The Securities and Exchange Commission has charged Phillip Frost, non-executive chairman of Ladenburg Thalmann Financial Services, with fraud in connection to an alleged “pump-and-dump” scheme. He was charged alongside nine other defendants, as well as related businesses and entities. The alleged schemes generated millions for the defendants while leaving retail investors “holding virtually worthless stock,” according to the SEC.
Philip Frost is also the Chief Executive Officer and board chairman of OPKO Health and a noted investor in biotechnology. Ladenburg Thallman is a network of independent broker-dealer firms such as Securities America, Triad Investors, and Investacorp.
The SEC’s complaint alleges that Mr. Frost was part of “a group of prolific South Florida-based microcap fraudsters led by Barry Honig” who participated in the manipulation of the share price of three companies’ stock; Mr. Frost allegedly participated in two of the three schemes. His co-defendants include Barry Honig, John Stetson, Michael Brauser, John O’Rourke III, Mark Groussman, John Ford, Alpha Capital, Anstalt, ATG Capital, Frost Gamma Investments, Trust, GRQ Consultants, Grander Holdings, Melechdavid, OPKO Health, Southern Biotech, and Stetson Capital Investments.