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U.S. Securities and Exchange Commission


Litigation Release No. 23917 / August 22, 2017

Securities and Exchange Commission v. BioChemics, Inc., et al., No. 12-civ-12324 (D. Mass. filed Dec. 14, 2012)

SEC Obtains Penalty and Bar from Founder and CEO of Massachusetts-based Pharma Company

The Securities and Exchange Commission has obtained a final judgment against the founder and CEO of BioChemics Inc., who was charged with making false statements about collaborations with major pharmaceutical companies and the status and results of drug trials of the company's main product.

The final judgment, entered by consent on August 18, 2017 by the Honorable Mark L. Wolf of the U.S. District Court for the District of Massachusetts, permanently enjoins John J. Masiz of Topsfield, Massachusetts, from violating Sections 17(a)(2) and (3) of the Securities Act of 1933, imposes a conduct-based injunction and an officer-and-director bar, and orders him to pay a $120,000 penalty. As part of the settlement, Masiz admitted that his conduct violated Section 17(a)(2) and (3) of the Securities Act. The SEC dismissed its claims that Masiz violated Section 17(a)(1) of the Securities Act and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, directly and as a control person of BioChemics under Section 20(a) of the Exchange Act.

The court's entry of judgment against Masiz resolves this litigation in its entirety. The SEC previously obtained a $17 million judgment against BioChemics and a separate judgment against a promoter of BioChemics stock who wasn't registered as a broker. Investors can quickly and easily check the credentials of people selling investments and determine whether they are registered by using the SEC's investor.gov website. The SEC dismissed its complaint against a deceased promoter.



Modified: 08/22/2017