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Boy were you RIGHT! This SEC prosecution of IMDS is HUGE!!!
To THE MOON right? LOLOL Another one that needs to do the perp walk. Good thing the SEC has all those posts too...... I am guessing.
Like I've said, have patience as the SEC takes their time to build a case. Remember all of those amended filings and correspondence?
Yep, we called it back then. You need to read the whole complaint. What scum.
Here's another thing to think about.Barsom and Joecamzai were actively promoting this scam during this time. Wouldn't it be nice to catch two birds with one stone? Grable paid Barsom 5 million shares to promote the stock on boards and we remember what happened. I'm sure the SEC must have all of their posts somewhere.
Everyone needs to read the full complaint.
http://www.sec.gov/litigation/complaints/2013/comp22801.pdf
Read the internal emails. IMDS KNEW they were lying and did so anyway.
IMDS KNEW they had no money to pay the radiologist to read and tabulate the scans, but continued to lie to the public.
IMDS lied eight times in SEC filings about their PMA filings.
BOTH Grable and Schwartz knew IMDS stopped paying the IRS in January 2010 their employees payroll taxes, yet failed to disclose this for 16 months and even after that failed to disclose the risks to investors.
BOTH Grable & Schwartz failed to disclose beneficial ownership of stock and stock options for years 2009, 2010, and 2011.
ELEVEN counts in all.
Wait until the IRS gets a hold of them!
I hope that someone who bragged about becoming an INTEGRAL PART OF IMDS by promoting this scam has a very good lawyer. He's going to need one in my opinion. Over 1000 posts promiting this scam, all in the hands of the SEC.
I hope someone has a very good lawyer. Somone who bragged about becoming an INTEGRAL PART OF IMDS.
U.S. SECURITIES AND EXCHANGE COMMISSION- IMDS BEING PROSECUTED
Litigation Release No. 22801 / September 18, 2013
Accounting and Auditing Enforcement Release No. 3486 / September 18, 2013
Securities and Exchange Commission v. Imaging Diagnostic Systems, Inc., Linda Grable, and Allan Schwartz, Civil Action No. 0:13-cv-62025- (S.D. FL.) (September 18, 2013)
SEC Charges Imaging Diagnostic Systems, Inc., Its Ceo, and Cfo with Fraud
The Securities and Exchange Commission today filed an enforcement action in the U.S. District Court for the Southern District of Florida charging Imaging Diagnostic Systems, Inc. (“Imaging”), a Florida-based medical technology company, Linda Grable, its CEO, and Allan Schwartz, its CFO, for making material misstatements and omissions in Imaging’s filings concerning the timing of its Food and Drug Administration (“FDA”) application and concerning Imaging’s failure to remit payroll taxes to the Internal Revenue Service (“IRS”).
Imaging is engaged in the development and testing of a breast imaging system, the CTLM®, which purportedly uses a laser to detect breast cancer. Imaging to date has failed to obtain FDA approval to market and sell the CTLM® in the United States. The SEC’s complaint alleges from October 2008 to December 2009, Imaging repeatedly disclosed in filings and letters to shareholders that it expected to file, by specific deadlines identified in these public statements, a Premarket Approval (“PMA”) application with the FDA to obtain permission to market and sell the CTLM®. Each time, Imaging failed to meet its projected deadline. The complaint alleges that Grable and Schwartz knew there was no basis for the projections because Imaging did not have enough cancer cases to finish its clinical trials and could not pay for the clinical sites.
In addition, according to the complaint, beginning in the quarter ended March 31, 2010, Imaging stopped remitting payroll to the IRS for its employees. The complaint alleges that Imaging’s failure to pay payroll taxes constituted a known commitment, event, or uncertainty of the type that should have been disclosed in the Management’s Discussion and Analysis of Imaging’s periodic filings, which were signed by Grable and Schwartz. However, Imaging did not publicly disclose that it failed to remit payroll taxes until over 16 months later, when on May 18, 2011 it filed a Form 10-Q. Even then, Imaging failed to disclose the risks associated with its failure to pay payroll taxes and in fact failed to provide any disclosure of the risks until it filed an Amended Form 10-K on November 29, 2011.
