U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19446 / October 28, 2005

SEC v. International BioChemical Industries, Inc. and Timothy Moses, Case No. 1:03-CV-0346-JTC (N.D.GA).

FORMER PRESIDENT AND CEO OF NORCROSS, GEORGIA BIOTECH COMPANY CONVICTED OF SECURITIES FRAUD AND PERJURY

On October 27, 2005, a federal jury in Atlanta, Georgia convicted Timothy C. Moses of securities fraud and perjury. U.S v. Timothy C. Moses, Case No. 1:04-CRT-508-CAP (N.D.Ga.) Moses is the former Chairman, CEO and President of International BioChemical Industries, Inc. ("IBCL"), a publicly-held biotechnology company based in Norcross, Georgia that, prior to its bankruptcy in 2004, manufactured and sold antimicrobial products used as disinfectants.

The Commission previously sued Moses and IBCL, and suspended trading in IBCL's stock, in February 2003, after Moses issued a series of press releases that falsely suggested that the federal government was interested in buying IBCL's anthrax remediation product. In truth, the FBI had contacted IBCL solely for investigative reasons, trying to ascertain whether IBCL or any of its personnel had access to anthrax spores or whether the company could benefit commercially from future anthrax contaminations. Moses' press releases led to a sharp increase in IBCL's stock price, with over 118 million shares being traded over the six days following the first press release, causing approximately $2.2 million of investor losses. .During this time, Moses dumped approximately 1 million of his IBCL shares.

In the Commission's lawsuit, the Court entered consent orders on February 21, 2003 that permanently enjoined IBCL and Moses from violating the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and required Moses to disgorge his ill-gotten gains. The Commission referred the case to the U.S. Attorney's Office for the Northern District of Georgia for possible criminal prosecution after Moses perjured himself in his deposition. Specifically, Moses testified that he was unaware that the sales of his IBCL shares had occurred, claiming that he had given his broker discretion to sell those shares.

Related Litigation Releases:

No. 17971 / February 6, 2003
No. 17991 / February 21, 2003

http://www.sec.gov/litigation/litreleases/lr19446.htm