{"id":89351,"date":"2024-09-13T01:14:49","date_gmt":"2024-09-13T05:14:49","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=89351"},"modified":"2024-09-13T01:14:49","modified_gmt":"2024-09-13T05:14:49","slug":"sec-charges-three-former-executives-of-medly-health-with-defrauding-investors","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2024\/sec-charges-three-former-executives-of-medly-health-with-defrauding-investors.html","title":{"rendered":"SEC Charges Three Former Executives of Medly Health with Defrauding Investors"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission has charged now-defunct digital pharmacy startup <strong>Medly Health<\/strong> Inc\u2019s. co-founder and former CEO, Marg Patel, former CFO, Robert Horowitz, and former Head of Rx Operations, Chintankumar Bhatt, with <strong>defrauding investors<\/strong> in connection with capital raising efforts that netted the company over <strong>$170 million.<\/strong><\/p>\n\n\n\n<p>According to the SEC\u2019s complaint, from at least February 2021 through August 2022, Patel and Horowitz provided financial information to existing and prospective investors that fraudulently overstated Medly\u2019s revenue due in part to millions of dollars\u2019 worth of fake prescriptions entered into the company\u2019s systems by Bhatt. The SEC\u2019s complaint alleges, among other things, that Patel and Horowitz knew of, but failed to correct, significant accounting irregularities and were aware of several reports and complaints by employees that the revenue reported in Medly\u2019s financial statements to investors was inaccurate.<\/p>\n\n\n\n<p>\u201cThe alleged facts of this case demonstrate significant corporate malfeasance,\u201d said Sheldon L. Pollock, Associate Director of Enforcement in the New York Regional Office. \u201cWe allege the defendants harmed investors by misleading them about the company\u2019s revenues, with one defendant going as far as making up fake prescription orders to increase revenue numbers. Startups that seek to raise capital from investors through deceitful conduct remain a continued focus for the Commission.\u201d<\/p>\n\n\n\n<p>The SEC\u2019s complaint, filed in the U.S. District Court for the Eastern District of New York, charges Patel, Horowitz, and Bhatt with violating the antifraud provisions of the securities laws and charges Bhatt with aiding and abetting Patel\u2019s and Horowitz\u2019s primary securities law violations. The complaint seeks permanent injunctions, civil money penalties, disgorgement, prejudgment interest, and officer-and-director bars against all three defendants.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission has charged now-defunct digital pharmacy startup Medly Health Inc\u2019s. co-founder and former CEO, Marg Patel, former CFO, Robert Horowitz, and former Head of Rx Operations, Chintankumar Bhatt, with defrauding investors in connection with capital [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-89351","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/89351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=89351"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/89351\/revisions"}],"predecessor-version":[{"id":89352,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/89351\/revisions\/89352"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=89351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=89351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=89351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}