FORT LAUDERDALE, Fla., Nov. 04, 2019 (GLOBE NEWSWIRE) — The Lerman Law Firm (Cathy Jackson Lerman, P.A.) today called on the U.S. Securities and Exchange Commission (SEC) to immediately halt trading in Hawk Systems, Inc. (HWSY) and initiate an investigation into why the stock has continued to trade sometimes at very large volumes.
Over one million shares of Hawk Systems stock have traded in just the past two weeks, despite the fact that a Financial Crimes expert in the Palm Beach County Sheriff’s Office performed an in-depth investigation of the company and concluded that it is an “organized scheme to defraud.”
The company duped hundreds of investors – from wealthy professional football players to senior citizens – by claiming to own patents on cutting edge biometric fingerprint technology by which the company was going to produce sophisticated security products, according to multiple news media reports. However, the former CEO of Hawk Systems, David Coriaty, admitted under oath in a deposition that no product was ever produced by Hawk Systems, despite the fact that some investors were led on a fake tour of a Florida production facility where they believed manufacturing of products to be sold by Hawk Systems was underway. The company has also openly declared $22 million in losses to the SEC, with only $5,570 in sales.
“How and why is this fake company with no product currently trading millions of shares?” said Cathy Lerman of the Lerman Law Firm. “Regulators are asleep at the wheel. Investors have already lost millions in this scam and there will be many more victims to come if the SEC doesn’t take immediate action to halt trading and get to the bottom of what is going on.”
The Hawk Systems fraud reportedly spans at least 13 states and involves a number of affiliated companies including Hawk Biometric Technologies, Inc., Hawk Biometrics of Canada, Inc., Auto Secure, Inc., Auto Secure USA, Inc., Secure Start USA, LLC and Fist Enterprises, LLC.
Victims of the Hawk Systems scam, witnesses or whistleblowers should contact Cathy Lerman, Esq. at [email protected] or (954) 332-1143.