Jury selection for the SEC’s MyNyloxin trial was supposed to kick off on March 25th.

Instead on March 7th, a Joint Motion was filed requesting the pending trial. The basis for the request was a reached settlement.

On March 8th the Joint Motion was granted, requesting the parties file a Status Report or Stipulation of Dismissal by April 1st.

On March 14th, the SEC filed a Motion for Judgment. On March 19th, Partial Consent Judgments were entered against all three MyNyloxin defendants.

MyNyloxin was an MLM company that marketed Nutra Pharma Corporation’s Nyloxin pain-relief product.

Supposedly, Nyloxin’s active ingredient was cobra venom.

MyNyloxin collapsed in January 2015. A reboot company Lumaxa was launched but didn’t last long.

In late 2018 the SEC filed a lawsuit against Nutra Pharma Corporation, alleging securities fraud and share price manipulation.

In addition to Nutra Pharma Corporation, the SEC also named CEO Erik Deitsch (CEO) and associate Peter McManus as defendants.

As part of the lawsuit and specific to MyNyloxin and Nyloxin, the SEC alleged

a press release touting Nutra Pharma’s completed expansion and upgrade of a cobra farm, when in fact Nutra Pharma never had a cobra farm, never had cobras, and indeed had never produced cobra venom.

Lies about milking cobras and Nutra Pharma Corporation having business operations in India and China were also cited.

The March 19th judgments against Nutra Pharma Corporation, Deitsch and McManus see injunctions against further Securities and Exchange Act violations entered.

Disgorgement of ill-gotten gains pertaining to the alleged violations and/or a civil penalty will be decided upon motion by the SEC.

On that note, the SEC filed a Status Report on April 1st. In the report the SEC advised the court it

has now reached agreements in principle with Deitsch and McManus on additional settlement terms that the SEC staff is prepared to recommend to the Commission following the receipt of signed consents.

If approved, these settlements would resolve the remaining issues as to Deitsch and McManus.

The SEC staff also expects to receive additional information from Nutra Pharma to facilitate a potential settlement of the remaining issues as to Nutra Pharma.

The SEC requested an April 15th deadline to file another Status Report, which as per the docket the court is yet to act on.

It’s expected we’ll have a follow up on or around April 15th.

 

Update 16th April 2024 – The SEC filed a Status Report on April 15th.

In the report, the SEC disclosed it has “received signed consents from Deitsch and McManus on additional settlement terms”.

The SEC staff also expects to receive additional information from Nutra Pharma to facilitate a potential settlement of the remaining issues as to Nutra Pharma.

The Deitsch and McManus settlements have been sent to the SEC’s Commissioners for approval, after which they will be presented to the court for approval.

The SEC has requested the court set a May 15th deadline for filing of a another Status Report.

 

Update 16th May 2024 – Details of settlements with Erik Deitsch and Peter McManus have been made public through entered final judgments.

Proceedings against Nutra Pharma Corp have yet to be finalized.

 

Update July 3rd 2024 – The SEC filed a Status Report on July 2nd;

During a teleconference today, the SEC staff and Nutra Pharma made substantial progress in their efforts to reach a potential settlement of the remaining issues relating to remedies, although there is not yet final agreement on terms that the SEC staff can recommend to the Commission.

Another Status Report has been ordered filed by August 5th.

 

Update 6th August 2024 – As per the August 5th Status Report;

Since the parties’ last joint status update on July 2, 2024, the SEC staff and Nutra Pharma have reached an agreement in principle on settlement terms relating to remedies against Nutra Pharma.

On July 30, 2024, the SEC staff received a signed consent from Nutra Pharma reflecting Nutra Pharma’s agreement to those terms.

The SEC staff is now seeking the Commission’s approval of the settlement, a process which is expected to take approximately three weeks.

I’ll be checking the docket again in a month.

 

Update 27th August 2024 – The Commission has approved Nutra Pharma’s settlement with the SEC.

The SEC filed for judgment based on the approved settlement on August 26th. Pending court approval of the settlement, I’ll publish a followup article detailing the settlement terms.

 

Update 31st August 2024 – On August 28th final judgment was entered against Nutra Pharma for $680,235.05.