A 28-year-old from Pennsylvania pleaded guilty to one count of securities fraud for his role in an insider trading scheme. The trades involved a company called Celator Pharmaceuticals based on information about a drug called Vyxeos. Vyxeos was in clinical trials, and it was developed to help treat myeloid leukemia. The information was obtained from a 27-year-old man who worked at Celator.
According to authorities, the man who provided the information pleaded guilty to charges in August 2017 and is set to be sentenced in April 2018. The man who pleaded guilty to securities fraud ultimately made a profit of between $150,000 to $250,000. If convicted on the charge, he could face up to 20 years in prison. He would also be subject to a fine of up to $5 million.
Regardless of how much money a person makes from an insider trading scheme, a conviction on such a charge could come with serious penalties. These penalties could include prison time and a fine. However, it may be possible for a defendant to negotiate a plea deal or otherwise receive a lighter sentence. This may occur if there is a lack of evidence against the defendant or if an attorney works with a judge or prosecutor to negotiate a deal.
A plea deal could result in probation or a suspended sentence. Community service or similar penalties may also be handed down as opposed to a fine in a plea deal. An attorney may also attempt to win a full acquittal in an insider trading or other criminal case. This may be done by casting doubt upon witness testimony, bank records or anything else used to charge an individual with the crime.