Biopharmaceutical Employee Arrested for Insider Trading
BOSTON – The Director of Statistical Programming for a Cambridge-based biopharmaceutical company was arrested and charged today with participating in an insider trading scheme.
Songjiang Wang, 52, was charged with conspiracy to commit securities fraud. Wang’s friend, Schultz “Jason” Chan, was the Director of Biostatistics at a different Cambridge-based biopharmaceutical company. According to the criminal complaint, from November 2013 to September 2015, Wang and Chan conspired to commit securities fraud by trading insider information regarding successful clinical drug trials at their respective companies. Specifically, Wang allegedly traded on inside information Chan provided regarding a clinical study conducted by Chan’s employer. In addition, Wang tipped Chan in advance of a series of announcements made by Wang’s employer regarding various clinical trial results. Furthermore, Wang allegedly gave Chan cash, which Chan used to purchase shares of Wang’s employer. Chan subsequently sold those shares and paid Wang back.
In June 2016, Chan was charged with securities fraud in connection with tipping Wang and with trading in his own employer’s stock while in possession of inside information about a study.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission. Assistant U.S. Attorney Sarah E. Walters and Stephen E. Frank, Chief and Deputy Chief, respectively, of Weinreb’s Economic Crimes Unit are prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.