Originally Syndicated on June 11, 2024 @ 4:04 pm
The company Vivera Pharmaceuticals, which specializes in sublingual drug administration, and its CEO, Paul Edalat, are the targets of legal action from the Securities and Exchange Commission (SEC).
The case concerns an alleged instance of deceit that resulted in the acquisition of funds totaling $6.6 million. Paul Edalat, however, has taken a hostile stance, claiming that the charges are politically motivated and unfounded.
The action filed by the SEC concerns the $6.6 million that Vivera independently raised from 63 investors through a private offering that extended.
In the offering, the company or its CEO stated that it had a special global license to employ a sublingual drug delivery method for the therapeutic administration of tetrahydrocannabinol or cannabidiol.
The Securities and Exchange Commission (SEC) pointed up several errors in the clause claiming that the prescription drug administration authorization was legitimate or exclusive under the law.
The conclusion described above was made after Sentar Pharmaceuticals gave Alternate Health multiple licenses, as discovered by the Securities and Exchange Commission.
In response to the SEC’s allegations, Paul Edalat referenced the ongoing litigation between Alternate Health and the license’s scope. Furthermore, it was observed that Alternate Health no longer operates and that its website is no longer live.
Regarding the Securities and Exchange Commission’s complaint, Sentar’s previous granting of an exclusive license to Alternate Health extended the existing dispute over the validity of the license awarded to Paul Edalat.
The Securities and Exchange Commission is currently looking into Vivera, a company owned by Paul Edalat, and it is facing accusations linked to its connections to Sentar. The SEC claims that Vivera withheld material information from the public about Paul Edalat, its largest shareholder and joint controller of the two businesses.
Paul Edalat allegedly used this power to divert new investor funds via Vivera to Sentar to pay a $10 million license fee, as the commission has said.
In this case, it is claimed that Paul Edalat, the CEO of Vivera, is directly benefiting from the previously mentioned dishonest actions.
Legal reports claim that Sentar transferred large amounts of money into banks when Paul Edalat was in charge and that Sentar then made expensive purchases. The previously mentioned purchases allegedly included down payments on two residential homes in addition to a $425,000 luxury car.
Vivera has angrily denied the Securities and Exchange Commission’s allegations. The company vehemently disputes these accusations and insists they are baseless.
Even with the efforts made by the authorities, Vivera reiterates that it will try to find a solution before filing a lawsuit. However, the company is unable to guarantee that the project will be completed successfully.
Paul Edalat declares its dedication to continued cooperation with SEC and its efforts to give its staff thorough training on the precise and impartial comprehension of the current situation.
Paul Edalat: Alleged Self-Enriching Fraud by the SEC
The Securities and Exchange Commission has charged Paul Edalat, the president and chief executive officer of Vivera Pharmaceuticals, of using false claims about the ownership of intellectual technologies to solicit money from shareholders.
The legal reports claim that Paul Edalat, who was in charge of Sentar Pharmaceuticals, a company that held patents, neglected to disclose to investors that Sentar was the owner of certain intellectual property and that the licenses that came with it were not all-inclusive.
Dealing with the Problem
The Securities and Exchange Commission (SEC) claimed that Paul Edalat’s pharmaceutical company Sentar had the legal right to the equipment needed for the sublingual delivery of THC or CBD.
Furthermore, according to the SEC, Vivera misrepresented to prospective investors that this arrangement was non-exclusive. Furthermore, it should be mentioned that Vivera omitted to reveal that Paul Edalat was the majority owner of both Sentar and Vivera.
Moreover, there is currently debate concerning the validity of Vivera’s license because Sentar had previously given the same license to another individual. Vivera filed a lawsuit in 2018 to refute Alternate Health Corp.’s claim that it has a contract with Paul Edalat over the use of the sublingual approach. Nevertheless, Vivera lost this legal battle, and as a result, the disputed method was no longer proprietary.
Ostentatious Spending
Furthermore, the SEC claims that Sentar transferred sizeable amounts to Paul Edalat-controlled accounts and accepted $4,510,000 in licensing payments from Vivera. Paul Edalat used this money to buy a fancy car and two houses, among other extravagant purchases.
