A Los Angeles cannabis management firm and its owner settled securities fraud charges against the company earlier this month.
Vincent Mehdizadeh, the founder of Notis Global Inc., of Los Angeles, paid more than $12 million in fines to close a stock price inflation scam. Mehdizadeh is also banned from acting as a company officer for any public company.
The SEC says that Mehdizadeh developed a scheme to inflate the company’s earnings and manipulate its stock price. Investigators charge that Mehdizadeh, his fiancée, the company’s CEO and a third party participated in the scam.
The company, formerly known as MedBox, settled with the SEC as well. The SEC claims that the participants shifted stock and cash between themselves to boost apparent revenue. At one point, the company’s shares traded for nearly $100 each. The company restated its 2012, 2013 and 2014 earnings following an independent audit. That caused the share prices to collapse.
Mehdizadeh has previous criminal convictions for grand theft and intent to defraud, along with several misdemeanor convictions. He also owes the IRS more than $3 million. According to SEC filings, the company is currently operating at a loss.
Ventura securities fraud lawyer
Securities fraud convictions can seriously limit what you can do, and can significantly damage your professional reputation. If you face securities fraud charges, your first move should be to hire an experienced criminal defense attorney like Robert Helfend. Mr. Helfend has practiced criminal defense for nearly 35 years, and takes cases in any federal court in the United States.
Securities fraud cases are often complex. They may hinge upon subtleties, so you need an attorney who can bring together the resources you’ll need to defend yourself in court. Many defense attorneys don’t want to take federal cases because the federal conviction rate is so high. You need an attorney who will fight aggressively for you in court, and will work toward the best possible outcome for your case.
Contact Robert Helfend or call toll-free at (800) 834-6434, (805) 273-5611, (310) 456-3317 or (818) 591-2809 for an immediate consultation on your Ventura County securities fraud/DUI case.
Photo Credit: Thomas Hawkse, via Flickr.com