CHARLOTTE — Marty Sumichrast, former CEO of cbdMD Inc. and Adara Acquisition Corp., has reached a settlement to pay the Securities and Exchange Commission $350,000 to resolve a lawsuit accusing him of fraud and self-dealing. The SEC brought the accusations in 2022 related to Sumichrast’s leadership of Stone Street Partners.
The SEC filed a motion April 25 with the U.S. District Court for the Western District of N.C. to approve the settlement. The settlement is still subject to court approval.
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The SEC’s initial complaint accused Sumichrast of engaging “in a series of undisclosed and fraudulent conflict-of-interest transactions” while leading Stone Street. Sumichrast previously denied the SEC’s allegations. He said he “never received ill-gotten gains” in a 2022 court filing responding to the SEC’s initial complaint.
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