Saturday, May 2, 2020

SEC Troubles No Bar to Small Business Relief Funds

From Bloomberglaw: 
A penny-stock company under investigation by the Securities and Exchange Commission for market manipulation in connection with a 300% jump in its shares two years ago got a $3.1 million loan from the government’s coronavirus relief fund for small businesses.

Cool Holdings Inc., which sells electronics equipment, is one of at least three companies whose run-ins with the SEC didn’t prevent them from tapping the $349 billion first round of the Small Business Administration’s Paycheck Protection Program.

Two other recipients of PPP funds, MiMedx Group Inc. and CV Sciences Inc., have paid fines to settle SEC investigations. In early April, MiMedx, a Marietta, Georgia-based maker of skin grafts and other biomaterials, also agreed to pay $6.5 million to end a Justice Department probe into claims it defrauded the federal government. The companies neither admitted nor denied wrongdoing.

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