KY biopharmaceutical executives indicted, accused of lying about FDA approval
Two men who owned and operated a Lexington biopharmaceutical company investigated by the FBI were indicted last week on federal charges of wire fraud after prosecutors say they stole millions worth of investor funds for a cancer treatment drug.
Michael Putnam and Louis A. “Buzz” Carmichael, were indicted Feb. 5 on charges of conspiracy to commit wire fraud and wire fraud, according to court documents.
The two men operated CBA Pharma in Lexington since 1999 to develop a drug called CBT-1, designed to make chemotherapy treatments more effective.
Putman was the founder of CBA Pharma and Carmichael served as the president, according to the indictment.
Despite the drug’s failure to get approval from the Federal Drug and Food Administration over two decades, Putnam and Carmichael encouraged investors to contribute more money under the impression the drug was expected to generate $1 billion in revenue.
Men promote drug despite lack of FDA approval
CBA Pharma submitted a new drug application for CBT-1 to the FDA in 2010. The government “refused to file” due to inadequacies in the application’s filing, according to court documents. The federal agency denied the application again in 2012 and 2013.
One of the major deficiencies was CBA Pharma failed to establish the drug’s efficacy for its intended use to enhance chemotherapy treatments.
For more than a decade, CBA Pharma did not address any “shortcomings” outlined by the FDA and never completed another drug trial.
In February 2023, the FDA said it was going to withdraw the pending drug application.
During this same time, the men and “other unknowns” touted the drug’s success to investors, according to the indictment.
Putman and Carmichael asked for investments through a “royalty program” and told investors they would be reimbursed 50% while the drug was being developed, according to the indictment.
“Putnam and Carmichael regularly communicated with current and prospective inventors and made a variety of representations about CBA Pharma’s activities and prospects for financial success,” the indictment reads.
This included “enthusiastic claims about CBT-1’s efficacy,” and making “misleading claims about the likelihood of FDA approval.”
For example, in 2023 and 2024, they sent an email to investors that said “CBA has done a remarkable job of shepherding CBT-1 through the FDA drug development process.”
“CBT-1 is on course to be first-in-class as the first multidrug resistance modulator ever approved by the FDA,” the email read.
FBI investigation, other indictments
The FBI announced it was investigating CBA Pharma in February 2024. The company is no longer operating at its former Perimeter Drive location in Lexington.
Investigators llater discovered CBA Pharma was selling a product called “Brightstar,” which contained the same active ingredient as CBT-1.
“Brightstar” was marketed as a dietary supplement after the FDA denied the drug for cancer-treatment use, on grounds the company hadn’t proven its effectiveness.
Angela Henson, CBA Pharma’s executive administrator, was indicted and plead guilty in August to a federal misdemeanor of introduction of an unapproved new drug into commerce.
CBA Pharma sold Brightstar as a “dietary supplement” rather than a drug, court documents state.
The company sold bottles of Brightstar capsules through internet orders for $625.
Henson was a primary point of contact for customers who purchased Brightstar, and she personally packaged and shipped bottled in Kentucky and out of state.
The Lexington woman told customers the drug was used to treat cancer and COVID-19, and she provided direction about the dosage customers should take, according to the plea agreement.
This story was originally published February 9, 2026 at 10:48 AM.
