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1
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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMPLAINT EXCHANGE COMMISSION FEDERAL GOVERNMENT IBCL SUSPENDS TRADING MOSES ACT PURCHASING COMPLAINT ALLEGES GEORGIA DISTRICT STOCK PRESIDENT BIOTECH NORCROSS TIMOTHY INTERNATIONAL BIOCHEMICAL INDUSTRIES MATTER NATIONAL ASSOCIATION FACTUAL ALLEGATIONS COUNTER BULLETIN BOARD PARALLEL PROCEEDING CIVIL PENALTIES PREJUDGMENT ILL-GOTTEN GAINS DISGORGEMENT DEFENDANTS PERMANENT INJUNCTIONS EXPEDITED DISCOVERY |
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17971 / February 6, 2003
SEC v. International BioChemical Industries, Inc. and Timothy Moses ,
Case No. 1 03-CV-0346 (N.D.G.A. ).
SECURITES AND EXCHANGE COMMISSION SUES NORCROSS BIOTECH COMPANY AND
ITS PRESIDENT FOR FRAUD AND SUSPENDS TRADING IN COMPANY'S STOCK.
The Securities and Exchange Commission filed a complaint in the United
States District Court for the Northern District of Georgia today,
February 6, 2003, against International BioChemical Industries, Inc.
("IBCL"), a purported biotech firm located in Norcross, Georgia, and
its president, chief executive officer and chairman of the board,
Timothy C. Moses. The complaint alleges that, beginning on January 29,
2003, IBCL issued a series of false and misleading press releases that
falsely indicated that the federal government contacted the company to
discuss the effectiveness of the company's products in the war on
bio-terrorism and created the false impression that federal government
was interested in purchasing IBCL's products. To the contrary, the
Federal Bureau of Investigation ("FBI") contacted IBCL pursuant to its
inquiry into the post-September 11, 2001 anthrax mailings. The FBI
never expressed any interest in purchasing IBCL's products. The
complaint alleges that, as a result of the false press releases,
IBCL's share price and trading volume increased dramatically.
The SEC's complaint charges IBCL and Moses with violations of Section
17(a) of the Securities Act of 1933 and Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC
seeks a temporary restraining order, expedited discovery, preliminary
and permanent injunctions against both defendants, as well as an order
compelling disgorgement of ill-gotten gains, along with prejudgment
interest and civil penalties. In a parallel proceeding, the SEC also
suspended trading of IBCL's stock, which is traded over the counter
and quoted on the Over-the Counter Bulletin Board, based on the same
factual allegations. The National Association of Securities Dealers
assisted the SEC in this matter.
_________________________________________________________________
Modified 02/10/2003
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