Finally, the complaint alleges that Grable and Schwartz failed to file beneficial ownership reports in 2009, 2010, and 2011 despite having received stock and options.
The SEC’s complaint charges that Imaging, Grable, and Schwartz violated Section 17(a)(2) of the Securities Act of 1933 (“Securities Act”) and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5(b) thereunder. The complaint also alleges that Imaging violated Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder; Imaging and Grable violated Section 14(a) of the Exchange Act and Rule 14a-9 thereunder; Grable and Schwartz violated Section 16(a) of the Exchange Act and Rules 13a-14, 13b2-1, and 16a-3 thereunder; and Grable and Schwartz aided and abetted Imaging’s violations of Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 10b-5(b), 12b-20, 13a-1 and 13a-13 thereunder. The SEC seeks financial penalties and permanent injunctions. The SEC also seeks penny stock bars and officer-and-director bars against Grable and Schwartz.
The SEC’s investigation was conducted by Jenny A. Trotman, Senior Counsel, and Kathleen Strandell, Staff Accountant, of the Miami Regional Office. The investigation was supervised by Thierry Olivier Desmet, Assistant Regional Director. Robert Levenson, Regional Trial Counsel, will lead the SEC’s litigation.
SEC Complaint
http://www.sec.gov/litigation/litreleases/2013/lr22801.htm
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22801 / September 18, 2013
Accounting and Auditing Enforcement Release No. 3486 / September 18, 2013
Securities and Exchange Commission v. Imaging Diagnostic Systems, Inc., Linda Grable, and Allan Schwartz, Civil Action No. 0:13-cv-62025- (S.D. FL.) (September 18, 2013)
SEC Charges Imaging Diagnostic Systems, Inc., Its Ceo, and Cfo with Fraud
The Securities and Exchange Commission today filed an enforcement action in the U.S. District Court for the Southern District of Florida charging Imaging Diagnostic Systems, Inc. (“Imaging”), a Florida-based medical technology company, Linda Grable, its CEO, and Allan Schwartz, its CFO, for making material misstatements and omissions in Imaging’s filings concerning the timing of its Food and Drug Administration (“FDA”) application and concerning Imaging’s failure to remit payroll taxes to the Internal Revenue Service (“IRS”).
Imaging is engaged in the development and testing of a breast imaging system, the CTLM®, which purportedly uses a laser to detect breast cancer. Imaging to date has failed to obtain FDA approval to market and sell the CTLM® in the United States. The SEC’s complaint alleges from October 2008 to December 2009, Imaging repeatedly disclosed in filings and letters to shareholders that it expected to file, by specific deadlines identified in these public statements, a Premarket Approval (“PMA”) application with the FDA to obtain permission to market and sell the CTLM®. Each time, Imaging failed to meet its projected deadline. The complaint alleges that Grable and Schwartz knew there was no basis for the projections because Imaging did not have enough cancer cases to finish its clinical trials and could not pay for the clinical sites.
In addition, according to the complaint, beginning in the quarter ended March 31, 2010, Imaging stopped remitting payroll to the IRS for its employees. The complaint alleges that Imaging’s failure to pay payroll taxes constituted a known commitment, event, or uncertainty of the type that should have been disclosed in the Management’s Discussion and Analysis of Imaging’s periodic filings, which were signed by Grable and Schwartz. However, Imaging did not publicly disclose that it failed to remit payroll taxes until over 16 months later, when on May 18, 2011 it filed a Form 10-Q. Even then, Imaging failed to disclose the risks associated with its failure to pay payroll taxes and in fact failed to provide any disclosure of the risks until it filed an Amended Form 10-K on November 29, 2011.
Finally, the complaint alleges that Grable and Schwartz failed to file beneficial ownership reports in 2009, 2010, and 2011 despite having received stock and options.
