iFresh's (IFMK) CEO Responds to SEC Allegations

On May 31, 2022, the Securities and Exchange Commission (Commission) filed a civil lawsuit alleging civil violations of the federal securities laws against iFresh, Inc. (OTC: IFMK) and Long Deng, the company’s Chief Executive Officer throughout the period at issue in the Complaint, for not fully disclosing related party transactions, which, the Commission alleged made certain of the Company’s financial statements materially inaccurate. Mr. Deng, through one of his attorneys, Jacob Frenkel, Chair of the Securities Enforcement and Government Investigations Practice at national law firm, Dickinson Wright, PLLC, responds to the allegations.

“Mr. Deng looks forward to his day in court to fight vigorously the SEC’s allegations. The defense that Mr. Deng will present already is well-known to the SEC from his cooperation in and multi-day sworn testimony in the SEC’s inquiry that gave rise to the civil lawsuit. Mr. Deng, who had no prior experience with US public companies, hired professionals internally to iFresh in financial reporting leadership roles and externally as independent auditors and lawyers to make certain that the Company’s financial statements and disclosures complied fully with US federal securities laws. We are confident that the evidence will be that Mr. Deng relied on the advice and counsel of these professionals, and that a jury in this civil case will find that Mr. Deng is not responsible for the violations that the Commission alleges were committed in connection with the Company’s financial reporting. The evidence also will be that Mr. Deng did not profit personally as a result of the allegations.”

“I look forward to working closely with Angus Ni of AFN Law PLLC, to defend Mr. Deng in this civil lawsuit. This case is just beginning, and we are a long way from any evidence being presented to a jury.”

The team of lawyers leading the representation of Mr. Deng are Mr. Frenkel and Mr. Ni. Mr. Frenkel, practicing law in the securities enforcement space for more than 34 years, served for 9½ years as an attorney in the SEC’s Division of Enforcement and as a federal criminal prosecutor of public corruption and securities for 3½ years, and has been representing companies and individuals defending SEC, as well as PCAOB and FINRA, investigations and litigation for more than 20 years. Mr. Ni is an experienced and accomplished litigator with expertise and outstanding success in complex commercial and securities litigation.

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