North Dakota’s securities regulator has ordered a medical artificial-intelligence company and its founder to stop allegedly soliciting investments without the registrations required by state law. Insurance Commissioner Jon Godfread issued the order against Shayan Mashatian, Silverberry Group LLC and WoundScribe AI Corp., according to a department announcement published Sept. 25.
The order is an administrative enforcement step, not a final court judgment. The department said the respondents may request a hearing before the commissioner within 15 days of receiving it. That distinction matters: the agency has made allegations and halted the challenged activity, while the company and Mashatian retain a process for contesting the findings. If a hearing is requested, the administrative record will give the respondents an opportunity to challenge the department’s factual and legal conclusions before a final decision.
State securities authority
North Dakota law generally makes it unlawful to sell or offer a security in the state unless the security is registered or an exemption applies. The requirement appears in Chapter 10-04 of the North Dakota Century Code, which also gives the commissioner authority to investigate and issue enforcement orders. The department’s enforcement register dates the WoundScribe stop order to Sept. 24.
Godfread’s office absorbed the former Securities Department in 2025. Its public enforcement index now places securities registration, licensing and fraud investigations alongside the Insurance Department’s existing regulatory work. For investors, that means the same elected commissioner oversees both insurance enforcement and the state-level securities docket.
A company with North Dakota roots
The department described Silverberry as a medical-AI technology company registered in Grand Forks in 2022 and said it converted into WoundScribe AI, a Delaware corporation, in 2025. The company’s own product announcement similarly located its operations in Grand Forks and described WoundScribe as an AI platform for wound imaging, clinical documentation, coding and patient education. Its website’s terms identify Silverberry Group as the operator behind the Pingoo and WoundScribe brands.
Silverberry had previously appeared in North Dakota’s public economic-development record. A 2025 legislative report on the state’s Bioscience Innovation Grant Fund identified Mashatian and Silverberry’s Pingoo patient-education project as a $25,000 grant recipient. That earlier support does not establish anything about the later securities allegations, but it shows why the enforcement action is a state-level matter rather than merely a dispute involving an out-of-state technology vendor.
The case also illustrates the regulatory divide between forming a business and registering securities. Corporate registration permits an entity to exist; it does not by itself authorize every investment offer. The next procedural question is whether Mashatian or either company seeks a hearing within the 15-day window. Until then, the public record contains the regulator’s allegations and stop order, the respondents’ hearing right and the company’s own description of its products. The department advised North Dakotans to verify both an investment and the people or entities offering it before committing money.
