A health science company and its officials have agreed to pay a total of $ 185,000 to settle US Securities and Exchange Commission fees as they made misleading COVID-19 related statements about a screening test and personal protective equipment.
The SEC said Wednesday that Santa Monica, California-based Parallax Health Sciences Inc. will pay a $ 100,000 fine, while its CEO, Paul Arena, agreed to pay a $ 50,000 fine, and its chief technology officer, Nathaniel Bradley, will pay a $ 40,000 fine.  The parties agreed to pay the fine without acknowledging or denying the SEC's allegations. The company's website has been shut down and neither the company nor the managers concerned could be reached for comment.
The SEC said it had suspended trading in Parallax ordinary shares in April 2020 due to questions about the accuracy of the company's statements. [1
The complaint said that Parallax insolvency prevented it from developing the screening test and the company's forecasts showed that it would take more than a year to develop the test even if the company had the funds.
The SEC also stated that Parallax never had the medical equipment or personal protective equipment it offered for sale and that several factors prevented the company from acquiring it. These included Parallax, which did not have enough money to buy the equipment or the US Food and Drug Administration records required to import and sell it.
The SEC said that Arena had prepared the misleading press releases to increase the company's declining share price, which increased after they were issued.
The SEC accused the parties of violating US securities laws. Mr Arena also agreed to be banned for five years from acting as a public company manager or director and participating in an ear share offering. Bradley agreed to be banned from participating in a penny stock offering for three years.
In January, a suspected federal securities lawsuit was filed against a medical diagnostics company that had been sued by the SEC for alleged false claims. about a fast COVID-19 test. Catalog