D. Blech & Co. finance news
U.S. District Court Judge Kevin Duffy accepted onetime biotech financier David Blech's guilty plea to two counts of securities fraud. The first count is based on the government's allegation that in 1994 Blech "engaged in a series of sham, unauthorized, and fictitious sales of biotechnology securities from accounts at D. Blech & Co. to accounts at other brokerage firms, all to create the appearance that D. Blech & Co. was reducing its outstanding margin credit" (see BioCentury, April 28, 1997). Days after the scheme collapsed, D. Blech & Co. ceased operations.
The second count, which was disclosed last week, states that Blech "devised an unlawful scheme to engage in fraudulent transactions" in the common stock of three companies, including GeneMedicine Inc. (GMED, The Woodlands, Texas), starting in late 1997 after the earlier count already had been charged. ...