United States SEC Charged 3 Executives of Defunct Digital Pharmacy Start-Up Medly Health with Fraud in Raising $170 Million from Investors by Providing Overstated Revenue & Fake Prescriptions
14th September 2024 | Hong Kong
The United States Securities and Exchange Commission (SEC) has charged 3 executives of defunct digital pharmacy start-up Medly Health with fraud, raising $170 million from investors by providing overstated revenue & fake prescriptions. United States SEC (12/9/24): The Securities and Exchange Commission today charged now-defunct digital pharmacy startup Medly Health Inc’s. 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 raising efforts that netted the company over $170 million. According to the SEC’s complaint, from at least February 2021 through August 2022, Patel and Horowitz provided financial information to existing and prospective investors that fraudulently overstated Medly’s revenue due in part to millions of dollars’ worth of fake prescriptions entered into the company’s systems by Bhatt. The SEC’s 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’s financial statements to investors was inaccurate. The SEC’s 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’s and Horowitz’s primary securities law violations. The complaint seeks permanent injunctions, civil money penalties, disgorgement, prejudgment interest, and officer-and-director bars against all three defendants.”
“ United States SEC Charged 3 Executives of Defunct Digital Pharmacy Start-Up Medly Health with Fraud in Raising $170 Million from Investors by Providing Overstated Revenue & Fake Prescriptions “
United States SEC Charged 3 Executives of Defunct Digital Pharmacy Start-Up Medly Health with Fraud in Raising $170 Million from Investors by Providing Overstated Revenue & Fake Prescriptions
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