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Politics

Males charged in shell firm inventory fraud scheme, used SEC filings

Three men have embarked on a brazen scheme to “secretly kidnap” and take over dormant mailbox companies, whose shares they then fraudulently inflated to sell to ignorant investors, according to the indictment, which was unsealed on Friday.

The 2017-2019 men allegedly used fake resignation letters to take control of four mailbox companies, then used the Securities and Exchange Commission’s EDGAR public filing system and fake press releases to fraudulently “pump up” their stock prices by seeking new business opportunities says.

Millions of shares of those stocks, which the defendants bought in many cases for less than 1 cent a share, were then sold over-the-counter by the men and others at gains of up to 900%, according to the court record.

The defendants – Mark Allen Miller, Christopher James Rajkaran and Saeid Jaberian, also known as Andre Jaberian – are charged in 15 cases of securities fraud, securities fraud conspiracy and wire transfer fraud.

The indictment states that Minnesota residents, Miller and Jaberian, as well as an unidentified person who is a relative of Miller, actually became the nominal CEOs and presidents of the companies affected by the scam.

Prosecutors believe the men made hundreds of thousands of dollars in illegal profits just from the behavior described in the indictment, according to a spokeswoman for the US prosecutor in Minnesota.

The indictment, filed in the U.S. District Court in Minnesota, was first reported Friday on the Twitter account of Seamus Hughes, associate director of the Extremism Program at George Washington University.

Hughes regularly scours the federal court’s online archive system, PACER, for interesting criminal and civil litigation documents that were not previously reported.

The Securities and Exchange Commission did not immediately respond when CNBC asked if the agency had taken any action against the defendants and whether they had made changes to the EDGAR file system to prevent tampering by suspected fraudsters.

None of the defendants could be reached for comment.

Rajkaran, a resident of Queens, New York and Guyana, was arrested on Friday as a possible aviation hazard after appearing in court in Brooklyn, New York.

The other two defendants, Miller and Jaberian, are due to appear in federal court in Minnesota on July 2.

The four mailbox companies affected by the alleged conspiracy were Digitiliti, Encompass Holdings, Bell Buckle Holdings, and Utilicraft Aerospace Industries.

While the companies were supposedly doing business – online privacy services, computer software, debt collection, and aerospace – all were actually dormant mailbox companies “with no business or income to speak of,” the indictment said.

The companies had all stopped filing required documents with the SEC and the Secretary of State, but their shares were publicly traded on the over-the-counter market.

After the corporate quartet was identified, “the conspirators then bought shares in the dormant public letterbox companies at low prices on the OTC market,” the indictment said.

“The conspirators were able to buy hundreds of thousands or even millions of shares because the shares traded for a fraction of a penny per share.”

In the Digitiliti case, according to the indictment, Miller drafted a fake resignation letter and board minutes in September 2017, falsely stating that the company’s previous CEO had resigned and Miller had been appointed president and CEO.

Miller then filed with the SEC papers falsely identifying himself as the company’s new head and asked for “the login codes that allow him access to the company’s SEC-EDGAR filing account.”

This in turn “allowed Miller to make public filings with the SEC on behalf of the company.”

The EDGAR system is used by publicly traded companies to disclose material events, including quarterly and annual financial results, changes in management, and sales and purchases of significant amounts of company stock by insiders and others.

The indictment states that Miller bought 50,000 Digitiliti shares in November 2017.

“After Digitiliti’s kidnapping, the Defendant Miller used his control over the company to issue a false and misleading press release on behalf of the company,” the indictment stated.

“On or about July 9, 2018, Miller issued a press release falsely claiming that Digitiliti was ‘negotiating’ with a private company that is trying to ‘buy’ Digitiliti.”

The press release also falsely alleged that the private company “has a proven track record of generating revenue and succeeding in a highly desirable sector of the market,” according to the indictment.

Miller sold his 50,000 Digitiliti shares three weeks later.

During the alleged hijacking of Encompass Holdings from June to November 2017, Miller and Rajkaran together bought more than 40 million shares in the company at low prices, the indictment said.

As with Digitiliti, Miller claimed in a forged letter of resignation and board minutes that he had become president and CEO, the indictment said.

Rajkaran then began posting about the company on investorhub.com to “promote and raise the price of ECMH stock,” the indictment stated.

