SEC v. Nano-x Imaging Ltd.; and Ran Poliakine, No. LR-25876, Southern District of New York (Sept. 29, 2023) — Press Release
raw: Nano-x Imaging Ltd. and Ran Poliakine
Nano-x Imaging Ltd. and Ran Poliakine, No. 1:23-cv-8611 (S.D.N.Y. Sept. 29, 2023)
summary
Nano-X Imaging Ltd. and former CEO Ran Poliakine agreed to settle SEC charges for negligently misrepresenting the manufacturing costs of their Nanox.ARC device.
paragraph
The SEC charged Nano-X Imaging Ltd. and Ran Poliakine for claiming the Nanox.ARC could be produced for $8,000 to $12,000 per unit despite higher internal estimates. These misleading figures were included in filings prior to a $165 million initial public offering. The defendants agreed to pay civil penalties of $650,000 and $150,000, respectively, plus disgorgement for Poliakine.
narrative
The SEC has charged Nano-X Imaging Ltd. and its former CEO, Ran Poliakine, with negligently misrepresenting the manufacturing costs of the company's flagship Nanox.ARC device. Between August 2020 and May 2021, the defendants claimed production costs were between $8,000 and $12,000 per unit, ignoring higher estimates from company engineers. These misleading figures were included in financial reports used to raise $165 million during an initial public offering. The SEC alleged violations of the Securities Act of 1933 and the Exchange Act of 1934. Without admitting or denying the allegations, the parties agreed to settle the charges through permanent injunctions. Nanox will pay a $650,000 civil penalty, while Poliakine must pay a $150,000 penalty and $266,836.39 in disgorgement plus interest. The settlement remains subject to court approval.
Classified accounting-fraud(confidence 95%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 80% / precision 48%. detection rule →
Statutes
Section 17(a)(2) of the Securities ActSection 17(a)(2) of the Securities ActSection 13(a) of the Securities Exchange Act
Parties
Securities and Exchange CommissionNano-x Imaging Ltd.Ran Poliakine
Keywords
poliakinenanoximagingsecuritiesnano-x imagingsecurities exchangenanox poliakinesecexchangecommissioncompanyexchange commissionnano-xltdran
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 6
- $165.00M $165 million $100M–$1B
- $650K $650,000 $100K–$1M
- $267K $266,836 $100K–$1M
- $150K $150,000 $100K–$1M
- $12K $12,000 $10K–$100K
- $8K $8,000 <$10K
Entities 3
- company nano-x imaging ltd.
- person ran poliakine
- agency Securities and Exchange Commission
Triples 9
- Securities And Exchange Commission charges Nano-X Imaging Ltd. and Ran Poliakine for negligently misrepresenting the cost to manufacture the company's flagship imaging device, the Nanox.ARC
- Nano-X Imaging Ltd. and Ran Poliakine claimed the company could mass-produce the Nanox.ARC for $8,000 to $12,000 per unit
- Ran Poliakine ignored higher alternative cost estimates provided by company executives, including engineering executives
- Nano-X Imaging Ltd. included this misleading cost estimate in reports filed with the Securities and Exchange Commission prior to raising $165 million in an initial public offering
- Ran Poliakine repeated this misleading cost estimate in numerous earnings calls and media interviews
- Securities And Exchange Commission charges Nano-X Imaging Ltd. with violating Section 17(a)(2) of the Securities Act of 1933 and Section 13(a) of the Securities Exchange Act of 1934 and Rules 12b-20 and 13a-1 thereunder
- Securities And Exchange Commission charges Ran Poliakine with violating Section 17(a)(2) of the Securities Act of 1933 and aiding and abetting violations of Section 13(a) of the Securities Exchange Act of 1934 and Rules 12b-20 and 13a-1 thereunder
- Nano-X Imaging Ltd. agreed to pay a civil penalty of $650,000
- Ran Poliakine agreed to pay a civil penalty of $150,000 and $266,836.39 in disgorgement plus prejudgment interest
PDF (from attached: complaint)
Text layers
