NJ Pharma Executive Linked to $38M Insider Trading Scheme: Prosecutors
r approval of a drug to treat COVID-19 called Lenzilumab,” the DOJ alleges.
According to prosecutors, Humanigen announced plans to seek emergency-use authorization for the COVID-19 medication in March. Subsequently, the company was informed that the FDA was unlikely to grant that request in the following months. It is during this time that Chappell is accused of using this nonpublic information to sell off stocks before their value dropped by around 50%.
The 54-year-old suspect was arrested in Switzerland on Friday and is expected to be extradited to New Jersey to face charges. If convicted, Chappell could face serious penalties, including up to 25 years in prison for securities fraud and a maximum 20-year sentence for insider trading.
In addition to serving on Humanigen’s board of directors, Chappell held the position of the company’s chief scientific officer.
Insider trading is a serious crime that undermines the integrity of financial markets and is punishable by law. It’s crucial for investors to stay informed about the laws and regulations surrounding securities trading to avoid getting involved in illegal activities. Stay tuned for updates on this case as more information becomes available.
