Main Media English

Get Latest News, India News, World News at Main Media English

Support Us

Biotech firm CEO pleads guilty to Covid-19 securities fraud scheme

IANS logo Reported By IANS |
Published On :

Washington, Dec 9 (IANS) Keith Berman, CEO and director of Decision Diagnostics Corp (DECN), a public medical device company, has pleaded guilty to securities fraud and wire fraud in connection with his scheme to defraud investors by making false and misleading statements about the development of a new, blood-based Covid-19 test, leading to millions of dollars in investor losses.

According to court documents, Berman and DECN were in precarious financial condition in the lead up to the Covid-19 pandemic, and Berman wrote in internal emails that he needed a “new story” to “raise millions.”

Also Read Story

Empty chairs, forced attendance allegations cast shadow on INDIA bloc’s Delhi rally

Nagaland’s sole LS seat to witness triangular contest in 2024 polls

Odisha Crime Branch busts racket involved in Rs 1.04 cr fraud

IPL 2024: Under-pressure Mumbai Indians hope to shine in home comfort (Preview)

IPL 2024: Sai Sudharsan, David Miller star as clinical Gujarat beat Hyderabad by seven wickets

Viksit Bharat Ambassador meet-up: India is world’s 3rd largest start-up ecosystem today, says I&B Minister Anurag Thakur

Amit Shah chairs meeting of Lok Sabha core committees in Jaipur, holds roadshow in Sikar

IPL 2024: Ishant Sharma back as Delhi Capitals win toss, elect to bat against CSK

Viksit Bharat Ambassador Jaipur meet-up: Participants heap praise on the initiative

Additionally, Berman had spent hundreds of thousands of dollars of company money on personal expenditures, despite publicly claiming not to take any compensation, according to the US Department of Justice.


Faced with these financial difficulties, from February through December 2020, Berman engaged in a scheme to defraud investors by falsely claiming that DECN had developed a 15-second test to detect Covid-19 in a finger prick sample of blood.

Despite his claims to the investing public, Berman knew that no such test existed.

Berman also falsely told investors that the Food and Drug Administration (FDA) was on the verge of approving DECN’s request for emergency use authorization of its purported Covid-19 test, according to the DoJ.

In truth, Berman knew that his company was unwilling and unable to meet the clinical testing required by the FDA but concealed these material facts and misled investors.

Berman pleaded guilty to one count each of securities fraud, wire fraud, and obstruction of an official proceeding.

He is scheduled to be sentenced on April 12, 2024, and faces a maximum penalty of 20 years in prison.

–IANS

na/prw

(This report is auto-generated from IANS news service. 'Main Media' holds no responsibility for its content.)

Get involved in bringing the ground realities of Seemanchal. Click the "Support Us" button to join our membership.

Support Us

Related News

Pawar vs Pawar: A fight for supremacy in Baramati

Rebel Wilson opens up on weight loss journey, says she’s an emotional eater

Shraddha Kapoor asks fans how they wasted 1st quarter of 2024

PM Modi virtually interacts with party workers in Varanasi

AIADMK will ally again with BJP after LS elections, says Chidambaram

PE-VC investments fall by 8 per cent to $6.2 billion in Q1

Cut! Mark Ronson’s role in Amy Winehouse biopic gets axed

Leave a Reply

Your email address will not be published. Required fields are marked *