Star Scientific: No federal charges expected

AP News
Posted: Aug 09, 2013 1:47 PM

RICHMOND, Va. (AP) — The Virginia dietary supplement maker whose executive is at the heart of a political scandal involving Gov. Bob McDonnell is telling investors it doesn't expect to be prosecuted.

Star Scientific revealed in March it was cooperating with a federal investigation focused on transactions involving its securities since 2006.

In a regulatory filing Friday, the company disclosed that after an internal investigation and discussions with the U.S. Attorney's Office, it doesn't believe it will face prosecution for any matters that federal prosecutors had been investigating. Still Star Scientific said it cannot predict whether the ongoing investigation will result in legal action against any individual or entity.

State and federal investigators also are looking at loans and gifts company CEO Jonnie Williams Sr. gave to McDonnell's family.

The U.S. Attorney's office declined to comment.