Harmel S. Rayat, RenovaCare, Inc., Jatinder Bhogal, Jeetenderjit Singh Sidhu, and Sharon Fleming

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 25883 / October 18, 2023

Securities and Exchange Commission v. Harmel S. Rayat, RenovaCare, Inc., Jatinder Bhogal, Jeetenderjit Singh Sidhu, and Sharon Fleming, No. 1:21-cv-04777 (S.D.N.Y.)

Final Judgments Entered Against Jeetenderjit Singh Sidhu and Sharon Fleming in Microcap Fraud Case
 

On October 17, 2023, the Honorable Lewis J. Liman entered final judgments against defendants Jeetenderjit “Jeet” Singh Sidhu and Sharon Fleming (also known as Sharon Hebgin), and relief defendants Treadstone Financial Group Ltd., Treadstone Financial Group LLC, and Blackbriar Asset Management Ltd., in SEC v. Harmel S. Rayat, et al., No. 1:21-cv-04771, a case pending in United States District Court for the Southern District of New York.  The SEC’s amended complaint, filed on August 26, 2022, charges RenovaCare, Inc., a development stage company, and its controlling shareholder, Harmel S. Rayat, and his associates, Jatinder Bhogal, Sidhu, and Fleming, with securities fraud for their roles in a fraudulent scheme that included material misstatements to investors, undisclosed sales of shares while promoting the stock, and manipulative trading.

The final judgment against Sidhu and his relief defendant entities permanently enjoins Sidhu from violating Section 17(a) of the Securities Act of 1933 (“Securities Act”) and Sections 9(a)(2), 10(b), and 20(b) of the of the Securities Exchange Act of 1934 (“Exchange Act”), and Rule 10b-5 thereunder, prohibits Sidhu from acting as an officer or director of a public company, bars Sidhu from participating in the offering of any penny stock, orders Sidhu and his relief defendant entities to pay, jointly and severally, disgorgement of $2,300,000 and prejudgment interest of $190,000, and further orders Sidhu to pay a civil penalty of $160,000.

The final judgment against Fleming permanently enjoins her from violating Securities Act Section 17(a) and Exchange Act Sections 9(a)(2), 10(b), and 20(b) and Rule 10b-5 thereunder, prohibits her from acting as an officer or director of a public company, bars her from participating in the offering of any penny stock, and orders her to pay disgorgement of $380,802, prejudgment interest of $76,389, and a civil penalty of $380,000. 

The SEC’s investigation was conducted by Darren E. Long, with the assistance of Brian Shute and Jessica Regan in Enforcement’s Office of Investigative and Market Analytics, and supervised by Brian O. Quinn and Carolyn M. Welshhans.  The litigation is being led by Matt Scarlato and John Bowers and supervised by James Carlson.

For further information, see Litigation Release Nos. 25102 and 25487.