Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

Dianne Will urged me to file SEC Complaint

The last time I spoke with her regarding Nasrat Hakim’s membership in Epic she was her usual dismissive, condescending nature. She asked me 10+ times if I was a securities lawyer. She refused to consider addressing the issue with NH or the legal team, and she said not once, not twice, but three times that if I wanted an answer to the question then I should file a complaint with the SEC. So I did. Maybe others should, too.

Help" <[e-mail]>
To
[e-mail]
May 20
Dear Mr. XXXXXXXXX:

Thank you for contacting the U.S. Securities and Exchange Commission (SEC). We appreciate your informing us of your concerns regarding Nasrat Hakim and Elite Pharmaceuticals.

The Office of Investor Education and Advocacy (OIEA) processes many complaints received from individual investors and others. We keep records of the correspondence we receive in a searchable database that SEC staff may make use of in inspections, examinations, and investigations. In addition, some correspondence received by OIEA is referred directly to other SEC offices and divisions for their review. If they have any questions or wish to respond directly to your comments, they will contact you.

The SEC conducts its investigations on a confidential and nonpublic basis and neither confirms nor denies the existence of an investigation unless the SEC brings charges against someone involved. We do this to protect the integrity and effectiveness of our investigative process and to preserve the privacy of the individuals and entities involved. As a result, we will be unable to confirm whether an investigation exists or provide you with any updates on the status of your complaint or of any pending SEC investigation. Information on our policy is enclosed. You may wish to check our website, www.sec.gov, for information about pending SEC civil actions, administrative cases, and other matters.

If you have any questions, please contact me.

Sincerely,


Rinell Randolph
Attorney


File Attachment:
Correspondent Name: Mr. XXXXXXXXXXXX
Create Date: 2015-05-17 19:20:24
Origin: Web
File #: HO::~00495440~::HO
Description:
Nasrat Hakim became CEO of Elite Pharmaceuticals in August 2013. In November 2014, he began receiving disbursements of shares of ELTP stock from Epic Investments, which is an arm of Epic Pharmaceuticals, a strategic partner of Elite. He has received disbursements of ELTP stock from Epic on multiple occasions, including disbursements to his IRA and to a separate entity he controls, Mikah Pharmaceuticals. There has never been any public disclosure of Nasrat Hakim's relationship with Epic Investments. I have queried Investor Relations and was only told that Nasrat Hakim was a member of Epic Investments prior to becoming CEO of Elite. If this is true, then this should have been disclosed at the time. Likewise, he did not disclose any indirect ownership of Elite through Epic Investments on his initial SEC filings. And if he was always a member of Epic Investments, then why did he not receive any disbursements until Novemeber 2014? I believe that he became a member of Epic Investments sometime after he became CEO of Elite and before November 2014. I believe that no matter what his relationship with Epic and when it started, the details of the relationship should be publicly disclosed. Epic and Elite are very closely related. Members of Epic hold substantial shares in Elite, and Epic's CEO and Executive VP are both Elite Directors. Epic executive Ram Potti is a former Elite Director. There is no way for Nasrat Hakim to be a member of Epic Investments without it being material information to Elite Shareholders. Either he failed to disclose the relationship when he became Elite CEO or he failed to disclose it when he became a member of Epic while CEO of Elite. Either way, he needs to disclose to the exact nature of his relationship with Epic to Elite shareholders.