SEC Charges Florida Company With COVID-19 Related Penny Stock Fraud
On May 14th, the Securities and Exchange Commission (SEC) announced penny stock fraud charges against a Florida-based company and its principal operator. In the United States District Court for the Middle District of Florida, the SEC filed charges against Turbo Global Partners and Chief Executive Officer (CEO) Robert W. Singerman. Federal regulators allege that the company made false and misleading statements related to COVID-19 products.
SEC Complaint: False Statements By Turbo Global Partners and Robert W. Singerman
Background & Facts
Turbo Global Partners is a Nevada-based advertising and telemedicine company. Its primary offices are located in Tampa, Florida and CEO Robert W. Singerman is also a resident of Tampa. During the early stages of the COVID-19 (coronavirus) outbreak in the United States, Turbo Global Partners issued two press releases to the general public.
In both, the penny stock issuer indicated that it was entering a strategic partnership with another firm. The press releases also confirmed that Turbo Global and the other firm would be selling an advanced fever-scanning product that could help to slow the transmission of COVID-19 (coronavirus). Finally, the statement also suggested that a public-private partnership was imminent. On the day of the first press release, the company’s stock price jumped by more than 15 percent.
Allegations of Material Misstatements
The SEC alleges that the two press releases—which affected the share price—contained material misstatements and outright false representations. In its complaint, the enforcement agency emphasized a line in the initial press release that stated that their product was “the only scanning technology on the planet with non-contact intelligent human temperature screening and facial recognition.”
In reality, the product being developed and produced was less than promised. To start, the SEC contends that the product is not actually capable of facial recognition. Further, the SEC alleges that there was never a public-private partnership. Not only had no agreement been signed, but the SEC believes that one was not even discussed.
The Agency is Seeking Sanctions
The SEC, the DOJ, and Florida state officials have all stated that they will aggressively pursue coronavirus-related fraud schemes, including securities fraud. In this case, the SEC alleges that Turbo Global Partner’s material misstatements improperly raised its share price. To address the matter, the agency is seeking:
- Findings of fact and conclusions of law;
- A permanent injunction against Turbo Global and Mr. Singerman;
- An order barring Mr. Singerman from serving as an officer for a company that issues securities; and
- Financial penalties.
Investors that suffered financial losses because they relied on the press release from Turbo Global Partners may be entitled to compensation through a penny stock fraud claim.
Call Our Miami, FL Penny Stock Fraud Lawyers for Immediate Help
At Carlson & Associates, P.A., our Miami penny stocks attorneys have the skills and legal knowledge needed to handle all types of penny stock fraud cases. If you or someone you know suffered significant investment losses, we are ready to help. Call our Miami law office today for a completely confidential consultation. We represent investors in South Florida and beyond.