In my attempts to understand the history of BPTH, without being able to actually talk to any of those involved, this is what I think happened.
Peter had been CFO at a small oil and gas company when he likely found out about the work that MD was doing and that MD was looking to spin off the tech into a company. PN then licensed the tech and started a company (I can't remember what it was called) with very little funding back in the early 2000's. When he started running out of money and realized he couldn't do this on the money they had, he somehow ended up in contact with Doug Morris. Doug had been heavily involved in Ogden Golf, a failing golf store. The investors in Ogden Golf, Doug and others, were looking for a different opportunity to invest their money after the golf store failed when they found out about PN and the tech he had licensed from MD. They decided to use the failed golf store as the company under which they would try and raise the necessary $15MM to fund PN's company, giving PN the funding he would need to really get the ball rolling toward FDA approval and giving the Ogden Golf investors a new hope.
They were successful in raising those funds, heavily from Utah investors because that is where Doug and most of his investor contacts were located. They paid the former CEO of the golf store a hefty bonus for running the failed company, they changed the name to BPTH holdings, and then used the rest of the $15MM to fund the newly named BPTH holdings. Since that time, it has been a bunch of inexperienced executives trying to run a company that they expected would make them all very, very rich. Unfortunately, their inexperience is killing the company, which has a lot of promise as a technology, but has been horribly run.
So I don't think there is a scam here. I think the investors in Ogden Golf were just looking for another opportunity after the golf store failed on them. They found out about this, and raised the necessary money to get into it. For some reason, they didn't think the failure of the golf store was the fault of their poor business management, but instead thought it was just poor circumstances. They feel the same way about BPTH. They won't take any blame, but instead blame circumstances. They suck at running a business, be it a golf store or a biotech. Most of us are still involved in the hopes that the tech will somehow overcome the inept management.
