SEC v. J. Jeremy Barbera; Carl Smith; and Nanobeak Biotech Inc., No. LR-24978, Southern District of New York (Dec. 9, 2020) — Press Release

SEC Charges Technology Company, Former CEO, and Stock Promoter with Fraud Litigation Release No. 24978 / December 9, 2020 Securities and Exchange Commission v. J. Jeremy Barbera, Carl Smith, and Nanobeak Biotech Inc., No. 20-civ-10353 (S.D.N.Y.) filed December 9, 2020 The Securities and Exchange Commission today charged J. Jeremy Barbera, a recidivist securities law violator and the former CEO of Nanobeak Biotech Inc., Carl Smith, a stock promoter, and Nanobeak with defrauding investors of approximately $3.6 million. According to the SEC's complaint, between at least December 2015 and December 2019, Barbera, a New York City resident, and Nanobeak, a private Delaware company located in New York City, made false and misleading statements about the company's business while soliciting, and selling Nanobeak securities to, investors and potential investors. For example, the complaint alleges that Barbera and Nanobeak claimed that Nanobeak was working in conjunction with scientists at NASA and a nationally recognized research university, and that it had developed a sensor device that used a breathalyzer test to detect cancer and drug use. The complaint alleges that, in reality, Nanobeak never developed any such technology. The complaint further alleges that Barbera used at least $1.6 million, or nearly 45% of investor funds, for his own personal benefit. As alleged, after Barbera resigned as Nanobeak's CEO in April 2019, he enlisted Smith, a Sarasota, Florida resident, to sell Nanobeak securities. According to the complaint, Smith falsely told investors that he was a Nanobeak employee, that all investor funds would be used to benefit Nanobeak, and that he was not accepting compensation or taking commissions, when in fact, Smith was never a Nanobeak employee, and in 2019 he received at least $173,000 of investor funds purportedly raised for Nanobeak for his own personal benefit. The SEC's complaint, filed in federal district court in Manhattan, charges Barbera, Smith and Nanobeak with violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and, additionally, charges Smith with aiding and abetting Barbera's violations. The SEC is seeking a final judgment ordering permanent injunctive relief, disgorgement plus prejudgment interest thereon, and civil monetary penalties. Separately, the United States Attorney's Office for the Southern District of New York announced criminal charges against Barbera. The SEC's investigation has been conducted by Gerald Gross, James Hanson, Melissa Coppola, and Paul Gizzi of the New York Regional Office, and the litigation will be handled by Messrs. Gizzi and Hanson. The case is being supervised by Sanjay Wadhwa. The SEC appreciates the assistance of the United States Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation. SEC Complaint

SEC Charges Technology Company, Former CEO, and Stock Promoter with Fraud Litigation Release No. 24978 / December 9, 2020 Securities and Exchange Commission v. J. Jeremy Barbera, Carl Smith, and Nanobeak Biotech Inc., No. 20-civ-10353 (S.D.N.Y.) filed December 9, 2020 The Securities and Exchange Commission today charged J. Jeremy Barbera, a recidivist securities law violator and the former CEO of Nanobeak Biotech Inc., Carl Smith, a stock promoter, and Nanobeak with defrauding investors of approximately $3.6 million. According to the SEC's complaint, between at least December 2015 and December 2019, Barbera, a New York City resident, and Nanobeak, a private Delaware company located in New York City, made false and misleading statements about the company's business while soliciting, and selling Nanobeak securities to, investors and potential investors. For example, the complaint alleges that Barbera and Nanobeak claimed that Nanobeak was working in conjunction with scientists at NASA and a nationally recognized research university, and that it had developed a sensor device that used a breathalyzer test to detect cancer and drug use. The complaint alleges that, in reality, Nanobeak never developed any such technology. The complaint further alleges that Barbera used at least $1.6 million, or nearly 45% of investor funds, for his own personal benefit. As alleged, after Barbera resigned as Nanobeak's CEO in April 2019, he enlisted Smith, a Sarasota, Florida resident, to sell Nanobeak securities. According to the complaint, Smith falsely told investors that he was a Nanobeak employee, that all investor funds would be used to benefit Nanobeak, and that he was not accepting compensation or taking commissions, when in fact, Smith was never a Nanobeak employee, and in 2019 he received at least $173,000 of investor funds purportedly raised for Nanobeak for his own personal benefit. The SEC's complaint, filed in federal district court in Manhattan, charges Barbera, Smith and Nanobeak with violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and, additionally, charges Smith with aiding and abetting Barbera's violations. The SEC is seeking a final judgment ordering permanent injunctive relief, disgorgement plus prejudgment interest thereon, and civil monetary penalties. Separately, the United States Attorney's Office for the Southern District of New York announced criminal charges against Barbera. The SEC's investigation has been conducted by Gerald Gross, James Hanson, Melissa Coppola, and Paul Gizzi of the New York Regional Office, and the litigation will be handled by Messrs. Gizzi and Hanson. The case is being supervised by Sanjay Wadhwa. The SEC appreciates the assistance of the United States Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation. SEC Complaint