Company Faces Securities Violation Charges
BOSTON (AP) _ A Florida brokerage firm mounted a bogus publicity campaign to promote the sale of stock in a Massachusetts company, federal regulators charged Monday.
The allegations stem from the 1988 actions of Kashner Davidson Securities Corp. of Sarasota, Fla., and Spectra Pharmaceutical Services Inc. of Hanover.
Spectra, an eye drug company, filed for bankruptcy in 1990.
The Securities and Exchange Commission also named Victor L. Kashner, president of Kashner Davidson, and Byron L. Sanders, a registered representative of the company, in a lawsuit filed in U.S. District Court.
The SEC said research reports distributed nationally to ophthalmologists, Spectra shareholders and an investors newsletter made false claims about a drug being developed by Spectra.
The drug, Lacramore, for dry-eye conditions, was billed as also being usable as a wrinkle cream, the SEC said.
Michael Missal, a lawyer representing all three, denied the allegations.
″They don’t believe they engaged in any wrongdoing or impropriety and they look forward to the opportunity to resolve this in a satisfactory manner,″ said Missal.
The SEC said three other men involved in the alleged scheme had consented to court orders not to violate the law again. They did not admit or deny the allegations, the SEC said.
One man, Jonnie R. Williams, also repaid $294,844, though he didn’t admit the allegations, the SEC said. Williams was a shareholder in Spectra.
Secretary of State Michael Connolly said Monday he would file an administrative complaint against Kashner Davidson and its president.