“For example, he announced that the new CEO is’ likely to have nearly 20 million real estate holdings”[s] and construction machinery … heard, he owns several shopping centers in Mn ‘, “the indictment reads.

Miller then released a press release falsely claiming that Encompass “had signed a letter of intent to acquire approximately $ 6.4 million in assets from DDG Properties. according to the indictment.

“None of that was true.”

The stock price rose in response to the allegations, and Miller shortly thereafter sold 12 million shares in the company at fraudulently inflated prices and made a gain of more than 300%, the indictment said.

Rajkaran achieved an earnings return of around 150% after dumping more than 34 million shares, according to the indictment.

Categories
Health

What Do Girls Need? For Males to Get Covid Vaccines.

Holly Elgison and Len Schillaci are a mixed couple, and they are far from being alone.

“I always wanted to get 100 percent of the vaccine,” said Ms. Elgison, a medical claims investigator in Valrico, Florida.

Her husband, a disaster insurance expert, said he would pass. “To be honest, I think the worst of Covid is behind us,” said Mr Schillaci. “I’m good.”

With the Biden administration trying to immunize 80 percent of adult Americans by the summer, the continued reluctance of men to get a shot could hamper that goal.

Women are vaccinated at a far higher rate – around 10 percentage points – than men, although the gap between men and women is roughly the same across the country’s population. The trend is worrying for many, especially as vaccination rates have dropped somewhat recently.

The reasons for the gender gap in the US are diverse, reflecting the roles of women in certain occupations who received vaccination priority early, political and cultural differences, and longstanding patterns of women using preventive care more often than men.

The gap also exists when worldwide deaths from Covid-19 were around 2.4 times higher in men than women. And the department explains the reality of the disproportionate role women play in caring for others in American society.

“It might be important to pinpoint herd immunity,” said Alison Buttenheim, an associate professor of nursing at the University of Pennsylvania and an expert on vaccine reluctance. “While most experts resent larger gaps by race, political party, religion and occupation,” she said, many of which overlap with gender differences, “I have not heard any specific initiatives to combat men.”

What You Need To Know About The Johnson & Johnson Vaccine Break In The United States

    • On April 23, an advisory panel to the Centers for Disease Control and Prevention voted to lift a hiatus on Johnson & Johnson Covid vaccine and put a label on an extremely rare but potentially dangerous bleeding disorder.
    • Federal health officials are expected to officially recommend states lift the hiatus.
    • The vaccine was recently discontinued after reports of a rare bleeding disorder surfaced in six women who received the vaccine.
    • The overall risk of developing the disorder is extremely small. Women between the ages of 30 and 39 appear to be most at risk, with 11.8 cases per million doses. There were seven cases per million doses in women between 18 and 49 years of age.
    • Almost eight million doses of the vaccine have now been given. There was less than one case per million doses in men and women aged 50 and over.
    • Johnson & Johnson had also decided to postpone the launch of its vaccine in Europe for similar reasons, but later decided to continue its campaign after the European Union Medicines Agency announced the addition of a warning. South Africa, devastated by a contagious variant of the virus, also stopped using the vaccine, but later continued to use it.

In Los Angeles County, where 44 percent of women over 16 got their first shot – compared to 30 percent of men – officials are trying hard to figure out how exactly to do that.

“We are very concerned about this and plan to establish targeted contact with men,” said Dr. Paul Simon, science director for the Los Angeles county’s health department, said the differences are of particular concern to Black and Latino men. Only 19 percent of black men in Los Angeles County and 17 percent of Latino men received at least one dose of the vaccine, compared with 35 percent of Asian men and 32 percent of white men by month.

“We don’t quite get it,” said Dr. Simon. “One of our messaging strategies will be that the vaccine is not only important to you, but also a means of protecting others in your family.”

The early breakdown of vaccination rates by gender could largely be explained by demographics. Americans over 70 got their first doses, and women make up a greater proportion of this age group. Healthcare workers and teachers have also been given precedence over vaccines in many states: three-quarters of full-time healthcare workers are women, and over 75 percent of public school teachers in the United States are women.

The differences show both where women do the paid and unpaid work of life. For example, women lost the majority of their earliest jobs in the food, retail, healthcare, and government professions. The mothers among them have done most of the work in moving to distance learning and caring for parents and sick relatives.

