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SEC Charges Company and CEO for COVID-19 Scam

By
Administrator
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Washington D.C., April 28, 2020 — The Securities and Exchange Commission today announced charges against Praxsyn Corp. and its CEO for allegedly issuing false and misleading press releases claiming the company was able to acquire and supply large quantities of N95 or similar masks to protect wearers from the COVID-19 virus. The SEC previously issued an order on March 26 temporarily suspending trading in the securities of Praxsyn. 

According to the SEC’s complaint, Praxsyn, which is purportedly based in West Palm Beach, Florida, issued a press release on Feb. 27 stating that it was negotiating the sale of millions of N95 masks and “evaluating multiple orders and vetting various suppliers in order to guarantee a supply chain that can deliver millions of masks on a timely schedule.” On March 4, Praxsyn issued another press release claiming it had a large number of N95 masks on hand and had created a “direct pipeline from manufacturers and suppliers to buyers” of the masks. Praxsyn’s CEO Frank J. Brady was quoted in the release as telling any interested buyers that the company was accepting orders of a minimum of 100,000 masks. Despite these claims, according to the complaint, Praxsyn never had any masks in its possession, any orders for masks, or a single contract with any manufacturer or supplier to obtain masks. After regulatory inquiries, Praxsyn issued a third press release on March 31 admitting that it never had any masks available to sell.

“As alleged in the complaint, in the midst of the ongoing COVID-19 pandemic, Praxsyn and Brady sought to exploit unsuspecting investors by issuing false and misleading press releases concerning Praxsyn’s ability to source and supply N95 masks for the COVID-19 virus,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office.

“Today’s fraud action against Praxsyn and its CEO demonstrates the SEC’s dedication to investor protection and accountability,” said Steven Peikin, Co-Director of the SEC’s Division of Enforcement. “We will move swiftly against those who seek to profit off this national emergency by cheating or misleading investors.”

“The Enforcement Division is committed to swiftly shutting down COVID-19 investment scams, seeking trading suspensions where appropriate, and pursuing fraud charges against both entities and individuals when warranted,” said Stephanie Avakian, Co-Director of the SEC’s Division of Enforcement.

Read the complaint for injunctive and other relief here.

The SEC’s complaint, filed in federal court in the Southern District of Florida, charges Praxsyn and Brady with violating antifraud provisions of the federal securities laws, and seeks permanent injunctive relief and civil penalties. The SEC also seeks an officer and director bar against Brady.

The SEC’s investigation, which is ongoing, has been conducted by the Microcap Fraud Task Force and supervised by Elisha L. Frank and Glenn S. Gordon. Robert K. Levenson is leading the SEC’s litigation under the supervision of Andrew O. Schiff. The SEC appreciates the assistance of the Financial Industry Regulatory Authority (FINRA).

The SEC’s Office of Investor Education and Advocacy previously issued an investor alert cautioning investors to be aware of COVID-19 scams.

Press release distributed by the SEC.

SEC Charges Venture Capital Fund Adviser with Misleading Investors

By
Administrator
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"Cash" by bfishadow is marked with CC BY 2.0.

Alumni Ventures Group, LLC Repays $4.7 Million

Washington D.C. — The Securities and Exchange Commission today charged venture capital fund adviser Alumni Ventures Group, LLC (AVG) with making misleading statements about its management fees and engaging in inter-fund transactions in breach of fund operating agreements. The SEC also charged AVG’s CEO, Michael Collins, with causing AVG’s violations. To settle the charges, AVG repaid $4.7 million to affected funds and agreed to pay a $700,000 penalty, whereas Collins agreed to pay a $100,000 penalty.

According to the SEC’s order, AVG’s website and other marketing communications represented that its management fee for the venture capital funds that it managed was the “industry standard ‘2 and 20.’” The order found that these representations were misleading because they led some investors to believe that AVG would collect a two-percent management fee during each year of its funds’ 10-year term, and separately collect a 20-percent performance fee. According to the order, AVG’s typical practice was instead to assess management fees totaling 20 percent of an investor’s fund investment (representing ten years’ of two-percent annual management fees) upon the investor’s initial fund investment.

