Biohemp International Inc. (fka BKIT)

[samsamsamiam]

SEC Obtains Judgment Against Attorney Charged with Assisting Microcap Fraud Scheme

Litigation Release No. 25394 / May 17, 2022

Securities and Exchange Commission v. Jillian Sidoti, No. 5:20-cv-02178-JGB (C.D. Cal. filed October 19, 2020)

On May 13, 2022, the U.S. District Court for the Central District of California entered a final judgment against Jillian Sidoti, a California attorney whom the SEC previously charged for her role in a fraudulent scheme to sell unregistered securities to the public.

According to the SEC's complaint, filed on October 19, 2020, Sidoti acted as the attorney for penny stock company Blake Insomnia Therapeutics, drafting and signing documents that she knew contained materially false information regarding the operations and control of Blake. Sidoti allegedly then arranged to sell almost all of Blake's stock to multiple nominee shareholders to obscure the fact that the purchasers were a single control group. The complaint further alleges that Sidoti authored opinion letters containing false statements about the control of Blake to induce Blake's transfer agent to remove restrictive legends from its stock certificates, and to induce the Depository Trust Corporation to accept Blake shares for deposit. According to the complaint, Sidoti's actions enabled the control group to evade legal restrictions on the sales of stock by affiliates and sell over five million Blake shares into the public market.

Without admitting or denying the allegations in the SEC's complaint, Sidoti consented to the entry of a final judgment permanently enjoining her from violating the securities registration and antifraud provisions of Sections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities Act of 1933, and the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Sidoti also consented to the imposition of a five-year penny stock bar and a five-year conduct-based injunction that restricts her ability to prepare opinion letters, and to pay a $22,000 civil penalty and just under $14,169 in disgorgement and $4,665 in prejudgment interest.

The SEC staff responsible for this matter includes Alexandra Lavin, Kathleen Shields, Eric Forni, Trevor Donelan, Rebecca Israel, David Scheffler, J. Lauchlan Wash, and Amy Gwiazda of the SEC's Boston Regional Office.


https://www.sec.gov/litigation/litreleases/2022/lr25394.htm

[Renee]

BKIT: registration revoked:

https://www.sec.gov/litigation/opinions/2021/34-92853.pdf

[cautiousoptimism]

If you purchased certain microcap stock between May 2016 and July 2019, you may be eligible for distribution from the O'Rourke Distribution Fund

https://finance.yahoo.com/news/purchased-certain-microcap-stock-between-131600111.html

[Renee]

BKIT: SEC Admin. Proceeding for severely delinquent Financials:

https://www.sec.gov/litigation/admin/2021/34-91800.pdf

[cautiousoptimism]

https://finance.yahoo.com/news/purchased-certain-microcap-stock-between-131600861.html

[janice shell]

Good to see he agreed to the penny stock bar, but I wonder how seriously he'll take it.

[samsamsamiam]

