DD Support Board and Research Team

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Michael Pope/Stephen A Weiss/DS Healthcare
https://globenewswire.com/news-release/2016/04/02/825219/0/en/DS-Healthcare-s-internal-investigation-on-management-and-former-Directors.html
DS Healthcare's internal investigation on management and former Directors
Pompano Beach, Florida, April 02, 2016 (GLOBE NEWSWIRE) --

DS Healthcare Group, Inc has initiated an internal investigation of officers and directors to determine the cause of recent events that led to the rapid decline in company securities; class action lawsuits and other liabilities; misleading press releases; and the unsuccessful attempted termination of Daniel Khesin, Founder, President, and Chairman of DS Healthcare Group, Inc.

The investigation has revealed that the former board member Michael Pope, CEO Renee Barch-Niles, and company attorney Stephen A. Weiss conspired to defraud investors by arranging a transaction to issue 2,000,000 shares of DS Healthcare Group, Inc common stock to each other within days of filing a false 8k statement with the Securities and Exchange Commission proclaiming that Daniel Khesin had been terminated for cause as President and Chairman of the Board. No such action took place.

Michael Pope, Renee Barch-Niles, and Stephen A. Weiss attempted to remove Daniel Khesin from the company under threat of an imminent SEC investigation, implying allegations of wrongdoing that were never revealed.

The fraud began to unfold when the Chairman appeared to be removed from the company at which time Michael Pope, Renee Barch-Niles, and attorney Stephen A. Weiss began to conspire to enrich themselves with a transaction that the Chairman would have never approved and that would be inappropriate for executives who recently arrived at the company and have not yet delivered any performance.

Michael Pope was attempting to receive 500,000 shares and additional cash and bonuses when his compensation for serving on the board is otherwise 15,000 shares per year with no cash compensation. Attorney Stephen A. Weiss commented in his email that "Given the extraordinary effort that the executive officers (Mark, Renee, Manny) and Mike Pope as head of the audit committee have made in dealing with the recent DSKX crisis – not to mention the time expended" that it would be appropriate to issue 2,000,000 shares in a crisis that they themselves had engineered with dishonest press releases and other negligent acts. The scheme also enabled the transaction to be booked at a lower valuation and allow lesser tax consequences for a greater number of shares due to the depressed stock price.

The conspiracy was further perpetrated when attorney Stephen A. Weiss indicated that his firm, CKR Law, would reduce its future legal fees as a "show of support" for the transaction—indicating that attorney Weiss was likely receiving a kickback from Michael Pope in the transaction. It was also discovered that Stephen A. Weiss has had a relationship with Michael Pope for many years and it was unethical and breach of attorney-client duty to have Stephen A. Weiss acting as company counsel when in fact he was representing interests of Michael Pope and himself.

Upon Daniel Khesin's return to headquarters, shareholders have formed a group to remove the Board of Directors and a legal hold has been placed on all documents and evidence. Access to emails and company servers have been blocked for management. Within minutes of shutting off access, the company's IT manager received aggressive phone calls and emails from attorneys stating that his "actions have and are causing serious damage to the Company. Further, your unauthorized actions constitute violations of the Federal Computer Fraud Act which carries serious consequences under federal law." Further in the email additional threats were made that "if you do not immediately cease your illegal activity and provide immediate access to the database to the Company executives, the Company will file a securities fraud action in U.S. District Court, will name you as a Defendant and will seek injunctive and other relief and damages against you" in what may have been an attempt to conceal the crime.

The findings from this internal investigation have been reported to the DOJ, FBI, Secret Service, and local law enforcement. An exhibit of actual communication is attached. Additional evidence is being collected.

DS Healthcare appreciates the support of all shareholders who have contributed their votes to remove Michael Pope from the Board of Directors.



About DS Healthcare Group

DS Healthcare Group Inc. develops novel biotechnology for topical therapies. It markets through online channels, specialty retailers, distributors, pharmacies, and salons. Its research has led to a highly innovative portfolio of personal care products and additional innovations in pharmaceutical projects. For more information on DS Healthcare visit www.dshealthgroup.com



Forward-looking statements

Except for statements of historical fact, the matters discussed in this press release are forward-looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies, and are generally preceded by words such as "future," "plan" or "planned," "expects," or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history, difficulty in developing and marketing products, intense competition, and additional risks factors as discussed in reports filed by the company with the Securities and Exchange Commission, which are available at www.sec.gov

Investor Relations

DS Healthcare Group

[phone] ext. 3

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http://www.dshealthgroup.com/docs/Exhibit-related-to-release1023.pdf