CV Sciences Inc (CVSI)

[Koelma]

Michael Mona Jr was paid $7,418,000.00 (SEVEN MILLION FOUR HUNDRED EIGHTEN THOUSAND DOLLARS) in 2018 along with being GIFTED Twelve (12) MILLION stock options issued at an average of $.38 for a stock selling at $5.50ish (a $61,440,000.00 GIFT - SIXTY ONE MILLION FOUR HUNDRED FORTY THOUSAND DOLLARS) given to Michael Mona Jr CVSI’s suspended former CEO. Almost SEVENTY MILLION DOLLARS. His son Michael Mona III was also given $681,752,000.00 as “co-founder and CEO.” This can be seen in the chart below and the 14F files After the Market closed Friday.



Michael Mona Jr. who in 2018 became BARRED from holding ANY position in ANY public company not including the hefty fine he paid along with the SEC Suspension he received. SIXTY ONE MILLION FOUR HUNDRED FORTY THOUSAND DOLLARS to a convicted fraudster plus SEVEN MILLION FOUR HUNDRED TWENTY THREE DOLLARS, almost SEVENTY MILLION DOLLARS.  CVSI LOST money in 2015, 2016, 2017 and in 2018 self reported a profit of $10,001,000.00 or 1/7th the amount given to Mr Michael Mona. The net profit was signed off on by their CPA Anton and Chia but that presents another problem.

The SEC disciplined CVSI’s accountant and auditor Anton and Chia stated in the citation below as clear fraud, manipulation and subsequent discipline

http://www.lexissecuritiesmosaic.com/gateway/sec/admin-proceeding/34-82206.pdf

Are they to be trusted?


In 2011, Michael Mona was on trial in California for fraud. After the trial, the court (Judge Riegle) stated; “Mr. Mona intentionally defrauded the plaintiff by “misrepresent[ing] material facts and conceal[ing] other material facts.” The California Superior Court found that Michael Mona committed fraud and awarded plaintiff Far West a $17.8 million dollar judgment against Michael Mona — both individually and in his capacity as trustee of the Mona Family Trust. In order to avoid paying the proceeds of the Judgment Mr. Mona wanted to file Bankruptcy but he couldn’t. He had previously filed in 1999 (case # 9912412) discharged on January 4, 2006. He therefore formed the “Mona Family Trust” and moved ALL his and his wife’s assets to The Mona Family Trust. However, The California court also found that Michael Mona Jr. was the alter ego of the Mona Family Trust, and that both Michael Mona Jr. and the Mona Family Trust were liable for damages awarded to Far West. Far West then domesticated the California judgment in Nevada against Michael Mona and the Mona Family Trust for damages caused by his fraud.

(Source: Far West Indus. v. Mona, et al., California Superior Court, Riverside County, No. RIC495966.)"

The collection of this judgment by Far West is still being litigated today.

Source: https://caselaw.findlaw.com/nv-supreme-court/1750014.html



Additionally On December 14, 2017, the USPTO made a final rejection decision on CVSI Patent Application for their drug CVSI-007 and mailed CVSI a letter indicating the final rejection status of its Patent on December 20, 2017. Defendants CVSI Failed to Disclose to Investors That CV Sciences, Inc.’s Patent Has Been Rejected. After being notified of both the non-final and subsequent final rejection decisions on the Patent, Defendants failed to make any disclosures or statements regarding the Patent’s status, despite the Company’s self-proclaimed “effective” disclosure controls and procedures. There is currently a court approved class action suit working its way through the courts against Mona, current CVSI CEO Joseph Dowling and of course CVSI.

Source: Case 2:18-cv-01602-JAD-PAL Document 1 Filed 08/24/18

Link: http://securities.stanford.edu/filings-documents/1067/CSI200_02/2018824_f01c_18CV01602.pdf



The stockholders of CVSI are counting on an “uplist” to NASDAQ filed 250 days ago.

TWO HUNDRED FIFTY DAYS. A typical NASDAQ Listing takes 4-6 weeks.



Source: NASDAQ Listing Requirements Page Four

Link; https://listingcenter.nasdaq.com/assets/initialguide.pdf



With Mona’s fraud conviction, SEC Suspension and fine, the discipline of CVSI’s accountant and auditor Anton and Chia as clear fraud, manipulation and subsequent discipline, along with Mona Jr leaving his son Michael Mona III at CVSI in the official title of Co-Founder & Chief Operating Officer being paid $681,752.00 in 2018 not including HIS stock options as his proxy it’s pretty clear who always has and is still both running CVSI and gaining more then all its stockholders combined. A convicted fraudster and SEC Suspended and Fined bad actor, along with holding 25 % +/- of the 99,000,000 share float it certainly appears to be Michael Mona Jr.



Per SEC rules, no company may raise capital if any officer, director, promoter or beneficial owner of 20% or more of its equity is a “Bad Actor”.



Is Michael Mona Jr an SEC defined “Bad Actor?” He certainly qualifies under ALL The SEC “Bad Actor” definitions. Overview of the Bad Actor Rule

The “Bad Actor” rule is codified as new paragraphs (d) and (e) to Rule 506.  Rule 506(d)(1) provides that the exemptions in Rule 506(b) and Rule 506(c) are not available if the issuer or any associated person is statutorily disqualified. This includes all of the following:

1.       issuer =  the company selling securities, any predecessor of the issuer (prior entity), and any affiliated issuer

2.       associated persons =

·         Directors, general partners, and managing members of the issuer;

·         Executive officers of the issuer, and other officers participating in the offering;

·         20 percent beneficial owners of the issuer;

·         Promoters;

·         Investment managers and principals of pooled investment funds; and

·         Any person compensated for soliciting investors.



Source and Citation:

https://www.sec.gov/info/smallbus/secg/bad-actor-small-entity-compliance-guide.htm

https://www.lexisnexis.com/legalnewsroom/banking/b/banking-finance/posts/rule-506-d-bad-actor-disqualifications-who-s-a-bad-actor-and-why-are-they-bad-part-i


After numerous conversations with Marc Blau head of the L.A. Office of the SEC Microcap task force amongst other SEC and NASDAQ officials who spoke under the promise of anonymity CVSI will not be considered for any actual stock exchange for five (5) years if they’re not suspended prior to then.