the us securities and exchange commission has filed a civil enforcement action against martin a sumichrast the chief executive of cbdmd inc over an alleged fraud at a private fund that he managed the sec claims mr sumichrast impermissibly doubled his own salary at stone street partners llc after the funds comanager died and engaged in selfdealing transactions with entities in which he had a personal interest including cbdmd in a statement posted on twitter mr sumichrast said he would vigorously defend these allegations and is confident that he will prevail he claims stone street was ravaged by a 60 million ponzi scheme enacted by his former partner that he did not take part in and that after his partners death by suicide he remained at stone street and worked to make the funds investors whole sumichrast said the sec is now seeking to make him a scapegoat with its enforcement action perhaps to deflect from its own inaction on the ponzi scheme cbdmd said in a statement that the civil suit does not allege any wrongdoing against the company and that a special committee of independent directors is reviewing the case mr sumichrast is fully cooperating with the committee cbdmd said amid two trading halts cbdmd shares fell 72 to 64 cents by midday wednesday