The Securities and Exchange Commission, also known as the SEC, has initiated legal proceedings against Vivera Pharmaceuticals, a business specializing in sublingual drug delivery, along with its Chief Executive Officer (CEO), Paul Edalat.
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The complaint pertains to an alleged occurrence of deception, which led to the acquisition of $6.6 million in funds. Nevertheless, Paul Edalat has adopted an offensive position, asserting that the accusations lack foundation & are driven by political motives.
The subject matter of the SEC lawsuit pertains to the sum of $6.6 million that Vivera obtained from a group of 63 investors on their own via a private offering spanning.
According to the providing, the firm or its CEO claimed to possess a unique worldwide authorization for a sublingual medication delivery system utilized in the medical use of cannabidiol or tetrahydrocannabinol.
The Securities and Exchange Commission (SEC) identified several deficiencies in the provision asserting that the authorization for oral drug administration was either exclusive or legally genuine.
The aforementioned conclusion was reached after the Securities and Exchange Commission’s discovery of Sentar Pharmaceuticals’ provision of duplicate licenses to Alternate Health.
Paul Edalat cited the current dispute involving Alternate Health about the extent of the license in reply to the claims made by the SEC. Additionally, it was seen that Alternate Health has ceased operations and its online presence is currently inactive.
As to the lawsuit filed by the Securities and Exchange Commission, the ongoing contention regarding the legitimacy of the license granted to Paul Edalat was prolonged as a result of Sentar’s prior bestowal of an exclusive license to Alternate Health.
Vivera, a corporation by Paul Edalat is now under investigation by the Securities and Exchange Commission and is confronting charges about its associations with Sentar. According to the SEC, Vivera allegedly neglected to make public pertinent information regarding its main shareholder, Paul Edalat, who possessed shared authority over the two companies.
According to the commission’s allegations, Paul Edalat utilized this authority to redirect fresh investor cash through Vivera to Sentar, with the explicit intention of satisfying a $10 million license payment.
The lawsuit alleges that Paul Edalat, who holds the position of CEO at Vivera, has been implicated in directly gaining advantages from the aforementioned deceptive behavior.
According to the legal reports, Sentar is said to have moved substantial sums of funds into banks under the oversight of Paul Edalat, who thereafter engaged in extravagant expenditures. The aforementioned acquisitions purportedly encompassed initial deposits for two residential properties & a high-end automobile valued at $425,000.
Vivera has vehemently refuted the claims put forth by the Securities and Exchange Commission. The corporation strongly refutes these allegations and maintains that they’re without substance.
Despite the efforts undertaken by the authorities, Vivera affirms its commitment to seeking a resolution to the situation before initiating litigation. Nevertheless, the organization is unable to assure of achieving a successful conclusion.
Paul Edalat expresses its commitment to ongoing collaboration with SEC & endeavors to provide comprehensive training to its employees regarding the accurate & objective understanding of the circumstances at hand.
Paul Edalat: SEC Alleges Engaged in Self-Enriching Fraud
Paul Edalat, the president and chief executive officer of Vivera Pharmaceuticals, has been accused by the Securities and Exchange Commission of soliciting funds through shareholders through deceptive assertions regarding the ownership of proprietary technologies.
According to the legal reports, Paul Edalat, who had authority over Sentar Pharmaceuticals, a patent-holding corporation, allegedly failed to inform investors that Sentar possessed rights to certain intellectual properties as well as that the licenses that were associated with it were not comprehensive.
Addressing the Issue
According to the Securities and Exchange Commission (SEC), Sentar, a pharma company of Paul Edalat purportedly possessed the legal entitlements to the equipment about the sublingual administration of CBD or THC.
The SEC further alleges that Vivera failed to disclose the non-exclusive nature of this relationship during its presentations to potential shareholders. Moreover, it should be noted that Vivera neglected to disclose the fact that Paul Edalat held majority ownership in both Vivera & Sentar.
Furthermore, there exists a current controversy surrounding the legitimacy of Vivera’s license, as Sentar had already transferred the identical permit to a third party. In the year 2018, Vivera initiated legal proceedings to contest Alternate Health Corp.’s assertion of a contract with Paul Edalat about the utilization of the sublingual technique. However, Vivera was unsuccessful in this litigation, and as a consequence, the method in question ceased to be proprietary.
