Media coverage reports that in late June, the U.S. Securities and Exchange Commission (SEC) charged former Pfizer Senior Statistical Program Lead, Amit Dagar, with insider trading. The SEC alleges that Dagar intentionally bought short-term stock options in Pfizer after learning through his position that Pfizer's clinical trials for the Covid-19 antiviral drug, Paxlovid, were successful.

The SEC is also charging Dagar's business partner, Atul Bhiwapurkar, who also purchased call options before Pfizer published the results of the trials. Once the company made the official announcement, Pfizer's stock rose by 11% that same day. The U.S. Attorney's Office of the Southern District of New York told reporters that the pair made over $350,000 profit from their illegal investments.

Dagar was charged with four counts of securities fraud and one count of conspiracy to commit securities fraud, and his business partner was charged with two counts of securities fraud and one count of conspiracy to commit securities fraud.

If you have been charged with securities fraud or any other white-collar crime in Pennsylvania, call an experienced white collar crime lawyer as soon as possible. Our Criminal Defense Team represents clients in Pennsylvania and has the necessary experience to build you a strong legal defense.

What Constitutes Insider Trading?

Insider trading is a form of securities fraud that occurs when someone with non-public information uses their insider knowledge to buy or sell a stock.

These individuals are typically employees who are privy to company knowledge before it is made public. They may alert friends, family members, or business partners to this knowledge as well. It is also common for investment bankers to share their knowledge on planned investments with others.

Insider trading violates federal securities laws that prohibit traders and investors from using private information for public gain.

What Are the Penalties for Insider Trading in Pennsylvania?

Insider trading laws are enacted to ensure that public stocks remain open and fair, and violations can result in severe consequences.

If convicted, individuals charged with criminal insider trading can face up to $5,000,000 in fines and 20 years in prison. Businesses can face up to $25,000,000 in fines.

If the charges are dealt with through a civil suit, and there are no criminal charges, violators can avoid prison time and face consequences in the form of fines.

You Need an Experienced White Collar Crime Lawyer

If you are facing insider trading charges or other white collar criminal charges, The LLF Law Firm's Criminal Law Team can help. Our Criminal Law Team has many years of experience aggressively defending clients charged with white collar offenses and will work tirelessly to reach the best outcome possible. Call 888.535.3686 or submit this online form to set up your consultation today.