Two individuals perpetrated a scheme to fraudulently raise money for their health care company by pointing to a purported investment that would exempt restrictions on funding by physicians, the SEC alleges.
But the financial services firm that supposedly supplied the $75 million investment had been founded by one of the men, Justin Smith, and the investment was illusory, according to the Securities and Exchange Commission’s complaint. The SEC filed suit Tuesday in the US District Court for the Eastern District of New York. The other defendant, Joshua Constantin, has agreed to a partial settlement.
The fraud even included a 2021 ...
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