Miami Billionaire, Museum Donor Phillip Frost Settles Fraud Complaint

A Miami biotech billionaire with his name on the city's science museum says he has reached an agreement with the Securities and Exchange Commission to settle a civil complaint of stock fraud.

Phillip Frost and OPKO Health were charged in September in long-running fraudulent schemes that generated over $27 million from unlawful stock sales and caused significant harm to retail investors who were left holding virtually worthless stock.

The 82-year-old CEO told the Miami Herald he had agreed to pay a $5.5 million penalty. He also agreed to a ban, with certain exceptions, on trading in penny stocks. OPKO agreed to pay a $100,000 penalty.

A court still must approve the settlement.

Frost and his wife donated $45 million to Miami's Phillip and Patricia Frost Museum of Science.

Copyright AP - Associated Press
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