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Justice News

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

FOR IMMEDIATE RELEASE
Wednesday, May 23, 2018

Former Chairman of Boston-Based Biomedical Company Pleads Guilty to Making False Statements

BOSTON – The former chairman of a Boston-based biomedical company, previously called Endeavor Power Corp., pleaded guilty today to making false statements to the U.S. Securities and Exchange Commission (“SEC”) in connection with the SEC’s investigation into a scheme to defraud the market for Endeavor’s publicly traded stock.  

Edward Withrow III, 53, of Malibu, Calif., pleaded guilty to one count of making false statements. In October 2015, Withrow and Marco Babini, 57, who is believed to reside in Vancouver, Canada, were charged in an indictment.  Babini remains at large as a fugitive and is charged with one count of conspiracy, one count of securities fraud and two counts of wire fraud.

By March 2013, the SEC had suspended trading in the securities of Endeavor, but they continued to investigate through at least August 2013.  Withrow provided sworn testimony to the SEC relating to questions about who owned approximately 40 million unrestricted shares of Endeavor’s stock (i.e., shares that can be freely bought and sold in the securities market), and whether Withrow ever tried to determine who owned those shares. During today’s plea hearing, Withrow admitted that he misled the SEC about his knowledge of these Endeavor shares—most of which had been stashed in Switzerland—and Babini’s association with those shares.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The criminal case is being prosecuted by SEC Attorney Eric A. Forni, who was appointed as a Special Assistant U.S. Attorney.

The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Topic(s): 
Securities, Commodities, & Investment Fraud
Component(s): 
Updated May 23, 2018