SEC Charges Microcap Company and Consultant with Fraudulent Statements Concerning Covid-19 Products

June 11, 2021/US SEC

he Securities and Exchange Commission today charged Wellness Matrix Group, Inc., a Nevada microcap company, and George Todt, a Wellness Matrix business consultant who controlled much of Wellness Matrix’s day-to-day activities, with making misrepresentations to investors regarding COVID-19 products that they marketed to consumers. The SEC previously issued an order on April 7, 2020, temporarily suspending trading in the securities of Wellness Matrix.

According to the SEC’s complaint, filed in federal court in Los Angeles, in February and March 2020, Wellness Matrix and Todt made materially false and misleading statements regarding COVID-19 at-home test kits and/or disinfectants that defrauded Wellness Matrix’s investors. The complaint alleges that Wellness Matrix and Todt marketed the at-home test kits and disinfectants on Wellness Matrix -affiliated websites and through social media when Wellness Matrix did not have the products to deliver to consumers. The complaint also alleges that Wellness Matrix and Todt represented that the at-home test kits were approved and registered for use by the United States Food and Drug Administration and the disinfectants were approved and registered by the United States Environmental Protection Agency. According to the complaint, however, at the time Wellness Matrix and Todt made these statements, the products were neither approved nor registered by the FDA or the EPA.

The SEC’s complaint alleges that Wellness Matrix and Todt violated the antifraud provisions of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks permanent injunctions and civil penalties against Wellness Matrix and Todt as well as an officer-and-director bar, a penny stock bar and a conduct-based injunction against Todt.

The SEC’s investigation, which is continuing, was conducted by Michael Mueller of the Chicago Regional Office under the supervision of Steven Klawans. The litigation will be led by Alyssa Qualls and Robert Moye.

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