SEC v. Biogenic, Inc.

Biogenic, Inc., Diagnostic Link Ltd, LLC, Vital Systems Ltd LLC, BioTek Holdings LLC, Tek Wellness Inc., Capital Care Management LLC, Susann Ashley Cargnino, Zachari Alan Cargnino, Julie Ann Youssef, and Gary Youssef allegedly conducted a medical device scam for at least three years that defrauded at least 55 investors out of over $7 million. According to the SEC’s complaint, the Youssefs and Cargninos used six Michigan-based companies, which the Cargninos controlled, to offer bogus investment contracts to buy supposed “World-Class” and “Life Saving” medical testing devices. The complaint alleged that the defendants claimed that the devices would provide passive income every time the device was used in a doctor’s office. The complaint further alleged that the defendants made numerous false claims about the investment opportunity. After investors bought devices and the doctors failed to use the machines, Julie Ann Youssef and Zachari Cargnino allegedly sent investors fake usage reports and falsely communicated to investors that payments they had received were derived from device usage and payments from doctors when, in reality, the payments came from new investor money. The complaint further alleged that the Cargninos used millions of dollars of defrauded investor money to buy vacation rentals, jet skis and a trailer, and three residential properties in Manitou Beach, Michigan.

Summary generated from official Securities and Exchange Commission press release