Chicago-(ENEWSPF)- A Chicago physician used insider information to purchase shares of a California-based biotechnology company before it publicly announced positive results from a clinical trial of an experimental cancer drug, according to a federal criminal charge filed by the U.S. Attorney’s Office in Chicago.
DANIEL V.T. CATENACCI, a gastrointestinal medical oncologist in Chicago, served as one of the lead physicians and primary field investigators on the biotechnology company’s clinical trial. Dr. Catenacci through this position allegedly received confidential information about the company and its clinical trial results.
In November 2020, Dr. Catenacci used material, non-public information about the trial results to make more than $134,000 in illegal profits from the purchase and sale of securities in the company, according to a criminal information filed Friday in U.S. District Court in Chicago. Dr. Catenacci purchased more than 8,000 shares before the company announced positive results from the trial, and then sold those shares shortly after the announcement, the information states. In the interim, the shares held by Dr. Catenacci tripled or quadrupled in value, the information states.
The information charges Dr. Catenacci, 45, of Chicago, 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 John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission provided valuable assistance. Assistant U.S. Attorney Brian Havey represents the government.
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.
This is a release from the United States Department of Justice.