The five-hospital CHU network agreed to pay Michael Caridi’s company US$13.7-million for three million certified N95 masks in March, 2020, but received KN95 masks marked ‘not for medical use,’ ruling says
Court orders former cannabis exec to reimburse Quebec hospital network over sale of faulty respirator masks during onset of COVID-19 Michael Caridi defrauded one of Quebec ’s largest hospital networks during the onset of the COVID-19 pandemic by selling millions of dollars’ worth of substandard respirator masks, an Ontario judge has ruled.
John Pirie, a lawyer for the hospital network, said: “Our client is pleased with this trial result. We are mindful that related proceedings are ongoing and we have no further comment at this time.”During the trial, Justice Wilton-Siegel found Mr. Caridi provided inconsistent testimony. Throughout the entire pretrial period and through the trial itself, Mr. Caridi’s position was that CHU had contracted for KN95 masks that were manufactured to NIOSH standards rather than NIOSH-certified N95 masks.
“Caridi did not offer any explanation for this change of position,” the decision said. “Further, in his testimony, he sought to maintain both positions.” Justice Wilton-Siegel’s decision said Mr. Caridi personally received at least US$1.1-million from the money paid by the hospital network
Source: https://headtopics.com/ca/court-orders-former-cannabis-exec-to-reimburse-quebec-55713664
He’s also been at it in the US – see this in Connecticut
SEC v. Michael Caridi: Amended Complaint (‘Fraud’)
Michael Caridi
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25847 / September 25, 2023
Securities and Exchange Commission v. Michael Caridi, No. 1:23-cv-1243 (D. Conn. filed September 20, 2023)
SEC Charges Connecticut Resident with Fraudulent Statements in Press Releases
The Securities and Exchange Commission today filed charges against Michael Caridi, a resident of Greenwich, Connecticut, and a former director and officer of Tree of Knowledge International Corp. (“TOKI”), in connection with fraudulent press releases issued by the company that touted its ability to respond to the COVID-19 pandemic.
According to the SEC’s complaint, filed in the United States District Court for the District of Connecticut, Caridi acting as Chairman of TOKI’s board of directors, assisted TOKI, which had not previously been in the business of supplying Personal Protective Equipment (“PPE”), in issuing two press releases touting TOKI’s successful pivot into being a PPE provider. However, the SEC’s complaint alleges, the press releases did not inform the public that Caridi and TOKI had previously failed to deliver 3 million medical grade NIOSH certified N-95 masks to a Canadian hospital pursuant to a contract with that hospital. In addition, as alleged in the complaint, TOKI had an $11 million liability to the hospital, and Caridi had misappropriated over $1 million from the unperformed contract, which included amounts taken after he had already promised the hospital a refund that TOKI did not have the resources to pay. Within months after the press releases, the hospital sued TOKI and put the company’s U.S. subsidiary into a receivership in Canada.
The SEC’s complaint charges Caridi with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and, in the alternative, with aiding and abetting violations of Exchange Action Section 10(b) and Rule 10b-5(b) thereunder. The complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest thereon, civil penalties, an officer and director bar, and a penny stock bar.
The SEC’s investigation was conducted by Rhonda L. Jung, Brian Kudon, Kenneth Gottlieb, Melissa Coppola, and Adam S. Grace, and the litigation will be led by Christopher M. Colorado and Ms. Jung, all of the New York Regional Office. The case is being supervised by Thomas P. Smith, Jr.
Last Reviewed or Updated: Sept. 25, 2023
https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25847
Also see
https://finance.yahoo.com/news/tree-knowledge-announces-management-changes-142500276.html
