What they are in trouble for:
-Issued a press release claiming they raised $1.7 million when in reality, $0 raised,
-$162,800 in illicit profits
-Nearly $20 million raised from more than 450 investors in a fraudulent securities offering
-The defendants have agreed to settle the charges against them, without admitting or denying the allegations in the complaint.
-The settlement, which is subject to court approval, would require Radjabli to pay a total of:
-$600,000 in monetary fines ($162,800 in disgorgement, $17,870 in prejudgment interest, and $419,330 in civil penalties),
-Radjabli, Apis Capital, and Loan Doctor would be jointly and severally liable based on Apis Capital’s and Loan Doctor’s respective roles in the three frauds.
-The settlement would also permanently enjoin Radjabli, Apis Capital, and Loan Doctor from violating the charged provisions of the federal securities laws, impose a conduct-based injunction and penny stock bar on Radjabli, and bar Radjabli from the securities industry.
Is this proportionate to the crime?
-The indictment alleged that Carter and Lemmons, also from the Atlanta area, stole checks from the mail and used homeless people with valid identification to cash the checks at banks.
-The homeless people received fees of $100 to $200 per check, according to information Assistant U.S. Attorney Christian Trabold presented in court. The amount of the fraudulent checks was close to $3,000 each in the cases investigated in Erie, according to court records.
-124 of the names were found and identified as real people living in 22 states. The lab also determined that the names were on the ribbon 691 different times, indicating the creation of 691 different checks.
691 checks x $3000 = $2,073,000 in fraud.
I get this is a bit of apples and oranges comparison, but shouldn't someone who was in a trusted position in society be held to higher standards than someone who stole but was at least paying the homeless people a cut--not that either fraud is justifiable!
It gives me pause that GG and company will be able to bring any sort of real hammer down when they go to wrap up their investigation.