MIAMI – South Florida businessman Phillip Frost was among a large group charged Friday with fraudulent stock sales by the Securities and Exchange Commission.
During a five-year period from 2013 to 2018, Frost and nine associates manipulated the share price of the stock of three companies, generating over $27 million, according to the SEC.
Frost is accused of taking part in two of the three schemes led by Barry Honig.
The group acquired large amounts of stock at deep discounts, then illegally promoted and manipulated trading to boost the price. Once the market price was inflated, the SEC charges the group dumped their shares into the inflated market.
The SEC claims Frost, the founder of pharmaceutical company OPKO, and the group reaped millions off unsuspecting investors.
“As alleged, Honig and his associates engaged in brazen market manipulation that advanced their financial interests while fleecing innocent investors and undermining the integrity of our securities markets,” said Sanjay Wadhwa of the SEC.
The names of Frost and his wife Patricia are on the new Museum of Science in Downtown Miami, as well as the art museum on the campus of Florida International University.
The Frost family donated $35 million to the construction of the science museum, with an additional $10 million for the construction of a planetarium.
"The museum has no information to share and no further comment at this time. Museum operations are continuing as normal." a museum spokesperson said in a statement. "We are extremely grateful for the support of Dr. Phillip and Patricia Frost who have been generous to so many in the South Florida community."
Frost also serves on the board of trustees at the University of Miami.