Helvetia Pharmaceuticals, Inc., et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21772 / December 13, 2010

JUDGMENTS OF PERMANENT INJUNCTION ENTERED AGAINST DEFENDANTS HELVETIA PHARMACEUTICALS, INC., RICHARD ANDERS, NICHOLAS BACHYNSKY, ARTHUR SCHEINERT, AND LAURENCE DEAN

Securities and Exchange Commission v. Helvetia Pharmaceuticals, Inc., et al. Civil Action No. 04-60804-CIV-JORDAN (S.D. Fla.)

The Commission announced that the United States District Court for the Southern District of Florida entered the following judgments: 1) on May 3, 2010, a judgment against defendant Arthur Scheinert; 2) on October 4, 2010, final judgments against defendants Nicholas Bachynsky and Richard Anders; and 3) on October 14, 2010, final judgments against defendants Laurence Dean and Helvetia Pharmaceuticals, Inc. The Judgments against Dean and Helvetia were entered subsequent to the Court's favorable rulings on the Commission's motions for summary judgment and default judgment against Dean and Helvetia, respectively, while, the Judgments against Bachynsky, Anders and Scheinert were entered by consent. The Judgments against Helvetia, Bachynsky, Anders and Scheinert enjoin these defendants from future from violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 (Securities Act), and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 (Exchange Act). Scheinert's Judgment also prohibits him from violating Section 15(a) of the Exchange Act, while Anders and Bachynsky's Judgments bar them from participating in any penny stock offering. The Judgment against Dean enjoins him from violations of Section 17(a) of the Securities Act and Section 10(b) and Rule 10b-5 of Exchange Act. The Court also dismissed the Commission's claims for disgorgement and civil penalties against all defendants.

The Commission began this action by filing its complaint on June 21, 2004. The complaint alleged the defendants raised more than $3 million in a fraudulent, unregistered securities offering by making statements to investors that the money raised would be used to develop and operate cancer treatment clinics.

For additional information, see Litigation Release No. 18756 (June 21, 2004).