Setting the Record Straight: My Experience with the SEC

I’m often asked about an SEC sanction tied to a past deal involving a public company. Instead of dodging the topic, I’d like to share the full story—so people can make their own judgment, with facts and context.

The Background

In 2016, I was working to roll a group of private companies into a publicly traded shell, Manzo Pharmaceuticals. The transaction was brokered by John Lux, an attorney who specialized in public deals.

Once the transaction was announced, I publicly stated that I would serve as Chairman and CEO on an interim basis while I searched for permanent leadership.

The market responded quickly. The stock price rose from $0.0001 to around $0.036 within six months.

The Real Motive Behind the Complaint

What most people don’t realize is that John Lux had ties to a group of professional short sellers. These individuals worked a strategy: find or fabricate minor negative info about a small-cap public company or its executives, file a whistleblower complaint with the SEC, and simultaneously short the stock to profit from the fallout.

In my case, their focus was a resume posted on a third-party site I didn’t control. It wasn’t 100% current, but it became their leverage.

The SEC Investigation

When the SEC launched its investigation in 2016, I cooperated. However, in my interview, they didn’t ask about the public company at all. Instead, they pursued what I consider a wide-ranging fishing expedition—asking about private deals I’d done over the course of more than 20 years, most of which had zero relevance to the Manzo transaction.

I refused to answer questions that had no connection to the case. But in civil SEC matters, refusing to answer is interpreted as an admission.

Ultimately, the SEC offered me a settlement:

• No admission of wrongdoing

• No criminal charges

• A $50,000 civil penalty

My attorney advised me that we could fight—and likely win—but the cost would easily exceed $1 million. After weighing the pros and cons, I made the pragmatic choice to settle and move on.

What Happened Next

Later in 2016, I walked away from the merger and sold the shell back to a longtime shareholder who had been involved before I took control. I then merged the companies privately and later sold the combined entity to a Canadian firm.

As for the rest:

• John Lux lost his law license and was blacklisted by the SEC from working with public companies.

• The short-seller group? Nothing happened. Their tactics, while unethical in my opinion, are technically legal.

Why I’m Sharing This

I’ve had many people reach out with curiosity, confusion, or concern. This post is for those who want the truth—not speculation, headlines, or smear campaigns.

Many high-profile entrepreneurs have faced similar scrutiny, including:

Mark Cuban, Warren Buffett, Elon Musk, Chamath Palihapitiya, and Bill Ackman, among others. I’m not comparing myself to them—but I am saying that this process is not unusual for builders and risk-takers navigating complex markets.

Where I Stand

I make no apologies for how I handled this. I acted on sound legal advice, stayed transparent, and moved on with integrity.

If this story changes your opinion of me or makes you hesitant to work together, I understand. We’ll part as friends.

But for those who value transparency, resilience, and the full truth—not just headlines—I’m here, continuing to build, invest, and help others do the same.

Thank you for taking the time to read this.