News from the dark side … David Blech settles with SEC

Sadly for all the “good” things he did but he had to pay the price for being stupid and arrogant … David Blech, formerly known as the “King of Biotech” who earned the nickname as a founder of companies and a major investor in the biotechnology sector, agreed to pay $1.03 M in disgorgement and interest for the scheme in a settlement with the SEC. 

In 2012 the SEC had accused Blech of buying and selling significant amounts of stock in two biopharmaceutical companies, Pluristem (PSTI) and Intellect Neurosciences through more than 50 brokerage accounts he established in the names of family and friends in order to create an artificial appearance of activity in the stocks. The SEC complaint further accused Blech, who had already been convicted of securities fraud in 1998, of selling investments for biopharmaceutical companies despite being barred from acting as a broker-dealer. It also accused him and his wife, Margaret Chassman, of violating federal securities laws by making unregistered sales of securities and failing to disclose their transactions in brokerage accounts. Chassman agreed to pay close to $550 K in disgorgement, interest and a civil penalty, according to the settlement.  In May, Blech was sentenced to 4 years in prison after pleading guilty in a related criminal case to stock manipulation stemming from his trades in PSTI and Intellect.

- See more at: http://www.scimitarequity.com/articles/news-dark-side-david-blech-settles-sec#sthash.UNi5cW2B.dpuf

Story by ProactiveInvestors