SEC Sues Dentist-Turned-Advisor over Alleged Fraud

Posted on June 22nd, 2021 at 1:15 PM
SEC Sues Dentist-Turned-Advisor over Alleged Fraud

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has filed suit against Boca Raton native, Edgar Radjabli, for pursuing three individual securities frauds. Radjabli, who owned and controlled Apis Capital Management, allegedly conducted a fraudulent offering of Apis Tokens, which is a digital asset representing tokenized interests in Apis Capital’s main investment fund.

After formerly practicing as a dentist, Radjabli and Apis Capital released a June 2018 announcement, which falsely reported that the Apis Token offering had raised $1.7 million. As it turns out, the Apis Token offering did not raise any funds. Also, the complaint alleges that Radjabli and Apis Capital manipulated the market for Veritone, Inc., a publicly-traded artificial intelligence company, by claiming an unsolicited cash tender offer to acquire Veritone for $200 million in December 2018. However, Radjabli and Apis Capital did not possess or plan to obtain the financing necessary to complete the deal. Due to Veritone’s increase in share price based on the announcement, Radjabli generated at least $162,800 in profits. 

Furthermore, the complaint alleges that Radjabli raised at least $20 million from nearly 450 investors in an unregistered as well as fraudulent securities offering through My Loan Doctor LLC. Radjabli claimed that funds invested in Loan Doctor would be used to offer loans to healthcare professionals, which would then be securitized and sold to institutional investors. Nevertheless, Radjabli invested the funds in unsecured loans to digital asset lending firms and loaned nearly $1.8 million of investor funds to Apis Capital. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 

Tags: eccleston, eccleston law, sec, lawsuit

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