MEDSiS Reviews

SEC Charges Technology Company and Two Individuals with Fraud Litigation Release No. 25176 / August 19, 2021 Securities and Exchange Commission v. Medsis International, Inc. et al., Civil Action No. 1:21-cv-11356 (D. Mass. filed Aug. 19, 2021) The Securities and Exchange Commission today charged Medsis International, Inc., a data software and financial technology company, Joshua Dax Cabrera, Medsis's CEO, and Paul Hess, an individual who raised investor funds for Medsis, with fraud and conducting an unregistered securities offering. According to the SEC's complaint, filed in the United States District Court for the District of Massachusetts, beginning in 2015 and continuing through at least 2020, Hess and Cabrera partnered to fraudulently raise more than $12.9 million from more than 150 U.S. and foreign investors by offering unregistered Medsis securities. The complaint alleges that while offering Medsis securities, Cabrera and Hess made multiple material misrepresentations and misleading statements about Medsis to investors concerning the existence and value of contracts with customers, existing and expected revenue, and business operations. The complaint also alleges that Cabrera and Hess misrepresented to investors their personal use of investor funds. The SEC's complaint charges Medsis, Cabrera, and Hess with violating the anti-fraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder; and with violating the registration provisions of Sections 5(a) and 5(c) of the Securities Act. In addition, the SEC's complaint charges Hess with acting as an unregistered broker-dealer in violation of Section 15(a) of the Exchange Act. The SEC seeks against all defendants permanent injunctive relief, disgorgement plus prejudgment interest, and civil penalties. The SEC's case is being handled by Peter Bryan Moores, Trevor Donelan, Marc Jones, and Kevin Currid of the Boston Regional Office.