REUTERS/Jonathan Ernst
December 20, 2021
By Chris Prentice
WASHINGTON (Reuters) -U.S. authorities have charged a Chicago doctor with insider trading, accusing him of using nonpublic information about drug trial results to reap illicit profits from buying shares of a California-based biotechnology company.
The U.S. Securities and Exchange Commission (SEC) and federal prosecutors in Illinois said in statements on Monday they have charged a gastrointestinal medical oncologist Daniel V.T. Catenacci related to trading in securities of Five Prime Therapeutics Inc.
The doctor, Daniel V.T. Catenacci, bought shares of the biotechnology company in advance of a Nov. 10, 2020 announcement it had gotten positive drug trial results for a cancer drug.
Authorities accused Catenacci of learning material nonpublic information about the positive results through his role as a lead clinical investigator for the drug trial.
Catenacci did not respond to emails and calls for comment.
Catenacci made more than $134,000 in illegal profits from the purchase and sale of the securities, according to criminal information filed on Friday and detailed in Monday’s statements.
He has agreed to pay a civil penalty in an amount to be determined by the court at a later date, the SEC said. The settlement is subject to court approval.
Catenacci is an associate professor of medicine and oncologist, according to his LinkedIn profile and biography on the University of Chicago’s website.
(Reporting by Chris Prentice; editing by Grant McCool)
Source: One America News Network
