The CEO of biotech company Decision Diagnostics Corp., Keith Berman, was sentenced to seven years in prison for a securities fraud scheme that resulted in about $28 million in investor losses and obstruction of a related U.S. Securities and Exchange Commission investigation.
From February through December 2020, Mr. Berman falsely claimed that Decision Diagnostics created a 15-second test to detect COVID-19 in a finger prick sample of blood. Though the test did not exist, he told investors that the FDA was on the brink of approving it. Mr. Berman also obstructed an SEC investigation into his conduct.
Mr. Berman pleaded guilty to securities fraud, wire fraud and obstruction of an official proceeding.