Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

That's a case from 1895 in which the verdict against the defendant was overturned but those things don't affect your point.

You quoted the conditions required for an embezzlement charge including "the defendant's dealings with the property constituted a fraudulent conversion or appropriation of it to his/her own use;"
ASSUMING he made the investment in Squalid with the knowledge of the board (and even that may not have been necessary) I believe he was entitled to make that kind of investment*** based on his CEO function. He's allowed to make investments . That leaves the issue of whether there was a "fraudulent conversion or appropriation of it to his/her own use" and while some may believe that there has been I don't think that has been established to be a fact.

He COULD BE in hot water but not based on an illegal act that has yet to be proven.
1. Shareholders have sued executives for similar investments, contending that they were ill-advised and not in their interests. Derivative suits also happen all the time with the Company suing its own executive(s).
2. Although the sea water temperature in Boca Raton is expected to drop to 75.9°F in the next 10 days, by NY and MA standards that is still HOT.


*** FWIW the most recent Annual Report filed w/MA on 11/24/23 says:
7. Briefly describe the business of the corporation:
PHARMACEUTICAL RESEARCH

I don't think that carries much legal weight. He could probably use IPIX cash to buy and sell hot dogs from a cart.