Former biotech executive faces securities fraud charges
Wednesday, Feb. 17, 2016 | 2:43 p.m.
SACRAMENTO, Calif. — A former executive of a California biotech company faces federal conspiracy and fraud charges alleging that his actions misled investors.
An indictment unsealed Wednesday alleges that 47-year-old Hector Absi caused publicly traded Marrone Bio Innovations Inc. to falsely report that its revenue doubled from 2012 to 2013.
The Davis-based company develops and sells environmentally friendly pesticides.
Federal prosecutors say Absi hid unorthodox sales agreements and conspired with others to backdate deliveries to boost reported revenues. He received a performance-based bonus and exercised stock options based on the inflated figures.
The Securities and Exchange Commission filed a separate civil complaint against him.
FBI agents arrested Absi at his Las Vegas home Wednesday.
Absi resigned as the company's chief operating officer two years ago. He has not listed a defense attorney.