Vivera, Sentar, and Paul Edalat are being sued for breaking the 1933 Securities Act’s anti-fraud provisions. Among these infractions is the distribution of deceptive investment proposals that implied money would be allocated to R&D rather than licensing costs.
Difficulties with the Federal Government
The SEC is pursuing legal action to prevent Vivera and Edalat from engaging in securities transactions, as well as to compel Vivera to reimburse monies that were improperly utilized and to pay civil penalties.
Vivera refutes the accusations and says it is willing to work with the SEC to find a solution to the problem. Paul Edalat has already run afoul of the federal government over FDA breaches about dietary supplements. Eventually, SciLabs, his company, filed for bankruptcy. You can click on this website to learn more about this con artist: https://pauledalat.com/
FAKE PR
Paul Edalat: Vivera Files $500 Million Lawsuit Against the United States and Reveals Newly Discovered Information
In a press release issued by BiopharmaDive, Vivera Pharmaceuticals of Paul Edalat, Inc. states that it recently declared that it will reopen legal proceedings by filing a defamation complaint against the United States of America and its parent companies that are affiliated with it.
A slanderous article about Vivera and its CEO, Paul Edalat, was published. Numerous factual mistakes about the Company’s products were present in the composition, and Paul Edalat’s ability was unfairly criticized.
A trial has been set for December 2022 after Vivera started legal proceedings in 2021.
USA Today and Gannett filed two demurrers in the initial judicial proceedings, but the Court rejected them. This decision created the potential for Gannett to face consequences for libel in general, slander in particular, or deliberate meddling.
Case Study 1
Presenting Deception
Paul P. Edalat, EFT Global Holdings, Inc. d/b/a Sentar Pharmaceuticals, and Vivera Pharmaceuticals, Inc.
The Securities and Exchange Commission has accused Paul P. Edalat, the CEO of Vivera Pharmaceuticals, Inc., and Sentar Pharmaceuticals, a company under Paul Edalat’s management, of conducting an offering scheme that defrauded investors in Orange County, California, out of about $6.6 million.
Paul Edalat collected money from investors through private placements of Vivera shares, according to the SEC’s lawsuit. Vivera asserted to be the only company in the world licensed to use a sublingual medication delivery method for the medicinal use of THC and CBD.
However, according to the SEC, Vivera concealed the fact that Paul Edalat, the company’s major shareholder, also held control over Sentar, the licensor.
Because Sentar had transferred the same license to a third entity, there was also a disagreement regarding the legitimacy of Vivera’s license. Vivera brought legal action against the other party. The SEC further claims that Sentar moved sizeable amounts into Edalat-controlled accounts and accepted $4,510,000 in licensing fees from Vivera. Paul Edalat spent this money on a $425,000 fancy automobile and two houses.
Case Study 2
Paul Edalat, Sentar Pharmaceuticals, EFT Global Holdings Inc., and the Securities and Exchange Commission v. Vivera Pharmaceuticals, Inc.
Summary
The main focus of the case is a supposedly fraudulent investment scheme that was implemented by the defendants: EFT Global Holdings, Inc., which conducts business as Sentar Pharmaceuticals Sentar, a patent holding company that Paul Edalat also owns and controls, or Vivera Pharmaceuticals, Inc., and its CEO, Paul P. Edalat.
The Parties in Defend
Originating from Orange County, California, Mr. Edalat has taken up the positions of CEO, major shareholder, and staff member of Vivera. Paul Edalat took on the dual responsibilities of chairman of Sentar’s management team and controlling shareholder during the relevant period.
The pharmaceutical company Vivera has its main headquarters located in Newport Beach, California, and was formally founded in the state of Delaware. Paul Edalat was in charge of Vivera during the relevant period.
Sentar is a company that specializes in managing intellectual property. It was founded in Nevada lawfully and is based in Irvine, California. For the duration of that time, Paul Edalat was in charge.
The Charges
The exclusive rights to the confidential data related to a sublingual drug delivery system belonged to Sentar. This technological advance included the use of pills that could dissolve under the tongue and deliver chemicals to humans.
Sentar’s owner, largest shareholder, and board chairman was Paul Edalat. Sentar and Alternate Health have entered into an authorization agreement. Paul Edalat, representing Sentar, carried out the contract’s execution.
