SEC v. Sumit Rai, SVN Med LLC, NVS Med Inc., et al. — U.S. Securities and Exchange Commission Litigation Release No. 26461, dated January 15, 2026.
The SEC charged Sumit Rai and three companies he controlled with defrauding investors out of at least $10.6 million. Rai allegedly used investor funds for personal expenses, including credit card debt, unrelated business debts, luxury vehicles, and cash withdrawals, instead of developing a medical device to filter cancer cells. A fourth company controlled by Rai was named a relief defendant, and an associate was charged with aiding and abetting the fraud.
In Plain English
Imagine you gave money to a company to help them build a special filter for cancer cells. The company promised to use your money for research and to get the filter approved. But instead, the person in charge took over $10 million of that money and spent it on fancy cars, paying off his personal credit cards, and taking cash. The SEC is now suing him and others involved to get the money back and stop this from happening again.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- Promising a Cancer Breakthrough Sumit Rai and his companies, SVN Med LLC, NVS Med Inc., and Onco Filtration, Inc., told investors their main business was developing a device to filter cancer cells from blood. They claimed this technology could treat, prevent, or diagnose cancer, with some materials calling it 'cancer dialysis'.
- Soliciting Investments Between November 2019 and September 2023, these companies issued securities and raised over $26 million from more than 180 investors, many of whom were individuals. Rai facilitated these offerings, and Kim de Mora, as CEO of SVN Med, also assisted in some offerings.
- False Promises on Fund Usage Rai and his companies assured investors that their money would be used for research and development, clinical trials, and obtaining regulatory approval to sell the medical device in the US and Europe.
- Misappropriating Investor Funds Instead of developing the technology, Rai allegedly misappropriated at least $10.6 million of investor funds for his personal benefit between July 2020 and April 2023.
- Personal Spending Spree Of the $10.6 million, Rai spent approximately $5.1 million on cash withdrawals, paid about $2.3 million towards his personal credit card debt, and paid at least $1 million in unrelated debts for a business associate.
- Luxury Vehicle Purchases Rai also used $850,000 of investor funds to purchase luxury vehicles for an 'elite social club' he attempted to start, further diverting money from the stated business purpose.
- De Mora's Role Kim de Mora allegedly aided the fraud by signing a document she knew contained false representations, which helped Rai obtain a personal loan using investor funds as collateral. She also acquiesced to using investor funds to repay Rai's personal loan.
- Restructuring Investments Investors in SVN Med and NVS Med were eventually moved into Onco Filtration through note assignments and conversions. In September 2023, investors exchanged their convertible notes for non-convertible notes payable by Onco.
- Misleading Statements on New Notes Rai and Onco made misleading statements about Onco's anticipated sales when investors exchanged their notes. They also concealed that Rai had formed Cancer Check Labs, LLC, which received exclusive rights to sell Onco's products without immediate payment obligations.
- Relief Defendant's Gains Cancer Check Labs, LLC, is alleged to have received about $1 million in revenue from selling a blood test using Onco's products, but has not paid Onco for these products, thus benefiting at the expense of Onco investors.
The Enforcement Action
The SEC filed a complaint in the U.S. District Court for the District of Massachusetts charging Sumit Rai, SVN Med LLC, NVS Med Inc., and Onco Filtration, Inc. with violating securities laws. Kim de Mora is charged with aiding and abetting the fraud, and Cancer Check Labs, LLC is named as a relief defendant. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, officer and director bars against Rai and de Mora, and a bar against Rai from participating in certain securities transactions.
Named in this action: Sumit Rai, SVN Med LLC, NVS Med Inc., Onco Filtration, Inc., Kim de Mora, Cancer Check Labs, LLC.