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Companies to stop claiming quick fixes for bioterrorism
WASHINGTON -- Federal securities regulators on Thursday accused three small companies of exploiting fears over anthrax, ordering them to stop making allegedly fraudulent claims that they had technologies to fight it.
The companies agreed to comply with the orders without admitting to or denying the allegations, the Securities and Exchange Commission said. No fines were imposed.
The SEC said two of the companies -- Disease Sciences Inc. of Boca Raton, Fla., and Classica Group Inc. of Lakewood, N.J. -- falsely said in news releases they had technologies that could kill anthrax in mail and packages. In fact, neither company had such a technology that had been tested or otherwise shown to be effective or economical, the agency said.
It said the third company, R-Tec Technologies Inc. of Flanders, N.J., falsely claimed it had developed and patented the first mechanically operated system designed to protect people from biological and chemical attacks.