SEC Charges Penny Stock Company, Turbo Global Partners, Inc and its CEO, Robert W. Singerman with Misleading COVID-19 Claims
Washington, DC (STL.News) On May 14, 2020, the Securities and Exchange Commission charged Turbo Global Partners, Inc. and its chief executive officer, Robert W. Singerman with fraud based on two press releases that claimed Turbo Global had the present ability to sell products that could assist in detecting individuals infected with the COVID-19 virus. The SEC previously suspended trading temporarily in the securities of Turbo Global.
The SEC’s complaint against Turbo Global and Singerman, filed in federal court in the Middle District of Florida, alleges that the company issued false and misleading press releases on March 30 and April 3 regarding a purported “multi-national public-private-partnership” to sell thermal scanning equipment to detect individuals with fevers. According to the complaint, the company claimed in its press releases that this technology could be instrumental in “breaking the chain of virus transmission through early identification of elevated fever, one of the key early signs of COVID-19.” As alleged, the press releases also included statements, attributed to the CEO of Turbo Global’s supposed corporate partner in the partnership, that the technology “is 99.99% accurate” and was “designed to be deployed IMMEDIATELY in each State.” In fact, the complaint alleges, Turbo Global had no agreement to sell the product, there was no partnership involving any government entities, and the CEO of Turbo Global’s supposed corporate partner did not make or authorize the statements attributed to him. According to the complaint, Singerman drafted the releases, which he knew to be false. The SEC charged Singerman with fraud in 1999 based on his fraudulent sale of securities through a network of boiler rooms, and obtained a permanent injunction against him.
The SEC’s complaint against Turbo Global and Singerman charges them with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks permanent injunctive relief and civil penalties against both, and an officer and director bar against Singerman.
The investigation of Turbo Global and Singerman has been conducted by Robert F. Schroeder, William P. Hicks, and M. Graham Loomis, and supervised by Justin Jeffries, all of the Atlanta Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.