The order found that Collins approved of AVG employees using the “industry standard ‘2 and 20’” language and personally used it with fund investors and prospective investors. The order also included findings that AVG made inter-fund loans and cash transfers between funds and made loans to certain funds in violation of the funds’ respective operating agreements.

“Venture capital fund advisers, like all advisers to funds, must accurately describe their fees and abide by the funds’ agreements,” said Adam S. Aderton, Co-Chief of the SEC Enforcement Division’s Asset Management Unit. “When appropriate, enforcement actions like this one hold firms accountable when they fail to meet these obligations.”

AVG and Collins consented to the entry of the SEC’s order finding that AVG violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8, and that Collins caused AVG’s violations. Without admitting or denying the SEC’s findings, AVG and Collins agreed to a cease-and-desist order, AVG agreed to a censure and to pay a $700,000 penalty, and Collins agreed to pay a $100,000 penalty.

The SEC’s investigation was conducted by Luke Pazicky and Michael Moran, and was supervised by David Becker, all within the Enforcement Division’s Asset Management Unit.  The SEC appreciates the assistance of the New Hampshire Bureau of Securities Regulation and the Massachusetts Securities Division.

Press release distributed by the SEC.

Featured image: “Cash” by bfishadow is marked with CC BY 2.0.

City National Rochdale to Pay More Than $30 Million for Undisclosed Conflicts of Interest

By
Administrator
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"Investing" by 401(K) 2013 is marked with CC BY-SA 2.0.

Harmed Investors to Receive Amounts Recovered

Washington D.C., — The Securities and Exchange Commission today announced that registered investment adviser City National Rochdale, LLC (CNR) has agreed to pay more than $30 million to settle charges that its undisclosed conflicts of interest defrauded current and prospective clients. The money CNR pays will be placed into an SEC Fair Fund for distribution to harmed investors.

According to the SEC’s Order, from at least 2016 through 2019, CNR, which has discretionary authority over client accounts, failed to inform its clients of its practice of investing their assets in proprietary mutual funds that generate fees for CNR and its affiliates, rather than in competitor funds whose fees may be lower. Additionally, the SEC’s Order finds that from at least 2016 until 2019, CNR failed to inform some prospective clients that they could invest in CNR’s proprietary funds at lower cost. Clients who opened accounts with certain CNR affiliates did not pay annual marketing or distribution fees, known as 12b-1 fees, but most clients who invested with CNR through their own financial advisors did.

“CNR’s failures to disclose its conflicts of interest deprived clients of their ability to make informed investment decisions while generating fees for the adviser and its affiliates,” said Melissa Hodgman, Associate Director of the SEC Enforcement Division. “When investors entrust their hard-earned money with an adviser, it is crucial they receive full and fair disclosures to allow them to understand and reject any conflicts of interest, and if the adviser does not abide by these rules, then the SEC will hold them accountable so we can return that money to investors.”

The SEC’s Order finds that CNR violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-7 thereunder. Without admitting or denying the SEC’s findings, CNR agreed to cease and desist from committing or causing any future violations of these provisions; be censured; provide notice of the settlement to affected advisory clients; retain an independent compliance consultant; and pay disgorgement, prejudgment interest, and a civil penalty totaling $30,361,803 that will be distributed to investors through a Fair Fund.

The SEC’s investigation was conducted by Elisabeth M. Grimm and supervised by Rami Sibay.

Press release distributed by the SEC.

Featured image: “Investing” by 401(K) 2013 is marked with CC BY-SA 2.0.

District Attorney Gascón Warns Consumers About COVID-19 Scams

By
Administrator
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"MTA Deploys PPE Vending Machines Across Subway System" by MTAPhotos is marked with CC BY 2.0.

District Attorney George Gascón released two public service announcements today warning people to beware of scams based on the increased demand for COVID-19 testing.

“The best way to protect consumers is with knowledge. My goal is to give consumers the information they need to avoid becoming victims,” said District Attorney Gascón. “These crimes are particularly egregious because fake COVID-19 tests and testing sites put everyone’s health at risk.”

