SEC v. Arthur Hall; and Rising Biosciences, Inc., Northern District of Ohio (Aug. 17, 2021) — Complaint

UNITED STATES DISTRICT COURT 
NORTHERN DISTRICT OF OHIO 
 
 
UNITED STATES SECURITIES 
AND EXCHANGE COMMISSION,  
    
                         Plaintiff,      
     
) 
) 
) 
) 
) 
 
                                       v. )   No. 3:21-cv-1597 
 )  
ARTHUR HALL and RISING 
BIOSCIENCES, INC., 
 
                         Defendants. 
) 
) 
) 
) 
  JURY DEMANDED 
_______________________________________ )  
COMPLAINT 
  Plaintiff United States Securities and Exchange Commission (“SEC”) 
alleges: 
1. Between at least April 2020 and October 2020, defendant Rising 
Biosciences, Inc. (“RBII”), an Ohio microcap company, and its CEO, 
defendant Arthur Hall, made materially false and misleading statements 
regarding disinfectant products RBII launched purportedly in response to 
COVID-19. Defendants represented that the products, including Oxithymol, 
the Oxi Thyme system, and/or their ingredients, were approved by the United 
States Centers for Disease Control and Prevention (“CDC”) or registered with 
the United States Environmental Protection Agency (“EPA”). They made these 
false and misleading statements in RBII press releases, on two RBII websites, 
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and in RBII social media videos describing efforts to combat COVID-19 in 
schools, daycare facilities, retail stores, fitness centers, hotels, and restaurants, 
among other public places.  
2. Neither Oxithymol nor its purported ingredients were CDC 
approved, and neither Oxi Thyme nor Oxithymol was registered with the EPA 
for any use. Further, RBII did not use Oxithymol in its Oxi Thyme system. 
Instead, RBII purchased and rebottled Oxy Blast 50, a pesticide produced by 
another company, and sold that product for use in its Oxi Thyme system. Oxy 
Blast 50 is EPA registered as a pesticide. Oxi Blast 50 is not EPA registered for 
use in killing viruses, and it does not appear on the EPA’s “List N” of products 
that meet EPA criteria for use against the virus that causes COVID-19.  
3. Between April 2020 and August 25, 2020, RBII’s common stock 
was quoted and traded on OTC Link, whose parent company is OTC Markets 
Group Inc. Investors reacted enthusiastically to defendants’ false and 
misleading public pronouncements, as reflected in the trading volume and price 
of RBII stock.   
4. The SEC brings this lawsuit to prevent further harm to investors 
and to hold defendants accountable for their misdeeds.  
JURISDICTION AND VENUE 
5. The SEC brings this action pursuant to Sections 21(d) and 21(e) of 
the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. §§78u(d) and 
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78u(e)]. 
6. This Court has jurisdiction over this action pursuant to Section 27 
of the Exchange Act [15 U.S.C. § 78aa] and 28 U.S.C. § 1331. 
7. Venue is proper in this Court pursuant to Section 27 of the 
Exchange Act [15 U.S.C. § 78aa]. Acts, practices, and courses of business 
constituting violations alleged herein have occurred within the jurisdiction of 
the United States District Court for the Northern District of Ohio and 
elsewhere. 
8. Defendants directly and indirectly made use of the means and 
instrumentalities of interstate commerce and of the mails in connection with the 
acts, practices, and courses of business alleged herein, and will continue to do so 
unless enjoined. 
DEFENDANTS 
9. Defendant Arthur Hall, age 53, is a resident of Sandusky, Ohio. 
Hall serves as chief executive officer of defendant Rising Biosciences, Inc., and 
through a company that he manages with another individual, owns more than a 
third of RBII preferred shares that are convertible to common
 shares.  
10. Defendant Rising Biosciences, Inc. is a Delaware corporation 
with its principal place of business in Sandusky, Ohio. RBII purports to offer 
various health-related products and services.  
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FACTS 
RBII’s Business and Financial Condition  
11. Since April 2020, RBII has purportedly operated four business 
units: (a) Oxi Thyme; (b) “a physicians’ [sic] practice management company 
focused on the proper use of cannabis for treatment”; (c) a research and 
development unit “focusing on oral and topical pharmaceuticals”; and  
(d) a unit that purports to offer substance abuse treatment. RBII’s common 
