcement, Military, Public Servants or anyone wanting immediate and private results.”
No. The SEC charged that the tests were not intended for home use by the general public and could be administered only in consultation with a medical professional. The SEC further charged that Applied BioSciences had not shipped any COVID-19 tests as of March 31. And furthermore, the SEC charged the company for failing to disclose that the tests were not authorized by the U.S. Food and Drug Administration.
The SEC suspended trading in the company’s securities and is seeking relief.
Do you have a fever?
Turbo Global claimed to have a multi-national public-private partnership to sell thermal scanning equipment to detect individuals with fevers. In a press release with its supposed corporate partner, Turbo claimed the technology is 99.99% accurate.
Turbo Global had no agreement to sell the product, there was no partnership involving any government entities, and the CEO of Turbo Global’s supposed corporate partner did not make or authorize the statements attributed to him.
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