U.S. Securities and Exchange Commission

Litigation Release No. 18236 / July 18, 2003

Securities and Exchange Commission v. Lawrence Artz, (United States District Court for the District of Massachusetts, M.B.D. No. 03-10154-GAO)

The Securities and Exchange Commission announced today that yesterday July 17, 2003, it filed an action in Massachusetts federal court to enforce investigative subpoenas against Lawrence Artz, the vice president of Neurotech Development Corporation (" Neurotech"). The Commission alleges in its application filed with the court that Artz failed to comply with subpoenas requiring him to produce documents in connection with an investigation to determine whether Neurotech and others may have violated the antifraud, reporting, and books and records provisions of the Securities Exchange Act of 1934.

In its application and supporting papers, the Commission alleges that, on March 20, 2003 the Commission issued a formal order of private investigation entitled In the Matter Neurotech Development Corporation, File No. B-01933 ("Formal Order"). The Formal Order directed certain Commission staff members to undertake a private investigation to determine if there were violations of the federal securities laws. According to the Commission's court papers, the Commission staff is investigating possible material false statements made by Neurotech in press releases and in periodic reports filed with the Commission that were signed by Artz.

According to the application, Commission staff issued subpoenas to Artz on March 20, 2003 and June 17, 2003 requiring him to produce documents relevant to the investigation. The Commission staff granted Artz's request for extensions of the subpoenas' return dates to July 11, 2003. As of July 17, 2003, the Commission alleges that Artz had not produced the responsive documents.

SEC Complaint in this matter

http://www.sec.gov/litigation/litreleases/lr18239.htm