Covalent Collective, Inc. announced today that it has submitted all of the documents in its possession, custody or control that relate to the subpoena issued against the company by the United States Securities and Exchange Commission (SEC) on October 24, 2018.
“On July 23 we produced all of the documents we believe were necessary to comply with the SEC’s subpoena,” commented Mr. Bill Gregorak, CEO of Covalent Collective. “While we must hold ourselves accountable for missing the initial deadline, once we fully understood what was required by the SEC, we were able to fulfill our obligations and submit a detailed response ahead of the deadline. Although we won’t know if the SEC is satisfied with the content of our submission until a later date, we believe that the significant volume of correspondence and documentation we produced included everything called for by the subpoena,” Mr. Gregorak continued.
Separately, Covalent said that its founder Geoffrey Thompson had resigned from his positions as a director and officer of the company and its various subsidiaries and agreed to relinquish all associated corporate responsibilities effective immediately.
The SEC Subpeona
On June 4, 2019, the Securities and Exchange Commission filed a subpoena enforcement action in the U.S. District Court for the Northern District of Illinois against Covalent Collective, Inc. f/k/a Doyen Elements International, Inc. f/k/a Advantameds Solutions, Inc. for failure to produce documents in an investigation.
The SEC’s application alleged that Doyen, through its founder, Geoffrey Thompson, may have violated the registration provisions of the securities laws by engaging in an unregistered offering of securities, and may also have made misleading representations to investors and potential investors about the operations, acquisitions, and projected stock price of Doyen and related entities.
As part of its investigation, the staff in the SEC’s Chicago Regional office served Doyen with a document subpoena on October 24, 2018. The SEC’s application alleges that Doyen repeatedly refused to produce any documents in response to the subpoena, notwithstanding multiple efforts by the SEC to secure its compliance.
The SEC’s application seeks an order from the federal district court compelling Doyen to comply fully with the subpoena. The SEC is continuing its fact-finding investigation and, to date, has not concluded that anyone has violated the securities laws.