It seems that California biopharma company Immunosyn has been a little more optimistic about the prospects for its blockbuster drug than would be warranted by the facts. Specifically facts such as (1) the FDA has blocked clinical trials in the U.S., (2) there are no clinical trials likely elsewhere, and (3) it's made out of goat blood.
The SEC alleges that Immunosyn Corporation misleadingly stated in various public filings from 2006 to 2010 that its controlling shareholder – Argyll Biotechnologies LLC – either planned to commence or had commenced the U.S. regulatory approval process for human clinical trials for SF-1019, a drug derived from goat blood that was intended to treat a variety of ailments. The public filings failed to disclose that the U.S. Food and Drug Administration (FDA) had already twice issued clinical holds on drug applications for SF-1019, prohibiting clinical trials from occurring. The SEC alleges that Immunosyn also misleadingly stated that the regulatory approval process in Europe for human clinical trials for SF-1019 was imminent or underway, when in fact Argyll never submitted an application in Europe to conduct human clinical trials.
It's possible that this is just a misunderstanding - there seems to be real science here, and one person's "imminent or underway" is another's "we may get around to it eventually." It's not like they were selling fake securities to dying people or anything, right?
[Argyll Chief Scientific Officer Douglas] McClain Sr. also made ... misstatements in a 2008 presentation in which he sold his stock to individuals that attended the presentation at a Texas holistic clinic, some of whom were terminally ill patients at the clinic. McClain Sr. purported to sell Immunosyn stock to approximately 15 of these attendees at the presentation at the clinic, including some terminally ill patients, raising over $300,000 from them. He took their money but never gave them their Immunosyn stock.