Biovail execs face SEC charges; company settles
The U.S. Securities and Exchange Commission said on Monday that Canada’s Biovail Corp (BVF.TO: Quote, Profile, Research) will pay $10 million to settle a probe into fraudulent accounting, but the drugmaker’s founder, Eugene Melnyk, and three other current and former executives still face charges.
In addition, Canada’s major securities regulator, the Ontario Securities Commission, said it has scheduled a hearing for April 22 on issues concerning Biovail.
Melnyk, Biovail’s former chief executive and chairman, who is also its largest shareholder, said the “vast majority” of the allegations in the case do not pertain to him.
“I intend to vigorously contest the absolutely false allegations of the SEC and OSC and am confident that I will prevail once all the facts are heard,” he said in a statement payday loans in 1 hour.
Melnyk is also owner of the Ottawa Senators of the National Hockey League.
In settling with the SEC, Biovail, Canada’s largest publicly traded pharmaceutical company, did not admit to any wrongdoing and agreed to have an independent consultant examine its accounting and related functions.
Still facing SEC charges are former Chief Financial Officer Brian Crombie, current Controller John Miszuk and current CFO Kenneth Howling.
“This was the CEO, CFO, the controller and the current CFO,” said Jacob Frenkel, a former SEC enforcement official and criminal prosecutor who now handles white-collar criminal matters.
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