Ex-CEO of Phosphagenics sells shares to repay biotech Former Phosphagenics chief executive Esra Ogru has sold her entire stake in the biotech worth $570,000, with proceeds to be paid to the company as the first restitution of misappropriated funds.
Last month, the company alleged that Dr Ogru was a key player in the misappropriation of $5.7 million of company funds.
Dr Ogru’s shares in the company were sold for 10¢ each on market to a single buyer. Phosphagenics re-confirmed earlier comments that it had taken steps to secure other assets from five other people allegedly involved in the fraud and remains confident of recovering a substantial proportion of the funds. Deloitte Forensic found last month through its investigations the fraudulent activity occurred over a period of eight years from 2005 until 2013, and involved the company paying false invoices. It is believed these false invoices have to do with a range of areas, including raw materials used to make its products and services provided to the company.
The Melbourne-based company last month alleged that Dr Ogru benefited from the embezzlement of the funds, along with five others, including one recently dismissed senior Phosphagenics employee and four others outside the company. Phosphagenics, which is being represented by Arnold Bloch Leibler, has taken out caveats over several of Dr Ogru’s personal properties, as well as other proprieties owned by those involved in the embezzlement. The Australian Financial Review
POH Price at posting:
11.0¢ Sentiment: LT Buy Disclosure: Held
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