SEATTLE, April 22, 2011 /PRNewswire/ -- Attorney David Otto of Seattle-based law firm The Otto Law Group today announced that he had reached a settlement with the Securities and Exchange Commission (SEC) calling into question his work with a local start-up company. The settlement includes no admission of wrongdoing by Otto.
In July 2009, the SEC claimed that Otto's work on behalf of MitoPharm Corporation violated SEC laws and allowed Otto to improperly receive more than $1 million in stock transactions. As part of the settlement, Otto agreed to pay the SEC $38,000 in disgorgement.
The settlement comes after United States District Court for the Western District of Washington Judge Richard A. Jones ruled on August 2, 2010, that many of the SEC allegations lacked foundation to move forward.
"Since the SEC began its investigation three years ago, my legal defense costs have exceeded $1.5 million," said Otto. "This has been an arduous process that has taken a considerable toll on my family and my practice, and I am happy to bring this to a conclusion."
On July 13, 2009, the SEC filed a lawsuit against Otto in the United States District Court for the Western District of Washington, alleging that he, along with several others, was involved in promoting an anti-aging product that was still in the development stages in order to increase artificially the value of the stock.
In his August 2010 ruling, Judge Jones partially dismissed the SEC's claims against Otto after finding serious flaws in the complaint. In addition, the court ruled that SEC claims against Otto's associate and co-defendant, Todd Van Siclen, were "inadequate."
"As I have maintained from the beginning, I conduct business in accordance with all applicable best practices and ethical standards," said Otto. "I am ready to put it in the past and move forward."
In addition to Otto and Van Siclen, the SEC brought charges against stock promoter Charles Bingham and his firm, Wall Street PR Inc., and MitoPharm CEO Pak Peter Cheung, all of whom have settled with the SEC.
About The Otto Law Group
The Otto Law Group, PLLC is a law firm with extensive experience in complex corporate governance and transactional work. We work with entrepreneurs, start-ups, business owners, technology innovators and publicly traded and transnational corporations. As a boutique firm, we excel at providing our clients with the attention and timely response needed to advance our clients' business objectives strategically and assertively.
Contact: Mark Firmani, Firmani + Associates Inc., 206.443.9357 or [email protected]
SOURCE The Otto Law Group