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Philip Frost, a longtime biotech billionaire, was accused Friday of taking part in a pump-and-dump stock scheme that bilked investors out of $27 million.

The Securities and Exchange Commission charged Frost and nine others in connection with what it described as a scheme to buy up shares in penny-stock biotechs, illegally promote the companies online, and then sell their shares before the bottom fell out.

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  • Dr. Frost was 1 of 20 and he was involved in only one of the companies. The shares he sold were for $1,000,000 all the 4 others were for $26,000,000. This is more of the SEC needing a name to go after.

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