SOHM Inc (SHMN)

[BSNLAW84]

*****SEC/FBI EXPOSE SHMN FRAUD, DIRECTOR INDICTED AND CONVICTED*************

Former SHMN director Shaileish Shah was indicted and convicted in Federal court following years of suspected fraud and money laundering involving SHMN accounts and shares. Along with his criminal conviction and sentence, the SEC issued a 5-year cease & desist order barring him from nealy all penny stock and trading activities.

https://www.sec.gov/litigation/admin/2015/34-76398.pdf

Sohm’s California business license has been revoked since 2015 as a result of non-compliance with California tax law. Sohm no longer has a presence in the United States and does not the ability to legally conduct business operations. They updated their “corporate office” to the address of Shailesh Shah’s personal apartment in Buena Park, seemingly in blatant violation of the SEC’s court order.

Following the arrest and conviction, Ms. Swati Shah was appointed director and promptly took action to liquidate and destroy what was left of their defunct Indian pharmaceutical business. Per the quarterly report for the period ending 6/30/2018 and 2015/2016 annual reports,

https://backend.otcmarkets.com/otcapi/company/financial-report/203406/content

It was revealed that Sohm/SHMN conducted the following actions without public disclosure and continued to cover-up and publish misleading information suggesting that United States retail and Indian manufacturing operations were unchanged.

1. Ms. Shah liquidated 98% (approx. $840,000) of the company’s assets including inventory and pending sales orders in the final quarter of 2015.

2. Ms. Shah terminated 97% (140 of 145 employees) of the company’s workforce in the final quarter of 2015.

3. Ms. Shah liquidated 100% (approx. $1.2 million) of company-owned equipment prior to the end of 2015.

Following such, revenues dropped approximately 90-95% supporting the conclusion that manufacturing and sales were interrupted or abandoned well prior to 2018 when first exposed. There is clear evidence of an intentional cover-up, as well as suspected fraudulent activity through 2018.

The FBI and SEC have not yet disclosed whether or not additional investigations are currently in progress.