The co-founder of Enochian Biosciences Inc (NASDAQ:ENOB) was arrested Wednesday following a two-year investigation into a man who was kidnapped and found dead in January 2018.
What happened: Dr. Serhat Gumrukcu, co-founder of Enochian Biosciences, is being charged with conspiring to use interstate commerce facilities in the commission of murder-for-hire, which resulted in the death of Gregory Davis, a resident of Vermont.
Gumrucku, alongside another man, Berk Eratay, hired Jerry Banks to kidnap Davis from his home in Vermont on Jan. 6, 2018, according to the Department of Justice.
Davis was found dead in a snowbank several miles from his home the next day. While Banks has not been formally charged with the murder of Davis, it is alleged that Banks did, in fact, murder Davis.
If convicted of the federal grand jury charges against them, Gumrukcu and Eratay face mandatory life in prison or the death penalty.
Shares of the company’s stock plummeted 38.8% on the news.
A company update: The board of directors at Enochian provided an update following the arrest of the company's co-founder.
The incident occurred before the company's merger, and the company's rights to Gumrukcu's scientific discoveries are unchanged, Enochian said.
Gumruckcu has had no formal role in the company of late, according to Enochian. The company announced the appointment of Greg Alton, former interim CEO and general counsel of Gilead Sciences (NASDAQ:GILD), as its lead independent board member.
