SEC Charges Former FDA Official and Hedge Fund Managers with Insider Trading

The SEC charged two hedge fund managers and their source, a former government official, with deceptively obtaining confidential information from the U.S. Food and Drug Administration ("FDA") used in insider trading. In addition, the SEC charged a third hedge fund manager from the same investment advisory firm with falsely inflating assets in portfolios under his management.

Filed in the United States District Court of the Southern District of New York, the three separate SEC Complaints seek disgorgement of ill-gotten gains plus interest and penalties as well as permanent injunctions against future violations. The SEC noted that in parallel actions, the U.S. Attorney’s Office for the Southern District of New York also announced criminal charges against the hedge fund managers and former government official.the