Vincent Mehdizadeh agrees to a ban, and a $12 million fine to settle SEC charges related to Medbox.
In March, 2017 entrepreneur Vincent Mehdizadeh agreed to settle charges brought by the SEC against him and his company Medbox, a legal Marijuana consulting company (now known as Notis Global- ticker symbol NGBL).
According to the complaint filed by the SEC, Mehdizadeh mistated Medbox’s revenues and used sham transactions to give the appearance that the company was profitable. According to the complaint 90% of Medbox’s revenues came from transactions in a company created by Mehdizadeh, and not from legitimate business generated by Medbox. Instead of record revenue, as was claimed, Medbox used a shell company formed by Mehdizadeh to sell company stock, then claimed the proceeds as revenue for Medbox.
While issuing press releases touting this phantom revenue, Mehdizadeh used the proceeds from the stock sales to buy himself a luxury house in the Palisades.
In agreeing to settle the charges brought by the SEC Vincent Mehdizadeh neither admitted, nor denied the allegations, but did agree to pay $12.3 million in disgorgement and civil penalties and interest, and agreed to a ban on serving as an officer or director of any publicly traded companies or in participating in any penny stock securities offerings.
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