Former Vice President of a pharmaceutical company in San Diego admits to securities fraud by engaging in insider trading
A former vice president of a pharmaceutical company in San Diego has pleaded guilty to securities fraud for insider trading. George Demos, who used to work for Acadia Pharmaceuticals Inc., confessed to selling more than 60,000 shares of the company just before news surfaced about an issue with one of the products.
The case revolved around the company’s efforts to have its drug Pimavanserin, also known as Nuplazid, approved for the treatment of dementia-related psychosis in addition to Parkinson’s disease psychosis. The company had submitted an application to the FDA for approval of the expanded label. However, when Demos became aware that discussions regarding this matter had hit a roadblock, he swiftly sold off his shares, raking in over $2.8 million while avoiding a loss of $1.3 million.
Coincidentally, less than two hours after Demos sold his shares, the company released a press statement detailing the challenges encountered in the FDA application process. The timing of Demos’ stock sale and the subsequent release of the press statement raised suspicions of insider trading, ultimately leading to his guilty plea on securities fraud charges.
In light of his guilty plea, George Demos is scheduled to be sentenced in May. As part of his plea agreement, Demos has agreed to forfeit the $1.3 million in profits he made from the illegal stock sale. This move is in line with the legal consequences typically faced by individuals found guilty of insider trading and securities fraud.
Insider trading and securities fraud are serious offenses that can lead to significant financial penalties and potential jail time. The case involving George Demos serves as a reminder of the legal and ethical boundaries that individuals in positions of power within corporations must adhere to. Any breach of these boundaries can have severe consequences, not only for the individuals involved but also for the reputation and integrity of the companies they represent.
In conclusion, the case of George Demos, the former vice president of Acadia Pharmaceuticals Inc., underscores the importance of upholding ethical standards and following legal protocols in the world of corporate finance. Insider trading and securities fraud are illegal activities that can have far-reaching consequences, both for the individuals engaged in them and the companies affected by their actions. By holding individuals accountable for their misdeeds, the justice system aims to maintain fairness and integrity in the financial markets.
