Praxsyn Corp (PXYN)

[Hole shot King]

2. Enforcement Actions
A trading suspension is not a finding of fraud or misconduct.[12] In many instances, the Division of Enforcement will continue to investigate whether an issuer whose stock has been suspended from trading was engaged in potential fraud or other misconduct and, if appropriate, will recommend charges to the Commission. Because of the potential severity of the impact of this sort of misconduct on investors we are conducting these investigations on an extremely accelerated basis.

One such example is Praxsyn Corporation, whose stock was suspended from trading on March 25. As stated in the Commission’s Order, the suspension was due to questions regarding the accuracy and adequacy of claims Praxsyn made in a pair of press releases “about having, and being able to obtain, large quantities of N95 masks used to protect wearers from COVID-19.”[13] After the suspension was ordered, the staff continued its investigation, and on April 28, the Commission filed suit against Praxsyn and its CEO in federal court in Florida.[14] This was the Commission’s first action alleging fraud charges relating to an issuer’s COVID-19-related claims. The case was filed 61 days after Praxsyn made its first allegedly fraudulent statement.

Civil actions that result in sanctions serve significant enforcement goals that suspensions are not designed to achieve, such as deterrence, punishment, and in some cases compensation of harmed investors. There are numerous active investigations of COVID-19-related potential misconduct, many of which are also proceeding at an accelerated pace.

https://www.sec.gov/news/speech/keynote-securities-enforcement-forum-west-2020