District Attorney Gascón warned that fake and unauthorized at-home COVID-19 test kits are being sold online. These kits produce false results that may have adverse consequences for not just the people who use them but also for their family members, friends and communities.

He suggested taking the following steps to avoid becoming a victim of this crime:

  • Visit FDA.gov for a list of approved test kits.
  • Buy test kits with a credit card so you may dispute a fraudulent charge.
  • Do a web search on the company selling the kit using words such as “scam.”

District Attorney Gascón also warned residents about fake COVID-19 testing sites, which may look very real. They are set up to steal personal identifying information or money from consumers without ever providing test results.

For consumer safety, he advised:

  • Never give your Social Security or passport number to get a COVID-19 test. It’s not required.
  • Use testing sites listed on a health department website or get a referral from a trusted source.

Watch Fraud Alert about Fake COVID19 Test Kits

Watch Fraud Alert about Fake COVID19 Test Sites 

Follow @LADAOffice on Twitter and Instagram for up-to-date news.

Featured image: “MTA Deploys PPE Vending Machines Across Subway System” by MTAPhotos is marked with CC BY 2.0.

Three Men Guilty in Scheme to Defraud Elderly and Vulnerable Victims of More Than $5 Million

By
Administrator
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"Money Roll - $100 Dollar Bills" by 401(K) 2013 is marked with CC BY-SA 2.0.

United States Attorney Leonard C Boyle, Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service’s Boston Division, and J. Russell George, the Treasury Inspector General for Tax Administration, announced that a federal jury in Bridgeport has found three men guilty of offenses related to their participation in lottery and romance scams that defrauded primarily elderly victims across the country of millions of dollars.

Yesterday, after a week-long trial before U.S. District Judge Stefan R. Underhill, FAROUQ FASASI, 27, RODNEY THOMAS, JR., 31, and RALPH PIERRE, 32, all formerly of New Haven, were convicted of conspiracy, fraud and money laundering offenses.

According to the evidence presented during the trial, in a lottery scam, scammers notify victims by telephone, through online communications, or by mail, that they have won the lottery.  The victims are then told that in order to collect the prize they must pay fees for things like taxes, shipping and processing. Often, once a victim sends a small amount of money, a scammer will ask for larger sums of money with a promise of more winnings.  The victims never receive winnings.  In a romance scam, scammers take advantage of people looking for companionship by pretending to be prospective companions.  Scammers typically create fake online profiles on dating websites that include false personal details such as the death of a spouse, or military service, to lure victims to trust them.  Once they have gained the trust of victims, scammers will ask victims for money, falsely claiming to need money for medical or business emergencies, for travel to see the victim, or other purposes.

Between approximately August 2015 and March 2020, Fasasi, Thomas and others used lottery scams, romance scams and other fraudulent means to induce elderly victims to provide them with money, gifts and personal details.  Victims sent cash, money orders or checks through the mail to various addresses in Connecticut, and also wired or deposited money into bank accounts in Connecticut controlled by conspiracy members and their associates.

Fasasi, Thomas, Pierre and other co-conspirators lived together for a time at a residence on Sherman Avenue in New Haven, where many packages containing cash, checks and money orders from victims were delivered.  To help launder the money obtained from fraud victims, Pierre formed a fake charity, called “Global Protection Foundation,” and opened four bank accounts in the fake charity’s name.

The investigation revealed that these scams defrauded more than 200 victims across the U.S. of more than $5 million.  Many of the victims were elderly and vulnerable, and some victims lost their life savings.  One Connecticut victim lost more than $1 million.

The jury found Fasasi and Thomas guilty of one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit money laundering, and one count of mail fraud.  Fasasi was also found guilty of three counts of money laundering.  Pierre was found guilty of one count of conspiracy to commit money laundering and one count of money laundering.  Judge Underhill scheduled sentencing for May 10.

Three other individuals have been charged and convicted of offenses stemming from their participation in this scheme.

“The Justice Department is committed to rooting out and prosecuting those who steal from seniors and other vulnerable victims,” said U.S. Attorney Boyle.  “These verdicts will help to heal the many individuals who gave thousands of dollars to these predators.  I encourage all to resist falling victim to these schemes and not send any money to anyone you haven’t met in person.  Instead, call your local police department, or 833-FRAUD-11, for assistance and to report these crimes.”