stock is not registered with the Commission. RBII’s common stock was quoted 
and traded on OTC Link under the ticker symbol “RBII.” 
12.  The Commission suspended trading in RBII securities from 
August 25, 2020 to September 8, 2020 “because of questions regarding the 
accuracy and adequacy of information in the marketplace about the company 
and its securities since at least April 16, 2020” that “relate[d], in part, to 
statements in April 16, 2020 and July 17, 2020 press releases in which RBII 
suggested that some of the products it claim[ed] to have launched in response to 
COVID-19, including Oxithymol, the Oxi Thyme system, and/or their 
ingredients, are approved by the CDC or registered with the EPA.” Since the 
trading suspension, RBII’s common shares have been labeled as “Caveat 
Emptor” and have been the subject of unsolicited quotations and traded on an 
over the counter expert market for securities restricted from public quoting and 
trading operated by OTC Link.   
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13. As of June 25, 2021, RBII’s market capitalization was $529,836.  
Defendants’ False and Misleading Press Releases  
About RBII’s Disinfectant Products 
14. On April 16, 2020, RBII published a press release entitled “[RBII] 
Launches Production of Oxithymol™ Disinfectant in Response to Ohio 
Governor’s Appeal for Help Battling the COVID-19 Pandemic” (“April Press 
Release”). Hall personally drafted content for the press release, reviewed it, and 
approved it before RBII released it to the public. In the April Press Release, 
RBII announced the “production launch of Oxithymol™[,] a proprietary, non-
toxic, blended formula of CDC approved hydrogen peroxide, thymol and other 
natural, environmentally safe ingredients.” 
15. In its April Press Release, RBII also stated that “Oxithymol™ 
disinfectant solution is applied via the Oxi Thyme™ atomizing ULV/HPLV 
fogging system,”   a “‘no touch’ system [that] is effective in killing disease-
causing microbial pathogens on hard surfaces, and is suitable for residential, 
commercial and automotive settings.” 
16. In the April Press Release, Hall stated: “We are proud to join the 
voluntary mobilization of private industry across our region to combat the 
COVID-19 pandemic
. . . .In this time of great need, we are pivoting away from 
our normal sector and repurposing our lab to produce over 10,000 gallons of 
much needed disinfectant a month
. . . . The Oxi Thyme™ system combines 
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Oxithymol™ with an innovative, easy-application fogging system. It means 
essential industries and businesses can keep running while minimizing the 
threat to employees from highly infectious pathogens.” 
17. In the April Press Release, RBII referenced its Oxi Thyme website, 
www.oxi-thyme.com, which, as of late April, 2020, described the Oxi Thyme 
system as “[u]tilizing a non toxic proprietary blend of CDC approved Hydrogen 
Peroxide along with Thyme oil.” 
18. On July 17, 2020, RBII published another press release, entitled 
“Rising Biosciences, Inc. Propels Q2 Revenues to Nearly $350,000 Due to 
Exceptional Growth of Oxi Thyme Division” (“July Press Release”). Hall 
personally drafted content for the press release, reviewed it, and approved it 
before RBII released it to the public.  
19. In its July Press Release, RBII stated: “Oxi Thyme has introduced 
a proprietary system designed to sanitize and disinfect varying facilities in the 
current challenging environment, quickly and cost effectively. Utilizing a 
proprietary formulated EPA registered Hydrogen Peroxide disinfectant, 
developed with a surfactant, or surface active agent, Oxi Thyme improves 
efficiency by lowering surface tension.” 
20. Hall, in the July Press Release, stated: “We are
. . . . experiencing a 
dramatic climate of change with this Covid-19 pandemic. People are struggling 
to establish what our new normal will be with respect to safety standards. Oxi 
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Thyme has heard the call and we are here to help!” 
Defendants’ False and Misleading Videos   
About RBII’s Disinfectant Products 
21. Between at least April 2020 and October 2020, RBII marketed the 
Oxi Thyme system in YouTube videos for use in schools, daycare facilities, 
retail stores, fitness centers, hotels, restaurants, and other public places. On its 
Oxi Thyme YouTube channel, RBII prominently featured such videos as 
