WCAV-WVAW-WAHU | Charlottesville, Virginia | News

Star Scientific: No Federal Charges Expected

By: AP
By: AP

Star Scientific doesn

http://www.starscientific.com/

August 9, 2013

RICHMOND, Virginia (AP)— The Virginia dietary supplement maker whose executive is at the heart of a political scandal involving Governor Bob McDonnell told investors Friday it doesn't expect to be prosecuted.

Star Scientific revealed in March it was cooperating with a federal investigation focused on transactions involving its securities since 2006. In a U.S. Securities and Exchange Commission filing on Friday, the company disclosed that after an internal investigation and discussions with the U.S. Attorney's Office, it doesn't believe it will face prosecution for "any of the matters" being investigated.

A company spokeswoman declined to comment further and would not provide any more details of the internal investigation. The U.S. Attorney's office also declined to comment.

Still, Star Scientific said in its filing that it cannot predict whether the ongoing investigation will result in legal action against any individual or entity.

State and federal investigators also are looking at loans and gifts company CEO Jonnie Williams Sr. gave to McDonnell's family.

McDonnell recently repaid nearly $125,000 in undisclosed loans from Williams. The governor also has said he will repay other undisclosed gifts from Williams, including a $6,500 Rolex watch. McDonnell's daughters have repaid wedding gifts the businessman gave them totaling $25,000, the governor said.

Investigators are looking into whether Williams or his company received anything in return for the gifts and loans. McDonnell has said they received no special treatment. He says he didn't initially report the gifts or loans because it wasn't required under Virginia's financial disclosure laws.

Star Scientific also is facing shareholder lawsuits, alleging trumped up claims for its anti-inflammatory supplement called Anatabloc. The company said Friday it intends to defend the claims "vigorously."


The comments sections of Newsplex.com are designed for thoughtful, intelligent conversation and debate. We want to hear from our viewers, but we ask that you follow our rules for commenting. E-mail is required to comment on a story, but it will not be displayed with your comment. For complete rules, CLICK HERE. The Newsplex reserves the right to not post or to remove any comment.
powered by Disqus
The Charlottesville Newsplex 999 2nd Street S.E. Charlottesville, VA 22902 434.242.1919 – Main 434.220.7522 - Newsroom
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 219033711 - newsplex.com/a?a=219033711