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ENZC.US
id: 1516
Enzolytics (ENZC): Investigation Into Fraud and Business Practices
- Enzolytics' CEO Zhabilov and the "Control Group" allegedly issued 500M shares, raising $92M through misleading claims.
- The company is also under scrutiny for its HIV treatment and merger with BioClonetics amid fraud allegations.
- Investors are currently investigating whether Enzolytics executives made misleading statements or engaged in misconduct.
Case Details:
According to the SEC, between 2017 and 2022, CEO Harry Zhabilov and others allegedly issued more than half a billion unrestricted shares, selling them to investors through misleading claims.
The group, collectively known as the "Control Group," hid their control over Enzolytics and its stock and created fake documents to sell the shares. They also transferred 231 million unrestricted shares to Zhabilov's daughter, Dannie, bypassing restrictions. The scheme raised $92 million, using fake documents to sell the shares.
Some of the money was allegedly spent on personal expenses, including $7.125M that Dannie Zhabilov received for the transferred shares. She used it to buy a home, pay off her parents' mortgage, and lease a luxury car for her father.
In addition to fraud allegations, Enzolytics is facing doubts about its HIV/AIDS treatment, ITV-1. The company claims ITV-1 was tested on the human coronavirus 229E strain in Bulgaria, but local sources couldn’t confirm this.
There are also ongoing questions regarding Enzolytics' merger with BioClonetics Immunotherapeutics, which was announced in September 2020.
The deal, meant to combine HIV technologies, faces questions about its execution due to ongoing fraud allegations.
With growing uncertainty about the company's operations and leadership, investors are investigating whether Enzolytics executives made misleading statements or engaged in misconduct.
Case Status
Attorney Investigation
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
03/07/2025