“Sanitizing a Daycare Facility with OXI-THYME,” “Sanitizing Residential 
areas with OXI-THYME,” “School System Protocols,” and others.  
22. Several of these videos touted CDC approval or EPA registration. 
For example, in a video posted on May 15, 2020, a person wearing protective 
gloves holds a sign that says “COVID-19” while a narrator reads: “Our 
proprietary blend is all natural and will kill illness causing germs on hard and 
soft surfaces and will allow you to rest assured that you are being proactive 
against viral threats.” The narrator describes the disinfectant product as “a 
proprietary formulated EPA registered Hydrogen Peroxide disinfectant 
developed with a surfactant.”    
23. Another video, posted on June 28, 2020, shows a school bus 
purportedly being sprayed with the Oxi Thyme system with a text overlay that 
states: “EPA CERTIFIED”   and “CDC APPROVED”:  
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24. Hall authored the text overlays and reviewed, paid for, and 
authorized making this video content public. 
Defendants’ False and Misleading Website Content  
About RBII’s Disinfectant Products 
25. Between at least April 2020 and October 2020, RBII also marketed 
the Oxi Thyme system as CDC approved or EPA registered on two websites.  
As of late April 2020, RBII’s www.oxi-thyme.com website described the Oxi 
Thyme system as “[u]tilizing a non toxic proprietary blend of CDC approved 
Hydrogen Peroxide along with Thyme oil.” In early August 2020, the website 
described Oxi Thyme as using a “proprietary formulated EPA registered 
Hydrogen Peroxide disinfectant.”    
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26. In September 2020, RBII’s www.risingbiosciences.org website 
stated that “Oxi Thyme™ was developed to help fight the spread of Covid-19 
and other harmful viruses and bacteria. By utilizing a proprietary formulated 
EPA registered disinfectant with a touch-free system, Oxi-Thyme™ has been 
able to help businesses across America safe[ly] and effectively fight the spread 
of deadly viruses.” 
27. Hall contributed to, reviewed, paid for, and authorized this 
website content.  
The Price of RBII’s Stock Rises After Defendants’ False and Misleading 
Public Statements About RBII’s Disinfectant Products 
28. The day defendants issued the April Press Release, the trading 
volume of RBII’s stock and its price increased markedly. At its peak that day, 
the stock price doubled relative to the closing price the day before, and daily 
trading volume was about 174 million shares, compared to 13 million shares 
the month before.  
29. The investing public’s response to the July Press Release was even 
more dramatic. The first trading day after RBII issued the July Press Release, at 
its peak the stock price increased 1,260% compared to the closing price from a 
week earlier. The average daily trading volume for July 17 through July 20, 
2020 was about 163 million shares, compared to 18 million shares the month 
before. 
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30. In RBII’s most recent publicly released unaudited quarterly 
financial statements, for the quarter ending September 30, 2020, RBII reported 
large increases in revenues and net operating income compared to the same 
period in the prior year. RBII reported total revenues of $751,295 for the first 
nine months of 2020, up from $134,534 for the same period in 2019, and net 
operating income of $370,469, compared to a loss of $169,006 for the same 
period in 2019.  
Defendants’ Representations Were Materially False and Misleading 
31. RBII’s representations in its press releases, videos, and websites 
were materially false and misleading.  
32. First, neither Oxithymol nor its purported ingredients were CDC 
approved as claimed in RBII’s April Press Release, at least two YouTube 
videos, and the Oxi Thyme website. The CDC does not approve hydrogen 
peroxide or disinfectants containing hydrogen peroxide, but rather defers to the 
EPA or FDA. 
33. Second, RBII’s claims of EPA registration in its July Press 
Release, in multiple YouTube videos, and on the Oxi Thyme and RBII websites 
were misleading. The EPA has not registered Oxi Thyme or Oxithymol for any 
use.  
34. Third, RBII did not actually use Oxithymol in its Oxi Thyme 
system. Instead, at Hall’s direction, RBII purchased Oxy Blast 50, a pesticide 
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produced by another company, and rebottled and sold that product for use in 
