Former Biopure exec to pay $150,000 penalty

A former Biopure Corp. executive, Howard Richman, agreed to pay a $150,000 penalty to settle allegations that he misled investors about the Cambridge biotechnology company's efforts to obtain approval for its synthetic blood product, Hemopure.

Richman, Biopure's former head of regulatory affairs, will also be permanently barred from serving as an officer or director of any public company under the final judgment entered into US District Court in Boston.

The pact resolves a 2005 lawsuit by the Securities and Exchange Commission that accused Richman, 56, and two other Biopure executives of telling investors it was making progress toward gaining federal approval for Hemopure, while hiding the fact that the Food and Drug Administration barred Biopure from proceeding with clinical trials because of safety concerns.

The SEC has already struck deals with the two other Biopure executives who were sued. Former Biopure chief executive Thomas Moore agreed to a $120,000 penalty, while the company's general counsel, Jane Kober, agreed to pay $40,000.

Separately, the SEC also settled a separate case with a fourth Biopure executive in 2006. Carl Rausch, a former senior technology officer of the company, agreed to pay a $40,000 civil penalty.

"When public biotech companies make representations about the FDA approval process, their executives must ensure that those statements are complete and accurate so investors are not misled,” said David Bergers, director of the SEC's Boston office.
(By Todd Wallack, Globe staff)