Ar­rest­ed and charged with fraud, Pixar­Bio CEO Frank Reynolds could face up to 20 years in prison

A cu­ri­ous se­ries of set­backs at Pixar­Bio has cul­mi­nat­ed in the ar­rest of and charges against CEO Frank Reynolds and two of his as­so­ciates, the SEC an­nounced to­day.

Reynolds, 51, was charged by crim­i­nal com­plaint with se­cu­ri­ties fraud along­side Jay Herod and Ken­neth Strom­s­land. Ac­cord­ing to the com­plaint, the trio al­leged­ly be­gan de­fraud­ing in­vestors as soon as Reynolds found­ed the com­pa­ny in Au­gust 2013, “by mak­ing false and mis­lead­ing state­ments about the com­pa­ny — its prospects, its fi­nanc­ing, and the back­ground and track record of Reynolds — and by en­gag­ing in ma­nip­u­la­tive trad­ing of its shares.”

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