the Oxi Thyme system. Oxy Blast 50 is a hydrogen peroxide solution that is 
EPA registered as a pesticide. But it is    not registered for use in killing viruses, 
and it does not appear on the EPA’s “List N” of products that meet EPA 
criteria for use against the virus that causes COVID-19. Rather, Oxy Blast 50  ’s 
EPA registration is only for use in commercial agricultural or industrial water 
systems to suppress odors and as a preventative treatment for horticultural 
diseases and plant pathogenic diseases. 
Defendants Acted With Scienter 
35. During the relevant time period, Hall knew that the CDC does not 
approve disinfectant products, and he knew that the CDC had not approved 
any of RBII’s products or Oxy Blast 50. He further knew that the EPA had not 
registered Oxi Thyme or Oxithymol. Indeed, Hall had expressly chosen not to 
register Oxithymol with the EPA once he learned how long the process would 
take. He also knew the EPA never registered Oxy Blast 50 for use against the 
virus that causes COVID-19  .  
36. Hall, as RBII’s CEO, exercised control over the company with 
regard to the conduct at issue. Thus, his scienter is imputed to the company. 
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COUNT I 
Violations of Section 10(b) of the Exchange Act, 
and Exchange Act Rule 10b-5 
(Against Both Defendants) 
37. Paragraphs 1 through 36 are realleged and incorporated by 
reference. 
38. As more fully described in paragraphs 1 through 36 above, 
defendants, in connection with the purchase and sale of securities, by the use of 
the means and instrumentalities of interstate commerce and by the use of the 
mails, directly and indirectly: used and employed devices, schemes and artifices 
to defraud; made untrue statements of material fact and omitted to state 
material facts necessary in order to make the statements made, in light of the 
circumstances under which they were made, not misleading; and engaged in 
acts, practices and courses of business which operated or would have operated 
as a fraud and deceit upon purchasers and sellers and prospective purchasers 
and sellers of securities. 
39. Defendants knew, or were reckless in not knowing, of the facts 
and circumstances described in paragraphs 1 through 36 above. 
40. By reason of the foregoing, defendants violated Section 10(b) of 
the Exchange Act [15 U.S.C. §78j(b)] and Rule 10b-5   thereunder [17 C.F.R. 
240.10b-5]. 
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RELIEF REQUESTED 
 WHEREFORE, the Commission respectfully requests that this Court: 
I.  
 Permanently  enjoin defendants, their officers, agents, servants, 
employees, attorneys and those persons in active concert or participation with 
defendant who receive actual notice of the order of this Court, by personal 
service or otherwise, and each of them from, directly or indirectly, engaging in 
the transactions, acts, practices or courses of business described above, or in 
conduct of similar purport and object, in violation of Section 10(b) of the 
Exchange Act [15 U.S.C. § 78j] and Rule 10b-5 [17 CFR § 240.10b-5] 
thereunder. 
II. 
Order defendants to disgorge the ill-gotten gains they received because of 
the violations alleged in this Complaint, including prejudgment interest, 
pursuant to Section 21(d)(5) and 21(d)(7) of the Exchange Act [15 U.S.C. 
§§ 78u(d)(5), and 78u(d)(7)]. 
III. 
Order defendants to pay civil penalties pursuant to Section 21(d)(3) of the 
Exchange Act [15 U.S.C. § 78u(d)(3)].  
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IV. 
  Pursuant to Section 21(d)(2) of the Exchange Act [15 U.S.C. 
§ 78u(d)(2)], enter an order prohibiting defendant Arthur Hall from acting as an 
officer or director of any issuer that has a class of securities registered pursuant 
to Section 12 of the Exchange Act [15 U.S.C. § 78l] or that is required to file 
reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)]. 
V. 
  Enter an order permanently barring defendant Arthur Hall from 
participating in an offering of penny stock, including engaging in activities with 
a broker, dealer, or issuer for purposes of issuing, trading, or inducing or 
attempting to induce the purchase or sale of any penny stock. 
VI. 
 Grant such other relief as this Court deems appropriate. 
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JURY DEMAND 
 The Commission hereby requests a trial by jury.  
      UNITED STATES SECURITIES 
      AND EXCHANGE COMMISSION 
 
