CEO Pleads Guilty to Anthrax Hoax

Charles W. Kallmann, former chief executive of 37Point9 Inc., pleaded guilty to securities fraud for issuing false press releases about a spray the company claimed could protect against anthrax exposure.

Kallmann tried to bolster the shares of his company by taking advantage of public fears about anthrax and issuing releases touting the development of SurfaceShield, a spray he claimed could kill anthrax and other viruses, the U.S. Justice Department said.

Kallmann, who pleaded guilty to two counts of securities fraud, faces up to 10 years in prison for each count. Kallmann didn’t return a voicemail message left at Synergie Holdings Limited Inc. in San Diego, where he is chairman and CEO.

37Point9 changed its name last year to Global Medical Products Holdings Inc. and markets U.S.-made medical devices in China, said Doug Brown, president of the Laguna Hills-based company.