SEC Obtains Permanent Officer-and-Director and Penny Stock Bars Against CEO of Syringe Manufacturer
Litigation Release No. 24072 / March 21, 2018
Securities and Exchange Commission v. Revolutions Medical Corp., et al., No. 12-cv-03298 (N.D. Ga. filed Sept. 21, 2012)
The Securities and Exchange Commission has obtained lifetime officer-and-director and penny stock bars against the CEO of a syringe manufacturer who a federal jury found committed securities fraud.
The SEC charged Revolutions Medical Corp. and its CEO, Rondald L. Wheet, in 2012 with fraud for issuing a series of press releases that falsely portrayed Revolutions Medical as a successful manufacturer of a safe and effective syringe that was slated for imminent mass production and distribution. The agency also alleged that Revolutions Medical had secured significant sales agreements, including one with the U.S. Department of Defense. As the SEC alleged, and the jury found, none of these statements were true.
The final judgment, entered on March 16, 2018 by the Honorable Leigh Martin May of the U.S. District Court for the Northern District of Georgia, also ordered Revolutions Medical and Wheet, to pay civil penalties in the amount of $2.325 million and $465,000, respectively, and to pay, jointly and severally, disgorgement of $115,000. The judgment also enjoins both Revolutions Medical and Wheet from violating 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.
The SEC's case is being handled by M. Graham Loomis, Paul T. Kim, Pat Huddleston II, and H.B. Roback of the Atlanta Regional Office.