      By: /s/ Jonathan S. Polish 
Jonathan S. Polish 
Amy F. Hartman 
Stephanie L. Reinhart 
Attorneys for Plaintiff 
      U.S. SECURITIES AND 
      EXCHANGE COMMISSION 
      175 West Jackson Blvd., Suite 1450 
      Chicago, IL 60604 
     Telephone: (312) 353-7390 
 
 
Dated: August 17, 2021 
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UNITED STATES DISTRICT COURT 
NORTHERN DISTRICT OF OHIO 

 
 

UNITED STATES SECURITIES 
AND EXCHANGE COMMISSION,  
    
                         Plaintiff,    
     

) 
) 
) 
) 
) 

 

                                       v. )   No. 3:21-cv-1597 
 )  
ARTHUR HALL and RISING 
BIOSCIENCES, INC., 
 
                         Defendants. 

) 
) 
) 
) 

  JURY DEMANDED 

_______________________________________ )  

COMPLAINT 

  Plaintiff United States Securities and Exchange Commission (“SEC”) 

alleges: 

1. Between at least April 2020 and October 2020, defendant Rising 

Biosciences, Inc. (“RBII”), an Ohio microcap company, and its CEO, 

defendant Arthur Hall, made materially false and misleading statements 

regarding disinfectant products RBII launched purportedly in response to 

COVID-19. Defendants represented that the products, including Oxithymol, 

the Oxi Thyme system, and/or their ingredients, were approved by the United 

States Centers for Disease Control and Prevention (“CDC”) or registered with 

the United States Environmental Protection Agency (“EPA”). They made these 

false and misleading statements in RBII press releases, on two RBII websites, 

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and in RBII social media videos describing efforts to combat COVID-19 in 

schools, daycare facilities, retail stores, fitness centers, hotels, and restaurants, 

among other public places.  

2. Neither Oxithymol nor its purported ingredients were CDC 

approved, and neither Oxi Thyme nor Oxithymol was registered with the EPA 

for any use. Further, RBII did not use Oxithymol in its Oxi Thyme system. 

Instead, RBII purchased and rebottled Oxy Blast 50, a pesticide produced by 

another company, and sold that product for use in its Oxi Thyme system. Oxy 

Blast 50 is EPA registered as a pesticide. Oxi Blast 50 is not EPA registered for 

use in killing viruses, and it does not appear on the EPA’s “List N” of products 

that meet EPA criteria for use against the virus that causes COVID-19.  

3. Between April 2020 and August 25, 2020, RBII’s common stock 

was quoted and traded on OTC Link, whose parent company is OTC Markets 

Group Inc. Investors reacted enthusiastically to defendants’ false and 

misleading public pronouncements, as reflected in the trading volume and price 

of RBII stock.   

4. The SEC brings this lawsuit to prevent further harm to investors 

and to hold defendants accountable for their misdeeds.  

JURISDICTION AND VENUE 

5. The SEC brings this action pursuant to Sections 21(d) and 21(e) of 

the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. §§78u(d) and 

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78u(e)]. 

6. This Court has jurisdiction over this action pursuant to Section 27 

of the Exchange Act [15 U.S.C. § 78aa] and 28 U.S.C. § 1331. 

7. Venue is proper in this Court pursuant to Section 27 of the 

Exchange Act [15 U.S.C. § 78aa]. Acts, practices, and courses of business 

constituting violations alleged herein have occurred within the jurisdiction of 

the United States District Court for the Northern District of Ohio and 

elsewhere. 

8. Defendants directly and indirectly made use of the means and 

instrumentalities of interstate commerce and of the mails in connection with the 

acts, practices, and courses of business alleged herein, and will continue to do so 

unless enjoined. 

DEFENDANTS 

9. Defendant Arthur Hall, age 53, is a resident of Sandusky, Ohio. 

Hall serves as chief executive officer of defendant Rising Biosciences, Inc., and 

through a company that he manages with another individual, owns more than a 

third of RBII preferred shares that are convertible to common shares.  

10. Defendant Rising Biosciences, Inc. is a Delaware corporation 

with its principal place of business in Sandusky, Ohio. RBII purports to offer 

various health-related products and services.  

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FACTS 

RBII’s Business and Financial Condition  

11. Since April 2020, RBII has purportedly operated four business 

units: (a) Oxi Thyme; (b) “a physicians’ [sic] practice management company 

focused on the proper use of cannabis for treatment”; (c) a research and 

development unit “focusing on oral and topical pharmaceuticals”; and  

(d) a unit that purports to offer substance abuse treatment. RBII’s common 

stock is not registered with the Commission. RBII’s common stock was quoted 

and traded on OTC Link under the ticker symbol “RBII.” 

