CEO of company in Va governor's scandal steps down

Published on NewsOK Modified: December 27, 2013 at 12:04 pm •  Published: December 27, 2013
Advertisement
;

RICHMOND, Va. (AP) — A troubled dietary supplement maker in Virginia will start next year off with a new leader after its chief executive stepped down Friday, a shakeup that comes as the company faced a federal investigation, shareholder lawsuits and a scandal involving Virginia's governor.

As previously announced last month, Star Scientific Inc. said CEO and founder Jonnie R. Williams Sr. and president Paul Perito resigned at its shareholders meeting in Washington, D.C., though each will stay on in some capacity for another year. Shareholders also voted to change the name of the Glen Allen, Va.-based company to Rock Creek Pharmaceuticals, a wholly owned subsidiary.

Dr. Michael Mullan, CEO of the private research center Roskamp Institute, replaced Williams following the meeting.

State and federal authorities are investigating Williams' relationship with Virginia's two top Republicans — Gov. Bob McDonnell and Attorney General Ken Cuccinelli. Both received thousands of dollars in gifts from Star Scientific and Williams. Separately, the company is facing a federal investigation regarding its securities and shareholder lawsuits alleging trumped up claims for its dietary supplement Anatabloc.

At the time of the announcement, the company said Williams and Perito recommended to its board that "significant leadership changes are needed to better leverage opportunities in pharmaceutical development."

Following the transition, Star Scientific has said it intends to accelerate plans to submit a new drug application with the Food and Drug Administration, as well as undertake clinical trials. It did not identify the drug.

Star Scientific had sold varieties of tobacco lozenges that dissolve in the mouth since 2001 but exited that business last year to focus on dietary supplements, including its Antabloc anti-inflammatory support product. Hall of Fame golfers Fred Couples and Nancy Lopez are ambassadors for the supplement.

The company had said the resignations were not related to any of the investigations. In August, the company said it doesn't expect to be prosecuted for "any of the matters" being investigated.

Mullan also heads Archer Pharmaceuticals Inc., which specializes in targeted drug discovery for Alzheimer's disease based on research done at Roskamp in Florida. He is a British researcher who previously headed an Alzheimer's research center at the University of South Florida. He has designed studies assessing the effect of the compound on mice.



Trending Now


AROUND THE WEB

  1. 1
    Best cities to launch a startup
  2. 2
    Drought-stricken California may restrict outdoor water use
  3. 3
    Eva Mendes, Ryan Gosling pregnancy sparks Twitter shock from fans - NY Daily News
  4. 4
    Advocates for blind, deaf want more from Apple
  5. 5
    World Cup Fan Scores Modeling Gig From Cheering
+ show more