SEC reportedly charges Cell Point LLC, Colorado Biopharma Company

According to a litigation release, on February 14, 2022, the United States District Court for the District of Colorado entered a preliminary injunction against defendant Cell Point, L.L.C.  and its Cell Point’s subsidiaries, including Cell Theranostics, Inc. and Cell Theranostics Ltd.; and two related executives in connection with their allegedly fraudulent misstatements and omissions to investors.  

Cell Point LLC, a Colorado “radiopharmaceutical” company, and the executives allegedly sold approximately $10 million in securities to at least 151 investors, according to the SEC’s complaint, filed on June 10, 2021.  

The SEC reportedly filed a motion for preliminary injunction and other relief on November 24, 2021, alleging the defendants continued to engage in fraudulent conduct after the SEC initiated the enforcement action in June 2021.   

The defendants allegedly continued to solicit Cell Point LLC investors with false and misleading statements about how the investors’ money would be used, including purportedly claiming financing for an alleged initial public offering.  

On January 25, 2022, the court ordered that the SEC had proved that the defendants made material misrepresentations and “omissions with scienter,” in violation of the Securities Act and Exchange Act, and that the SEC made a substantial showing of a “likelihood of future violations.” According to the court, there was no need for an asset freeze because the defendants don’t “currently have any significant assets that could be frozen.”  

The SEC’s complaint continues to seek permanent injunctions, disgorgement of all ill-gotten gains plus prejudgment interest, and civil penalties against Cell Point, and the two executives as well as officer and director bars.

Recovery of Investment Losses
The White Law Group is investigating potential securities fraud claims involving the unsuitable recommendation of Cell Point LLC and its subsidiaries by financial advisors to clients.   

If you have lost money investing in Cell Point LLC at the recommendation of your broker and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.    

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information on the firm, please visit the website at www.whitesecuritieslaw.com.