September 18, 2019

To:
SEC and DOJ (FBI and US Attorneys) - by bcc
SEC OIG

cc:
Vytas Rimas (attorney for Dan Fisher)
Joe Dixon (attorney for Phillip Frost and Brian Keller)
Maggie Dalton (attorney for PolarityTE)

bcc:
journalists and business writers
other interested parties

RE: Harvey Kesner v. Barron’s, Bill Alpert and Teri Buhl

All,

Frost gang attorney Harvey Kesner filed an amended complaint in the above-referenced
lawsuit on September 16, 2019. The amended complaint can be seen at:
https://www.courtlistener.com/recap/gov.uscourts.flsd.550874/gov.uscourts.flsd.550874.36.0.pdf

Part of my own experiences with Harvey Kesner, Phillip Frost, and the rest of the Frost
gang are described in my own two lawsuits against Frost and others.

The amended complaint in Pederson v Frost I (pvf1) can be seen at:

https://www.scribd.com/document/374185521/Pederson-v-Frost-amended-complaint-filed-Febru
ary-14-2018

The complaint in Pederson v Frost II (pvf2) can be seen at:

https://www.scribd.com/document/420003775/190708-Pederson-v-Frost-II-Complaint-Final

I write to offer my own observations and opinions on Kesner's lawsuit.

1. It is fully apparent to everyone who is paying attention that Kesner was a key bad actor in
Frost gang P&D securities frauds at BioZone (BZNE/COCP), MabVax (MBVX), PolarityTE
(COOL/PTE) and other companies. Like Frost and Honig, Kesner is a fraudster.

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2. It is a mystery to me why you Feds have not not brought both civil and criminal charges
against Kesner as of this writing. Of course, this is part of a larger mystery why Frost and other
gang members have not been charged criminally and why civil charges have been limited to only
three of the many Frost gang P&D securities frauds.

3. The lack of federal law enforcement action allows Kesner and other Frost gang members to
perpetuate absurd nonsense like Kesner's lawsuit.

4. It appears that Kesner is still working closely with Frost and some of the rest of the Frost
gang. Paragraphs 31-33 of Kesner's amended complaint apparently reference non-public
documents from Dan Fisher's settlement of the "Garcia Properties litigation" and the "Fisher
Federal litigation" against the Frost gang.

5. Kesner's "short and distort" accusations against Buhl and Alpert in his complaint are an echo
of PolarityTE's hollow "short and distort" accusations against PTE's critics.

6. Teri Buhl has been the key journalist in revealing the frauds of the Frost gang. With the
public platform afforded him by Barron's, Bill Alpert's work has also been very important. Both
Buhl and Alpert adhere to the core principles of journalistic ethics: truthfulness, accuracy,
objectivity, impartiality, fairness, and public accountability. It is the height of Kesner's absurd
nonsense to accuse Teri Buhl and Bill Alpert from profiting via a short and distort campaign.

7. Investigative reporter Chris Carey has been the third instrumental writer in exposing the
frauds of the Frost gang. Carey's venture with Mark Cuban (sharesleuth.com) openly seeks to
profit from short-selling companies with share prices inflated by fraud, which alters Carey's
approach from that of Buhl and Alpert. Sharesleuth has disclosed that Mark Cuban was short
PTE when Carey wrote about PTE and two other likely Frost gang P&D outfits (MARA and
RIOT). However, sharesleuth's approach is not "short and distort." Instead, it is "short and
expose the truth so that the share price better reflects reality." It is interesting that Kesner did not
join Chris Carey and Mark Cuban as defendants in Kesner's bogus lawsuit.

8. Frost gang members have a pattern of using litigation and/or the threat of litigation to try to
silence their critics. They were successful in getting Chris Drose to retract a Seeking Alpha story
about Pershing Gold. They were successful in pressuring Dan Fisher to withdraw complaints to
the SEC and DOJ as part of Fisher’s settlement with the Frost gang. They have twice been
unsuccessful in trying to silence Teri Buhl with litigation. They were unsuccessful in trying to
silence my commentary about PolarityTE with the threat of litigation.

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9. The walls are closing in on Phillip Frost, Barry Honig, Harvey Kesner, and other members
and associates of the Frost gang. SEC and DOJ investigations press forward. Share prices at
Frost gang P&D companies continue to hit new lows. Frost gang members live in fear that their
co-conspirators will rat them out. As Dan Fisher would put it, Harvey Kesner can hear the jail
house keys rattling. Kesner’s lawsuit against Teri Buhl and Bill Alpert is a pathetic exercise in
false bravado by a person who will soon have to face the consequences of his actions.

10. I suggest that it is time for you Feds to bring criminal charges and additional civil charges
against various Frost gang members. And this time around, please put Harvey Kesner at the
center of the complaints along with Frost and Honig.

This letter is being posted on Scribd, with a link from Twitter.

Lee Pederson