Ex-Biopharma CFO & Head of Comm. Face Insider Trading Charges

Newark, N.J. – Usama Malik, 47, and Lauren S. Wood, 33, both of Washington, D.C., have been charged with securities fraud for their alleged roles in an insider trading scheme involving a $21 billion biopharmaceutical company.

The duo was nabbed on Dec. 1, 2021, following an investigation that linked them to the illegal sharing of non-public information about a breast cancer drug. Malik served as CFO of Company-1 from 2018 until October 2020, and Wood was its head of corporate communications.

On April 6, 2020, Company-1 announced positive pre-market clinical trial results for its breast cancer drug. Before this public announcement, Malik, who had access to the material non-public information, passed it on to Wood. He also shared it with relatives. Utilizing this insider info, within hours, Wood purchased around 7,000 shares of Company-1 stock, despite the stock’s recent downgrade by financial experts.

After the announcement, the stock price soared, and Wood sold her shares for a profit over $213,618, returning $65,000 to Malik. Both are now facing up to 20 years in prison and a $5 million fine per count of securities fraud.

The U.S. Securities and Exchange Commission (SEC) has also filed a civil complaint against the accused based on the same conduct. Acting U.S. Attorney Rachael A. Honig credited the FBI’s special agents for their crucial role in the investigation, along with assistance from the SEC Enforcement Division and the FBI offices in the District of Columbia and Virginia.

Assistant U.S. Attorney Joshua L. Haber and Deputy Chief Osmar J. Benvenuto represent the government in this case. The charges are merely accusations, and the defendants are presumed innocent until proven guilty.