Keith Berman defrauded medical device investors and lied to the FDA.
The CEO of a fraudulent California biotechnology company was sentenced to seven years of prison on Friday for misleading investors, lying about his products’ approval by the Food and Drug Administration (FDA), and obstructing an investigation into his actions by the Securities and Exchange Commission (SEC).
Keith Berman created a publicly traded medical device company and claimed his device could detect COVID-19 in the bloodstream in under 15 seconds. Investors lost $28 million as a result. When the SEC launched an investigation into his conduct, Berman used a fake identity to manipulate an investor to write threatening letters to SEC management, including the SEC chairman.
“Keith Berman not only misrepresented himself and lied about a phony COVID-19 diagnostic test to entice unsuspecting investors, but he also engaged in threats and obstructed a federal investigation,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “This case demonstrates the FBI’s continued commitment to working with our partners to combat fraud and hold perpetrators accountable.”
As the Lord Leads, Pray with Us…
- For wisdom for U.S. agency officials as they work to prevent fraud in the health marketplace.
- For Attorney General Merrick Garland to head the Justice Department with integrity.
Sources: Department of Justice
