(HedgeCo.Net) A Massachusetts businessman has been charged with allegedly misusing investments intended for the development of cancer diagnostic tests to instead pay personal expenses and fund his fianc\u00e9e\u2019s restaurant businesses. <\/p>\n
According to the SEC\u2019s complaint, Patrick Muraca established two pharmaceutical development companies and raised nearly $1.2 million by representing to investors that their money would be used to develop products to detect cancer and other diseases. The SEC has traced the flow of investor funds into Muraca\u2019s personal bank account and alleges that at least $400,000 has been used to pay rent for the restaurants and fund other purchases by Muraca, including payments to a casino, automotive shop, and cigar shop. <\/p>\n
The SEC alleges that investors were never informed of the alternative uses of their investments in NanoMolecularDX LLC and MetaboRX LLC, including the fact that Muraca characterized the general character of the businesses as \u201cServing Food; Restaurant\u201d in separate documents he has filed with the Commonwealth of Massachusetts to do business in the state.<\/p>\n
The SEC today obtained a court order freezing the assets of Muraca and his companies.<\/p>\n
\u201cAs alleged in our complaint, we\u2019re intervening to protect investors because Muraca has veered from his stated intentions and has been using their money for purposes other than the fight against cancer and other diseases,\u201d said Paul Levenson, Director of the SEC\u2019s Boston Regional Office. <\/p>\n
In a parallel action, the U.S. Attorney\u2019s Office for the Southern District of New York today announced criminal charges against Muraca.<\/p>\n
The SEC\u2019s complaint charges Muraca, NanoMolecularDX, and MetaboRX with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The complaint seeks disgorgement of ill-gotten monetary gains plus interest and penalties.<\/p>\n","protected":false},"excerpt":{"rendered":"
(HedgeCo.Net) A Massachusetts businessman has been charged with allegedly misusing investments intended for the development of cancer diagnostic tests to instead pay personal expenses and fund his fianc\u00e9e\u2019s restaurant businesses. According to the SEC\u2019s complaint, Patrick Muraca established two pharmaceutical […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-59370","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/59370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=59370"}],"version-history":[{"count":7,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/59370\/revisions"}],"predecessor-version":[{"id":59377,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/59370\/revisions\/59377"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=59370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=59370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=59370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}