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Florida biotech billionaire settles SEC stock manipulation case By Reuters

© Reuters. Florida biotech billionaire settles SEC stock manipulation case

By Jonathan Stempel

NEW YORK (Reuters) – Florida biotechnology billionaire Phillip Frost has agreed to pay $5.52 million to settle U.S. Securities and Exchange Commission civil expenses over his alleged function in “pump-and-dump” schemes that left traders with nearly nugatory stock.

The settlement requires Frost, the chairman and chief government of Miami-based Opko Health Inc (O:), to pay a $5 million tremendous and about $523,000 representing alleged ill-gotten features and curiosity, in response to a Thursday submitting in Manhattan federal court docket.

Frost additionally accepted restrictions on buying and selling penny shares. Opko agreed to pay a $100,000 tremendous in a associated settlement.

Neither defendant admitted or denied wrongdoing in agreeing to the settlements, which can finish “potentially expensive, contentious and time-consuming litigation,” Frost stated in a press release offered by Opko. Court approval is required.

A lawyer for Frost had no fast further remark.

Frost was amongst 10 individuals and 10 related entities charged by the SEC on Sept. 7 with involvement from 2013 to 2018 within the manipulation of three firms’ share costs.

The SEC accused numerous defendants of shopping for massive blocks of penny shares at steep reductions, selling the shares, after which quietly promoting their stock at inflated costs, producing greater than $27 million of improper features.

Frost was allegedly concerned in two of the schemes, the SEC stated.

Now 82, Frost is value $1.9 billion, Forbes journal stated on Thursday.

He had been chairman and chief government of Ivax Corp earlier than promoting that drugmaker for $7.4 billion in 2006 to Israel-based Teva Pharmaceutical (NYSE:) Industries Ltd (TA:), the place he later served as chairman.

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