API Technology CEO Stephen Pudles said his firm had nothing to do with the prior owners and bought the assets from the bank.
Triosyn developed the technology for its anti-microbial masks through a series of earmarks sponsored by Sen. Patrick J. Leahy, Vermont Democrat and a senior member of the Senate Appropriations Committee.
Mr. Leahy, also a member of the defense appropriations subcommittee, sponsored at least $13.2 million in earmarks for Triosyn between 2000 and the end of 2004, during the period PMA was lobbying for the firm. PMA was paid $400,000 in fees and Mr. Magliocchetti bought 61,000 shares of Triosyn for $38,430, records show.
The Leahy earmarks helped Montreal-based Triosyn become the first biotechnology firm to open a manufacturing facility in Vermont, according to a 2002 press release from the senator’s office.
The company is on track to produce at least 2 million masks at its Williston, Vt., facility, and Triosyn Corp. is now part of Safe Life Corp.
Triosyn employees donated $13,100 to Mr. Leahy while Mr. Magliocchetti and people associated with PMA gave the senator another $6,500 in 2004.
Leahy spokesman David Carle said the senator’s office worked directly with Triosyn and PMA did not bring the company to them. He said the senator’s office had no knowledge of any stake Mr. Magliocchetti may have had in Triosyn.
Mr. Magliocchetti is still a Triosyn shareholder, said Safe Life spokeswoman Christie Huff. She said Mr. Magliocchetti bought his shares in 2003 through a private purchase from a minority shareholder and that the transaction was approved by the Triosyn board before it was processed.
Ms. Huff said no executive, employee or board member had stock transactions with Mr. Magliocchetti, adding that he paid the seller the fair market value what he and other investors had earlier paid for the shares.
Mr. Magliocchetti reported in his divorce filing that his 61,000 shares of Triosyn were worth $152,500 as of Jan. 31, 2004, nearly four times the $38,430 he originally paid for them. It is not clear what the shares are currently worth.
Triosyn stopped using PMA at the end of 2004. The firm has continued to get earmarks from Mr. Leahy.
Mr. Holman noted that Mr. Magliocchetti was hired to secure earmarks and then invested in the same firms.
“Clearly, he expected the earmarks to pay off for the startup company,” he said.
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