SEC: Biotech Company Misled Investors About New Drug’s Status With FDA
The Securities and Exchange Commission today announced fraud charges against a Massachusetts-based biotech company and three former executives for misleading investors about the company’s efforts to obtain Food and Drug Administration (FDA) approval for its flagship developmental drug to treat kidney cancer. The SEC alleges that AVEO Pharmaceuticals Inc. concealed the FDA’s level of concern about Tivozanib in public statements to investors by omitting the critical fact that FDA staff had recommended a second clinical trial to address their concerns about patient death rates during the first clinical trial. When the FDA made public months later that it had recommended…
Read MoreSecurities Professional Charged With Defrauding Institutional Investors
The Securities and Exchange Commission today charged a New York-based securities professional with defrauding two institutions he solicited to invest in a shell company he controlled whose name was deceptively similar to that of a legitimate private equity fund. According to the SEC complaint filed in federal district court in Manhattan, Andrew W.W. Caspersen, a New York City resident, solicited approximately $95 million from two institutional investors by offering promissory notes issued by Irving Place III SPV LLC. The complaint alleges that Irving Place III SPV LLC is a shell entity formed and controlled by Caspersen with no legitimate business…
Read MoreSEC Halts Fraud by Manager of Investments in Pre-IPO Companies
The Securities and Exchange Commission today announced fraud charges and asset freezes obtained in a case filed against a New Jersey-based fund manager and two firms he controls that marketed shares in promising pre-IPO tech companies in the Bay Area. The SEC alleges they stole $5.7 million from investors and diverted millions more to other improper and undisclosed uses. Specifically, the SEC alleges that John Bivona used money raised through Saddle River Advisors and SRA Management Associates to pay off earlier investors, prop up other funds, and pay family-related expenses. He secretly steered the lion’s share of misappropriated funds to…
Read MoreKeith E. Cassidy Named Director of Legislative and Intergovernmental Affairs Office
The Securities and Exchange Commission today announced that Keith E. Cassidy has been named Director of the agency’s Office of Legislative and Intergovernmental Affairs. Mr. Cassidy succeeds Tim Henseler, who was named Office Chief in the Division of Corporation Finance’s Office of Enforcement Liaison. Mr. Cassidy has served as Deputy Director of the Office of Legislative and Intergovernmental Affairs since 2011. He advises the Chair, Commissioners, and SEC staff on legislative matters, provides technical assistance on securities-related legislation to congressional committees and staff, and assists in preparing SEC testimony for congressional hearings. “Keith is a committed public servant and dedicated…
Read MoreSEC Charges Operator of Ponzi Scheme That Claimed to Offer “Bridge Loans” to Jamaican Businesses
The Securities and Exchange Commission today charged a former Boston resident with operating a $10 million Ponzi scheme that claimed to generate profits from “bridge loans” to businesses in Jamaica. The SEC complaint charges former Boston resident Mark A. Jones, who now lives in Miami and has a second home in Jamaica. Jones was arrested Sunday by the Federal Bureau of Investigation and the U.S. Attorney for the District of Massachusetts filed related criminal charges against him on Monday. According to the SEC complaint filed in federal court in Boston: Jones began soliciting investors starting around 2007 and said their…
Read More