CHICAGO — In a shocking case of insider trading, a Chicago physician has been charged with using confidential information to make a six-figure profit from the purchase and sale of securities in a California-based biotechnology company.
Dr. Daniel V.T. Catenacci, a 45-year-old gastrointestinal medical oncologist, allegedly used his position as a lead physician and primary field investigator on the company’s clinical trial to obtain material, non-public information about the trial results.
According to a federal criminal charge filed in U.S. District Court in Chicago, Dr. Catenacci purchased more than 8,000 shares of the company’s stock in November 2020, before the company announced positive results from the trial. He then sold those shares shortly after the announcement, netting over $134,000 in profits.
The charge of securities fraud, punishable by up to 20 years in federal prison, 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.
Dr. Catenacci is expected to face arraignment in federal court in Chicago, where he will be required to enter a plea to the charge. The public is reminded that an information is not evidence of guilt, and the defendant is presumed innocent until proven otherwise.
The case highlights the importance of protecting confidential information and preventing insider trading, which can have devastating consequences for investors and the integrity of financial markets.
Defendant Name: Dr. Daniel V.T. Catenacci
Criminal Charge: One count of securities fraud
City and State: Chicago, Illinois
Exact Date: November 2020
Sentence or Outcome: Arraignment pending
Dollar Amounts: $134,000 in profits
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Key Facts
- State: Illinois
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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