The justice system recently sentenced Daniel V. Martinez, a 64-year-old attorney from Yuba City, California, to a year of probation and 100 hours of community service over his involvement in the sale of unregistered securities. Following his guilty plea in December 2022, Martinez was ordered to pay a $7,500 fine and forfeit $110,999, according to reports from the Department of Justice yesterday, October 12.
Between 2013 and 2016, Martinez acted as the real-estate attorney for Avtar Singh Dhillon, then chairman of Arch Therapeutics, Inc., a Massachusetts-based biotechnology company. Under Dhillon's instruction, Martinez sold more than $1.3 million worth of Dhillon's unregistered shares of Arch Therapeutics on the open market, lacking a valid exemption under the pertinent securities laws. The proceeds were primarily distributed to third parties for Dhillon's advantage, with Martinez taking a small share for himself.
Being heavily implicated in the setup, Dhillon pleaded guilty in December 2022 to failing to disclose stock sales, aiding and abetting the sale of unregistered securities, and nondisclosure conspiracy concerning touting compensation. The Department of Justice announcement states that his sentencing will take place on May 23, 2024.
