US BioDefense Corporation

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"The Securities and Exchange Commission has obtained final judgments against a Mass.-based company and five former senior executives and consultants, all of whom the agency charged in 2012 with defrauding company investors out of $26 million.

"The SEC’s September 2012 complaint alleged that Bio Defense Corp., which was purportedly in the business of building and selling machines that irradiated mail to destroy biological agents like anthrax, offered and sold unregistered securities to investors for over six years. The complaint also alleged that Michael Lu, Jonathan Morrone, and Z. Paul Jurberg told investors that Bio Defense was not paying its officers and employees. In reality, as alleged, the company’s largest expense during those six years was the millions of dollars it paid to Lu, Morrone, Jurberg, and other employees. Some of the compensation paid to Lu went to a company he controlled called May’s International Corp. The complaint further alleged that, in 2008, Bio Defense, Lu, Morrone and Jurberg hired Brett Hamburger, who had been convicted of securities fraud, and Anthony Orth, a self-described “marketer,” to access “boiler room” firms to sell Bio Defense securities overseas in exchange for as much as 75% of investor proceeds." [1]

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