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  • eight.ball63 Feb 15, 2013 4:54 AM Flag

    *** DD is Getting Interesting ***

    The U.S. Attorney for the District of Minnesota and the Chicago Regional Office announced that on October 31 a Federal District Court jury in Minneapolis, Minnesota found Michael L. Gruenberg guilty of 11 counts and Eugene I. Gruenberg guilty of 9 counts of criminal violations of the antifraud and reporting provisions of the federal securities laws in connection with their activities at Endotronics. Inc., a Minnesota corporation which manufactures cell culture instruments. The Gruenbergs were also convicted of numerous counts of wire and mail fraud.
    The Gruenbergs, who are former officers and directors of Endotronics. were indicted by a grand jury on July 26, 1989. The indictment alleged that from 1985 to 1987 the Gruenbergs engaged in a scheme to inflate Endotronics' instrument sales in order to artificially increase the market price of its stock. The indictment also charged the Gruenbergs, Endotronics and Robert A. Howe with multiple counts of wire and mail fraud. Endotronics and Howe pled guilty to some of the charges prior to trial. Previously, Endotronics consented, without admitting or denying the allegations of the complaint, to the entry of a permanent injunction against violations of the antifraud, reporting and accounting provisions in an action filed by the Commission inMay1988(SeeLR-17729,5/9/89). [U.S.v.MichaelL.Gruenberg,etal.,USDC,D. Minn., CR 4-89-108] (LR-l2692)

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