“The verdicts exemplify the U.S. Postal Inspection Service’s dedication to protecting those who have been victimized by scams that utilize the U. S. Mail to perpetuate fraud,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.  “The financial loss suffered by some of our most vulnerable population is devastating, often unrecoverable.  The teamwork exhibited between multiple federal law enforcement agencies ensured the success of this investigation.”

The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud.  The Hotline is staffed by experienced case managers who can provide personalized support to callers.  Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed.  When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller.  The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).  For more information, please visit: https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope.

This matter is being investigated by the U.S. Postal Inspection Service, Treasury Inspector General for Tax Administration (TIGTA), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), U.S. Secret Service, U.S. Army-CID, and New Haven Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Heather L. Cherry and Stephanie T. Levick.

Press release distributed by the U.S. Secret Service.

Featured image: “Money Roll – $100 Dollar Bills” by 401(K) 2013 is marked with CC BY-SA 2.0.

U.S. Secret Service Launches Cryptocurrency Awareness Hub

By
Administrator
-

Washington – The U.S. Secret Service has launched a cryptocurrency public awareness hub featuring a new public service announcement video and information on the security of digital assets and cryptocurrencies.

The new website will feature the latest in the agency’s work combating illicit use of digital assets as well as provide public awareness information on digital asset security and how to ensure it remains secure.

“Blockchain technology has brought massive development to many sectors, especially within finance.  The Secret Service’s mission of investigating financial crimes has advanced in lock-step with this progress,” said U.S. Secret Service Office of Investigations Assistant Director Jeremy Sheridan. “Our obligation to enforce crimes against the nation’s financial systems includes both informing the public on how digital assets work and partnering with them to identify, arrest, and prosecute those engaging in crimes involving digital assets. The Secret Service will continue to expand its capabilities, collaboration, and effectiveness related to all financial crimes investigations.”

The U.S. Secret Service has been protecting the national financial infrastructure since its creation in 1865 and remains the foremost experts uniquely positioned to safeguard our nation’s economy and continue to play a role in our collective global security.

Digital money enables transnational cybercrime, including ransomware, as it provides a ready means for transnational criminals to convert to and from fiat currencies as well as transfer and launder proceeds of cyber-enabled crimes. Cyber criminals have additionally developed substantial networks of money mules and various digital money laundering services, such as over-the-counter brokers or exchange services and other unlicensed money services, to launder illicitly obtained funds. The Secret Service addresses this risk, in close partnership with the U.S. Department of the Treasury, to further investigations and directly address the financial motive of cybercrime through asset seizures and other actions.

Investments and transactions using cryptocurrencies and digital assets are not inherently criminal, however do provide new opportunities for those seeking to commit fraud or otherwise conceal further illegal activities. As digital and cryptocurrencies continue to become more popular forms of payments, the Secret Service must also remain at the forefront of both educating the public and combating financial fraud.

Learn more about the Secret Service’s role in protecting cryptocurrency by visiting the newly created informational hub.

*Press release distributed by the US Secret Service.

** Featured image: “ETC Wallpaper – Ethereum Classic Cryptocurrency” by EthereumClassic is marked with CC0 1.0.

Chicago Woman Convicted on Federal Fraud and Tax Charges

By
Administrator
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Attribution (Creative Commons 3 - CC BY-SA 3.0): https://pix4free.org/ & http://www.nyphotographic.com/

Defendant Cashed Her Deceased Grandmother’s Pension Checks

A federal jury convicted an Illinois woman on fraud and tax offenses for cashing her deceased grandmother’s pension checks and preparing false tax returns.

According to court documents and evidence presented at trial, Eunice Salley, aka Eunice Sally Dobyns, aka Oya Awanata-Bey, aka Oya Awanata, 37, of Chicago, was found guilty on all 29 counts against her, including pension fraud, embezzlement, mail fraud and tax charges. The jury returned the verdicts Friday after a four-day trial in U.S. District Court in Chicago.

