{"id":84247,"date":"2023-03-22T02:36:00","date_gmt":"2023-03-22T06:36:00","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=84247"},"modified":"2023-03-22T02:36:00","modified_gmt":"2023-03-22T06:36:00","slug":"sec-obtains-final-judgment-against-former-cfo-charged-with-fraud-and-lying-to-auditors","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/03\/2023\/sec-obtains-final-judgment-against-former-cfo-charged-with-fraud-and-lying-to-auditors.html","title":{"rendered":"SEC Obtains Final Judgment Against Former CFO Charged with Fraud and Lying to Auditors"},"content":{"rendered":"\n<p>(HedgeCo.Net) The U.S. District Court for the District of Maryland entered a final consent judgment against <strong>Philip R. Jacoby,<\/strong> a former Chief Financial Officer of biotech company Osiris Therapeutics, Inc., for his role in Osiris&#8217;s fraudulent conduct.<\/p>\n\n\n\n<p>The SEC&#8217;s complaint, filed November 2, 2017, charged Osiris with routinely overstating company performance and issuing fraudulent financial statements for a period of nearly two years. The SEC alleged that Jacoby caused Osiris to book fictitious and premature revenue and provided false information to Osiris&#8217;s auditors. On February 2, 2021, the District Court found that Jacoby violated provisions of the federal securities laws prohibiting: fraud in connection with the offer, purchase, or sale of securities; false certifications of SEC filings; aiding and abetting false SEC filings; and lying to auditors.<\/p>\n\n\n\n<p>Jacoby consented to a final judgment enjoining him from future violations of: Section 17(a) of the Securities Act of 1933; Section 10(b) of the Securities Exchange Act of 1934, and Rules 10b-5, 13a-14, and 13b2-2 promulgated thereunder; as well as aiding and abetting violations of Section 13(a) of the Exchange Act, and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. The judgment further prohibits Jacoby from acting as an officer or director of a public company, and finds Jacoby liable for reimbursement of $223,965.88 in Osiris stock sale profits pursuant to Section 304 of the Sarbanes-Oxley Act of 2002, but waives payment of all but $45,000 of this amount, and does not impose a civil penalty, based on his sworn statement of financial condition.<\/p>\n\n\n\n<p>Osiris previously settled the SEC&#8217;s charges and paid a <strong>$1.5 million <\/strong>civil penalty. One of Osiris&#8217;s former Chief Financial Officers, Gregory I. Law, was dismissed from the case in September 2019. In October 2019, Bobby Dwayne Montgomery, Osiris&#8217;s former Chief Business Officer, consented to a judgment enjoining him from future violations of the provisions of the federal securities laws that prohibit falsifying books and records and lying to auditors, and ordering him to pay a civil penalty of $40,000. Osiris&#8217;s former Chief Executive Officer, Lode Debrabandere, was dismissed from the case in November 2022. The final judgment entered against Jacoby concludes this litigation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The U.S. District Court for the District of Maryland entered a final consent judgment against Philip R. Jacoby, a former Chief Financial Officer of biotech company Osiris Therapeutics, Inc., for his role in Osiris&#8217;s fraudulent conduct. The SEC&#8217;s complaint, [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-84247","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/84247","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=84247"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/84247\/revisions"}],"predecessor-version":[{"id":84248,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/84247\/revisions\/84248"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=84247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=84247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=84247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}