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chief information officer of a listed pharmaceutical company accused of insider trading | Takeover bid

An indictment was released today charging a Pennsylvania man for his alleged role in an insider trading scheme involving the securities of Mylan NV (Mylan), a publicly traded pharmaceutical company.

According to court documents, Ramkumar Rayapureddy, 54, of Upper Saint Clair, conspired with his former colleague, Dayakar Mallu, to fraudulently trade in Mylan securities based on non-public inside information that Rayapureddy obtained through his position at Mylan before the market shift. advertisements for their own financial gain. At the time of the alleged scheme, Rayapureddy was Mylan’s Chief Information Officer.

From 2017 to 2019, Rayapureddy allegedly repeatedly informed Mallu of non-public insider information about Mylan relating to, among other things, FDA drug approvals, financial earnings, and a merger with a division of Pfizer, Inc. Mallu allegedly used inside information to execute trades in the company’s securities and in return, Rayapureddy or its agent received cash payments.

Rayapureddy is charged with one count of conspiracy to commit securities fraud and three counts of securities fraud. If convicted, he faces a maximum sentence of 20 years in prison for each of the securities fraud charges and five years in prison for the conspiracy charge. A federal district court judge will determine any sentence after considering US sentencing guidelines and other statutory factors.

In September 2021, Mallu pleaded guilty to conspiracy to commit securities fraud and assisting in the preparation of a false tax return and is awaiting sentencing.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Deputy Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.

The FBI is investigating the case.

Trial prosecutors Matthew Reilly and Amanda Fretto Lingwood of the Criminal Division’s Fraud Section are prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]

An indictment is only an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.