Did businessman use cancer tech funds on personal expenses?
Federal authorities say a Massachusetts businessman paid his personal expenses and supported his fiancee's restaurants using at least $400,000 from investors who believed the money was going toward technology aimed at fighting cancer.
The Securities and Exchange Commission on Monday filed a complaint in Boston federal court. Federal prosecutors filed a parallel criminal case in New York City.
The SEC's complaint against Pittsfield, Massachusetts, native Patrick Muraca says he raised nearly $1.2 million for his two pharmaceutical development companies by telling investors their money would be used to develop products to detect cancer and other diseases.
Officials allege some of the money was used on payments to a casino and rent for the restaurants.
Muraca's companies, NanoMolecularDX and MeetaboRX, say they're "responding accordingly" to the charges.