Hamilton & Associates Law Group, P.A.
SEC Charges Charlie Abujudeh in Microcap Fraud Scheme Targeting Retail Investors
On July 22, 2021, the Securities and Exchange Commission (the “SEC”) filed an emergency action charging California resident Charlie Abujudeh with running microcap fraud schemes targeting retail investors. According to the SEC’s complaint, filed in the U.S. District Court for the Eastern District of New York, Abujudeh worked with others from August 2019 to at least September 2020 to fraudulently sell several microcap companies’ stock to investors by making misleading statements during high-pressure sales calls and/or email promotions. The SEC alleges that, as part of the scheme, Abujudeh and his associates convinced investors to invest in the stock of Odyssey Group International, Inc. (ODYY), as well as other microcap companies, including Scepter Holdings, Inc. (BRZL) and CannaPharmaRx, Inc. (CPMD). Abujudeh paid stock promoters to tout Odyssey stock over the phone to unsuspecting retail investors recruited through false and misleading representations. Abujudeh also allegedly paid for email promotional campaigns and schemed to hide his control over and simultaneous sale of Odyssey, Scepter, and CannaPharmaRx stock during the promotions.
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