The Securities and Exchange Commission has accused a former dentist in Boca Raton of advertising fraud for two of his companies, Apis Capital and My Loan Doctor.
Mall filed a complaint with Federal Civil Court in Charleston, South Carolina. against Edgar Rajabli and the two companies, the place of registration was chosen because the Securities and Exchange Commission claims that it was there that Rajabli lived at the time in question. The SEC complaint says both companies are based in West Palm Beach, but Florida’s online records do not indicate that Apis Capital is registered to do business in that state.
On Friday, the SEC announced a $ 600,000 settlement with Rajabli, which is subject to court approval. Without legal recognition of any fraud, Rajabli would have paid $ 162,800 in compensation, $ 17,870 in interest for the adjudication, and $ 419,330 in penalties.
Rajabli’s lawyer does not appear in the federal online case system. The Miami Herald’s call on Rajabli’s cell phone was answered by a security screening service. Rajabli chose not to answer. According to online records, Rajabli was previously a licensed dentist in New York and Maryland.
Other active companies registered in Florida and showing Rajabli as an agent are Seeds of Light Charities and PHX Analytics. Both use the address of the Bocaire Country Club in the unincorporated Palm Beach County, where online county ownership records say Rajabli is demanding the manor be vacated.
Dentist and Loan Doctor
The SEC settlement mainly concerns My Loan Doctor and what the SEC has called a “fraudulent, unregistered public offering” of a high yielding CD account with a guaranteed 6% per annum payout.
The Securities and Exchange Commission said My Loan Doctor raised $ 19.95 million in investor funds from August 2019 to April 2020.
“To promote Loan Doctor and strengthen the company’s legitimacy, Rajabli has resorted to additional deception, including creating a fictitious person who allegedly was Loan Doctor’s CFO and creating fake customer reviews on the Loan Doctor website,” the SEC said. “Rajabli also posed as an investor on Reddit and advertised for LoanDoctor.”
The SEC complaint says the proposals were for unregistered securities. The agency also reports that a press release dated August 22, 2019 advertised Lloyds of London’s financial support and insurance that made the investment “as safe as a savings account or CD” was “materially false and misleading.”
“Loan Doctor did not issue any loans and only a small portion of investor funds were held in FDIC-insured accounts,” the complaint said. “Investor funds were also not insured by Lloyd’s of London. Instead, Loan Doctor has used most of its investor funds to provide unsecured loans to several cryptocurrency lending firms, as well as to provide $ 1.79 million in loans to Apis Capital. “
Rajabli stopped accepting investor money in March 2020, the complaint says, and returned the investor’s funds with interest. The NYC federal case against Loan Doctor is still pending.
My loan doctor still shows up as “active” on Florida’s Sunbiz.org website.
Apis Capital and the alleged build-up and sale of Veritone shares
The Securities and Exchange Commission said Rajabli raised $ 162,800 for Apis Capital through a ruse involving Veritone, a public company. Rajabli and Apis announced on December 10, 2018, a tender for the purchase of Veritone in the amount of $ 200 million.
In the forms that must be filed with the SEC, the complaint says, Rajabli and Apis said they had much more than the asking price and already own 5.03% of Veritone.
“In fact, the defendants did not have the funding or any reasonable prospect of obtaining the funding needed to complete the transaction, and Rajabli and Apis Capital owned only 4.6% of Veritone,” the complaint said.
After the announcement and filing with the Securities and Exchange Commission, Veritone’s share price jumped 41.4% to $ 7.96 per share.
“Rajabli then capitalized on this scheme by selling Veritone securities and buying put options on behalf of Apis Capital and its subsidiary fund,” the company said. “Ten days later, Rajabli and Apis Capital withdrew the alleged tender offer.”
Investments in tokens
The Securities and Exchange Commission said the first Rajabli scheme involved “a fraudulent offering of Apis Tokens, a digital asset purported to represent tokenized interests in the main investment fund Apis Capital.”
In a June 2018 press release, “It was falsely claimed that the offer raised $ 1.7 million when it didn’t actually make money. This misstatement of facts was material. After this deception, they raised about $ 36,000 from foreign investors. “