Former Clerk for Chicago Transit Authority Retirement Plan Sentenced to a Year in Prison for Fraudulently Obtaining $356,000 in Plan Funds
CHICAGO — A suburban Chicago man used insider information obtained from his spouse to purchase options in a biotech company’s stock before it was acquired by a large pharmaceutical company, according to a federal criminal charge filed by the U.S. Attorney’s Office in Chicago.
In the spring of 2019, BRIAN RUBIN made $90,450 in illegal profits from the purchase and sale of stock options in the Colorado-based biotech company that employed Rubin’s spouse, according to the criminal information filed Tuesday in U.S. District Court in Chicago. Unbeknownst to his spouse, Rubin used material, non-public information obtained from her about the biotech company’s successful development of certain products and its expected acquisition by the New York-based pharmaceutical company to purchase the options ahead of a public announcement of the acquisition in June 2019, the charge alleges. After the announcement, the biotech company’s stock price increased and Rubin exercised the options for the profit, the charge alleges. Rubin’s spouse had learned the information through her position as an account director for the biotech company’s Midwest operations, the charge alleges.
Rubin, 51, of Deerfield, Ill., is charged with one count of securities fraud. The charge is punishable by up to 20 years in federal prison. Arraignment in federal court in Chicago has not yet been scheduled.
The charge was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Rubin, provided valuable assistance. Assistant U.S. Attorneys Jared Hasten and Adam Rosenbloom represent the government in the criminal case.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.