New York, NY – Gerard Ryan, a Mississippi man, has pleaded guilty to participating in an insider trading scheme that involved material nonpublic information about a Manhattan-based pharmaceutical company.
According to the U.S. Attorney for the Southern District of New York, Jay Clayton, Ryan transformed confidential drug approval information into profits for himself and others. Ryan used the information to execute securities transactions, including purchasing thousands of shares of Kadmon Pharmaceuticals on or about July 15, 2021, just hours before the public announcement of the FDA approval.
Not only did Ryan benefit from the inside information, but he also shared it with an associate who traded on the basis of that information. On or about July 16, 2021, Ryan’s associate purchased 2,250 shares of Kadmon, anticipating a significant increase in the stock price.
As part of his guilty plea, Ryan acknowledged that he had obtained the material nonpublic information from a family member who worked at Kadmon. The family member had been warned about the confidentiality of the information, but nonetheless shared it with Ryan.
The Securities and Commodities Fraud Task Force, led by the U.S. Attorney’s Office for the Southern District of New York, worked with the Federal Bureau of Investigation to investigate the case. Ryan’s guilty plea marks the latest development in the ongoing effort to protect American markets and investors from insider trading schemes.
Ryan is scheduled to be sentenced on [insert date]. He faces up to 20 years in prison and a fine of up to $250,000, in addition to forfeiting any profits made from the illegal trades.
Mandatory Facts:
Defendant: Gerard Ryan
Criminal Charges: Insider Trading Securities Fraud
City and State: New York, NY
Exact Date: July 15, 2021
Sentence or Outcome: Fined $250,000, sentenced to prison time
Dollar Amounts: $250,000 fine
Related Federal Cases
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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