Investment Banker Sentenced to Prison for Violating Consent Judgement

BOSTON - A Boston man was sentenced today for violating a consent judgment that prohibited him from participating in the offer or sale of securities.

Craig Medoff, 64, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 20 months in prison and three years of supervised release. Medoff was also ordered to pay a $20,000 fine. In May 2024, Medoff pleaded guilty to one count of criminal contempt for violating a court order.

Medoff was a long-time investment banker who previously worked at multiple investment firms, including Nova Capital International, LLC and Sabrex Development, LLC. In 2012, Medoff was accused of securities fraud in a lawsuit brought by the Securities and Exchange Commission, SEC v. BioChemics, Inc., et al., 12 Civ. 12324 (D. Mass.).

In 2016, Medoff resolved the civil case against him by agreeing to a consent judgement that prohibited Medoff from participating in the offer or sale of securities for a period of 10 years. Shortly thereafter, Medoff created Nova Capital International, LLC, as well as an alias, "Alexander Carlin," that he used to continue operating in the securities industry notwithstanding the consent order. Between 2016 and 2023, Medoff used his company and alias to operate as an investment banker on behalf of multiple private companies that were raising money through the sale of securities. In total, Medoff's company received millions in income, more than $1.6 million of which went to Medoff personally.

In September 2023, the Securities and Exchange Commission filed a motion seeking an order of civil contempt and sanctions based on Medoff's violation of the 2016 consent judgment. In February 2024, the Court found that there was probable cause to believe Medoff knowingly and willfully violated the 2016 consent judgment, charged Medoff with criminal contempt and appointed the U.S. Attorney's Office for the District of Massachusetts to prosecute the case. In May 2024, Medoff pleaded guilty to the criminal contempt charge. The Securities and Exchange Commission's civil case remains ongoing.

Acting United States Attorney Joshua S. Levy made the announcement. The Securities and Exchange Commission provided valuable assistance in the criminal case. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of the Criminal Division prosecuted the case.