The combination may have boosted their vaccine motivation in two ways: they are trying to protect the rest of their family, and they are desperate to get back into work. Just as women caused job losses last year, they are now leading the economic recovery. Around half a million women entered the world of work in March, partly because personal schooling was resumed in large parts of the country.

Updated

April 24, 2021, 7:32 p.m. ET

“In addition to the disproportionate representation of women in various important occupations,” said Pilar Gonalons-Pons, University of Pennsylvania assistant professor of sociology who specializes in gender issues, “they are also disproportionately represented in their work as unpaid caregivers for older adults and communities, and this can also be an additional motivation for the vaccine. “

In many ways, the pattern in vaccines reflects longstanding gender differences in terms of health care. Women, on average, are more likely to receive annual exercise than men, even when adapted to pre-existing health conditions and other factors, and are more likely to receive preventive treatment than men.

Men are more likely than women to engage in harmful behaviors such as heavy drinking, smoking and illegal drug use, and are more overweight than women. According to federal data, men are less likely to see doctors regularly, go to the emergency room, and receive basic dental care in a crisis. Vaccines are no exception: historically, influenza vaccination is much higher in women – about 63 percent versus 53 percent – although the gap is narrowing among Americans over 75 years of age.

The coronavirus vaccine “is the latest expression of the proven gender gap we have long seen in the search for preventive health services,” said Lindsey Leininger, health policy researcher and clinical professor at the Tuck School of Business at Dartmouth College.

However, experts say that even related to the general dissatisfaction with male health care, there may be some factors specific to this vaccine that prevent more male shots in the arms. Because signing up was cumbersome and confusing, men may have had less patience navigating the system, which was largely online. This process may be easier for women as they tend to get more information about their health care online.

“We have to find out whether there are differences in access, whether men have greater difficulty finding their way through the appointment systems,” said Simon from Los Angeles.

When it comes to the coronavirus, which has been the subject of rampant misinformation, evolving medical advice, and politicization, another dynamic may be at work.

“Some men feel that they are not necessarily vulnerable,” Simon told health care workers. “You have survived this for more than a year and have a sense of omnipotence.”

Public health experts and scientists have long been concerned about the “macho” effect that is preventing men from receiving all types of health care and fear that this vaccine will make it worse. (Particularly in the military’s most masculine service division, the Marines, about 40 percent of those offered the vaccine by the Department of Defense have turned it down.)

“This avoidance has been linked to ideals of masculinity, where men are strong and invincible and don’t ask for help,” said Kristen W. Springer, associate professor at Rutgers University, New Jersey’s sociology institute who studied this trait.

“In other words, these cultural ideals lead men to avoid essential health services in order to act masculine,” she said. “Now that the vaccine is available to everyone, it will be interesting to see the differences between men and women in vaccine intake, as these reflect more social and cultural ideas about gender and health, such as the cultural idea being the ‘real’ Men ‘don’t have I don’t need preventive health care. “

At this point in time, U.S. health officials have not released data on non-binary adults and vaccinations.

There can also be political connections. Women are far more likely than men to register as Democrats, and polls show that Republicans across the country are far less likely than Democrats to take the vaccine.

Who will people listen to? Apparently not their wives and friends or doctors. Leah Witus and Erik Larson, professors at Macalester College in Saint Paul, Minnesota, watched videos of men and women with identical information about the vaccine for their recent preprint study. Of the 1,184 Americans who observed them, most were positively influenced by the male narrator, while the female narrator received a far more mixed response.

“The male-narrated version of the video increased viewers’ vaccination intent,” Ms. Witus said, “but the female-narrated version had mixed associations with vaccination propensity and, for some viewers, those identified as conservative actually decreased vaccination intent . ”

This could mean a victory for Mr Schillaci as he and his wife subtly fight to influence the vaccination decision of their 20 year old son. Mr Schillaci shared his views with his son, whom his wife nudges to get a shot.

“I would prefer if he got the shot and I hope he will think about it,” said Ms. Elgison.

But Ms. Elgison’s own decision can benefit her son even if he chooses not to have the vaccine.

As is so often the case in life, men can find that their gaps are being filled by women. “To the extent that most people live and socialize in a mixed environment, men will benefit from higher coverage among women,” said Ms. Buttenheim.

However, Ms. Elgison still has one trump card that she hopes could work. “I want my son to have it so we can all travel together,” she said. “I explained to him that it was possible that we could protect his father.”