Kenneth Ciapala/litigation

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 91739 / May 3, 2021
ADMINISTRATIVE PROCEEDING
File No. 3-20277
In the Matter of
KENNETH CIAPALA,
Respondent.
ORDER INSTITUTING
ADMINISTRATIVE PROCEEDINGS
PURSUANT TO SECTION 15(b) OF
THE SECURITIES EXCHANGE ACT
OF 1934, MAKING FINDINGS, AND
IMPOSING REMEDIAL SANCTIONS
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in the
public interest that public administrative proceedings be, and hereby are, instituted pursuant to
Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Kenneth Ciapala
(“Respondent” or “Ciapala”).
II.
In anticipation of the institution of these proceedings, Respondent has submitted an Offer
of Settlement (the “Offer”) which the Commission has determined to accept. Solely for the purpose
of these proceedings and any other proceedings brought by or on behalf of the Commission, or to
which the Commission is a party, Respondent admits the Commission’s jurisdiction over him and
the subject matter of these proceedings, and the findings contained in paragraph III.2 below, and
consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b)
of the Exchange Act, Making Findings, and Imposing Remedial Sanctions (“Order”), as set forth
below.2
III.
On the basis of this Order and Respondent’s Offer, the Commission finds that:
1. Ciapala, working with others, acted as an unregistered broker-dealer and controlled a
number of foreign companies that he used between at least 2016 and 2018 to enable public
company control persons fraudulently to sell stock to retail investors in the public United States
securities markets. Ciapala, who is 38 years old, is a citizen of the United Kingdom and
Switzerland and a resident of Switzerland.
2. On April 27, 2021, a final judgment was entered by consent against Ciapala,
permanently enjoining him from future violations of Sections 5(a), 5(c) and 17(a)(1) and (3) of the
Securities Act of 1933, and Sections 10(b), 13(d), and 15(a) of the Exchange Act and Rules 10b5(a) and (c) thereunder, in the civil action entitled Securities and Exchange Commission v. Steve
Bajic, et al., Civil Action Number 1:20-cv-0007-LGS, in the United States District Court for the
Southern District of New York.
3. The Commission’s complaint, filed January 2, 2020, alleged that Ciapala, while
acting as an unregistered broker-dealer and working in coordination with others, used offshore
nominee companies he controlled to provide a layer of disguise to public company insiders or
control persons, who intended to defraud investors by secretly dumping large quantities of stock—
including the securities of a New York-based public company, Blake Insomnia Therapeutics, Inc.
(“Blake”)—in circumvention of registration and disclosure requirements imposed by the federal
securities laws. The complaint alleged that Ciapala’s actions operated as a fraud and deceit on
investors, violated the securities registration and broker-dealer registration provisions of the federal
securities laws, and violated reporting provisions of the Exchange Act that, among other things,
required Ciapala, his clients, and those with whom he was coordinating his trading to publicly
disclose their holdings and sales of Blake stock.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to
impose the sanctions agreed to in Respondent Ciapala’s Offer.
Accordingly, it is hereby ORDERED pursuant to Section 15(b)(6) of the Exchange Act,
that Respondent Ciapala be, and hereby is barred from association with any broker, dealer,
investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally
recognized statistical rating organization; and
Any reapplication for association by the Respondent will be subject to the applicable laws
and regulations governing the reentry process, and reentry may be conditioned upon a number of
factors, including, but not limited to, compliance with the Commission’s order and payment of any
or all of the following: (a) any disgorgement or civil penalties ordered by a Court against the
Respondent in any action brought by the Commission; (b) any disgorgement amounts ordered
against the Respondent for which the Commission waived payment; (c) any arbitration award 3
related to the conduct that served as the basis for the Commission order; (d) any self-regulatory
organization arbitration award to a customer, whether or not related to the conduct that served as
the basis for the Commission order; and (e) any restitution order by a self-regulatory organization,
whether or not related to the conduct that served as the basis for the Commission order.
For the Commission, by its Secretary, pursuant to delegated authority.
Vanessa A. Countryman
Secretary





https://www.sec.gov/litigation/admin/2021/34-91739.pdf?utm_medium=email&utm_source=govdelivery

[BoilerRoom]

$BKIT Wow!

[Book-emDano]

I would also like to know if anyone has any news. The SEC lawsuit is obviously the big news but charging people for pumping and dumping on the OTC is like handing out speeding tickets at the Indy 500. It's fruitless because everyone does it.

The company did appear to do some big things at one point (it reached $2.00 a year and a half ago). I wonder if it was all a scam or if some of it was real.

[cautiousoptimism]

nothing, , , nada. . . crickets

[bige777]

Any news? This once was a very promising stock.

[cautiousoptimism]

Supposed to be a new group taking it over. But there also was supposed to be a press release regarding Daniel Blum stepping down.

I received this information from Daniel:
Thank you for your email regarding BioHemp International. Unfortunately, I am no longer with the company as I issued my resignation as CEO back on Jan 31, 2020 to pursue other opportunities after trying to rectify company compliance issues. I will though find out who will be the best point of contact with the Board going forward and will work on getting you their name(s) and contact info right away.

Thanks for your understanding.

[Rmigs]

Follow up Email to Daniel Blum bounced. I think that's the ball game!!

[Rmigs]

For what it's worth, the website for Biohemp is down or no longer in existence. This is never a good sign. I would like to hear any further info on the SEC case against the pump and dumpers.

[janice shell]

As you can see, 45 issuers were involved. The SEC only names a handful of them.

[flaflyersfan]

janice shell, what a story. Common investors are always unaware of these shenanigans. EOM

[janice shell]

Big SEC-DOJ action involving BKIT, though not as a defendant:

https://www.sec.gov/litigation/complaints/2020/comp-2020-1-bajic.pdf

[sweet crude]

Major cannabis sector short squeeze

Cannabis stocks have been getting crushed past week even more so then all 2019....this could be sign bottom is in on sector, and could see rush back in to cannabis plays in early Jan as tax loss sellers become tax loss buyers.

