Two men who formed a publicly traded pharmaceutical company and took $4 million of investor money for themselves have been sentenced to federal prison.
The two men formed a Delaware-based pharmaceutical company called CanaFarma Corp. in March 2019. About a year later, the business, which had offices in New York City, was listed on the Canadian Stock Exchange and the Frankfurt Stock Exchange of Germany. Fargesen and Palatnik eventually secured $14 million from investors, but failed invest the money as promised and used about $4 million of investor money for their personal use, federal authorities said.
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