NEW DELHI: An Indian-American former Pfizer employee has been convicted of insider trading by a federal court in New York.
Amit Dagar, a New Jersey resident, has been convicted of garnering “illicit” profits by trading results of Covid-19 medicine trials that the pharma giant undertook. Dagar worked for Pfizer as an employee responsible for assisting in managing data analysis in specific clinical drug trials.
Dagar’s conviction comes after a two-week trial under one count of securities fraud and one count of conspiracy to commit securities fraud last week.
According to court documents, in November 2021, Dagar indulged in an insider trading scheme to “reap illicit profits from options trading based on inside information about the results of clinical trials of Paxlovid, a medicine used to treat Covid-19″.
Reports suggest that Dagar on November 4, 2021, learned Pfizer’s Paxlovid trial had yielded positive results and purchased short-dated, out-of-the-money Pfizer call options that expired days and weeks later.
Dagar made the move despite the results report being a confidential document as it remained to be made public. Federal prosecutors argued before the court that Dagar not only violated the rules himself but also tipped his close friend to buy similar call options.
The day after Dagar’s move, Pfizer publicly released the results of its Paxlovid study before the market opening and its stock price shot up substantially. The same day Pfizer closed at more than 10 per cent higher than the previous day’s closing price.
Federal prosecutors alleged that in the following weeks, Dagar sold his Pfizer call options for profits of more than 270,000 US dollars.
“As the jury’s swift verdict shows, the proof at trial was overwhelming that Amit Dagar stole information about Paxlovid from his employer, Pfizer, and used that illegal edge to profit in the stock market,” said US Attorney Damian Williams.
“Combatting the corruption of our financial markets continues to be a top priority of this Office,” he added.
A conviction in securities fraud carries a maximum sentence of 20 years in prison, while that in conspiracy to commit securities fraud carries a maximum sentence of five years in prison.
Amit Dagar, a New Jersey resident, has been convicted of garnering “illicit” profits by trading results of Covid-19 medicine trials that the pharma giant undertook. Dagar worked for Pfizer as an employee responsible for assisting in managing data analysis in specific clinical drug trials.
Dagar’s conviction comes after a two-week trial under one count of securities fraud and one count of conspiracy to commit securities fraud last week.
According to court documents, in November 2021, Dagar indulged in an insider trading scheme to “reap illicit profits from options trading based on inside information about the results of clinical trials of Paxlovid, a medicine used to treat Covid-19″.
Reports suggest that Dagar on November 4, 2021, learned Pfizer’s Paxlovid trial had yielded positive results and purchased short-dated, out-of-the-money Pfizer call options that expired days and weeks later.
Dagar made the move despite the results report being a confidential document as it remained to be made public. Federal prosecutors argued before the court that Dagar not only violated the rules himself but also tipped his close friend to buy similar call options.
The day after Dagar’s move, Pfizer publicly released the results of its Paxlovid study before the market opening and its stock price shot up substantially. The same day Pfizer closed at more than 10 per cent higher than the previous day’s closing price.
Federal prosecutors alleged that in the following weeks, Dagar sold his Pfizer call options for profits of more than 270,000 US dollars.
“As the jury’s swift verdict shows, the proof at trial was overwhelming that Amit Dagar stole information about Paxlovid from his employer, Pfizer, and used that illegal edge to profit in the stock market,” said US Attorney Damian Williams.
“Combatting the corruption of our financial markets continues to be a top priority of this Office,” he added.
A conviction in securities fraud carries a maximum sentence of 20 years in prison, while that in conspiracy to commit securities fraud carries a maximum sentence of five years in prison.
(With PTI inputs)
