On October 26, 2020, the U.S. District Court for the Central District of California entered a final judgment, following a favorable verdict for the SEC at trial, against microcap issuer Curative Biosciences, Inc., former chairman William M. Alverson, and former CEO Katherine West Alverson for making false and misleading statements to conceal their unregistered sales of company stock.

The SEC's evidence at trial showed that the Alversons directed Curative Biosciences to issue shares to third parties under the pretext that they were in payment for services rendered or in discharge of debt. In fact, the shares were to be sold in the market to unsuspecting investors, and over $4 million in proceeds was routed back to the Alversons for their personal use. The jury found that Curative Biosciences and the Alversons violated the registration requirements of Section 5 of the Securities Act of 1933 and the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and that the Alversons were liable for Curative Biosciences' violations as both control persons and aiders and abettors.

The final judgment permanently enjoins the defendants from violating these provisions and orders the Alversons to pay $847,851 in disgorgement and prejudgment interest on a joint and several basis and to each pay a $640,000 civil penalty. The court imposed permanent officer-and-director and penny stock bars against the Alversons, as well as conduct-based injunctions prohibiting them from participating in the issuance, offer, or sale of any security except securities sold on a national exchange for their own accounts. The judgment also ordered relief defendants Northeast Capital Group LLC and Panacea Holdings, Inc. to pay, on a joint and several basis with the Alversons, their proportionate share of the disgorgement and prejudgment interest.

In 2018, a consent judgment was entered against defendant Steven G. Patton, who cooperated with the SEC and assisted the investigation and litigation. With the entry of the judgment against Curative Biosciences and the Alversons, the SEC's litigation has concluded.

The SEC's litigation was conducted by Derek Bentsen and Melissa Armstrong and supervised by Jan M. Folena. The SEC's investigation was conducted by Gina M. Joyce and Ryan Farney and supervised by Nina B. Finston.