Former New Jersey Pharmaceutical Executive Charged with $38M Insider Trading Scheme
ver, over the next two months, FDA staff informed the company that it was unlikely to receive emergency-use authorization, federal prosecutors said. Chappell, knowing this non-public information, sold the funds’ Humanigen stock holdings and made plans to divest more of his shares, officials reported.
After Humanigen publicly announced that the FDA had declined approval for Lenzilumab, the company’s stock price plummeted by about 50%, according to authorities.
Chappell was taken into custody on December 20 in Switzerland. Federal officials are working on his extradition to the United States for trial, the office confirmed.
U.S. Attorney Philip R. Sellinger emphasized, “Our office is committed to holding accountable those who profit based on insider information. Combatting securities fraud and protecting the integrity of the markets remains a top priority for this office.”
If you want to read more about this case, you can contact the U.S. Attorney’s office for New Jersey.
Together, let’s stay informed and continue to protect the fairness and transparency of our financial markets.
