The United States Security and Exchange Commission announced this week that the agency had charged two leading companies and the CEO of proliferating misleading claims associated with Covid-19.
Companies Charged by US SEC for Misleading Claims Associated with COVID-19
The Regulator charged the companies of making false claims regarding equipment related to the detection of fever in patients. The SEC statement said that trading of shares of two companies had been suspended. Turbo Global Partners Inc and CEO, Robert W Singerman have been accused of making false claims during a pandemic outbreak.
Applied BioScience Charged for Shipping Unauthorized Covid-19 Tests
The SEC has also charged Applied BioSciences Corp for giving finger prick COVID-19 test kits to people without authority. The tests can only be used with the consultation of a medical professional. The company counsel did not comment on the issue as of now.
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Turbo Global Charged for Selling Thermal Equipment’s Fraudulently
US SEC said that the Chief Executive Officer of Turbo Global Singerman had violated the federal securities law as the agency had charged him for fraud in 1999 for the “fraudulent sale of securities through a network of boiler rooms.”
False Multinational Partnerships
Turbo Global has been charged in Florida for falsely claiming to have multinational public-private-partnership” for selling thermal scanning equipment in which another company was involved”. The SEC said that there was no agreement or equipment available, as claimed by the company.
Applied BioScience Accused of Exploiting Pandemic for Profit
Applied BioSciences violated the antifraud provisions in the securities laws and sought injunctive relief and civil penalties for the company. The company tried to leverage the pandemic crisis and moved its cannabinoid-based products business to the corona related products. The SEC filed charges against the company for attempting to exploit the COVID-19 pandemic for profit
Testing Kits not approved by US FDA
The company claimed to ship the Covid-19 Testing kit for home use, which was not intended for home use. Moreover, Applied BioScience did not ship any tests and failed to reveal that the tests were not US FDA approved. Sec filed a case against the company in the Southern District of New York.