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Biotech billionaire Phillip Frost charged by SEC, sending Opko shares sliding
AUTHOR
Andrew Dunn
UPDATED
Sept. 8, 2018 at 2:19 p.m. ET
PUBLISHED
Sept. 7, 2018
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UPDATE: Sept. 8, 2018: Following publication of this article, Opko Health on Friday posted a statement on its website responding to the charges against it and its CEO, Phillip Frost.

"The SEC failed to provide notice of its intent to sue prior to filing the complaint, which contains serious factual inaccuracies," the company said, noting that it believes the charges will be resolved favorably after further investigation.

Dive Brief:
Opko Health CEO Phillip Frost, along with nine others, were charged Friday by the Securities and Exchange Commission for violating multiple sections of securities laws.
The SEC alleges that over the past five years the Miami billionaire was involved with "a group of prolific South Florida-based microcap fraudsters led by Barry Honig" who "manipulated the share price of the stock of three companies in classic pump-and-dump schemes." Frost participated in two of the three schemes, the SEC said.
Opko's stock slumped on news of the charges, dropping 18% from Thursday's close. The hit shaved more than $500 million off the company's value down to about $2.5 billion.? Shortly after, Nasdaq trading was halted.

https://www.biopharmadive.com/news/biotech-billionaire-phillip-frost-charged-by-sec-sending-opko-shares-slidi/531864/


Link to complaint:

SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,

-- against --

BARRY C. HONIG, JOHN STETSON,
MICHAEL BRAUSER, JOHN R. O'ROURKE III,
MARK GROUSSMAN, PHILLIP FROST,
ROBERT LADD, ELLIOT MAZA, BRIAN KELLER,
JOHN H. FORD, ALPHA CAPITAL ANSTALT, ATG
CAPITAL LLC, FROST GAMMA INVESTMENTS
TRUST, GRQ CONSULTANTS, INC.,
HS CONTRARIAN INVESTMENTS, LLC,
GRANDER HOLDINGS, INC., MELECHDAVID,
INC., OPKO HEALTH, INC.,
SOUTHERN BIOTECH, INC., and
STETSON CAPITAL INVESTMENTS INC.,

https://www.courtlistener.com/recap/gov.uscourts.nysd.500558/gov.uscourts.nysd.500558.1.0.pdf