Former Telomolecular CEO, Matthew Sarad, clarifies the scope and terms of his settlement with the SEC. Case No. 2:08-cv-2252-GEB-DAD.
(PRWEB) November 3, 2008 -- Telomolecular, a Rancho Cordova, California Corporation, was formed in 2005 to develop and license new nanotechnology based therapeutics to treat diseases of aging and cancer, particularly diseases related to chromosomal telomere shortening. The Company worked with a number of known U.S. universities and hospitals including but not limited to Stanford, the University of Nebraska, and the third largest hospital in the country, the Cleveland Clinic, where Telomolecular's anticancer therapeutics are being presently studied in living animals. The SEC alleged in a complaint (Case No. 2:08-cv-2252-GEB-DAD) filed in a Sacramento, California court in September of 2008, that the Corporation's Chief Executive Officer, Mr. Matthew Sarad, misrepresented key facts to investors related to the number and involvement level of certain employees, the corporation's progress towards an IPO, and two material financial transactions. Without admitting or denying the charges Mr. Sarad reached a settlement that required that he pay a $100,000 fine and not serve as an officer or director of a publicly traded U.S. company for a period of five years.
According to Mr. Sarad, "I had no practical way to litigate the government and just wanted to put this unfortunate episode of my career behind me. Resigning from Telomolecular was truly heartbreaking for me given the many years of very hard work. We were all working in the interests of our investors and in the interests of science. The number of extraordinary assets and opportunities the company possesses is impressive and I believe the new CEO will break into global pharmaceutical markets with our cutting edge goods. Telomolecular was, and is one of the most important and most promising technology companies in the country working on truly revolutionary nanotechnology based pharmaceutical products."
In approximately two years time, Mr. Sarad stated that he managed to acquire many valuable licenses to certain patented and patent pending medical biotechnologies developed by prestigious universities such as Stanford University, Northeastern, and the University of Nebraska. He built, from the ground floor up, an operational nanotechnology laboratory and staffed it with scientists that formerly served at some of the nation's finest research institutes such as Harvard Medical School, M.D. Anderson Cancer Center, and U.C. Davis Cancer Center. With the help of his partners, the company established internal manufacturing capacity and began to sell nanotechnology based cosmetic goods just before his departure. The Corporation sponsored $1 million worth of medical research at the University of Nebraska and the Cleveland Clinic Hospital, where some of its cancer and aging products are being tested for safety and efficacy in animals, and maybe soon in people. Early results have been very promising, demonstrating high levels of safe and non-toxic remission in a number of key malignancies such as breast and prostate cancer.
Mr. Sarad said the company was the first to deliver active human telomerase and synthetic DNA nanocircles to human cells and observe significant signs of telomere regeneration that was not observed when delivering inactive telomerase or linear strands of the same DNA. Studies performed by UCLA suggest that the elongation of chromosomal telomeres might prove to be effective and safe in the treatment of HIV in humans, while studies by other hospitals and universities suggest that certain diseases of aging might respond positively to telomere elongation. The company had also made advances in the delivery of intact RNA to cells through a process known as RNA protein shielding, it had recently begun to work on the development of therapeutics for diseases of the mitochondria, and it had developed new kinds of biodegradable nanoparticle based gene delivery technologies.
Read the full story at http://www.prweb.com/releases/2008/11/prweb1466514.htm
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