SEC Charges Three Former Executives of Pharmacy Startup Medly Health Inc. with Defrauding Investors

'The Securities and Exchange Commission (SEC) has charged three former executives of now-defunct digital pharmacy startup Medly Health Inc., including its co-founder and former CEO, with defrauding investors. The allegations state that the executives provided financial information that overstated revenue by millions of dollars worth of fake prescriptions entered into the company's systems. The SEC complaint claims that the defendants were aware of accounting irregularities and employee complaints about inaccurate revenue reports, but failed to correct them. As a result, the company raised over $170 million from investors through deceitful conduct. The charges include violating antifraud provisions of securities laws and aiding and abetting securities law violations. The SEC is seeking permanent injunctions, civil money penalties, disgorgement, prejudgment interest, and officer-and-director bars against the defendants.'