The SEC charged former Wound Management Technologies chairman, president & CEO Scott Haire of using kickbacks to “illegally generate stock sales.” Haire was caught in an undercover sting by FBI special agent Michael Sputo, according to court documents. The SEC also alleges that Haire timed press releases to coincide with the fraudulent stock buys, aiming to make it appear that the trading activity was generated by positive news.
Mr. Robert H. Lutz. Jr. was elected as the Chairman of the Board and Chief Executive Officer of the Company in March 2012, and Mr. Haire has had no operating involvement with the Company since such time. The Company will engage legal counsel to assist it in investigating and handling the SEC Complaint.
Mr. Lutz was quoted as saying “The Company learned yesterday via a press release that it has been named as a defendant in a civil complaint filed by the Securities Exchange Commission (the “SEC”). The Complaint alleges certain fraudulent schemes and market manipulation activities from at least July – November 2009 involving the Company’s former Chief Executive Officer and Chairman of the Board, Scott A. Haire. Current management of the Company (which does not include Mr. Haire) was not aware of any such allegations by the SEC and has not discussed this matter with the SEC.”
Wound Management Technologies, Inc. is an emerging commercial stage company with its primary products in the $5B worldwide advanced wound care market. Wound Management’s primary focus is the distribution of its unique, patented collagen product, CellerateRX®, which is FDA cleared and reimbursable under Medicare Part B. Wound Management has other advanced biotech products in development including a patented resorbable bone wax line that is in late stages of development.