According to evidence presented at trial, Salley worked as a paid tax return preparer. In 2016 and 2017, Salley prepared and filed with the IRS 22 false individual income tax returns on behalf of clients. The returns, which sought more than $1 million in false refunds, contained fictitious wages and withholdings, as well as false medical, charitable and employment related expenses. Salley demanded that many of her clients pay her up to 50% of the refund, in addition to her regular preparation fee.

Evidence regarding the pension fraud revealed that Salley’s grandmother died in 2009 after having worked for American Can Co. After her death, the grandmother’s monthly pension checks continued to be delivered to the residence where Salley continued to reside. From January 2013 to December 2017, 33 pension checks, totaling $14,131, were issued to the grandmother and deposited into one of six bank accounts opened and controlled by Salley. On several occasions during that time Salley notarized and submitted to the pension plan administrator affidavits under her grandmother’s name, fraudulently affirming that the grandmother was alive. Salley did not report approximately $5,000 in income she received in 2017 from the pension checks that she embezzled.

Salley is scheduled to be sentenced on July 21 and faces a maximum penalty of 30 years in prison for mail fraud, five years in prison for each count of theft from an employee benefit plan, three years for each count of aiding and assisting the filing of a false tax return, and three years in prison for filing a false tax return. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois; Special Agent-in-Charge Justin Campbell of IRS Criminal Investigation (IRS-CI) in Chicago; and Special Agent-in-Charge Emmerson Buie Jr. of the Chicago Field Office of the FBI made the announcement.

The IRS-CI and FBI investigated the case.

Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Barry Jonas for the Northern District of Illinois are prosecuting the case.

*Press release distributed by the DOJ.

**Feature image by Nick Youngson CC BY-SA 3.0 Pix4free.org.

Bloomsburg Woman Sentenced To 12 Months’ Imprisonment For $430,000 Fraud Scheme, Including $300,000 In Covid Relief Fraud

By
Administrator
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reg d 506 (c)

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Vicki Hackenberg, age 57, of Bloomsburg, Pennsylvania, was sentenced by United States Chief District Judge Matthew W. Brann, to 12 months of imprisonment for perpetrating a bank fraud and money laundering scheme that included nearly $300,000 in COVID-19 relief guaranteed by the Small Business Administration through the Paycheck Protection Program (PPP).

The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.

According to United States Attorney John C. Gurganus, Hackenberg pleaded guilty to a money laundering conspiracy involving her codefendant, Darryl Corradini, and others. The conspirators created a shell corporation, CGM Realty LLC, and opened bank accounts and a Bitcoin trading account in the corporation’s name, by using false and forged documents. The conspirators allegedly used the accounts to receive over $135,000 in fraudulently obtained funds, and over $296,000 from a PPP loan that was obtained with false and forged documentation. That documentation included false information and certifications about CGM Realty LLC’s employee payroll obligations, and intention to use the funds for approved purposes, when in fact CGM Realty LLC had no employees or legitimate business operations. Forged IRS documentation also was included with the PPP application, containing false information about CGM Realty LLC’s nonexistent payroll obligations. Over $350,000 was then used to purchase Bitcoins, a type of cryptocurrency.

During sentencing, Chief Judge Brann highlighted Hackenberg’s prior state conviction for a similar fraud offense, noting that she was on probation at the time she committed the instant offense. In addition to the Hackenberg’s sentence of imprisonment, Chief Judge Brann also ordered her to pay $431,289 to the victims of her crimes. Hackenberg’s codefendant, Darryl Corradini, also pleaded guilty to a money laundering conspiracy and awaits sentencing.

The case was investigated by agents with the Internal Revenue Service’s Criminal Investigations Division. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

*Press release distributed by the US Department of Justice.

