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Showing posts with label ALZHEIMER'S TREATMENT. Show all posts
Showing posts with label ALZHEIMER'S TREATMENT. Show all posts

Tuesday, August 5, 2014

COURT ENTERS JUDGEMENT AGAINST BROKER FOR SELLING UNREGISTERED STOCK IN ALZHEIMER'S TREATMENT COMPANY

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

Court Enters Judgment Against Unregistered Broker for Role in Investment Scheme Involving Purported Alzheimer's Treatment

The Securities and Exchange Commission announced that on July 31, 2014, a California federal court entered a final judgment against Kenneth Gross, of Porter Ranch, California, who was named as a defendant in an action filed by the Commission in June 2013. The Commission charged Gross with selling unregistered stock in Your Best Memories International Inc. without being registered as a broker-dealer as required by the federal securities laws. Your Best Memories was a California company purportedly raising money for a Massachusetts-based company in the business of developing products intended to improve memory function in individuals suffering from Alzheimer's disease and other conditions. Gross consented to the entry of this judgment.

The final judgment entered by the United States District Court for the Central District of California holds Gross liable for disgorgement of $269,000, representing money he was paid for the sale of unregistered securities, plus prejudgment interest of $10,897.81, but waives payment of the disgorgement and interest and does not impose a civil penalty based on Gross's financial condition. Previously, the court entered a partial judgment on March 14, 2014, based on Gross's consent, which enjoined him from violating Sections 5(a) and (c) of the Securities Act of 1933 (the securities registration provisions of the Securities Act) and Section 15(a) of the Securities Exchange Act of 1934 (the broker-dealer registration provisions of the Exchange Act). The Commission also issued an Order against Gross on June 6, 2014, permanently barring him from the securities industry.

On June 10, 2014, the Court entered final judgments by default against the other Defendants in the action, Your Best Memories, its president, Robert Hurd, and Smokey Canyon Financial Inc., another company controlled by Hurd. The Commission charged Your Best Memories and Hurd with misleading investors about how their funds would be used and making misleading statements that one of the products touted to investors had received approval from the U.S. Food and Drug Administration as a treatment for Alzheimer's disease. The final judgments imposed permanent injunctions prohibiting Your Best Memories and Hurd from future violations of the antifraud and registration provisions of the federal securities laws, ordered Your Best Memories, Hurd, and Smokey Canyon to pay $963,000 in disgorgement plus prejudgment interest of $34,170, and ordered Your Best Memories and Hurd to pay a civil penalty of $963,000.

Friday, June 20, 2014

ALZHEIMER PRODUCTS COMPANY AND PRESIDENT ORDERED TO PAY $1.9 MILLION

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 
Court Orders California Company and Its President to Pay Over $1.9 Million in Investment Scheme Involving Purported Alzheimer's Treatment

The Securities and Exchange Commission announced that on June 10, 2014, a California federal court entered final judgments against Your Best Memories International Inc., a promoter of a purported Alzheimer’s treatment, its president, Robert Hurd, and Smokey Canyon Financial Inc., another company controlled by Hurd.  Your Best Memories and Hurd, both of Los Angeles, California, were charged as defendants in a fraud action filed by the Commission in June 2013.  The Commission alleged that they claimed to be in the business of raising money from investors on behalf of a Massachusetts-based company that was in the business of developing products intended to improve memory function in individuals suffering from Alzheimer's disease and other conditions.  The Commission charged Your Best Memories and Hurd with misleading investors about how their funds would be used and making misleading statements that one of the products touted to investors had received approval from the U.S. Food and Drug Administration as a treatment for Alzheimer's disease.  Smokey Canyon Financial, based in Reno, Nevada, was charged by the Commission as a relief defendant because it received investor funds.

According to the Commission’s complaint, filed on June 20, 2013, Your Best Memories and Hurd falsely told investors that their funds would largely be used to finance the development and marketing of products intended to improve memory function in individuals suffering from Alzheimer’s disease, dementia or memory loss.  The Commission alleged that, unbeknownst to investors, a mere 17% of the funds raised were used for their intended purpose, while 37% of investor funds were funneled to Hurd or his company, Smokey Canyon Financial.  The Commission also alleged that Your Best Memories and Hurd made Ponzi payments to investors (using investors' principal to make payments purporting to be investment returns to other investors) and falsely stated that they had secured FDA approval to sell coconut oil as a treatment for Alzheimer’s disease, when, in fact, the FDA had never approved such a claim.  The complaint alleged that, in total, Your Best Memories raised approximately $1.2 million from more than 50 investors in an unregistered securities offering.

The final judgments, entered by default by the United States District Court for the Central District of  California, imposed permanent injunctions prohibiting Your Best Memories and Hurd from future violations of Sections 5(a) and (c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934.  Your Best Memories, Hurd, and Smokey Canyon Financial also were ordered to pay disgorgement of $963,000 and prejudgment interest of $34,170.  In addition, Your Best Memories and Hurd were ordered jointly and severally to pay a civil penalty of $963,000.

On March 14, 2014, the Court entered a partial final judgment, by consent, against the other Defendant in the action, Kenneth Gross, of Porter Ranch, California, who was charged with selling Your Best Memories stock without being registered as a broker-dealer as required by the federal securities laws.  The judgment permanently enjoined Gross from future violations of Sections 5(a) and (c) of the Securities Act and Section 15(a) of the Exchange Act, with disgorgement, prejudgment interest and civil penalties to be decided by the Court at a later date.   The Commission also instituted a settled follow-on administrative proceeding against Gross on March 6, 2014, permanently barring him from the securities industry.