Replies to post #203923 on Xechem International Inc. (fka XKEM)

[Eli's Gone]

This complaint looks specific to Intellect and Pluristem:

According to the SEC’s complaint filed in federal court in Manhattan, Blech engaged in his scheme at various points in 2007 and 2008, specifically manipulating the stocks of Pluristem Therapeutics Inc. and Intellect Neurosciences Inc. Blech first opened dozens of nominee accounts at several broker-dealers in the names of his wife, uncle, and sister-in law as well as a longtime friend and a company he controlled, and religious institution Central Yeshiva Beth Joseph that is managed by Blech’s cousin. Blech then used the accounts to engage in deceptive activities and carry out matched trades in Pluristem’s and Intellect’s stocks. Blech’s activity in these thinly-traded securities artificially inflated the stock price of both companies and created the false impression of a liquid market for each company. Blech then used the artificially inflated stock price to sell off his holdings of Pluristem and Intellect through the nominee accounts, and as collateral for a line of credit he established in his wife’s name.

http://www.sec.gov/litigation/litreleases/2012/lr22363.htm

the nominee accounts they traded out of are pretty much the same tho'...

if anyone had filed any SEC complaints against these two, perhaps they should pursue this Whistleblower award...