* Company misled investors about goat blood drug
* Three executives charged with insider trading
WASHINGTON Aug 2 U.S. securities regulators
charged Immunosyn Corp IMYN.PK, a California-based
biopharmaceutical company, with misleading investors about the
regulatory status of the company's sole product, a drug derived
from goat blood.
The U.S. Securities and Exchange Commission also charged
three executives with insider trading, and four senior
executives and three shareholders with securities fraud.
The SEC alleges Immunosyn misleadingly stated in various
public filings from 2006 to 2010 that its controlling
shareholder, Argyll Biotechnologies LLC, either planned to seek
or had sought U.S. regulatory approval for human clinical
trials for SF-1019.
That is a drug derived from goat blood that was intended to
treat a variety of ailments.
But the filings failed to disclose that the U.S. Food and
Drug Administration had already twice issued clinical holds on
drug applications for SF-1019, prohibiting clinical trials from
occurring, according to the SEC complaint.
The SEC alleges Immunosyn also misled investors that it was
seeking regulatory approval for human clinical trials in Europe
for the drug, when in fact Argyll never submitted an
application in Europe to conduct such trials.
According to the SEC's complaint, Chief Financial Officer
Douglas McClain Jr., Argyll's Chief Scientific Officer Douglas
McClain Sr. and Argyll's CEO James Miceli engaged in insider
trading by raising about $20 million from their sale of
Immunosyn shares while knowing misrepresentations were being
made about the regulatory status of SF-1019.
The company's chief executive officer, Stephen Ferrone, was
also charged in the securities fraud scheme, but not insider
The SEC is seeking financial penalties and disgorgement of
ill-gotten gains against the defendants.
The company did not immediately return telephone calls
seeking comment on the SEC complaint, which was filed in
federal court in Chicago on Monday.
Immunosyn's shares dropped 31.82 percent to $0.03 in pink
sheet trading on Tuesday.
(Reporting by Andrea Shalal-Esa; editing by Tim Dobbyn and