SACRAMENTO (CN) - Telemolecular Corp. sold $6.5 million in shares through false claims that the Rancho Cordova-based company was "on the verge of success" for its "anti-aging and cancer cures," the SEC says in a settled federal complaint. It also sued Telemolecular's former CEO Matthew Sarad, of Folsom, and its former director of investor relations, Jeremy Jobe of Dallas.
"Telemolecular and Sarad told investors that the company hoped to use its technologies to cure cancer in less than 3 years," according to the complaint. "They also claimed to potential investors that the company was backed by a deep management and scientific team, was generating significant industry interest in its technologies, had substantial institutions ready and willing to infuse capital, and was headed toward enriching investors by quickly becoming a publicly traded company. None of these claims was true."
The SEC also claims that Jobe sold $2.5 million in Telemolecular stock without being registered as a broker.
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