California Biotech Executive Faces Securities Fraud Charges
SACRAMENTO, Calif. (AP) — A former executive of a California biotech company faces federal conspiracy and fraud charges alleging that his actions misled investors.
An indictment unsealed Wednesday alleges that 47-year-old Hector Absi caused publicly traded Marrone Bio Innovations Inc. to falsely report that its revenue doubled from 2012 to 2013.
The Davis-based company develops and sells environmentally friendly pesticides.
Federal prosecutors say Absi hid unorthodox sales agreements and conspired with others to backdate deliveries to boost reported revenues. He received a performance-based bonus and exercised stock options based on the inflated figures.
The Securities and Exchange Commission filed a separate civil complaint against him.