LAS VEGAS (CN) — Founders of a Nevada stem cell research firm skimmed money from the $110 million they raised to develop treatments for Alzheimer’s disease, a member of the company’s own board claims in court.
Tiara Holdings II LLC sued Stemedica Cell Technologies Inc. and its top three officers on April 6 in Clark County Court. The officers are CEO and Chairman of the Board Roger Howe, Vice Chairman and CEO Maynard Howe and President and Chief Medical Officer Nikolai Tankovich.
Dr. Anthony M. Marlon, a medical doctor and businessman, holds 430,000 shares of Stemedica through Tiara Holdings, where he is a member. He also is a member of the board of Stemedica, he says in the complaint.
He says Stemedica’s founders have kept Tiara and independent auditors “in the dark” about its financial records and transactions.
“Stemedica’s founders have operated a nearly 10-year investment scheme, wherein they have raised over $110 million dollars from various individual investors for the purported purpose of funding and establishing a stem cell company,” Tiara says in the lawsuit.