Monday, November 19, 2012

Big Pharma execs charged

Drug Company Execs Charged With Insider Trading

NEWARK, N.J. (AP) -- Two New Jersey-based pharmaceutical company executives are among six people charged in what federal authorities are calling a five-year insider trading scheme.

John Lazorchak was director of financial reporting at Celgene Corp. and former boss Mark Cupo held a similar position at Sanofi-Aventis.

The U.S. attorney's office in New Jersey says that between 2007 and 2012, Lazorchak and Cupo passed privileged information on their companies' merger and acquisition plans, quarterly earnings results and regulatory applications to others who would make stock trades.

The scheme allegedly reaped $1.4 million.

Lazorchak, Cupo and the others are charged with conspiracy and multiple counts of securities fraud. Each securities fraud count carries a 20-year maximum prison sentence.

They were scheduled to appear in federal court in Newark Monday afternoon.

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