SEATTLE (CN) – Two attorneys promoted a company’s nonexistent anti-aging products in a pump-and-dump scheme that netted more than $1 million, the SEC claims in Federal Court. Securities attorney David Otto assisted by Todd Van Siclen used falsified documents to gain control of MitoPharm Corp., a Seattle-based supplement company, the SEC says, then hired stock promoter Charles Bingham to tout “Restorade” and “Staminade” – products that did not exist.
MitoPharm’s stock rose by more than 400 percent as a result of the campaign, then Otto and Bingham unloaded their stock, according to the complaint.
The supplements were never produced and misleading press releases and Web site promotions featured fake images of cans and bottles allegedly containing the products, according to the SEC.
MitoPharm, its CEO Pak Peter Cheung and Wall Street PR also are charged, along with Otto, Van Siclen and Bingham. The SEC seeks disgorgement and civil penalties.