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SEC Obtains Judgement Against Perpetrator of Multi-Million Dollar Securities Fraud

The United States District Court for the District of Massachusetts entered a final judgment against Joshua Dax Cabrera ordering him to pay approximately $1.1 million in disgorgement, prejudgment interest and penalties in a securities offering fraud previously filed by the SEC in August 2021.

The SEC’s complaint alleged that Cabrera partnered with co-defendant Paul Hess to fraudulently raise more than $12.9 million from more than 150 U.S. and foreign investors by offering unregistered securities in Medsis International Inc. from 2015 through 2020.

The complaint alleged that while offering Medsis securities, Cabrera and Hess made multiple material misrepresentations and misleading statements about Medsis to investors concerning the existence and value of contracts with customers, existing and expected revenue and business operations. The complaint also alleged that Cabrera and Hess misrepresented to investors their personal use of investor funds.

Without admitting or denying the SEC’s allegations, Cabrera consented to a final judgment in the SEC action that permanently enjoins him from violating antifraud provisions and the SEC’s securities offering registration requirements. The judgment also prohibits Cabrera from participating in the issuance, purchase, offer or sale of any security, with the exception of Cabrera purchasing or selling securities for his own personal accounts. The judgment also finds him liable for disgorgement of $536,895, prejudgment interest of $52,816, and a civil penalty of $536,895.

The District Court previously entered final judgment against Cabrera’s co-defendant, Paul Hess, on Dec. 19, 2022, as part of a settlement in which Hess agreed to pay approximately $840,000 in disgorgement, prejudgment interest, penalties and be enjoined from future violations of the securities laws and from offering and selling securities to others.

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