Extracted body text (2,583c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25876 /September 29, 2023 Securities and Exchange Commission v. Nano-x Imaging Ltd. and Ran Poliakine, No. 1:23-cv-8611 (S.D.N.Y filed September 29, 2023) SEC Charges Diagnostic Imaging Company and its former CEO for misrepresenting the manufacturing costs of its flagship device. The Securities and Exchange Commission today announced charges against an Israel-based diagnostic imaging company, Nano-X Imaging Ltd. (“Nanox”), and its former CEO, Ran Poliakine (“Poliakine”), for negligently misrepresenting the cost to manufacture the company’s flagship imaging device, the Nanox.ARC. Nanox and Poliakine have agreed to settle the SEC’s charges. The Commission’s complaint alleges that from August 2020 to May 2021, Nanox and Poliakine claimed the company could mass-produce the Nanox.ARC – a purported low-cost alternative to existing X-ray devices – for $8,000 to $12,000 per unit. According to the SEC, Poliakine ignored higher alternative cost estimates provided by company executives, including engineering executives, while touting the lower manufacturing costs. The complaint alleges that Nanox included this misleading cost estimate in reports filed with the Commission prior to raising $165 million in an initial public offering. The company continued to include the estimate in subsequent financial filings, and Poliakine repeated this estimate in numerous earnings calls and media interviews. The Commission’s complaint, filed in U.S. District Court for the Southern District of New York, charges Nanox with violating Section 17(a)(2) of the Securities Act of 1933 (“Securities Act”) and Section 13(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 12b-20 and 13a-1 thereunder, and Poliakine with violating Section 17(a)(2) of the Securities Act and aiding and abetting violations of Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-1 thereunder. Without admitting or denying the SEC’s allegations, Nanox and Poliakine have consented to the entry of a final judgment that imposes permanent injunctions; orders Nanox and Poliakine to pay civil penalties of $650,000 and $150,000, respectively; and orders Poliakine to pay $266,836.39 in disgorgement plus prejudgment interest. These settlements are subject to court approval. The SEC’s investigation was conducted by Jillian Harris and Ayesha Ahmed of the SEC’s Fort Worth Regional Office, under the supervision of Jim Etri and Eric Werner. The litigation will be led by Jason Rose and supervised by B. David Fraser. SEC Complaint
OCR text (2,583c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25876 /September 29, 2023 Securities and Exchange Commission v. Nano-x Imaging Ltd. and Ran Poliakine, No. 1:23-cv-8611 (S.D.N.Y filed September 29, 2023) SEC Charges Diagnostic Imaging Company and its former CEO for misrepresenting the manufacturing costs of its flagship device. The Securities and Exchange Commission today announced charges against an Israel-based diagnostic imaging company, Nano-X Imaging Ltd. (“Nanox”), and its former CEO, Ran Poliakine (“Poliakine”), for negligently misrepresenting the cost to manufacture the company’s flagship imaging device, the Nanox.ARC. Nanox and Poliakine have agreed to settle the SEC’s charges. The Commission’s complaint alleges that from August 2020 to May 2021, Nanox and Poliakine claimed the company could mass-produce the Nanox.ARC – a purported low-cost alternative to existing X-ray devices – for $8,000 to $12,000 per unit. According to the SEC, Poliakine ignored higher alternative cost estimates provided by company executives, including engineering executives, while touting the lower manufacturing costs. The complaint alleges that Nanox included this misleading cost estimate in reports filed with the Commission prior to raising $165 million in an initial public offering. The company continued to include the estimate in subsequent financial filings, and Poliakine repeated this estimate in numerous earnings calls and media interviews. The Commission’s complaint, filed in U.S. District Court for the Southern District of New York, charges Nanox with violating Section 17(a)(2) of the Securities Act of 1933 (“Securities Act”) and Section 13(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 12b-20 and 13a-1 thereunder, and Poliakine with violating Section 17(a)(2) of the Securities Act and aiding and abetting violations of Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-1 thereunder. Without admitting or denying the SEC’s allegations, Nanox and Poliakine have consented to the entry of a final judgment that imposes permanent injunctions; orders Nanox and Poliakine to pay civil penalties of $650,000 and $150,000, respectively; and orders Poliakine to pay $266,836.39 in disgorgement plus prejudgment interest. These settlements are subject to court approval. The SEC’s investigation was conducted by Jillian Harris and Ayesha Ahmed of the SEC’s Fort Worth Regional Office, under the supervision of Jim Etri and Eric Werner. The litigation will be led by Jason Rose and supervised by B. David Fraser. SEC Complaint