12.  The Commission suspended trading in RBII securities from 

August 25, 2020 to September 8, 2020 “because of questions regarding the 

accuracy and adequacy of information in the marketplace about the company 

and its securities since at least April 16, 2020” that “relate[d], in part, to 

statements in April 16, 2020 and July 17, 2020 press releases in which RBII 

suggested that some of the products it claim[ed] to have launched in response to 

COVID-19, including Oxithymol, the Oxi Thyme system, and/or their 

ingredients, are approved by the CDC or registered with the EPA.” Since the 

trading suspension, RBII’s common shares have been labeled as “Caveat 

Emptor” and have been the subject of unsolicited quotations and traded on an 

over the counter expert market for securities restricted from public quoting and 

trading operated by OTC Link.   

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13. As of June 25, 2021, RBII’s market capitalization was $529,836.  

Defendants’ False and Misleading Press Releases  
About RBII’s Disinfectant Products 

14. On April 16, 2020, RBII published a press release entitled “[RBII] 

Launches Production of Oxithymol™ Disinfectant in Response to Ohio 

Governor’s Appeal for Help Battling the COVID-19 Pandemic” (“April Press 

Release”). Hall personally drafted content for the press release, reviewed it, and 

approved it before RBII released it to the public. In the April Press Release, 

RBII announced the “production launch of Oxithymol™[,] a proprietary, non-

toxic, blended formula of CDC approved hydrogen peroxide, thymol and other 

natural, environmentally safe ingredients.” 

15. In its April Press Release, RBII also stated that “Oxithymol™ 

disinfectant solution is applied via the Oxi Thyme™ atomizing ULV/HPLV 

fogging system,” a “‘no touch’ system [that] is effective in killing disease-

causing microbial pathogens on hard surfaces, and is suitable for residential, 

commercial and automotive settings.” 

16. In the April Press Release, Hall stated: “We are proud to join the 

voluntary mobilization of private industry across our region to combat the 

COVID-19 pandemic. . . .In this time of great need, we are pivoting away from 

our normal sector and repurposing our lab to produce over 10,000 gallons of 

much needed disinfectant a month. . . . The Oxi Thyme™ system combines 

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Oxithymol™ with an innovative, easy-application fogging system. It means 

essential industries and businesses can keep running while minimizing the 

threat to employees from highly infectious pathogens.” 

17. In the April Press Release, RBII referenced its Oxi Thyme website, 

www.oxi-thyme.com, which, as of late April, 2020, described the Oxi Thyme 

system as “[u]tilizing a non toxic proprietary blend of CDC approved Hydrogen 

Peroxide along with Thyme oil.” 

18. On July 17, 2020, RBII published another press release, entitled 

“Rising Biosciences, Inc. Propels Q2 Revenues to Nearly $350,000 Due to 

Exceptional Growth of Oxi Thyme Division” (“July Press Release”). Hall 

personally drafted content for the press release, reviewed it, and approved it 

before RBII released it to the public.  

19. In its July Press Release, RBII stated: “Oxi Thyme has introduced 

a proprietary system designed to sanitize and disinfect varying facilities in the 

current challenging environment, quickly and cost effectively. Utilizing a 

proprietary formulated EPA registered Hydrogen Peroxide disinfectant, 

developed with a surfactant, or surface active agent, Oxi Thyme improves 

efficiency by lowering surface tension.” 

20. Hall, in the July Press Release, stated: “We are. . . . experiencing a 

dramatic climate of change with this Covid-19 pandemic. People are struggling 

to establish what our new normal will be with respect to safety standards. Oxi 

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Thyme has heard the call and we are here to help!” 

Defendants’ False and Misleading Videos   
About RBII’s Disinfectant Products 

21. Between at least April 2020 and October 2020, RBII marketed the 

Oxi Thyme system in YouTube videos for use in schools, daycare facilities, 

retail stores, fitness centers, hotels, restaurants, and other public places. On its 

Oxi Thyme YouTube channel, RBII prominently featured such videos as 

“Sanitizing a Daycare Facility with OXI-THYME,” “Sanitizing Residential 

areas with OXI-THYME,” “School System Protocols,” and others.  

