Veteran Bay area biotechnology executive Dr. W. Scott Harkonen was indicted Tuesday on charges that he fraudulently promoted the drug Actimmune for a fatal lung disease while he was the chief executive for the drug's manufacturer, Intermune Inc. of Brisbane.

Harkonen, who is now chief executive of the South San Francisco biomedical company CoMentis Inc., was accused by a federal grand jury in San Francisco in a two-count felony indictment for wire fraud and marketing violations.

The former Intermune CEO is accused of creating a market for Actimmune that reached $141 million in 2003 by falsely claiming through news releases and sales campaigns that the drug substantially reduced the death rate for patients with idiopathic pulmonary fibrosis, a progressive scarring of the lungs. The drug, which cost $50,000 a year, had actually failed to show such benefits in clinical trials, according to federal prosecutors.

The criminal case is part of a drive in recent years by both state and federal prosecutors to crack down on company promotion of their drugs for off-label uses - that is, for diseases not indicated on a drug's FDA-approved label. Actimmune is approved for two rare diseases afflicting children, but the Food and Drug Administration never approved it for idiopathic pulmonary fibrosis. In general, companies have been forbidden to market medicines for unapproved uses, though doctors are legally free to prescribe drugs off-label if they think scientific evidence warrants it.

Harkonen's attorney James Brosnahan said his client denies government allegations that he set sales goals for Intermune's drug representatives to drum up Actimmune prescriptions to treat the lung disease. Brosnahan said Harkonen is innocent of all the allegations, including claims that he intentionally misrepresented the drug's benefit to lung patients in promotional materials sent to doctors and individual patients.

"The press release simply reflected the findings in a study that was done," Brosnahan said.

The indictment alleges that Harkonen himself was the author of a widely distributed 2002 news release that claimed Actimmune produced a 70 percent reduction in mortality for certain patients. That claim was based on an analysis of a subset of clinical-trial subjects tested, federal prosecutors said. The FDA had told the company that analysis did not support approval of Actimmune for the lung disorder, according to the indictment.

In 2006, Intermune agreed to pay $37 million to settle the government's civil case related to Actimmune's marketing. In a statement Tuesday, Intermune emphasized that the new indictment is not aimed at the company, but at Harkonen, who left in 2003.

CoMentis' board declined to comment on the indictment, but stood by Harkonen.

"Dr. Harkonen is providing able and strong direction to CoMentis and the company's board of directors and executive management team support him," the company said in a statement.

If convicted, Harkonen would face a maximum sentence of 23 years in prison and $500,000 in fines, the U.S. attorney's office in San Francisco said. He is scheduled for arraignment before a federal magistrate March 28.

E-mail Bernadette Tansey at btansey@sfchronicle.com.

This article appeared on page C - 1 of the San Francisco Chronicle

GI Beckham reporting for duty: David set for 100th cap after winning England squad recall

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David Beckham will have a chance to claim his 100th England cap after being named today in the provisional squad to face France next Wednesday.

The former England captain was gutted when Fabio Capello failed to select him for his debut game as manager against Switzerland last month.

But the Italian has remained true to his word after promising Beckham's playing days for England were not over and has selected him as part of the initial 30-man squad for next week.

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David Beckham's new hairstyle mirrors Jake Gyllenhaal's crew cut in the 2005 film Jarhead

Becks has been battling back to match fitness and Capello's assistant, Franco Baldini, was impressed after travelling to Dallas to talk with LA Galaxy coach Ruud Gullit last week.

The player received the news after presenting a lifetime achievement award to Pele a fundraiser in New York to benefit Harlem Youth Soccer.

Arriving at Gotham Hall with a GI haircut seemingly borrowed from Jake Gyllenhaal's character in Iraq war movie Jarhead, he said: "For me to be here to present this to the greatest sportsman of all time, I feel particularly honoured."

"This absolutely is a highlight moment for me."

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David Beckham presented a lifetime achievement award to soccer legend Pele at the benefit event in New York

If he picks up his century of caps against France after being marooned on 99, the game will also rank as a major moment in the player's career - even though the match is only a friendly.

First though, the 33-year-old has to survive the trimming of the squad, which will be cut to 23 after the weekend games.

Beckham, who temporarily fell out with Capello when the two were at Real Madrid, cannot be guaranteed his place.

However, it seems likely he will want to put the fuss of Beckham's 100 caps behind him without the pressure of having to win a competitive fixture.

Becks dined at Nobu in New York before his appointment, but wife Victoria sat the trip out.

She was last spotted sneaking into a taping of America Idol with her three sons in tow in LA on Tuesday night.

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Beckham was proud to be captain of England but his last appearance was in the 2-1 defeat at Wembley by Germany

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