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Two Seattle attorneys accused in alleged stock scam
By LEVI PULKKINEN
SEATTLEPI.COM STAFF
Federal regulators have filed a lawsuit against two Seattle attorneys accused in an alleged stock scam involving nonexistent anti-aging products.
According to a documents released Monday by the Securities and Exchange Commission, Seattle attorneys David Otto and Todd Van Siclen were hired in 2004 by a company called MitoPharm, which purported to produce herbal nutritional supplements and beverages.
Attorneys for the SEC say Otto, 50, gained control of MitoPharm through a complex series of mergers and stock sales.
The SEC attorneys allege in court documents that Otto, Van Siclen and others then began promoting the company's supposed products -- Restorade and Stamina Solution -- in 2007, at a time when the company had no way of producing or distributing either item.
In the months that followed, SEC attorneys claim the company sent out a flurry of press releases aimed at boosting the value of MitoPharm stock. At the same time, Otto allegedly began off-loading shares of the company.
The SEC claims the move netted Otto nearly $1.3 million while crushing MitoPharm's stock price, driving it from a per-share high in August 2007 of $2.31 to 5 cents a share in November 2007.
In addition to Otto and Van Siclen, MitoPharm CEO Pak Peter Cheung of Vancouver, B.C., and stock promoter Charles Bingham are named in the suit. The SEC has asked that financial penalties be imposed on the men, as well as administrative sanctions barring them from involvement in similar dealings.
Levi Pulkkinen can be reached at 206-448-8348 or [e-mail]