SEC is Now Investigating Meta Materials Former and Current CEOs
The Securites and Exchange Commission (SEC) is now investigating Meta Materials (NASDAQ:MMAT) former CEO John Brda (Torchlight) and current CEO George Palikaras according to a new filing.
On July 20, 2023, the SEC provided Brda and Palikaras with “Wells Notices” relating to a previously disclosed SEC investigation into, among other things, the merger involving Torchlight Energy Resources, Inc. and Metamaterial Inc.
The Wells Notices each state that the SEC staff has made a preliminary determination to recommend that the SEC file a civil enforcement action against the recipients alleging violations of certain provisions of the U.S. federal securities laws.
Specifically, the Wells Notice received by the Company states that the proposed action would allege violations of Section 17(a) of the Securities Act, which involves the processing of securities transfers, safekeeping of investor and issuer funds and securities and maintaining records of investor ownership.
It’s important to address that a Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law.
It allows the recipients the opportunity to address the issues raised by the enforcement staff before a decision is made by the SEC on whether to authorize any enforcement action.
If the SEC were to authorize an action against the Company and/or any of the individuals, it could seek an injunction against future violations of provisions of the federal securities laws, the imposition of civil monetary penalties, and other equitable relief within the SEC’s authority.
According to the filing, the company’s Board of Directors is reviewing the Wells Notices but has not yet determined its next course of action regarding the Wells Notices.
Is MMAT’s Naked Short Selling Investigation the Root Cause of SEC ‘Wells Notices’?
Meta Materials announced in late June that it has retained the law firm of Christian Smith & Jewell, LLP to help investigate allegations of naked short selling of Meta Materials’ stock, MMAT.
MMAT stock is currently down nearly -80% this year-to-date.
“META has completed an initial trading analysis with ShareIntel Shareholder Services, LLC, as part of its continued commitment to protecting investors and maximizing shareholder value.
Through ShareIntel, META was able to obtain trading analytic metrics, and its analysis has seemingly identified trade imbalances in the trading of MMAT shares which are potentially material relative to META’s public float and average trading volume.
We have reviewed the preliminary report from ShareIntel, and as a result we have engaged the services of Christian Smith & Jewell.
In the best interest of our shareholders, we believe Wes Christian and his team will offer us the most effective solution in addressing potential instances of illegal trading, particularly by naked short sellers, either in our shares or those falsely represented as ours,” said Jack Harding Chairman of Meta Materials Inc.
Christian, Smith & Jewell has a proven track record of representing publicly traded companies facing challenges related to illegal naked short selling, counterfeit shares, and other fraudulent activities.
The firm successfully represented Overstock.com and Taser International in lawsuits against prominent Wall Street institutions, including Goldman Sachs, Merrill Lynch, and Bank of America, resulting in settlements.”
Overstock similarly was intimidated with investigations after CEO Patrick Byrne began to fight illegal short selling activities openly; could Meta Materials be going through the same process?
Leave your thoughts in the comment section below.
Also Read: Companies Are Now Taking Illegal Short Selling Seriously
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Show CommentsJust the normal SEC protocol to make the companies and retail traders who are getting screwed by their Hedge Fund buddies, look bad and to divert attention away from their lack of regulation and job duties. The SEC is a total disgrace to the US financial system.
It is disgusting to me that they would spend there energy targeting Metamaterials and yet we have been stonewalled in regards to MMTLP.
Why was it on the Secs fraud radar for over a year, why was it listed in the OTC illigaly, no 211, no F6 and did not meet the piggy back exemptions. Why have FINRA not released trading data, cat data or an audited share count. Why did shorts not cover with the trch MMAT merger.
But most importantly, why the halt?
Thankfully Eli Crane has asked for a brief from Gary Gensler about what happened with MMTLP… It’s time to investigate the SEC and why they protect short hedgefunds.
The SEC is just moving the attention away from themselves. They should be investigating themselves!
💯💯💯☝️
Leave your thoughts below.
Naked shorts are killing the whole market, glad they investigate. How about AMC price dancing around 3 dollars after hours in a few minutes. Was so fast some saw upside I saw low.. 😧 no reason for that except to benefit puts and calls.
What a disgrace that the SEC which is tasked with protecting retail investors go after the very people who have been trying to do just that. If any US citizen is under the illusion that the SEC is in place for fair and free markets then think again. It is obvious that this is an intimidation tactic and as usual the SEC is looking after their buddies on Wall St. It should be defunded or completely reorganised using people that have no ties whatsoever to the banking/financial industry. I.e. they are completely independent.