Biotech executive says he lied to judge
Faked grave illness to avoid lawsuit
A former executive of a Cambridge biotech company admitted yesterday that he lied to a federal judge and to his own lawyers about being gravely ill with colon cancer to derail a government lawsuit against him over an experimental synthetic blood product.
Howard P. Richman, the former senior vice president of regulatory affairs at
He admitted he forged a letter and an affidavit from a doctor saying he had cancer and went so far as to pretend to be his treating physician in a phone conversation with his attorneys.
The misrepresentations prompted a judge in July 2007 to end a suit by the US Securities and Exchange Commission.
Richman, 57, who now lives in Pearland, Texas, faces up to 10 years in prison, followed by three years of supervised release, and a $250,000 fine when he is sentenced June 10 by Chief District Court Judge Mark L. Wolf. There is no plea agreement.
"I'm changing my plea from not guilty to guilty for the crime that I committed," Richman testified at a brief hearing during which he gave no explanation for his actions.
Richman, a stocky man wearing a gray suit, a white shirt, and a red tie, said he is being treated for anxiety, depression, and post-traumatic stress disorder.
Prosecutors say Richman lied to avoid responsibility in a high-profile lawsuit brought by the SEC. The suit alleged that he and other executives of Biopure misled investors about the company's prospects for winning approval for a synthetic blood substitute called Hemopure.
Biopure had touted Hemopure, which was the company's chief product and made from cow hemoglobin, as a potential life-saving breakthrough. In 2003, Biopure made a series of public statements that suggested the drug's development was progressing smoothly when, in fact, the Food and Drug Administration had rejected the company's clinical trials because of safety concerns, prosecutors said. The company never told investors and raised more than $35 million that year, boosting the stock price.
Two years later, the SEC filed a federal lawsuit alleging that Biopure "gave the false impression the company had received positive news from the FDA." The civil suit named Biopure, Richman, and three other executives as defendants. All but Richman settled the claims without a trial, with the individuals paying fines ranging from $40,000 to $120,000.
Richman told federal officials in April 2006 that he was unwilling and unable to pay a fine, according to court records.
SEC officials planned to bring the suit to trial, but Richman then reported that he had cancer and was too sick to participate in any pretrial proceedings.
Prosecutors said Richman gave his lawyers a June 2006 letter purportedly from his physician, which his lawyers then relayed to District Court Judge Patti B. Saris. The letter said Richman had been diagnosed with Stage 3 colorectal cancer and that he was being treated with surgery and chemotherapy.
In addition, Richman had at least one of his lawyers tell Saris in November 2006 that the attorney had spoken with his doctor, according to the indictment. The lawyer told Saris the doctor said his cancer had spread.
Assistant US Attorney James P. Dowden said Richman pretended to be his own doctor in the phone conversation. In 2007, his lawyers gave Saris an affidavit purportedly from his doctor that said his cancer had worsened and that he could not withstand the stress of the lawsuit, according to the indictment.
Saris canceled the pending trial against Richman in July 2007 and effectively ended the litigation.
Jonathan Saltzman can be reached at jsaltzman@globe.com 
