A U.S. court has entered a final judgment against a former Biovail Corp. executive over allegations of securities law violations, the U.S. Securities and Exchange Commission announced Wednesday.

The SEC reports that the U.S. District Court for the Southern District of New York entered a final consent judgment against John Miszuk, Biovail Corp.’s former vice president, controller and assistant secretary, concerning alleged violations of the federal securities laws in a civil enforcement action filed by the SEC in March 2008.

That complaint alleges, among other things, that in the second quarter 2003, Biovail and some of its executives, including Miszuk, “engaged in two separate accounting fraud schemes that resulted in Biovail materially misstating its financial statements by overstating its revenue and understating its loss for that quarter.” It also alleges that other senior Biovail executives and Biovail violated the antifraud, and other provisions, of the securities laws in connection with misstatements concerning a third quarter 2003 truck accident as well as a fraudulent scheme concerning an off-balance-sheet, research-and-development vehicle.

Miszuk consented to a final judgment that:
> permanently bans him from future violations;
> requires him to pay a civil penalty of $75,000; and
> bars him from serving as an officer or director of a public company for five years.

This settlement resolves all of the commission’s pending charges against Miszuk. The SEC has already settled its claims against another former Biovail executive, and the firm itself settled with the SEC, too. Biovail also settled allegations by the Ontario Securities Commission in 2009.

The SEC’s case against former Biovail chairman and chief executive officer, Eugene Melnyk, and former chief financial officer, Brian Crombie, remains pending. No allegations against them have been proven.

IE