The U.S. Securities and Exchange Commission (SEC) has settled with a former dentist turned fraudsman, who allegedly engaged in an escalating series of securities schemes.
In a settlement that remains subject to court approval, Edgar Radjabli, agreed to pay US$600,000 in sanctions, including US$419,330 in penalties, US$162,800 in disgorgement and US$17,870 in prejudgment interest, based on his involvement in the three alleged frauds.
According to the SEC, after abandoning dentistry, Radjabli conducted a fraudulent offering in a crypto token, manipulated the price of a publicly-traded artificial intelligence company, and raised almost US$20 million in an unregistered securities offering.
Radjabli and two companies he controlled — Apis Capital Management LLC, an unregistered investment adviser, and My Loan Doctor LLC — settled the charges against them, without admitting or denying the SEC’s allegations.
In addition to the monetary sanctions, Radjabli is banned from the securities industry and dealing in penny stocks.
“As the SEC alleges, Mr. Radjabli engaged in serial securities fraud that has no place in our markets,” said Kristina Littman, chief of the SEC enforcement division’s cyber unit, in a release.