MONTEREY, Calif. (CN) - The Monterey County district attorney sued BioBancUSA, its founder Robert Hayner, and treasurer James Swallow, alleging violations of state Health and Safety and Business and Professions Codes. BioBancUSA offering cryogenic banking of umbilical cord blood and white blood cells.
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The state accuses BioBancUSA of engaging in false advertising by, among other things, advertising state-of-the-art umbilical cord blood and white blood cell cryogenic storage services on its website and enrolling new patients after it had ceased operations.
Despite having no license or medical training, Hayner and Swallow continued caring for the specimens in the BioArchive for nearly a year before transferring them to Family Cord, a blood bank in Southern California, the states says. It says the specimens were transferred on Aug 1, 2011.
It also violated quality control policies established by the American Association of Blood Banks, such as not having enough qualified staff and failing to maintain their specimen storage equipment, the complaint states.
The state seeks $267,500 in civil penalties and $50,000 for the costs of suit, including investigation. It also seeks a permanent injunction forcing the firm to inactivate the BioBancUSA website, and "refrain from reactivating the CordBancUSA.com web site."
Monterey County District Attorney Dean Flippo filed the complaint.
Details info: www.courthousenews.com
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