Categories
Politics

Does Requiring Solely Males to Register for the Draft Violate the Structure?

“Since women are legally or politically excluded from combat service,” wrote Judge William H. Rehnquist for the majority, “men and women are simply not positioned equally for the purposes of a draft or registration for a draft.”

In 2019, Houston District Court Judge Gray H. Miller ruled that male-only registration was no longer warranted as women can now serve in combat. A unanimous three-judge panel of the United States Court of Appeal for the Fifth Circuit in New Orleans agreed that “the real basis of the ruling Supreme Court’s decision has changed.” But it was said that only the Supreme Court could override its own precedent.

The Trump administration defended different registration requirements in the appeals court. The Biden government has twice requested additional time to respond to the petition requesting Supreme Court review of National Coalition for Men v Selective Service System, No. 20-928. The order is now due on April 14th.

Last year, a congressional commission concluded that extending registration to women is “a necessary – and overdue – move” that “signals that both men and women are valued for their contributions to the defense of the nation.” This was in line with the recommendations of the military leaders. But Congress, which has long been grappling with this issue, has yet to act.

Males who fail to register can face harsh penalties, including criminal prosecution, denial of student loans, and disqualification from citizenship. Eight states do not allow men to enroll in public universities unless they have registered.

The government has not drafted anyone since the Vietnam War, and there is no reason to believe that this will change. The challengers say this is a reason for the court to act now, before a crisis occurs.

“Should the court declare unconstitutional registration for men only,” said her letter, “Congress has considerable leeway to decide how to react.” Everyone between the ages of 18 and 26, regardless of gender, may be required to register. it could completely remove the registration requirement; or it could take a new approach overall, for example replacing the registration requirement with a more comprehensive national service requirement.

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Health

Three Males Are Accused in Scheme to Promote Covid-19 Vaccines

Three Baltimore men were accused by federal prosecutors of setting up a fake website to sell Covid-19 vaccines for $ 30 a dose.

The men, Olakitan Oluwalade, 22, and Odunayo Baba Oluwalade, 25, who are cousins, and Kelly Lamont Williams, 22, are charged with conspiracy for wire fraud, the US District Attorney’s Office said on Thursday.

Prosecutors said the men created a website similar to that of Moderna, the Cambridge, Massachusetts-based biotechnology company, which received federal approval in December to distribute its Covid-19 vaccine.

The real website is modernatx.com, and the website created by the men that authorities have since confiscated was modernatx.shop. Prosecutors said the fake domain’s source code revealed that the creator used a tool to copy the real Moderna website.

“The logo, the markings, colors and texts on the fake domain were visually similar,” said a statement from the company’s actual homepage. But prosecutors said the bogus website had an addition, “You might be able to purchase a COVID-19 vaccine in advance,” with a link to “Contact Us.”

The men were caught after an undercover agent contacted the number on the fake website on Jan. 11 and completed a transaction for 200 doses of the vaccine for $ 6,000. Officials said the three men never had any cans.

The agent was ordered to transfer half of the funds to Mr. Williams’ account with the Navy Federal Credit Union. By January 15, agents had confiscated the fake domain and ransacked Mr. Williams’ home.

Investigators found texts between Mr. Williams and the cousins ​​discussing the system, according to court documents.

An agent used Mr. Williams’ phone to send a message to Odunayo Baba Oluwalade and sent some of the money from the exchange to the cousins, prosecutors said. Her two houses were also soon searched.

It was unclear how much money the men had cheated. A spokeswoman for the US law firm said Friday that she could not provide any further details on the charges than stated in the statement.

A representative from Moderna could not be reached immediately on Friday.

A lawyer, Richard Bardos, said he had been assigned to the Odunayo Baba Oluwalade case but declined to comment further, referring to a Maryland law prohibiting lawyers from speaking about ongoing cases.

Jonathan Van Hoven, a lawyer for Mr. Williams, declined to comment. The Maryland District Attorney’s Office said Olakitan Oluwalade has not yet been assigned a lawyer.

“As the public searches for vaccines to protect themselves and their families from Covid-19, scammers wait to take advantage of their desperation,” said James R. Mancuso, a special agent for Homeland Security Investigations. “We want to remind the public to exercise extreme caution online, especially when it comes to Covid-19 vaccines, treatments and protective equipment.”