Boston-Based Biotech Employee Sentenced in Securities Scheme

Two people have now been sentenced for their involvement with the scheme

Getty Images/EyeEm

An employee of a Boston-based biotech company became the second person to be sentenced in a scheme officials say was designed to manipulate the company's stock prices and defraud investors.

M. Jay Herod, 52, of Cambridge was sentenced Thursday to serve six months in prison for the scheme involving PixarBio, reported.

Herod, who was also an investor of the company, was also ordered to serve three years of supervised release and 1,200 hours of community service in addition to $120,000 in restitution and forfeiture.

Herod pleaded guilty to one count of securities fraud and one count of obstruction of an agency proceeding earlier this month.

He agreed to cooperate with the government after being arrested in April 2018, according to Christina DiLorio-Sterling, spokeswoman for U.S. Attorney Andrew Lelling.

Frank Reynolds, Herod's co-defendant, was convicted of charges by a federal jury in October and sentenced Tuesday to seven years in prison and ordered to pay $7.5 million in restitution, DiLorio-Sterling said. A third person is charged in the scheme.

Copyright AP - Associated Press
Contact Us