However, the $1,000,000 IMPATH paid Dr. Berkowitz for Physician Choice, Inc. was
not well-spent from the point of view of their investors. It is now known (see
below) that the income of the company continued to lag expectations and this
knowledge was deliberately kept from the public.
On February 10, 2003, the CEO of the company, Dr. Anu Saad, resigned abruptly. On July 30 of the same year, the company announced that they were "investigating possible irregularities involving overstated accounts receivable…" This roiled the stock market since it was now obvious that the earnings per share IMPATH had been claiming were grossly overstated. Trading in the stock was halted.
There are now numerous class action suits in the Federal Courts over securities fraud by IMPATH. One such suit can be accessed at http://www.a-g-s.com/download/impathcomp.pdf.
The Bill of Particulars describes how IMPATH recklessly and knowingly misled the public about their business in order to inflate their stock price. It states (p. 38), "The ongoing fraudulent scheme described in this complaint could not have been perpetuated over a substantial period of time, as has occurred, without the knowledge and complicity of the personnel at the highest level of the Company, including the Individual Defendants." Dr. Berkowtiz is not one of the defendants at this point. After leaving IMPATH, he briefly emigrated to Israel where he was a 1981 graduate of Yeshivat Har Etzion. He has since returned to the United States as Chief Executive Officer of HaptoGuard, Inc., a biopharmaceutical company in New Jersey.
The reader of "Noah Berkowtiz, M.D. – The NIH Years" will see that Dr. Berkowitz
was most likely also part of the "scheme" to defraud the Public. Dr. Berkowitz joined IMPATH just shortly after completing his studies at the National Cancer Institute. Yet he is presented to the public as a seasoned, independent researcher and businessman earning
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