SEC is­sues pre­lim­i­nary in­junc­tion against Col­orado biotech ac­cused of $10M fraud

The SEC has ob­tained a pre­lim­i­nary in­junc­tion against a Col­orado biotech and two ex­ecs ac­cused of de­fraud­ing in­vestors to the tune of $10 mil­lion.

A fed­er­al dis­trict court judge is­sued the pre­lim­i­nary in­junc­tion on Tues­day. The SEC not­ed:

In par­tic­u­lar, the court ruled that the SEC had proved that the “de­fen­dants made ma­te­r­i­al mis­rep­re­sen­ta­tions and omis­sions with sci­en­ter,” in vi­o­la­tion of the Se­cu­ri­ties Act and Ex­change Act, and that the SEC “ha[d] suc­cess­ful­ly made a sub­stan­tial show­ing of a like­li­hood of fu­ture vi­o­la­tions.” The court fur­ther held there was “no ne­ces­si­ty for an as­set freeze in this case,” stat­ing, “de­fen­dants do not cur­rent­ly have any sig­nif­i­cant as­sets that could be frozen.”

Unlock this article instantly by becoming a free subscriber.

You’ll get access to free articles each month, plus you can customize what newsletters get delivered to your inbox each week, including breaking news.

SIGN UP LOG IN BECOME A PREMIUM SUBSCRIBER