Biotech Securities Fraud at PixarBio Corporation

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Biotech Securities Fraud

Frank Reynolds, the chief executive officer of PixarBio Corp., a Boston-based biotech company, and two associates (Jay Herod and Kenneth Stromsland) were charged in Federal court with securities fraud. The charges involve a scheme to manipulate trading in the company’s shares.

Dating back to August 2013, PixarBio Corporation executives engage in a fraudulent scheme to defraud investors. To start, their unscrupulous methods include an extensive list of false and misleading statements about the financial viability of the company. Further, they list made-up proclamations including the company’s sham financing, along with the biography and track record of the CEO, Frank Reynolds. A glaring and damning example of their misdeed includes a December 2015 email and memorandum from Reynolds to potential investors. In the correspondence, Reynolds promises investors “a HUGE return on investment (ROI) for any investors in PixarBio’s NeuroRelease.” Reynolds states emphatically, that: