Renew Spinal Care, Inc., et al. Case No. 2:20-cv-03676-RGK-PVC (C.D. Cal.)

On April 22, 2020, the Commission filed a Complaint against Renew Spinal Care, Inc. (“Renew”); Laserscopic Medical Clinic, LLC (“Laserscopic”); Joe Samuel Bailey (“Bailey”); Barry Edward Mitchell (“Mitchell”); Laurence Grossnickle (“Grossnickle”); and Charles Clement Goubert, Jr. (“Goubert”) (collectively, the “Defendants”). The Commission alleged that, between February 2016 and June 2018, the Defendants raised approximately $15 million from at least 200 investors in 13 fraudulent unregistered securities offerings that promised to use investor funds to establish and market 29 Minimally Invasive Spinal Surgery (“MISS”) centers across the country. The Commission alleged that the offerings were fraudulent in multiple respects, including that Renew never established a single investor-funded, Renew-branded clinic. The Commission further alleged that Bailey, through Renew and Laserscopic, misused nearly $5 million of investor funds, and paid success marketing fees to investors using loans and the funds of other investors. See the Commission’s Complaint.

The Defendants were ordered to pay a collective total of $7,309,037 in disgorgement, prejudgment interest, and civil penalties to the Commission. The Commission was ordered to hold all funds, together with any interest or income earned thereon (the “Fund”), pending further order of the Court. See the Defendants’ Final Judgment.

The Fund consists of $78,397.92, and any future funds paid pursuant to the Defendants’ Final Judgment will be added to the Fund.

On October 12, 2023, the Commission filed a Notice of Unopposed Motion and Motion for an Order Appointing a Tax Administrator, and Authorizing Future Payment of Tax Obligations and Fees and Expenses. See the Commission’s Motion.

On November 14, 2023, the Court issued an Order appointing Heffler, Radetich & Saitta, LLP (“HRS”) as the Tax Administrator of the Distribution Fund, and authorizing payment of the tax obligations and related fees and expenses. See the Order.

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov