SEC Charges South Florida Unregistered Investment Adviser With Securities Fraud; Preliminary Settlement Reached
On June 11th, 2021, the Securities and Exchange Commission (SEC) announced the filing of investment fraud charges against Edgar M. Radjabli, an unregistered investment adviser based in Boca Raton, Florida. According to the federal agency, Mr. Radjabli engaged in three separate fraud schemes. Here, our Miami investment fraud lawyers discuss the allegations raised in the complaint.
Securities Fraud Allegations: Unregistered Investment Adviser Edgar M. Radjabli
In the United States District Court for the District of South Carolina, the SEC filed charges against unregistered investment adviser Edgar M. Radjabli. The complaint alleges that he orchestrated three separate securities fraud schemes:
- Apis Token Fraudulent Offering: The first securities fraud scheme allegedly began in the spring of 2018. According to the SEC, Mr. Radjabli allegedly conducted a fraudulent offering —a digital asset. In doing so, the unregistered investment adviser made material misrepresentations, stating that the offering had raised nearly $1.7 million more from outside investors than it actually did.
- Veritone Market Manipulation: Next, the SEC alleges that Mr. Radjabli improperly manipulated the market for Veritone Inc., a public company. According to the agency, he made a fraudulent $200 million offer to purchase the company without having the resources (or any reasonable plan) to do so. The price of the public stock temporarily jumped and Mr. Radjabli and investment entities he controlled allegedly made $162,800 in ill-gotten trading gains.
- My Loan Doctor LLC: Finally, the SEC alleges securities misconduct pertaining to a company called My Loan Doctor LLC. Through this company, Mr. Radjabli allegedly raised around $20 million from over 400 different investors. However, the money was raised on fraudulent grounds—material misrepresentations were made to investors. Investor funds were supposed to be used to originate loans to doctors and other medical practitioners. In reality, the SEC believes that the money was diverted for other purposes, including to help fund another one of Mr. Radjabli’s companies.
The SEC Reached a Preliminary Settlement of Securities Fraud Case
The SEC has reached a preliminary civil settlement with unregistered investment adviser Edgar M. Radjabli. Without admitting or denying any of the allegations raised by federal authorities, Mr. Radjabli has agree to pay:
- $162,800 in disgorgement of ill-received gains; and
- $419,330 in civil financial penalties.
In addition, the settlement would impose a permanent penny stock bar and securities industry bar against the unregistered investment adviser. The settlement is still subject to approval by a federal court.
Call Our Miami-Dade County Investment Fraud Attorney for Immediate Help
At Carlson & Associates, P.A., our Florida securities fraud lawyers are dedicated to fighting for the legal rights and financial interests of investors. If you or someone you know sustained large losses due to misconduct committed by an unregistered investment adviser, we can help. Give us a call now or reach out to us online for a completely confidential case evaluation. With a legal office in Miami, our securities fraud attorneys represent investors throughout the region.
Resources:
sec.gov/litigation/complaints/2021/comp-pr2021-98.pdf
sec.gov/news/press-release/2021-98