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Justice News

Department of Justice
U.S. Attorney’s Office
District of Colorado

FOR IMMEDIATE RELEASE
Tuesday, November 22, 2016

Colorado U.S. Attorney's Office Launches Web Page for Victims of FusionPharm

FUSIONPHARM, INC. (OTC Ticker Symbol: FSPM)

DENVER – Acting U.S. Attorney Bob Troyer announced that his office has launched a website for victims of the FusionPharm fraud.  The website, www.justice.gov/usao-co/fusionpharm-us-v-sears-and-dittman, is for anyone interested in the prosecution of FusionPharm, specifically, defendants, William Sears, age 50 of Thornton, Colorado, and Scott Dittman, age 47, now of Boyertown, Pennsylvania, and formerly of Elizabeth, Colorado.  Both were charged by Information on September 16, 2016, and were charged with Conspiracy to Defraud the U.S. as part of a scheme to defraud the U.S. Securities Exchange Commission.  Sears has pled guilty to the crimes and is scheduled to be sentenced on April 25, 2017.  Dittman has filed a notice of disposition, and a change of plea hearing, originally set for early November and now reset due to change in defense counsel is pending. 

FusionPharm’s principal business was the development, manufacture and sale of steel shipping containers retrofitted and refurbished for use as hydroponic growing pods, branded as “PharmPods,” for indoor plant cultivation, primarily cannabis.  As set forth in court documents, the United States has alleged that, beginning as early as in or about March 25, 2011 and continuing at least through in or about May 15, 2014, the defendants knowingly and willfully conspired to commit securities fraud and wire fraud through FusionPharm, Inc.  Specifically, defendants Sears and Dittman reported to the public that certain sales transactions and revenues for FusionPharm had occurred when, in fact, they had not.

The United States has further alleged that Sears and Dittman would falsely represent to FusionPharm’s transfer agent and to broker-dealers that neither Sears nor companies related to him was an affiliate or control person of FusionPharm, thereby allowing Sears’ and the related companies’ FusionPharm shares to be treated as unrestricted securities that could be immediately sold in the public securities markets under the ticker symbol FSPM.

Topic(s): 
Financial Fraud
Component(s): 
Updated November 22, 2016