Hadari Oshri has portrayed herself as an expert in global supply chain and PPE during the worst pandemic to hit the world since 1918

By
Aitana Vargas
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Hadari Oshri’s misleading PPE claims

AN IMPORTANT NOTE: On June 22, 2021, Hadari Oshri –Marc Lubaszka’s business partner– filed a frivolous civil harassment restraining order (CHRO) against me to stop the publication of my investigative series “A Special Report: The Harrowing Impunity of White-Collar crime,” and any subsequent installments or future media coverage. On August 3, 2021, I filed an anti-SLAPP motion to strike Oshri’s CHRO petition. In a hearing held on September 13, 2021, Los Angeles Superior Court Judge Doreen Boxer granted my anti-SLAPP motion and denied Oshri’s civil harassment petition for failure to sustain the applicable burden of proof. Oshri will now have to pay my attorney’s fees for filing a frivolous case. She also declined to go on a recorded interview or provide statements via email. And what follows are the next installments of my months-long investigative series whose publication Oshri desperately attempted yet failed to stop.

Los Angeles, CA – In 2021, Hadari Oshri published several articles and gave interviews on digital media outlets portraying herself as an expert on global supply chain and PPE. By voluntarily thrusting herself in the public domain –as she has been doing for years now–, the 40-year-old Israeli entrepreneur has exposed herself and her statements to criticism and scrutiny by buyers, consumers, readers, journalists and the public at large.
Both Oshri’s articles and the interviews she allegedly gave during the COVID-19 pandemic show that she clearly understood the importance of PPE, which was designated as “scarce material” by President Donald Trump.
What follows is a collection of statements on PPE made by Oshri that contradict the testimonies provided by Alaa Hattab, CEO of Canada-based Saniton Corporation, and Bill Underwood, Counsel for former Texan energy executive Arael Doolittle. The latter pleaded guilty to PPE wire fraud in 2021 and was sentenced to 54 months in federal prison in February 2022.
A long-form one-on-one interview with Oshri published in 2021 on The Inscriber Magazine, her website and her Medium account states:
“When the pandemic hit, she (Oshri) saw an opportunity to sell PPE.”
The article, written by Oshri’s ghost writer (Ryan Foland), underscores that Oshri “has pivoted to helping hospitals and other organizations source much-needed medical supplies and PPE from suppliers around the world” and that:
“Using her existing global connections in trade, she is taking advantage of the global demand for PPE goods. For the time being, this market segment is booming, and Hadari knows it. When the pandemic settles, you can bet Hadari will be looking to pivot again, to an industry with even more growth.”
In a long-form article that appeared in 2021 on Disrupt Global, Oshri’s website and her Medium account, she states:
“Over the last year, in a world impacted by a global pandemic, I have seen buyers circumventing their brokers. I have heard clearly that sellers are not being 100% loyal to their brokers… I have seen people present sellers that are not sellers. Examples of this and other problems are common in the many PPE deals during the pandemic that blew up and never closed.”
Additionally, Oshri says:
“A new industry like PPE is growing due to a global demand to fight COVID-19, and as a result, it is constantly growing. These products are in such demand that goods are traveling by water, ground, and air. With the rapid expansion of so many people trying to get involved in the PPE space, the more chances there have been for unscrupulous players and scammers to try to take advantage of others. Unfortunately, I know about others who have been scammed because they didn’t fully understand how trading works. I will continue to mature, and so will the industry. The thing to remember about growth is that it also comes with growing pains. So buyer, broker, and seller beware.”
Finally, in an article entitled “3 ways to keep integrity in big deals (while sticking to core values),” she says:
“In my experience with finding and funding international deals from fast-fashion inventory to millions of PPE products, I can tell you that the myriad of moving parts can make deals fall apart.”
In 2022, Oshri continues to spread misinformation about her PPE experience and alleged business deals by promoting her content on her Medium account.
Ryan Foland, Hadari Oshri’s ghost writer, blocked me on Twitter in response to my requests for comment.
Oshri’s ghost writer, author and public speaker Ryan Foland, blocked me on Twitter in response to my media requests for comment. Court documents also show that Foland referred to Oshri’s victims –former workers and contractors complaining about her business practices– as “trolls” in text exchanges between them.
The speaker went from having over 2K followers on Twitter to nearly 338K in an eye blink.
**If you’d like to share your testimony or story, please contact the reporter at Aitana_investigations@protonmail.com or connect with her on Facebook. All emails are checked for legitimacy, spam and viruses and deleted when suspicious malware is detected.
Have you been SLAPPED? Contact the newsroom at info@investornews.io and share your story with us.
RELATED COVERAGE
Read “Aitana Vargas walks red carpet at tonight’s LA Press Club awards.”
Read 2019 court case against Hadari Oshri exposes her dodgy, aggressive legal maneuvers.
Read Hadari Oshri loses anti-SLAPP court battle against journalist Aitana Vargas.
Read Hadari Oshri’s losses mount up as she fails again to silence her victims.
Read The Legal Bullies Club – The SLAPPERs: Featuring Hadari Oshri.
Read Hadari Oshri sued for copyright infringement in 2017.
Read La reportera Aitana Vargas pide 23.000 dólares en honorarios tras pulverizar la querella mordaza de Hadari Oshri.
Read Hadari Oshri deactivates LinkedIn account following PPE exposé.
Read “A Special Report: The Harrowing Impunity of White-Collar Crime (Part I): Marc Lubaszka, the ultimate white-collar conman on the run: From a Hollywood Hills mansion to Venezuela’s illegal gold mines and back.” 
Read “A Special Report: The Harrowing Impunity of White-Collar Crime (Part II): Marc Lubaszka’s nonexistent private jets failed to deliver PPE amid the COVID-19 pandemic.”
Read “A Special Report: The Harrowing Impunity of White-Collar Crime (Part III): Pursuing flash money, rapper Dylan Raw partners with conman Marc Lubaszka and becomes his patsy.”
Read “A Special Report: The Harrowing Impunity of White-Collar Crime (Part IV): Hadari Oshri allegedly linked to attempted $370M nonexistent PPE COVID-19 scheme.”

