Head of Ives Health Arrested Over Drug Claims

Ives Health Co. founder and President Keith Ives has been arrested on suspicion of federal securities fraud related to the company’s claims for a drug it sells to treat HIV, authorities said. Ives, 52, also faces counts of criminal violations of Food and Drug Administration regulations, said Marvin Smilon, spokesman for the U.S. attorney for the Southern District of New York. Last week, Bloomberg News reported that Robert Badeen, the Claremore, Okla.-based vitamin maker’s former vice president for research, said Ives had misrepresented a study he conducted to validate the effectiveness of the drug, T-Factor. The FDA never approved sale of the drug, which is made from the organs of freshly slaughtered calves. The drug is sold over the Internet. Ives was not immediately available for comment on Wednesday’s arrest. Trading in the company’s shares was halted last week.