Lauren S. Wood, Insider Trading, New Jersey 2022

NEWARK, N.J. – In a shocking turn of events, former corporate communications head Lauren S. Wood, 33, of Washington, D.C., has pleaded guilty to her role in an insider trading scheme.

According to documents filed in the case and statements made in court, Wood was tipped off by Usama Malik, the former chief financial officer (CFO) of a New Jersey-based biopharmaceutical company, about the company’s breast cancer drug having proven effective in pre-market clinical trials.

Malik, who was among the first and one of the few employees to receive the material non-public information, passed it along to Wood within minutes of obtaining the information. Wood, who lived with Malik at the time and was formerly employed by the same company, used this inside information to purchase approximately 7,000 shares of the company’s stock before the public announcement.

After the company announced the positive results of the clinical trials, the stock price increased, and Wood sold her shares, realizing a gross profit of $213,618.

The securities fraud charge to which Wood pleaded guilty carries a potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for November 21, 2022.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint on December 1, 2021, based on the same conduct.

The case was investigated by the FBI, under the direction of Special Agent in Charge Jesse Levine in Newark, with assistance from the SEC Enforcement Division and the FBI in the District of Columbia and the Eastern District of Virginia.

The government is represented by Assistant U.S. Attorney Joshua L. Haber, Chief of the Economic Crimes Unit.

The charges and allegations against Malik are merely accusations, and he is presumed innocent unless and until proven guilty.

Related Federal Cases