uBiome Co-Founders Jessica Richman, Zachary Apte Charged With $60 Million Fraud


Insurers retrieved their previous reimbursement payments to the company after discovering its improper practices. uBiome’s Board launched an investigation after the Federal Bureau of Investigation (FTB) executed a search warrant at its headquarters in April 2019.

In September 2019, the company ceased its business operations and filed for bankruptcy protection.

Apte and Richman violated the antifraud provisions of the federal securities laws.  according to the SEC.

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In a statement, SEC San Francisco Regional Office Director Erin Schneider said, “We allege that Richman and Apte touted uBiome as a successful and fast-growing biotech pioneer while hiding the fact that the company’s purported success depended on deceit. Investors are entitled to know the material risks of the companies they are investing in, no matter how transformative those companies claim to be.”

Separately, the Department of Justice (DOJ) filed criminal charges against Apte and Richman.

DOJ’s charges against the defendants

The DOJ’s charges against the defendants include conspiracy to commit securities fraud, conspiracy to commit health care fraud, money laundering, and related offenses.