About Us  |   Contact Us  |   Register  | Login  |   

Follow HedgeWorld on Twitter HedgeWorld on LinkedIn






HEDGEWORLD NEWS
Search the News
Advanced News Search
HedgeWorld News by Region
United States / Americas
Europe
Asia / Australia
International
HedgeWorld News Sections
Managed Futures & Derivatives
Daily News
Regulatory/Legal
Strategies/Analysis
Technology
Opinion
People
Indexes
Other News Features
Most Popular
LexisNexis Headlines
Reuters Headlines
The HedgeWorld Blog
Alternative Advantage Daily Newsletter
RSS Service
Sign Up For Email News Alerts
Reprints



Former 'King of Biotech' settles with SEC
08/23/2013 Email this story  |  Printable Version

By Bernard Vaughan

NEW YORK, Aug 22 (Reuters) - An investor formerly known as the "King of Biotech" has reached a settlement with the U.S. Securities and Exchange Commission over a market manipulation scheme, according to court documents filed on Thursday.

David Blech, who earned the nickname as a founder of companies and a major investor in the biotechnology sector, agreed to pay $1.03 million in disgorgement and interest for the scheme.

In 2012 the SEC had accused Blech of buying and selling significant amounts of stock in two biopharmaceutical companies, Pluristem Therapeutics Inc and Intellect Neurosciences Inc through more than 50 brokerage accounts he established in the names of family and friends in order to create an artificial appearance of activity in the stocks.

The SEC complaint further accused Blech, who had already been convicted of securities fraud in 1998, of selling investments for biopharmaceutical companies despite being barred from acting as a broker-dealer. It also accused him and his wife, Margaret Chassman, of violating federal securities laws by making unregistered sales of securities and failing to disclose their transactions in brokerage accounts.

Chassman agreed to pay close to $550,000 in disgorgement, interest and a civil penalty, according to the settlement.

The settlement was approved by Magistrate Judge Sarah Netburn in Manhattan federal court.

"He's pleased to be putting this episode behind him," Roland Riopelle, a lawyer for Blech, said on Thursday.

A lawyer for Chassman declined to comment.

In May, Blech was sentenced to four years in prison after pleading guilty in a related criminal case to stock manipulation stemming from his trades in Pluristem and Intellect.

The case is USA v David Blech, U.S. District Court, Southern District of New York, No. 12-cr-00372.


Email This Story to a Friend   |   Display Printable Version of This Story

Story Copyright © 1999-2014 Reuters HedgeWorld All rights reserved.

HedgeWorld News is sponsored by:






Lipper    Privacy   User Policy  Legal Disclosure Copyright/DMCA  Site Map    FAQ    Glossary  Thomson Reuters for Hedge Funds
All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of HedgeWorld content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. HedgeWorld is a registered trademark of Thomson Reuters.