SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 16072 / February 25, 1999
SECURITIES AND EXCHANGE COMMISSION v. FUTREX, INC., FUTREX
MEDICAL INSTRUMENTATION, INC., AND ROBERT D. ROSENTHAL, No.
1:96CV02192 (RWR)(D.D.C.)
SEC OBTAINS FINAL JUDGMENTS
CONCLUDING FUTREX SECURITIES FRAUD CASE
The Securities and Exchange Commission has obtained a final
judgment against Futrex, Inc., Futrex Medical Instrumentation,
Inc. (jointly referred to as "Futrex"), and Robert D. Rosenthal,
Futrex’s chairman of the board, chief executive officer,
president, and treasurer, in a fraud case arising from Futrex’s
private placement of securities in 1994 and abortive initial
public offering in 1995. Without admitting or denying the
Commission’s allegations, the defendants consented to entry of
the judgment, which enjoins them from violating Section 17(a) of
the Securities Act of 1933, Section 10(b) of the Securities
Exchange Act of 1934, and Rule 10b-5 thereunder, and orders
Rosenthal to pay a $50,000 civil penalty.
The Commission’s complaint, filed on September 23, 1996,
alleged that the defendants, in connection with Futrex’s 1994
private placement and 1995 abortive initial public offering, made
materially false and misleading statements concerning Futrex’s
"Dream Beam" product, a hand-held laboratory instrument that
purportely could measure a person’s blood glucose level by
passing infrared light through his or her finger. Among other
things, the complaint alleged that the defendants fraudulently
made unsupportable claims about the effectiveness of the Dream
Beam, failed to disclose adverse results from studies of the
Dream Beam, and staged deceptive demonstrations of the Dream Beam
for prospective investors. (See also Litigation Rel. No. 15061
(Sept. 23, 1996)).
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SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16072 / February 25,
SECURITIES AND EXCHANGE COMMISSION v. FUTREX, INC., FUTREX MEDICAL INSTRUMENTATION, INC., AND
CONCLUDING FUTREX SECURITIES FRAUD CASE
The Securities and Exchange Commission has obtained a final judgment against Futrex, Inc.,
Without admitting or denying the Commission’s allegations, the defendants consented to entry
The Commission’s complaint, filed on September 23, 1996, alleged that the defendants, in
Among other things, the complaint alleged that the defendants fraudulently made unsupportable
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