SEC goes after Fla. environmental company
ORLANDO, Fla. (Legal Newsline) - The assets of a Florida environmental company were frozen Monday after the Securities and Exchange Commission obtained a temporary restraining order against future violations of federal securities laws.
The SEC alleged that Michael Borish, former chief executive officer of Freedom's Environmental Services, orchestrated a scheme to remain in control of the company after being removed by the board of directors.
The complaint, filed in U.S. District Court for the Middle District of Florida, alleges Borish, despite the board's action, continued to act as the company's de facto CEO and to control its operations.
He also allegedly caused Freedom to file numerous false and misleading SEC reports. Freedom also issued a false press release regarding the acquisition of another company, failed to file Forms 8-K regarding material events and misrepresented the composition of the board of directors and identities of Freedom's officers in Freedom's filings, the SEC claims.
It is further alleged that Borish and Michael Ciarlone, the Chief Operating Officer, stole corporate funds to pay personal expenses from July 2011 through at least May 2012.
The court also appointed a receiver to preserve and marshal assets, froze Borish's assets, prohibited the destruction of documents and records and ordered expedited discovery.