Action against Defendants, a pharmaceutical company and its CEO, and Relief Defendant, a defunct company owned by Defendant CEO, for alleged fraud on investors. According to the SEC, Defendant CEO misrepresented that investor funds would be used for Defendant company’s operating expenses. The SEC alleges that Defendant CEO misappropriated these funds. Defendants have agreed to pay $3,628,325 in disgorgement and prejudgment interest. Defendant company has agreed to pay a civil penalty of $2,771,493. Defendant individual has agreed to pay a civil penalty of $554,301. Relief defendant has agreed to pay $941,100 in disgorgement and prejudgment interest.

SEC Complaint

SEC Litigation Release