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Opko, CEO Settle With SEC Over Alleged Stock Scheme

NEW YORK (360Dx) – Opko Health said after the close of the market on Thursday that it and its Chairman and CEO Phillip Frost have settled with the US Securities and Exchange Commission over allegations of a stock pump and dump scheme.

In a statement, Opko said it has agreed to an injunction from "certain violations" of the SEC Act of 1934; a $10,000 penalty; and to perform "certain undertakings" related to the Exchange Act. Frost agreed to injunctions from "certain violations" of the Securities Act of 1933 and the Exchange Act; about $5.5 million in penalty, disgorgement, and prejudgment interest; and a prohibition, with certain exceptions, from trading in penny stocks.

Neither Opko nor Frost denied or admitted any guilt, Opko said. The settlement is subject to court approval.

"We have reached agreement with the SEC that will end a potentially expensive, contentious, and time-consuming litigation, and I am happy that we can focus on an exciting and production 2019 for Opko Health," Frost said in the company's statement.

Frost was among 20 defendants charged by the SEC in September of participating in market manipulation schemes that generated more than $27 million in unlawful stock sales.