Advanced Cell Technology (OTC:ACTCD) and former Gary Rabin are on the hook for hundreds of thousands in fines after federal investigators charged them with defrauding investors.

The Securities & Exchange Commission announced today that it charged Rabin and ACT with failing to report Rabin’s stock sales during his years in the corner office. Rabin took over as chairman, CEO and CFO of ACT in 2010, after which he "repeatedly failed to report his sales of company stock for the next few years," according to the SEC statement.

Rabin failed to report 27 instances of sales amounting to $1.6 million worth of ACT stock, investigators said. Rabin and ACT neither admitted or denied any wrongdoing in settling the charges.

"It’s not merely a technical lapse when executives fail to report their transactions in company stock, because investors are consequently denied important and timely information about how an insider is potentially viewing the company’s future prospects," SEC Los Angeles regional office director Michele Wein Layne said in prepared remarks. "Instead of reporting his numerous company stock sales within 2 days as typically required, Rabin waited more than 2 years and compromised Advanced Cell Technology’s financial reporting obligations."

Rabin, who resigned his post earlier this year, was ordered to pay a $175,000 penalty and ACT owes $375,000, the SEC said.

ACT is a clinical stage biotech company developing regenerative and cell therapy technologies. It’s flagship product is a dry age-related macular degeneration treatment that is currently in clinical trials.

ACTCD shares took a hit today, dropping 5.2% to trade at $11.11 as of about 2:20 p.m. EST.