Something to keep eye on with other cannabis plays as well.

[sweet crude]

Tweet: Company filing to up list off greys

BioHemp $BKIT moves forward with 15c-211 to uplist from grey to pink sheets

BioHemp $BKIT moves forward with 15c-211 to uplist from grey to pink sheets $CBIS $ACB $NBEV $HEMP $HMPQ $PURA $SING $ISBG $GTEH $GMGI $BMIX $VIZC $POTN $CANB $KGKG $CBBT $USRM $HIPH $TXHD $ELGL $RNVA $STHC $SECI $LGCY $PRED $ILUS $NMRD $PTOI $BIPH $SGLB $LFAP $SOLI $UPIP pic.twitter.com/3QQnxMC5RW

— Ludlow Research (@LudlowResearch) December 12, 2019

...if can break above .25 it can get interesting

[starkd748]

What an Epic fail this pos is

[flaflyersfan]

sweet crude, unless a person already knows about BKIT Twitter, who would see that news? EOM

[sweet crude]

Think I saw on twitter

Was surfing around in rush to get things done early today and think i saw it on twitter i believe

[flaflyersfan]

sweet crude, where was that BKIT "news" posted? EOM

[sweet crude]

BKIT launching own CBD cosmetic line

BIOHEMP TO LAUNCH ITS OWN COSMETIC LINE OF CBD INFUSED TOPICALS

(NEW YORK) – BioHemp International, Inc. (OTC: BKIT), (“Company”), a Company focused on consolidating distributors in the CBD industry, announces plan to launch its own cosmetic line of CBD infused topicals.

Link: http://biohempinternational.com/biohemp-1126/

The Company is pleased to announce it is moving forward with filing its application to relist back current, and is working diligently to provide all requested documentation, and is working tirelessly to retain its fully reporting status.

BioHemp CBD Cosmetic Line

The Company has retained a manufacturing firm who will provide us a complete turnkey solution from packaging to labeling in launching our own cosmetic line of CBD infused topicals under the BioHemp brand name.

The initial focus will be targeted for online sales as this would offer us the highest margins for the least amount of capital outlay, and will allow us to build a marketing and awareness campaign to help build up the BioHemp cosmetic brand line with consumers.

Once we have established our branding, and solid customer loyalty, we will expand our distribution to wholesale and retail markets to help expand our revenue sales. This will require us to bring on experienced sales and distribution personal who can leverage their know how, and connections with industry, to establish market share of Biohemp CBD cosmetics within this sector.

Some of Potential CBD Cosmetic Lines

Broad Spectrum Cream
Calming Relief Cream with MSM
Fast Absorbing Capsaicin Cream
Matcha Anti-Aging Cream
Exfoliating Facial Scrub
Exfoliating Sugar Facial Scrub
Moisturizing Lip Scrub
Menthol Salve
Body Butter
Massage Oil – Lavender, Menthol, or Sensitive Skin
Pain Stick Tube

The Company expects to announce pricing models for its initial products in coming updates.

Pending FDA Guidance

As a regulatory framework from the Food & Drug Administration (FDA) still remains in limbo we feel the best course of action is to focus on launching a cosmetic line, build brand awareness and customer loyalty through online ecommerce sales, and work internationally in regards to any and all CBD infused edibles for the immediate future.

Daniel Blum, CEO of BioHemp International, commented, “Our number one priority has been getting the company back compliant and trading current, and we are very pleased to announce we are making big progress on that front. But, while we work on that pressing issue, we also know it is important for us to begin developing commercial products, and start building the Biohemp brand with customers and consumers. It has been a rough road these past few months to say the least, but we want to thank our shareholders for their loyalty, and understanding, and want to wish everyone a happy and healthful Thanksgiving holiday season.”

A more detailed and official announcement on these developments are expected shortly.