22. Several of these videos touted CDC approval or EPA registration. 

For example, in a video posted on May 15, 2020, a person wearing protective 

gloves holds a sign that says “COVID-19” while a narrator reads: “Our 

proprietary blend is all natural and will kill illness causing germs on hard and 

soft surfaces and will allow you to rest assured that you are being proactive 

against viral threats.” The narrator describes the disinfectant product as “a 

proprietary formulated EPA registered Hydrogen Peroxide disinfectant 

developed with a surfactant.”  

23. Another video, posted on June 28, 2020, shows a school bus 

purportedly being sprayed with the Oxi Thyme system with a text overlay that 

states: “EPA CERTIFIED” and “CDC APPROVED”:  

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24. Hall authored the text overlays and reviewed, paid for, and 

authorized making this video content public. 

Defendants’ False and Misleading Website Content  
About RBII’s Disinfectant Products 

25. Between at least April 2020 and October 2020, RBII also marketed 

the Oxi Thyme system as CDC approved or EPA registered on two websites.  

As of late April 2020, RBII’s www.oxi-thyme.com website described the Oxi 

Thyme system as “[u]tilizing a non toxic proprietary blend of CDC approved 

Hydrogen Peroxide along with Thyme oil.” In early August 2020, the website 

described Oxi Thyme as using a “proprietary formulated EPA registered 

Hydrogen Peroxide disinfectant.”  

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26. In September 2020, RBII’s www.risingbiosciences.org website 

stated that “Oxi Thyme™ was developed to help fight the spread of Covid-19 

and other harmful viruses and bacteria. By utilizing a proprietary formulated 

EPA registered disinfectant with a touch-free system, Oxi-Thyme™ has been 

able to help businesses across America safe[ly] and effectively fight the spread 

of deadly viruses.” 

27. Hall contributed to, reviewed, paid for, and authorized this 

website content.  

The Price of RBII’s Stock Rises After Defendants’ False and Misleading 
Public Statements About RBII’s Disinfectant Products 

28. The day defendants issued the April Press Release, the trading 

volume of RBII’s stock and its price increased markedly. At its peak that day, 

the stock price doubled relative to the closing price the day before, and daily 

trading volume was about 174 million shares, compared to 13 million shares 

the month before.  

29. The investing public’s response to the July Press Release was even 

more dramatic. The first trading day after RBII issued the July Press Release, at 

its peak the stock price increased 1,260% compared to the closing price from a 

week earlier. The average daily trading volume for July 17 through July 20, 

2020 was about 163 million shares, compared to 18 million shares the month 

before. 

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30. In RBII’s most recent publicly released unaudited quarterly 

financial statements, for the quarter ending September 30, 2020, RBII reported 

large increases in revenues and net operating income compared to the same 

period in the prior year. RBII reported total revenues of $751,295 for the first 

nine months of 2020, up from $134,534 for the same period in 2019, and net 

operating income of $370,469, compared to a loss of $169,006 for the same 

period in 2019.  

Defendants’ Representations Were Materially False and Misleading 

31. RBII’s representations in its press releases, videos, and websites 

were materially false and misleading.  

32. First, neither Oxithymol nor its purported ingredients were CDC 

approved as claimed in RBII’s April Press Release, at least two YouTube 

videos, and the Oxi Thyme website. The CDC does not approve hydrogen 

peroxide or disinfectants containing hydrogen peroxide, but rather defers to the 

EPA or FDA. 

33. Second, RBII’s claims of EPA registration in its July Press 

Release, in multiple YouTube videos, and on the Oxi Thyme and RBII websites 

were misleading. The EPA has not registered Oxi Thyme or Oxithymol for any 

use.  

34. Third, RBII did not actually use Oxithymol in its Oxi Thyme 

system. Instead, at Hall’s direction, RBII purchased Oxy Blast 50, a pesticide 

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produced by another company, and rebottled and sold that product for use in 

the Oxi Thyme system. Oxy Blast 50 is a hydrogen peroxide solution that is 

EPA registered as a pesticide. But it is not registered for use in killing viruses, 

and it does not appear on the EPA’s “List N” of products that meet EPA 

criteria for use against the virus that causes COVID-19. Rather, Oxy Blast 50’s 

EPA registration is only for use in commercial agricultural or industrial water 

systems to suppress odors and as a preventative treatment for horticultural 

diseases and plant pathogenic diseases. 

