Ex-U.S. biotech executive fined for lying to auditors, charges dropped against CFO: SEC

NEW YORK (Reuters) – The former chief business officer of U.S. biotechnology company Osiris Therapeutics Inc has agreed to pay a $40,000 civil penalty for lying to auditors, the Securities and Exchange Commission said on Thursday.

The SEC had alleged that Bobby Dwayne Montgomery prompted Osiris to book fake revenue and give false information to auditors. Montgomery agreed to a judgment that enjoins him from future violations of securities law, the SEC said in a statement.

“Our client is pleased to have resolved this matter on a no-admit no-deny basis, and looks forward to moving on with his life,” said Stephen Crimmins, Montgomery’s lawyer.

The biotech firm previously paid a $1.5 million penalty to settle charges of overstating company performance and issuing fraudulent financial statements for nearly two years, the regulator said.

The SEC said it last month dismissed charges against one of Osiris’s former chief financial officers, Gregory I. Law. Litigation against two other executives is ongoing, the agency said.

“The SEC deserves credit for belatedly recognizing that Greg is innocent, but it doesn’t change the fact that he shouldn’t have been charged to begin with,” said Aitan Goelman, counsel for Law.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.