In addition, the SEC alleges that Sentar received $4,510,000 in licensing fees from Vivera and transferred significant sums to accounts controlled by Paul Edalat. Paul Edalat used this money to make lavish purchases, including down payments on two homes and a luxury car.
Legal action has been filed against Vivera, Sentar, and Paul Edalat for violating anti-fraud provisions of the Securities Act of 1933. These violations include issuing fraudulent investment pitches that promised funds would be used for research and development rather than licensing fees.
Challenges with Federal Authorities
The SEC is seeking legal action to require Vivera to repay illegally used funds, pay civil fines, and bar Edalat and Vivera from participating in securities transactions.
Vivera denies the allegations and states that it is open to resolving the matter while cooperating with the SEC. Paul Edalat has previously faced issues with the federal government regarding FDA violations related to food supplements. His company, SciLabs, eventually went bankrupt. To know more about this fraudster, you may follow the link: Paul
Paul Edalat: Vivera Initiates $500 Million Lawsuit Against USA, Unveils Newly Uncovered Evidence
According to the press released by BiopharmaDive, it claims that Vivera Pharmaceuticals of Paul Edalat, Inc. recently announced its intention to initiate legal proceedings once again by re-filing a complaint about defamation towards the United States of America and its affiliated parent companies.
An article containing defamatory content on Vivera & its CEO, Paul Edalat, was released. The composition had numerous factual errors about the goods of the Company, as well as unwarranted criticisms targeting Paul Edalat’s competence.
Vivera initiated legal proceedings in the year 2021, and a trial has been scheduled for December 2022.
In the first legal procedures, USA Today or Gannett submitted two demurrers, that were subsequently overturned by the Court. This ruling established the possibility of Gannett being held accountable for slander, libel per se, or intentional interference.
Vivera Pharmaceuticals, Inc., EFT Global Holdings, Inc. d/b/a Sentar Pharmaceuticals, and Paul P. Edalat
The Securities and Exchange Commission has charged Vivera Pharmaceuticals, Inc., its CEO Paul P. Edalat, and another Paul Edalat-controlled entity, Sentar Pharmaceuticals, with an alleged offering fraud that raised approximately $6.6 million from investors in Orange County, California.
According to the SEC’s complaint, Paul Edalat raised funds from investors through private placements of Vivera stock. Vivera claimed to have an exclusive global license to a sublingual drug-delivery technology for the pharmaceutical use of CBD and THC.
However, the SEC alleges that Vivera failed to disclose that its controlling shareholder, Paul Edalat, also controlled the licensor, Sentar.
There was also a dispute over the validity of Vivera’s license due to Sentar conveying the same license to a third party. Vivera filed a lawsuit against the third party. The SEC also alleges that Sentar received $4,510,000 in licensing fees from Vivera and transferred significant sums into accounts controlled by Edalat. Paul Edalat used this money to purchase two homes and a luxury car worth $425,000.
Securities & Exchange Commission V. Vivera Pharmaceuticals, Inc. EFT Global Holdongs Inc., Sentar Pharmaceuticals, and Paul Edalat.
The focal point of the matter pertains to a purported fraudulent investment scheme carried out by the defendants: Vivera Pharmaceuticals, Inc. Vivera, its Chief Executive Officer Paul P. Edalat, or EFT Global Holdings, Inc., which operates as Sentar Pharmaceuticals Sentar, a patent holding corporation that is additionally owned and controlled by Paul Edalat.
Mr. Edalat, hailing from Orange County, California, has assumed the roles of Chief Executive Officer, majority shareholder, and member of the management team at Vivera. Throughout the pertinent temporal span, Paul Edalat assumed the dual roles of controlling shareholder & chairman of the management team at Sentar.
Vivera is a pharmaceutical corporation that has been legally established in the state of Delaware & maintains its main office in Newport Beach, California. Paul Edalat exercised control over Vivera throughout the pertinent timeframe.
Sentar is a business entity specializing in intellectual property management, legally established in the state of Nevada & centrally located in Irvine, California. Throughout the specified time frame, Paul Edalat exercised authority.
Sentar possessed sole ownership of the rights to the proprietary information associated with a sublingual drug administration method. The technological innovation encompassed the utilization of pills capable of administering chemicals to human beings by sublingual dissolution.
Paul Edalat served as the owner, major shareholder, and chairman of the board of Sentar. Sentar has gone into an authorization arrangement with Alternate Health. The contract was executed by Paul Edalat on the part of Sentar.