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posted: 8/2/2011 3:49 PM

SEC says pharma execs lied about goat's blood drug

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Associated Press

WASHINGTON -- Federal regulators are charging four pharmaceutical executives with misleading investors with claims that a drug derived from goat's blood might be approved for human use.

The Securities and Exchange Commission says that the executives told investors they were seeking permission to test the drug on humans in the U.S. and Europe.

The SEC says U.S. health authorities have twice blocked the clinical trials. It says the company never submitted an application in Europe.

The charges are against Immunosyn Corp. CEO Stephen Ferrone, the company's Chief Financial Officer Douglas McClain Jr., Argyle Biotechnologies LLC CEO James Miceli and Chief Scientific Officer Douglas McClain Sr. Argyle is Immunosyn's biggest shareholder.

All but Ferrone also face charges of insider trading for unloading about $20 million worth of stock based on the false statements.