The SEC’s complaint charges that Imaging, Grable, and Schwartz violated Section 17(a)(2) of the Securities Act of 1933 (“Securities Act”) and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5(b) thereunder. The complaint also alleges that Imaging violated Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder; Imaging and Grable violated Section 14(a) of the Exchange Act and Rule 14a-9 thereunder; Grable and Schwartz violated Section 16(a) of the Exchange Act and Rules 13a-14, 13b2-1, and 16a-3 thereunder; and Grable and Schwartz aided and abetted Imaging’s violations of Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 10b-5(b), 12b-20, 13a-1 and 13a-13 thereunder. The SEC seeks financial penalties and permanent injunctions. The SEC also seeks penny stock bars and officer-and-director bars against Grable and Schwartz.
The SEC’s investigation was conducted by Jenny A. Trotman, Senior Counsel, and Kathleen Strandell, Staff Accountant, of the Miami Regional Office. The investigation was supervised by Thierry Olivier Desmet, Assistant Regional Director. Robert Levenson, Regional Trial Counsel, will lead the SEC’s litigation.
SEC Complaint
http://www.sec.gov/litigation/litreleases/2013/lr22801.htm
Didn't you read the news? The SEC is PROSECUTING IMDS, the CEO AND CFO. Told you it was a SCAM.
Zero bid is now permanent. How long till this hits the pinks and is delisted, then IMDS folds?
HAHAHAHAHAHA!!!!Just like I have been saying for years! IMDS is a SCAM run by Grable and Co. Seems the SEC says so too, and exactly what I pointed out about their lying in regards to the PMA/510K scam as well as the IRS taxes.
The real question is does anyone care? IMDS is a joke, a scam, a piggy bank for the Grables.
Do they even bother to show up for..... cough cough .... work?
DEAD.....................
Please take moment today to remember those who died 12 years ago today.
NEVER FORGET.
How did this work out?
Terrible indeed.Squeak admits he lost over $20000 in this scam and claims he was repeatedly lied to by Grable about the R/S. Many other former longs claim Grable lied to them as well, and they suffered substantial losses.
So much for the fairy tale about calling the company and ask to get the truth.
Hogwash. Those necessary medical procedures and diagnostics save lives. The CTLM doesn't.
It doesn't work as claimed.
The contraption has been available for sale for going on two decades worldwide and IMDS has managed to only sell a total of 14 machines, mostly to unknown backwards clinics and "medical centers" in third world countries. If the thing worked, you would see these customers ordering more CTLM's, but they never do.
Explain why IMDS has never sold or even been able to give away a machine to any hospital in Canada, England, France, Germany or Japan. EVER. Explain why the Italian distributor sued IMDS, and returned all three machines. Explain why IMDS fired multiple distributors in China and has not had one or any sales in China for years. Explain why the last several distributors refused to take delivery of the machines and walked away from deposits and contracts. Explain why despite the fact the machine has been bandied about to every single trade show since 1995 yet IMDS has never received any buy out offer. Explain why Phillips, after IMDS sent them a test machine to use for free for a year, returned the machine, never bought one, and then signed up with a competitor to use their device. Explain why IMDS has hired on several occasions criminals and barred NYSE people as IR to promote the stock on message boards. Explain why IMDS employees, family members, attorneys, and IR all have posted on message boards under aliases, attacking anyone exposing the scam or challenging the claims.
Scam. Pure and simple.
Was this at the condo or at the office?
Welcome back to 1995. Grable and her dead husband already milked that PR idea for all it's worth. They went on every show they could find and paid for dozens of infomercial interviews masqueraded as investor spots. The local newspapers caught wind of the scam and in the late 90's ripped Grable and exposed them in blistering news articles.
Here's the problem. It is 20 years later, everyone knows IMDS is a scam,there are billions of shares outstanding, the stock is zero bid, and IMDS is dead broke.
Grable was never a "detail" person. LOL
Think they already know about the R/S or what?
Too funny. Even the lowest of the low toxic lenders won't touch this scam, so Grable has to sucker in a neighbor?
Why doesn't she or one of her three children on the payroll loan IMDS THEIR money?
BECAUSE THEY AREN"T STUPID!!
The stock is already zero bid. I think the market is telling you what the company is worth. Any present shareholder will get zero for their shares.
More like there are none to discuss :(
Where are you getting your information about IMDS? It is all outdated and incorrect.
For what purpose? You said you are not interested in buying the stock.