SEC Charges Health Care Co. and Two Former Employees for Accounting Improprieties

By
Administrator
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FOR IMMEDIATE RELEASE
2022-31

Washington D.C., Feb. 22, 2022 — The Securities and Exchange Commission today announced settled charges and an $18 million penalty against Baxter International Inc. for engaging in improper intra-company foreign exchange transactions that resulted in the misstatement of the company’s net income. The SEC also announced settled charges against Baxter’s former treasurer and assistant treasurer, Scott Bohaboy and Jeffrey Schaible, respectively, for their misconduct related to these transactions.

The SEC’s order against Baxter finds that the company violated the negligence-based anti-fraud, reporting, books and records, and internal accounting controls provisions of the federal securities laws. From at least 1995 to 2019, Baxter used a convention to convert non-U.S. dollar denominated transactions and assets and liabilities on its financial statements that was not in accordance with U.S. GAAP or generally accepted accounting principles. Beginning in at least 2009, Baxter exploited the convention to enter into intra-company foreign exchange transactions for the sole purpose of generating foreign exchange accounting gains or avoiding foreign exchange accounting losses.

“It is critical that companies that identify wrongdoing proactively come forward and cooperate with the SEC staff,” said Paul Montoya, Associate Regional Director of the SEC’s Chicago Office. “Baxter’s self-reporting and substantial cooperation in working with the staff in this complex investigation was an important consideration in assessing the appropriate sanctions for this case.”

The SEC’s orders against Bohaboy and Schaible find that they violated the negligence-based anti-fraud provisions of the federal securities laws and caused Baxter’s reporting and books and records violations. According to the order against Schaible he, along with others working at his direction, was primarily responsible for executing the transactions. The SEC’s order against Bohaboy finds that he did not take any steps to investigate how Baxter’s treasury department generated consistent gains or whether the transactions that generated the gains were permissible.

Without admitting or denying the SEC’s findings, Baxter, Bohaboy, and Schaible consented to cease and desist from future violations. Bohaboy consented to pay a $125,000 civil penalty.  Schaible consented to pay a $100,000 civil penalty, disgorgement of $76,404 and prejudgment interest of $12,955. The settlement creates a fair fund for distribution of settlement proceeds to harmed investors.

The SEC’s investigation was conducted by Jen Peltz, Emily Rothblatt, Scott Hlavacek, Wilburn Saylor, Ann Tushaus, and Ariella Guardi, and was supervised by Jeffrey Shank and Paul Montoya.

*Press release distributed by the SEC.

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