A Mesa woman, Kelly Marie Ryan and Premier Media Services, has been sanctioned by the Arizona Corporation Commission for committing securities fraud in connection with a newly invented medical device called a needleless injector.
The Commission ordered Ryan and Premier Media Services to pay a total of $300,500 in restitution for their violations. They were also ordered to pay administrative penalties in the amount of $90,000 each, of which $30,000 of the penalties are for the fraud violations.
The Commission found that, while not registered to sell securities in Arizona, Ryan and her company made multiple misrepresentations and material omissions to at least six investors, some of whom were medical professionals.
According to the Commission, Ryan also failed to disclose her prior criminal conviction and prison sentence for securities and wire fraud as well as an administrative order by the U.S. Securities and Exchange Commission for securities violations.
Additionally, the Commission found Ryan and her company misled investors about being involved in the FDA approval process of the needleless injection device when they were not. They also misled investors about how the investment proceeds would be used, the value of the medical device and the rightful ownership of the patent.