SEC Charges Biotech Company and Executives in $10 Million Offering Fraud

June 11, 2021/US SEC

The Securities and Exchange Commission today charged Cell>Point, LLC, a Colorado radiopharmaceutical company, its CEO Greg Colip, and its CFO Terry Colip with fraudulently offering and selling approximately $10 million in securities to at least 151 investors.

The SEC’s complaint, filed in U.S. District Court for the District of Colorado, alleges that, between January 2016 and February 2021, Cell>Point and the Colips solicited investors by making false and misleading statements that Cell>Point’s lead product, an injectable compound designed for lung cancer and cardiovascular imaging, was months away from completing clinical trials that would lead to its commercialization and, ultimately, substantial returns for investors. The SEC alleges that, contrary to such statements, Cell>Point suspended its clinical trials in 2014, and never resumed them because of significant issues with its product. The SEC also alleges that Cell>Point and the Colips made false and misleading statements that overstated the capital that Cell>Point raised since its inception by nearly $50 million and that misleadingly characterized $38 million that Cell>Point owed to its founders as a “contribution” by them to Cell>Point.

The SEC’s complaint charges Cell>Point, Greg Colip, and Terry Colip with violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks permanent injunctions, disgorgement plus prejudgment interest, and civil penalties against Cell>Point, Greg Colip, and Terry Colip, and officer and director bars against the Colips.

The SEC’s investigation was conducted by Kevin Comeau, Ty Cottrill, and Anne Romero with assistance from Judy Bizu of the Denver office. The case was supervised by Laura Metcalfe. The litigation will be led by Polly Atkinson and Mark Williams and supervised by Gregory Kasper.

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