Register for Future Updates

Investors can also join our investor mailing list to receive updates on news, and special announcements, and add their mailing list for future investor packets and brochures as we begin our marketing and advertisement campaigns. https://www.biohempinternational.com/investors/

Follow us on Twitter: https://twitter.com/BiohempB

About BioHemp International

Located in New York City, BioHemp International is an early stage venture firm focused on establishing a portfolio of product brands, and distribution channels, for the growing cannabidiol (CBD) market. The Company’s management team holds years of experience in private equity, startup development, and financial consulting, which they plan to utilize in developing out future growth through strategic rollups and acquisitions. www.biohempinternational.com

FDA Disclaimer

The statements made regarding products on this website have not been evaluated by the Food and Drug Administration. The efficacy of these products has not been confirmed by FDA-approved research. These products are not intended to diagnose, treat, cure or prevent any disease. All information presented here is not meant as a substitute for or alternative to information from healthcare practitioners. Please consult your healthcare professional about potential interactions or other possible complications before using any product. The Federal Food, Drug, and Cosmetic Act requires this notice.

Safe Harbor Notice

Certain statements contained herein are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995) cautions that statements made in this news release constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections or implied results. BioHemp International, Inc undertakes no obligation to revise these statements following the date of this news release. Additional details of the Company’s business can be found in its public disclosures as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission’s (“SEC”) EDGAR database.

[flaflyersfan]

Rmigs, BKIT traded at .0111 today. EOM

[sweet crude]

Something is brewing I think

...could also be bounce in cannabis sector this past week after such an awful selloff in whole sector. Maybe buyers coming back into these plays, or some movement on uplisting off greys

BKIT

[Rmigs]

43k shares traded as of noon today. What's up? Off grey sheet?

[sweet crude]

Cannabis sector (MJ) rallying +4%

MJ, the ETF that tracks cannabis sector, is rallying after awful selloff. Could be short term bounce, but whole sector getting wildly oversold and could see this rally effect spill over to smaller plays, like BKIT

Now obviously more needs to be seen here, but any recovery in CBD sector will only help

https://www.cnbc.com/quotes/?symbol=mj

[sweet crude]

Shares available: .20 to .25 range

Looks like ask, or where shares are available to buy, is in the .20 to .25 range. So unless you place orders around that area you wont get filled.

Wouldn't take much to push this to .40+ easy!

[starkd748]

What loss 1,000 shares lmfao 50bucks

[___ty___]

you're loss buster

[sweet crude]

.24 looks to be where ask is

[starkd748]

On that low volume lmfao...I'll pass

[___ty___]

up to 24 cents today boys. wow. here comes the rally. get in now while it is cheap.

[starkd748]

Good lord this pos is subpennies lmfao

[flaflyersfan]

sweet crude, I stopped reading at "exploring launch". EOM

[sweet crude]

Tweet: Biohemp CBD cosmetic products

BioHemp $BKIT exploring launch of its own #CBD cosmetic product line

— BioHemp International (BKIT) (@BiohempB) November 7, 2019

BioHemp $BKIT exploring launch of its own #CBD cosmetic product line
10:14 AM · Nov 7, 2019

[blast1977]

You mean Dumping ?

[Watcher31]

Why has all the PUMPING Stopped ???

[sweet crude]

Focus on International Channels

As regulatory frameworks are still a work in progress for the sale and marketing of CBD infused products in the US, the company will also look internationally to expand its network of channels, products, and sales. This will allow the Company to connect international operations with it’s US platform to create a truly worldwide CBD distribution channel that will give the Company a strategic advantage in establishing itself as a market force.

[Watcher31]

Cheaper to form a new company and file a 15c-211 than try to fix this mess.
I am sure they know that by now...

[sweet crude]

I think there main priority is getting current

I agree they should try to walk & chew gum at same time, but think past couple months been all focused on getting back current.

Regardless, still showing least a heart beat of life....time remains to see what develops

[flaflyersfan]

sweet crude, "predicated on the following concepts" equals nothing is done. EOM

[sweet crude]

Company Business Model

The Company’s business model is predicated on the following concepts:

- To establish multi-tier distribution channels for CBD products
- To acquire strong CBD assets and their channels through consolidation
- Provide consulting and compliance services to CBD companies
- Become funding bridge between CBD companies in New York

The last two are interesting to me. There are a lot of CBD companies who will need to upgrade everything they are doing to comply with coming change in FDA regulations, and that could be a business in itself. Stuff like labeling, CBD quality, marketing, etc

The last, being a bridge between CBD companies and funding sources in New York. This could position them to take positions in other CBD stocks and generate cash by selling those company shares. Also could allow them to take larger equity stakes in any new CBD plays that go public through them.

