"Final Order against James Katzaroff, VirExit Technologies, Inc. and Globestar Therapeutics Corporation (collectively “Respondents”). Katzaroff offered and sold investments in VirExit, a company purportedly selling PPE, and GSTC, a company with a patent for a drug cocktail treatment for multiple sclerosis, in February of 2021 raising roughly $500,000 for each company."
Katzaroff made multiple material misrepresentations and omissions to investors including how investor funds would be used, the risks associated with investing in each company, and the lock up periods on selling shares.
Katzaroff misrepresented to at least three investors how investor funds would be used. While investors were told that investor funds would be used to purchase and sell PPE, at least 70% of the raised funds were spent on other purposes, such as marketing, payments to Sonfield, and payments to Katzaroff and other company executives.
Katzaroff also failed to disclose to at least three investors that VirExit stock had a one year lock up period.
The same for another company he is the CEO of:
Katzaroff failed to disclose that at least 85% of the raised funds were spent on payments to Blankenship for the purchase of GSTC, marketing, and payments to Katzaroff himself.
There is more: DEPARTMENT OF FINANCIAL INSTITUTIONS SECURITIES DIVISION IN THE MATTER OF DETERMINING Whether there has been a violation of the Securities Act of Washington by: James Katzaroff, VirExit Technologies, Inc., Globestar Therapeutics Corporation, Respondents. Order No. S-23-3528-24-FO01 ENTRY OF FINDINGS OF FACT AND CONCLUSIONS OF LAW AND FINAL ORDER TO CEASE AND DESIST, TO IMPOSE FINES, TO CHARGE COSTS, AND TO DENY EFFECTIVENESS OF APPLICATION FOR REGISTRATION THE STATE OF WASHINGTON TO: James Katzaroff, VirExit Technologies, Inc.,
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