Everything said is detailed in their SEC filings.
uh... news flash. The CTLM doesn't work as claimed either. It has been dragged around to every trade show and conference around the world for 20 years. There has never been an independent, third party clinical study that backs up IMDS claims. One of their own trials showed it was about as accurate as a coin toss and gave almost 25% false positives.
No one is interested in the contraption.
You must have owed more than $50000 and not negotiated a payment plan with the IRS then.
With respect to IMDS, if IMDS defaults on the payment plan in place, the IRS has the power to among other remedies seize corporate assets and seek to enforce actions against corporate officers, holding them personally liable.
IMDS would have to submit a new PMA application, as the CTLM was classified as a new modality. They would need to start over from square one with all new clinical trials and scans. IMDS took eight years to submit the first rejected PMA and another seven to submit the second rejected 510K. In my opinion, they will never submit another. The scam has run its course.
My understanding is the bill, which was passed by the Senate in 2012, is dead and never signed into law.
Hope you didn't throw away your money in this scam based on this incorrect DD. All I know is the FDA rejected the 510k in 2011 and IMDS is dead broke and has no money to start a new FDA submission.
Have you noticed the zero bid for the last two months? There is a reason.
FDA REJECTED the 510K in 2011. IMDS will never make another FDA submission. The scam is played out too many times.
Seems as if you are not aware of any DD regarding IMDS over the past two years, most likely from reading the fairy tales on IMDS website.
The FDA rejected their 510k application in 2011. IMDS has nothing infront of the FDA and has stated they have no money to begin a new FDA submission.
Where did you hear the IRS has the power to revoke passports? Provide a link. IMDS has been on a payment plan with the IRS to repay the 1.4 million owed for pilfering the employee with holding.
IMDS also has a State of Florida lien for unpaid taxes.
IMDS also owes over 5 million to vendors, creditors, and toxic lenders.
IMDS has no sales of their one product for two years.
IMDs has three Grables on the payroll who all have zero medical degrees, or formal medical training, or any success with FDA approval. Yet all three are paid six figures.
No. She is a Director. The copy/paste on the Form 4 was too close. Wonder who she sold those 3 convertible notes to. Notice IMDS didn't want to name them.
Wow did I call it or what. Somebody trying to head for the hills?
FORM 4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL
OMB Number: 3235-0287
Expires: December 31, 2014
1. Name and Address of Reporting Person*
Shotmeyer Elizabeth
5307 NW 35 TERRACE
FORT LAUDERDALE FL 33309
2. Issuer Name and Ticker or Trading Symbol
IMAGING DIAGNOSTIC SYSTEMS INC /FL/ [IMDS]
3. Date of Earliest Transaction (Month/Day/Year)
08/05/2013
4. If Amendment, Date of Original Filed (Month/Day/Year)
5. Relationship of Reporting Person(s) to Issuer
X Director 10% Owner
Officer (give title below) Other (specify below)
6. Individual or Joint/Group Filing (Check Applicable Line)
X Form filed by One Reporting Person
Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of
CONVERTIBLE PROMISSORY NOTES 08/05/2013 $ 13,100 (1) COMMON STOCK $ 57,884
Explanation of Responses:
1. Ms. Shotmeyer sold principal from three Convertible Promissory Notes dated May 18, 2012, June 7, 2012 and July 18, 2012 for a total of $13,100 to an unaffiliated third party on August 5, 2013.
/s/ Elizabeth Shotmeyer 08/21/2013
5000:1 this time? Then Grable converts and dumps her 51% PR stock and folds shop.
Stock pegged at zero bid for two months now. Doesn't matter how many shares they authorize. Unless they R/S they can't sell enough shares to pay the IRS each month.
I cannot believe anyone is still saying this company is real and are still pushing the merger lie.
Ok. So let's look at this further.
They seize the company
and sell the assets. For the amount of taxes owed due to mishandling of social security withholding, they then look to the individuals with "checkwriting authority" at the company and attach them personally. Corporations are not a shield to personal liability for social security withholding as the money wasn't the corporation's to begin with.
Jose, what happens if IMDS stops making the IRS payments?