That alone could cover basic monthly overhead if they can they 1) can close few new deals, and 2) partner with some funding sources in city

[sweet crude]

+200% to .15...not many shares till .20+

Really not much float in BKIT and probably not any real sizable shares orders to execute until least .20+, or even more at .40 once you approach the 50-day trend line

[sweet crude]

May need to place buys @ .15 to .20

So maybe BKIT isn't dead after all.

To trade you have to match up with a sell order that is already out there, and will only $200 jumping this to .10 my guess you would have to place orders in the .15 to .20 range to get executed on any order.

If this sign they about to turn PR machine back on then could be time to lower breakeven cost down here.

Lets see if any follow through, and possible move to .20+
https://finance.yahoo.com/quote/BKIT?p=BKIT

BKIT

[sweet crude]

NEWS OUT!!!

https://finance.yahoo.com/news/biohemp-international-provides-current-status-160237220.html

BioHemp International Provides Update on Current Status and its CBD Business Model

NEW YORK, Oct. 24, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE – BioHemp International, Inc. (BKIT), (“Company”), a Company focused on consolidating distributors in the CBD industry, provides update on its current status, and outline of its future business model.

The Company is pleased to announce it has retained two law firms to begin the process of bringing the company back to 'current' tier status with OTC Markets and the Securities and Exchange Commission (SEC). The Company is working diligently to provide all requested documentation, and is working tirelessly to retain its fully reporting status.

The Company’s strategy remains to be a consolidating force in the CBD industry through a strategic roll-up of multi-branded e-commerce and brick & mortar retailers under one platform. By creating these economies of scale for brands and vendors, the Company is positioning itself to become the industry’s leading CBD distribution channel.

The Company’s business model is predicated on the following concepts:

To establish multi-tier distribution channels for CBD products
To acquire strong CBD assets and their channels through consolidation
Provide consulting and compliance services to CBD companies
Become funding bridge between CBD companies in New York
BioHemp International, Inc. is positioning itself as a player in the CBD market, which is expected to reach $22 billion by 2022, according to Brightfield Research Group. The Company’s rollup strategy is aimed at becoming the market leader by spearheading the natural consolidation of the industry through the creation of a distribution platform targeted at existing consumer CBD wholesalers and retailers. As the market begins to consolidate, the Company is poised to benefit from its first mover advantage.

Focus on International Distribution Channels

As regulatory frameworks are still a work in progress for the sale and marketing of CBD infused products in the US, the company will also look internationally to expand its network of channels, products, and sales. This will allow the Company to connect international operations with it’s US platform to create a truly worldwide CBD distribution channel that will give the Company a strategic advantage in establishing itself as a market force.

Daniel Blum, CEO of BioHemp International, commented: “Right now, our number one priority is getting the company back compliant and trading current. In tandem we will continue to work towards executing our business plan, building relationships, and focusing on acquisitions of distributors both domestically and internationally.”

About BioHemp International

Located in New York City, BioHemp International is an early stage venture firm focused on establishing a portfolio of product brands, and distribution channels, for the growing cannabidiol (CBD) market. The Company’s management team holds years of experience in private equity, startup development, and financial consulting, which they plan to utilize in developing out future growth through strategic rollups and acquisitions. www.biohempinternational.com

Safe Harbor Notice
Certain statements contained herein are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995) cautions that statements made in this news release constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections or implied results. BioHemp International, Inc undertakes no obligation to revise these statements following the date of this news release. Additional details of the Company's business can be found in its public disclosures as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's ("SEC") EDGAR database.

This press release is issued on behalf of the Board of Directors of BioHemp International, Inc.

Contact:
Daniel Blum
BioHemp International
244 5th Avenue, Suite A-154
New York, NY 10001
[e-mail]
646-453-4912

[Golden Cross]

From what I have heard and experienced with dbmm it is much easier to get in and out of on the Expert Market...$BKIT

[sweet crude]

Oh, that's interesting

I've seen some stocks that trade with volume on expert market, like DBMM or SECI which just ran from like $6 to $38 in past month.

Maybe this could see more trading start to happen from here, or that they are moving ahead in getting back current with OTC Markets.

This is SECI chart, which is also on expert market

[Golden Cross]

$BKIT Tier_Change: Grey Market to Expert Market

OTCM Link
https://www.otcmarkets.com/stock/BKIT/disclosure