January 20, 2020

To: SEC and DOJ agents (by bcc)

SEC OIG

RE: John Lemak and the Frost gang

All,

On March 16, 2011, Frost gang company Chromadex (CDXC) filed an SEC Registration
Statement (RS) that can be seen at:
https://www.sec.gov/Archives/edgar/data/1386570/000119312511068854/ds1.htm#tx160954_6
On page 17 of the RS, there is a list of selling shareholders:

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 In addition to John Lemak, the list of selling shareholders includes several members and
associates of the Frost gang, including Barry Honig. The 2011 RS may have been part of a pump
and dump (P&D) securities fraud at CDXC.

According to google, John Lemak is an investment advisor in Dallas, TX and the owner
of Sandor Capital Master Fund.

On September 21, 2015, Lemak and Sandor were parties to a “Consent, Waiver and
Modification Agreement” regarding Be Active Holdings (JALA). Other parties to the
agreement included Barry Honig, John Stetson, Alpha Capital Anstalt, HSCI, Michael Brauser,
GRQ, and Melachdavid. All seven of these other parties have been charged with securities fraud
by the SEC. The JALA agreement can be seen at.
https://www.sec.gov/Archives/edgar/data/1514514/000141588915003167/ex10-13.htm

On August 3, 2016, Majesco (COOL) filed a RS with the SEC. The RS was part of a
P&D securities fraud at PolarityTE (PTE, fka COOL) involving Phillip Frost, Barry Honig,
Harvey Kesner, Michael Brauser, and other members of the Frost gang. Sandor and JLS Kids
were listed as selling shareholders in the COOL RS. The RS indicated that Lemak was the
control person for both Sandor and JLS Kids. The RS can be seen at:
https://www.sec.gov/Archives/edgar/data/1076682/000141588916006664/cools3a_am2aug2016.
htm#sellingstockholders_035949
The list of selling shareholder can be seen below:

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 So we know that Lemak did at least the three transactions cited above with members of
the Frost gang between 2011 and 2016. One of the transactions was certainly part of a P&D
securities fraud (PTE). The CDXC transaction and its related circumstances show many red
flags that it, too, was part of a P&D securities fraud.

On January 28, 2016, MabVax (MBVX) filed a RS with the SEC. Sandor and JLS Kids
were listed as selling shareholders in the RS. The RS indicated that Lemak was the control
person for both Sandor and JLS Kids. Other selling shareholders included a trust controlled by
Phillip Frost (FGIT) as well as other individuals and entities associated with the Frost gang. The
RS can be seen at:
https://www.sec.gov/Archives/edgar/data/1109196/000141588916004557/mbvxs1_jan2016.htm
Part of the list of selling shareholders for MBVX can be seen below:

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 On September 7, 2018 the SEC filed ​SEC v Honig et al​ for Frost gang securities frauds at
BZNE, MGTI and MBVX. Lemack was by then involved in at least two P&D securities frauds
along with members of the Frost gang (PTE and MBVX).

There were class action lawsuits for each of BZNE, MGTI, MBVX. The MGTI case was
settled, because the MGTI defendants did not have sufficient assets to make the litigation worth
pursuing. The BZNE class action is continuing. It is the MBVX class action that is the central
focus of this letter.

The MBVX class action was filed before​ SEC v Honig​, as a result of MBVX disclosing
details of the SEC investigation.
​http://securities.stanford.edu/filings-documents/1066/MTH00_01/201864_f01c_18CV01160.pdf

In the MBVX class action, Lemak was somehow appointed as lead plaintiff after some
wrangling with another plaintiff. The order appointing Lemak as lead plaintiff can be seen at:
http://securities.stanford.edu/filings-documents/1066/MTH00_01/201896_f01x_18CV01160.pdf

Defendants in the MBVX class action included Barry Honig, Michael Brauser, John
Stetson, John O’Rourke, Mark Groussman, OPK, HS Contrarian, ATG Capital, Grander

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Holdings, Southern Biotech, GRQ Consultants, and Frost Gamma Investments Trust. There
were certainly “deep pockets” enough to pursue the litigation. The complaint can be seen at:
http://securities.stanford.edu/filings-documents/1066/MTH00_01/20181010_r01c_18CV01160.p
df

So Lemak committed P&D frauds along with members of the Frost gang, and then
somehow became lead plaintiff against those same gang members he had committed the same
exact P&D securities fraud with!?!?!?! Of course, the MBVX class action case was voluntarily
dismissed at that point!?!?!?! The notice of dismissal can be seen here:
http://securities.stanford.edu/filings-documents/1066/MTH00_01/20181113_f01n_18CV01160.p
df

Something is fishy about this situation, to say the least. I suggest that the SEC and DOJ
should talk with Mr. Lemak.1 My guess is that Mr. Lemak will sing like a bird about his
association with the Frost gang, given the fact that there is a long time until the statute of
limitations expires for criminal securities fraud for the MBVX P&D. Criminal securities fraud
carries a maximum 20 year federal prison sentence.

This letter is posted on scribd.com with a link from Twitter.

Lee Pederson

Cc: Joe Dixon (attorney for Phillip Frost)

Ellen Davis (spin doctor for Phillip Frost)

Bcc: Journalists and business writers

Other interested persons

PS The following is overkill, and I do not want it to detract from the main story above.

1- Lemak was named as a selling shareholder in a January 16, 2013 prospectus filed by MGTI.
The prospectus is at:
https://www.sec.gov/Archives/edgar/data/1001601/000114420413002632/v332261_424b1.htm
The selling shareholders can be seen below:

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One question I would ask is if Lemak directed his clients to invest in Frost gang companies.

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2- It appears that Lemak also participated in the Frost gang TWER P&D:
https://www.sec.gov/Archives/edgar/data/1349437/000095013607003009/file1.htm#page40

3- It appears that Lemak may have participated in a Frost gang P&D at SPEX:
https://edgar.brand.edgar-online.com/efxapi/EFX_dll/EDGARpro.dll?FetchFilingHtmlSection1?
SectionID=9718405-182363-198492&SessionID=xpTheW-QlYtHuw7