Former FDA Chemist Charged with Insider Trading
Former FDA Chemist Charged with Insider
Trading
A chemist who used to work for the US Food and Drug Administration and his son have been arrested and charged with illegally earning at least $3 million by trading based on nonpublic information related to drug-approval applications.
57 year-old Chen Yi Liang and 25 year-old Andrew Liang have been charged with conspiracy to commit securities and wire fraud, according to a statement released by the Justice Department on Wednesday. The Securities and Exchange Commission, which has filed a separate civil claim against the pair, says the elder Liang made some $3.6 million by trading 19 stocks leading up to 27 FDA approval decisions since 2006.
Liang, who was working for the FDA's Center for Drug Evaluation and Research, violated his charged duty as a federal worker, which is not to engage in financial transactions benefiting from nonpublic information and not to use such info for personal gain, the SEC says. The agency is seeking disgorgement of Liang's ill-gotten profits and fines of unspecified amounts.
“The insider trading laws apply to employees of the federal government just as they do to Wall Street traders, corporate insiders, or hedge fund executives,” said Daniel Hawke, who heads up the SEC's market abuse unit. Both the Justice Department's and SEC's investigations are still ongoing.
According to a source familiar with the case, Liang traded in several smaller developmental drugmakers, firms whose stock could climb sharply based on an FDA approval. Liang earned more than $1 million trading shares of Vanda Pharmaceuticals Inc, a drug company whose stock surged more than 600 percent the day after FDA cleared its schizophrenia drug Fanapt in May 2009, according to documents filed in the Justice Department case.
A chemist who used to work for the US Food and Drug Administration and his son have been arrested and charged with illegally earning at least $3 million by trading based on nonpublic information related to drug-approval applications.
57 year-old Chen Yi Liang and 25 year-old Andrew Liang have been charged with conspiracy to commit securities and wire fraud, according to a statement released by the Justice Department on Wednesday. The Securities and Exchange Commission, which has filed a separate civil claim against the pair, says the elder Liang made some $3.6 million by trading 19 stocks leading up to 27 FDA approval decisions since 2006.
Liang, who was working for the FDA's Center for Drug Evaluation and Research, violated his charged duty as a federal worker, which is not to engage in financial transactions benefiting from nonpublic information and not to use such info for personal gain, the SEC says. The agency is seeking disgorgement of Liang's ill-gotten profits and fines of unspecified amounts.
“The insider trading laws apply to employees of the federal government just as they do to Wall Street traders, corporate insiders, or hedge fund executives,” said Daniel Hawke, who heads up the SEC's market abuse unit. Both the Justice Department's and SEC's investigations are still ongoing.
According to a source familiar with the case, Liang traded in several smaller developmental drugmakers, firms whose stock could climb sharply based on an FDA approval. Liang earned more than $1 million trading shares of Vanda Pharmaceuticals Inc, a drug company whose stock surged more than 600 percent the day after FDA cleared its schizophrenia drug Fanapt in May 2009, according to documents filed in the Justice Department case.
Comments
Top Stories
Latest DT's
-
1 month ago by Geno -
1 month ago by dallaseste
-
1 month ago by Geno
-
1 month ago by Geno
-
1 month ago by Geno
-
1 month ago by Geno
-
1 month ago by Geno
-
1 month ago by Geno
-
2 months ago by dallaseste
Top Authors
Subscribe
Games
Alias
3 Foot Ninja 2
ALIAS 2
Air Dodge
Battle Tanks
Bomber Bob
Cable Capers
Gem Mania
Hacker
Hostile Skies
Mission Mars
Bowling
Samurai Warrior
The Pharoh's Tomb
Monkey Lander
Muay Thai
Action
Donkey Kong Banana Barrage
501 Dart Challenge
Rooftop Skater
Zelda
Donkey Kong
Xtreme Pinball
Tetris
Connect 4
Battleships
Frogger
Penguin Push
Online Video Poker
Spank The Monkey
Mob Pay Back
Dealer
Yeti Sports Seal Bounce
Hold Your Drink Steady
Solitaire
Canyon Glider
3D Sudoku
Metal Slug Rampage
Street Fighter II
Flashman
Disc Golf
Table Tennis
Ninja Air Combat
Celebrity Hitman Terrorist Alert
Spider Solitaire
Tubin
Presidential Knockout
Global Player
Ma Balls
Baseball
Beckham Fit
0 Comments
Click here to sign up now.