{"id":6007,"date":"2016-07-08T00:00:00","date_gmt":"2016-07-08T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2016\/07\/insider_trading_news_hedge_fun"},"modified":"2022-05-18T15:04:08","modified_gmt":"2022-05-18T20:04:08","slug":"insider-trading-news-hedge-fun","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/insider-trading-news-hedge-fun\/","title":{"rendered":"Insider Trading News: Hedge Fund Managers Charged in $32M Scam, Ex-Software Executive and Friends Are Accused of Making Over $500K, and Broker and Friend Allegedly Illegally Traded in Pharmaceutical Stocks"},"content":{"rendered":"

Hedge Fund Managers and an Ex-Government Official Face SEC Charges<\/strong>
\nThe U.S. Securities and Exchange Commission has filed insider trading charges in a $32M insider trading scam. According to the regulator, hedge fund manager Sanjay Valvani unlawfully made almost $32M in profits for hedge funds that invested in healthcare securities because he was privy to insider tips given to him by Gordon Johnston, who used to work at the Food and Drug Administration. <\/p>\n

Johnston was no longer at the FDA when he purportedly gave Valvani the insider information, he but still had ties with former colleagues who worked there. He had gone on to work for a trade association that represents generic drug distributors and manufacturers but hid that he also worked as a hedge fund consultant and had access to confidential information about expected FDA approvals for certain companies to be able to make enoxaparin, which is generic drug that helps stop blood clots from forming. <\/p>\n

Valvani would then trade before announcements about these approvals became public. The SEC further contends that he would share his tips with hedge fund manager Christopher Plaford, who purportedly made about $300K by insider trading in hedge funds. Plaford also is named in a separate insider trading case.\n <\/p>\n

Pharmaceutical Employee and Broker Accused of Insider Trading<\/strong>
\nThe SEC says that two Rhode Island men made about $448K in illegal profits for themselves and others while insider trading in the stocks of certain pharmaceutical companies. Michael J. Maciocio, who used to work as a planner for Pfizer, used his access to confidential business and clinical information about other pharmaceutical firms that his former employer was thinking of acquiring, or of becoming involved in business relationships with, to trade in the other companies\u2019 stocks. <\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Hedge Fund Managers and an Ex-Government Official Face SEC Charges The U.S. Securities and Exchange Commission has filed insider trading charges in a $32M insider trading scam. According to the regulator, hedge fund manager Sanjay Valvani unlawfully made almost $32M in profits for hedge funds that invested in healthcare securities because he was privy to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3811],"tags":[],"class_list":["post-6007","post","type-post","status-publish","format-standard","hentry","category-insider-trading"],"yoast_head":"\nInsider Trading News: Hedge Fund Managers Charged in $32M Scam, Ex-Software Executive and Friends Are Accused of Making Over $500K, and Broker and Friend Allegedly Illegally Traded in Pharmaceutical Stocks — Investor Lawyers Blog — July 8, 2016<\/title>\n<meta name=\"description\" content=\"Hedge Fund Managers and an Ex-Government Official Face SEC Charges The U.S. Securities and Exchange Commission has filed insider trading 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