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SEC charges two companies for false pandemic-related claims

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The SEC has filed lawsuits against two companies for making misrepresentations about COVID-19 testing kits and scanning equipment. Applied Biosciences Corp. and Turbo Global Partners Inc. were both suspended from stock trading in April due to concerns about false claims.

Unapproved home testing kits

According to the SEC, Applied Biosciences began marketing products designed to address pandemic-related concerns in late March, specifically an in-home testing kit. The company’s stock eventually rose to a high of 80 cents per share before the SEC suspended trading. Problems arose when it was discovered that the Food and Drug Administration had not approved the tests, nor any other tests, for at-home use.

Thermal scanning equipment scam?

Turbo Global Partners claimed that it had partnered with a Canadian company to roll out body temperature and facial-recognition technology to aid in the fight against COVID-19. Turbo Global Partners said it had been in contact with all 50 state governors and major retailers such as Wal-Mart regarding the implementation of this technology.

Following the comments, the company’s stock price increased from less than a penny in March to nearly two cents in early April. According to the SEC, the company never had a partnership with another entity, and the alleged facial recognition technology never worked in the first place.

Misrepresentation and fraudulent claims hurt all investors

While the above companies may have only traded in penny stocks, the threat to investors from fraudulent claims are real. Whether you have invested your life savings in stocks that trade for a penny or have invested tens of thousands of dollars in blue-chip stocks, you should have some assurances that companies are not artificially manipulating prices.

When you’ve lost income due to investment fraud, you should take swift action. You should start by exploring your options with the help of a skilled professional.