A Greenwich resident was ordered to pay nearly $1 million in penalties and disgorgement for his part in a fraud perpetrated against a Canadian hospital during Covid, the U.S. District Court for the District of Connecticut announced Wednesday.
The federal court entered a final judgment by consent on Jan. 2, 2025, against Michael Caridi, whom the SEC had charged in connection with the issuance of fraudulent press releases by Tree of Knowledge International Corp. (TOKI) That company is now known as Optima Medical Innovations Corp.
According to the SEC’s complaint, Caridi, a Greenwich resident acting as chair of TOKI’s board of directors, assisted the company, which had not previously been in the business of supplying Personal Protective Equipment, in issuing two press releases touting TOKI’s successful pivot into being such a provider.
The SEC’s complaint alleges that the press releases did not inform the public that Caridi and TOKI had previously failed to deliver three million medical grade NIOSH certified N-95 masks to a Canadian hospital pursuant to a contract with that hospital. The need for such masks was paramount due to Covid-19.
In addition, as alleged in the complaint, TOKI had an $11 million liability to the hospital, and Caridi had misappropriated over $1 million from the unperformed contract, which included amounts taken after he had already promised the hospital a refund that TOKI did not have the resources to pay.
Without admitting or denying the allegations in the SEC’s complaint, Caridi consented to the entry of a final judgment that permanently enjoined him from violating the Securities and Exchange Act; barred him from serving as of officer and director of a public company for seven years; barred him from participating in an offering of penny stock; ordered him to pay a civil penalty of $180,000; and ordered him to pay disgorgement of $895,972.
The payments would be made by Caridi in equal amounts to satisfy a judgment awarded against him in a related private litigation filed by the hospital.
The SEC’s litigation was led by Christopher M. Colorado of the New York Regional Office, under the supervision of Preethi Krishnamurthy. The investigation was conducted by Rhonda L. Jung, Brian Kudon, Kenneth Gottlieb, Melissa Coppola, and Adam S. Grace, all of the New York Regional Office, under the supervision of Thomas P. Smith, Jr.
