Billionaire health-care investor Phillip Frost charged by SEC with pump-and-dump schemes
Billionaire and notable health-care investor Phillip Frost was one of 10 individuals and 10 associated firms charged by the Securities and Exchange Commission on Friday with participating in extremely profitable, yearslong pump-and-dump schemes.
Opko Health Inc. OPK, -18.01% , a pharmaceutical and diagnostics company that Frost founded and led as chairman and chief executive, was also named in the SEC complaint. Opko Health shares dropped 18% in extremely active Friday afternoon trading before they were halted.
Frost, Opko and others were accused of making more than $27 million in stock sales proceeds between 2013 and 2018 by organizing large stock buys and promoting the stock — including through misleading articles and manipulative trading — while failing to properly disclose their stakes.
The scheme left public investors “holding virtually worthless stock,” according to the SEC complaint.