BOSTON – In a stunning turn of events, Avtar Singh Dhillon, a 61-year-old Canadian citizen and resident of Long Beach, California, has agreed to plead guilty to three felony securities offenses. The offenses include willful failure to disclose stock sales, aiding and abetting the sale of unregistered securities, and touting compensation nondisclosure conspiracy.
According to the charging documents, Dhillon and his attorney, Daniel V. Martinez, 62, of Yuba City, California, worked together to sell shares of Arch Therapeutics, Inc., a Massachusetts-based company for which Dhillon was the board chairman. The sales, which took place without a valid exemption under the relevant securities laws, resulted in approximately $1.34 million in proceeds, primarily distributed to third parties for Dhillon’s benefit.
The charges against Dhillon are serious, with a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $5 million. The charges against Martinez carry a maximum sentence of five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater.
The investigation into Dhillon’s activities was conducted by the Federal Bureau of Investigation, Boston Office, with valuable assistance provided by the Securities and Exchange Commission’s headquarters, Boston and Los Angeles regional offices.
Avtar Singh Dhillon, Defendant:
- Real full name: Avtar Singh Dhillon
- Criminal charges: willful failure to disclose stock sales, aiding and abetting the sale of unregistered securities, and touting compensation nondisclosure conspiracy
- City and state: Long Beach, California
- Arrest date: August 2021
- Sentence: Awaiting sentencing
- Dollar amounts: $1.34 million in proceeds
Daniel V. Martinez, Defendant:
- Real full name: Daniel V. Martinez
- Criminal charges: sale of unregistered securities
- City and state: Yuba City, California
- Arrest date: Not specified
- Sentence: Awaiting sentencing
- Dollar amounts: $250,000 fine
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Key Facts
- State: Massachusetts
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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