It's funny how much a Seattle-area biotech company and its actions have a lot in common with a con man, three cards, and a cardboard box.

Have you ever played Three Card Monte? It's a card-game scam, typically run in alleys and side streets, played on top of a box so the dealer can cut and run at any sign of trouble.

If you have played the game, you are probably a little poorer for the experience. You would know that the fix was in - the dealer had the inside knowledge about the game that you didn't. That knowledge helped the dealer walk away with your hard-earned cash.

Interestingly, there are a lot of similarities between Three Card Monte and some recent developments with local CellCyte Genetics.

If you go back a few months, you may remember that we filed a lawsuit on behalf of shareholders against CellCyte. The investors claim in the action that the biotech company blatantly lied about two critical facts.

First, the suit claims that CellCyte intentionally misled the public about the scope of the company's research, and its progress surrounding stem-cell research. The suit goes on to detail how the company hired companies to tout the stock through newsletters and other communications, all including false information, some bordering on supermarket tabloid-level claims.

The second major claim is that the company lied about the qualifications of its CEO Gary Reys. Local media cited discrepancies in his education and professional credentials relating to Reys' finance degree from the University of Washington, a CPA designation, and ties to the Washington Society of Certified Public Accountants.

Once The Seattle Times and Seattle Post-Intelligencer reported these issues, the company's stock began to plummet. This week, we learned that the company is shutting its doors.

Was CellCyte a stock-market version of the card-game scam? We are very much looking forward to getting Reys and his cohorts under oath so we can find out.

For more on this case, please visit hbsslaw.com and come back to this blog for updates.