(HedgeCo.Net) The United States District Court for the District of Massachusetts entered a final judgment against Paul Hess ordering him to pay approximately $840,000 in disgorgement, prejudgment interest, and penalties. The SEC’s complaint alleged that Hess partnered with co-defendant Joshua Dax Cabrera to fraudulently raise more than $12.9 million from more than 150 U.S. and foreign investors by offering unregistered securities in Medsis International, Inc. from 2015 through 2020. The complaint alleged that while offering Medsis securities, Hess and Cabrera made multiple material misrepresentations and misleading statements about Medsis to investors concerning the existence and value of contracts with customers, existing and expected revenue, and business operations. The complaint also alleged that Hess and Cabrera misrepresented to investors their personal use of investor funds.

Hess consented to a final judgment in the SEC action that permanently enjoins him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; the broker-dealer registration requirements of Section 15(a) of the Exchange Act; and the securities offering registration requirements of Sections 5(a) and 5(c) of the Securities Act. The judgment also prohibits Hess from participating in the issuance, purchase, offer, or sale of any security with the exception of Hess purchasing or selling securities for his own personal accounts, and finds him liable for disgorgement of $527,000, prejudgment interest of $109,205, and a civil penalty of $207,183.