Defendants Acted With Scienter 

35. During the relevant time period, Hall knew that the CDC does not 

approve disinfectant products, and he knew that the CDC had not approved 

any of RBII’s products or Oxy Blast 50. He further knew that the EPA had not 

registered Oxi Thyme or Oxithymol. Indeed, Hall had expressly chosen not to 

register Oxithymol with the EPA once he learned how long the process would 

take. He also knew the EPA never registered Oxy Blast 50 for use against the 

virus that causes COVID-19.  

36. Hall, as RBII’s CEO, exercised control over the company with 

regard to the conduct at issue. Thus, his scienter is imputed to the company. 

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COUNT I 

Violations of Section 10(b) of the Exchange Act, 
and Exchange Act Rule 10b-5 

(Against Both Defendants) 

37. Paragraphs 1 through 36 are realleged and incorporated by 

reference. 

38. As more fully described in paragraphs 1 through 36 above, 

defendants, in connection with the purchase and sale of securities, by the use of 

the means and instrumentalities of interstate commerce and by the use of the 

mails, directly and indirectly: used and employed devices, schemes and artifices 

to defraud; made untrue statements of material fact and omitted to state 

material facts necessary in order to make the statements made, in light of the 

circumstances under which they were made, not misleading; and engaged in 

acts, practices and courses of business which operated or would have operated 

as a fraud and deceit upon purchasers and sellers and prospective purchasers 

and sellers of securities. 

39. Defendants knew, or were reckless in not knowing, of the facts 

and circumstances described in paragraphs 1 through 36 above. 

40. By reason of the foregoing, defendants violated Section 10(b) of 

the Exchange Act [15 U.S.C. §78j(b)] and Rule 10b-5 thereunder [17 C.F.R. 

240.10b-5]. 

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RELIEF REQUESTED 

 WHEREFORE, the Commission respectfully requests that this Court: 

I.  

 Permanently enjoin defendants, their officers, agents, servants, 

employees, attorneys and those persons in active concert or participation with 

defendant who receive actual notice of the order of this Court, by personal 

service or otherwise, and each of them from, directly or indirectly, engaging in 

the transactions, acts, practices or courses of business described above, or in 

conduct of similar purport and object, in violation of Section 10(b) of the 

Exchange Act [15 U.S.C. § 78j] and Rule 10b-5 [17 CFR § 240.10b-5] 

thereunder. 

II. 

Order defendants to disgorge the ill-gotten gains they received because of 

the violations alleged in this Complaint, including prejudgment interest, 

pursuant to Section 21(d)(5) and 21(d)(7) of the Exchange Act [15 U.S.C. 

§§ 78u(d)(5), and 78u(d)(7)]. 
III. 

Order defendants to pay civil penalties pursuant to Section 21(d)(3) of the 

Exchange Act [15 U.S.C. § 78u(d)(3)].  

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IV. 

  Pursuant to Section 21(d)(2) of the Exchange Act [15 U.S.C. 

§ 78u(d)(2)], enter an order prohibiting defendant Arthur Hall from acting as an 

officer or director of any issuer that has a class of securities registered pursuant 

to Section 12 of the Exchange Act [15 U.S.C. § 78l] or that is required to file 

reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)]. 

V. 

  Enter an order permanently barring defendant Arthur Hall from 

participating in an offering of penny stock, including engaging in activities with 

a broker, dealer, or issuer for purposes of issuing, trading, or inducing or 

attempting to induce the purchase or sale of any penny stock. 

VI. 

 Grant such other relief as this Court deems appropriate. 

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JURY DEMAND 

 The Commission hereby requests a trial by jury.  

      UNITED STATES SECURITIES 
      AND EXCHANGE COMMISSION 
 
      By: /s/ Jonathan S. Polish 

Jonathan S. Polish 
Amy F. Hartman 
Stephanie L. Reinhart 
Attorneys for Plaintiff 

      U.S. SECURITIES AND 
      EXCHANGE COMMISSION 
      175 West Jackson Blvd., Suite 1450 
      Chicago, IL 60604 
     Telephone: (312) 353-7390 
 
 
Dated: August 17, 2021 

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	COMPLAINT