The SEC announced today that it charged biotechnology company CellCyte Genetics Corporation, its former CEO, and its former Chief Scientific Officer, with falsely telling investors that the company’s cutting-edge stem cell technology had been proven successful and was headed for human trials. In fact, the SEC alleges, CellCyte Genetics Corporation merely had a license for a very early stage technology and had no reasonable basis for its claims.
The SEC charges that, specifically, CellCyte did not know how to properly formulate the stem cell compound, had never attempted experiments with the compound to repair organs, and had not satisfied any of the FDA requirements to begin human clinical trials. The SEC claims that the false information briefly drove the stock price to $7.50 before it plummeted back down to under a dime.
