SEC Charges Former Sequenom Executive

According to the SEC, Dr. Dragon provided the scientists with the known sample outcomes, which allowed them to manipulate the data to produce more accurate results. The complaint also alleges that she falsified the number of samples tested and that she lied about how well the test worked. Dr. Dragon was fired by Sequenom in September 2009.

Washington, DC 6/2/10; San Diego, CA 6/2/10—The SEC has charged Elizabeth A. Dragon, former senior vice president of R&D at Sequenom, with making false statements to investors. The statements were in connection with the genetic test that Sequenom was developing for noninvasive prenatal detection of Down’s syndrome (see IBO 9/30/09). The SEC charges that she lied during at least three public presentations when she claimed the test could predict Down’s syndrome with almost 100% accuracy. The complaint also alleged that she lied when she described the results as obtained on a blinded basis. Dr. Dragon has not admitted or denied the charged, but has consented to the entry of a judgment barring her from serving on an officer or director of a public company. The court will determine a financial penalty.

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