SEC v. Morbex Automation LLC; Adrian Colon; Danilo Monzon; and Joshua Smith, No. LR-26272, Southern District of Florida (Mar. 18, 2025) — Press Release

Litigation Release No. 26272 / March 18, 2025 Securities and Exchange Commission v. Morbex Automation LLC, et al., No. 1: 25-cv-21223-JEM (S.D. Fla. filed Mar. 14, 2025) SEC Charges Florida Trucking Company and Insiders with Operating $5.4 Million Offering Fraud The Securities and Exchange Commission today charged Miami-based Morbex Automation LLC (“Morbex”) and its members, Adrian Colon (“Colon”), Danilo Monzon (“Monzon”), and Joshua Smith (“Smith”), alleging that they fraudulently raised approximately $5,400,000 from at least 50 investors in South Florida and elsewhere through an unregistered securities offering. The SEC’s complaint alleges that from at least January 2023 through November 2023, Morbex, Colon, Monzon, and Smith offered and sold securities, in the form of investment contracts, to investors falsely promising monthly returns of between $4,000 and $8,000. The SEC alleges that Morbex primarily promoted the scheme through Facebook and other online advertisements. As alleged, Morbex falsely claimed it would buy semi-trucks in the names of the investors, and that Morbex would insure the semi-trucks, maintain the semi-trucks, and derive significant profits to be shared with investors from contracts Morbex had with prominent corporations to haul freight, including contracts with Walmart, Inc., Publix Super Markets, Inc., and Costco Wholesale Corporation. While Morbex did buy some trucks, the SEC alleges, the defendants also misappropriated investor funds, never had contracts with Walmart, Publix, or Costco, and ultimately failed to repay most investors their principal or any interest promised. As further alleged, Morbex also used sales agents to solicit investors, and these sales agents were never registered with the Commission as broker-dealers or associated with a registered broker-dealer. The SEC’s complaint, filed in U.S. District Court for the Southern District of Florida, charges Morbex, Colon, Monzon, and Smith with violating the registration provisions of Section 5 of the Securities Act of 1933 and the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Colon, Monzon, and Smith are also charged with violating the broker-dealer registration provisions of Section 15(a) of the Exchange Act. The SEC seeks injunctions, disgorgement plus prejudgment interest, and civil penalties against Morbex, Colon, Monzon, and Smith. The complaint names Morbex Automation Logistics Corp., Optimistic Services Inc., Sardinas Properties, LLC, JS7 Management LLC, Alpha Consulting Firm LLC, and Sandor Sardinas as relief defendants, and seeks disgorgement with prejudgment interest from them on a joint and several basis with their respective owners. The SEC’s investigation was conducted by Andre Zamorano and Mark Dee in the Miami Regional Office and supervised by Thierry Olivier Desmet, Fernando Torres, and Glenn Gordon. The SEC’s litigation will be led by Alise Johnson and supervised by Teresa J. Verges.

Litigation Release No. 26272 / March 18, 2025 Securities and Exchange Commission v. Morbex Automation LLC, et al., No. 1: 25-cv-21223-JEM (S.D. Fla. filed Mar. 14, 2025) SEC Charges Florida Trucking Company and Insiders with Operating $5.4 Million Offering Fraud The Securities and Exchange Commission today charged Miami-based Morbex Automation LLC (“Morbex”) and its members, Adrian Colon (“Colon”), Danilo Monzon (“Monzon”), and Joshua Smith (“Smith”), alleging that they fraudulently raised approximately $5,400,000 from at least 50 investors in South Florida and elsewhere through an unregistered securities offering. The SEC’s complaint alleges that from at least January 2023 through November 2023, Morbex, Colon, Monzon, and Smith offered and sold securities, in the form of investment contracts, to investors falsely promising monthly returns of between $4,000 and $8,000. The SEC alleges that Morbex primarily promoted the scheme through Facebook and other online advertisements. As alleged, Morbex falsely claimed it would buy semi-trucks in the names of the investors, and that Morbex would insure the semi-trucks, maintain the semi-trucks, and derive significant profits to be shared with investors from contracts Morbex had with prominent corporations to haul freight, including contracts with Walmart, Inc., Publix Super Markets, Inc., and Costco Wholesale Corporation. While Morbex did buy some trucks, the SEC alleges, the defendants also misappropriated investor funds, never had contracts with Walmart, Publix, or Costco, and ultimately failed to repay most investors their principal or any interest promised. As further alleged, Morbex also used sales agents to solicit investors, and these sales agents were never registered with the Commission as broker-dealers or associated with a registered broker-dealer. The SEC’s complaint, filed in U.S. District Court for the Southern District of Florida, charges Morbex, Colon, Monzon, and Smith with violating the registration provisions of Section 5 of the Securities Act of 1933 and the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Colon, Monzon, and Smith are also charged with violating the broker-dealer registration provisions of Section 15(a) of the Exchange Act. The SEC seeks injunctions, disgorgement plus prejudgment interest, and civil penalties against Morbex, Colon, Monzon, and Smith. The complaint names Morbex Automation Logistics Corp., Optimistic Services Inc., Sardinas Properties, LLC, JS7 Management LLC, Alpha Consulting Firm LLC, and Sandor Sardinas as relief defendants, and seeks disgorgement with prejudgment interest from them on a joint and several basis with their respective owners. The SEC’s investigation was conducted by Andre Zamorano and Mark Dee in the Miami Regional Office and supervised by Thierry Olivier Desmet, Fernando Torres, and Glenn Gordon. The SEC’s litigation will be led by Alise Johnson and supervised by Teresa J. Verges.