Monday, April 21, 2014 8:05:29 AM
ADVANCED CELL PAYS OVER $4M FOR STOCK SCHEME
(January 02, 2014, 5:24 PM ET) -- Advanced Cell Technology Inc. on Monday agreed to pay $4.1 million to resolve allegations by the U.S. Securities and Exchange Commission that the biotechnology firm issued unregistered penny stocks through sham legal settlements in a long-running scheme.
Advanced Cell Technology, which did not admit or deny the allegations, will disgorge $3.5 million in profits allegedly gained in the scheme plus prejudgment interest of $586,619, according to a final judgment issued in the Middle District of Florida by U.S. District Judge Mary S. Scriven.
The SEC did not impose a civil penalty but reserved the right to do so if the company's representations to the agency regarding its assets, income and other financial data turn out to be fraudulent or inaccurate, according to the judgment.
The former CEO Gary Rabin continues to be under SEC investigation.
(January 02, 2014, 5:24 PM ET) -- Advanced Cell Technology Inc. on Monday agreed to pay $4.1 million to resolve allegations by the U.S. Securities and Exchange Commission that the biotechnology firm issued unregistered penny stocks through sham legal settlements in a long-running scheme.
Advanced Cell Technology, which did not admit or deny the allegations, will disgorge $3.5 million in profits allegedly gained in the scheme plus prejudgment interest of $586,619, according to a final judgment issued in the Middle District of Florida by U.S. District Judge Mary S. Scriven.
The SEC did not impose a civil penalty but reserved the right to do so if the company's representations to the agency regarding its assets, income and other financial data turn out to be fraudulent or inaccurate, according to the judgment.
The former CEO Gary Rabin continues to be under SEC investigation.
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