Paul Jorgensen, Insider Trading, New York 2023

Grimy Times has learned that Paul Jorgensen, a former corporate executive, has pleaded guilty to committing securities fraud in connection with a multimillion-dollar scheme to trade in stock and options of Doximity based on inside information in advance of the company’s quarterly earnings calls.

According to court documents, Paul Jorgensen repeatedly used Doximity’s confidential information to trade in advance of the company’s quarterly earnings calls, earning himself more than $2.5 million in illegal profits.

“Corporate executives should be working for the benefit of the companies and shareholders they serve, not scheming to line their own pockets by trading on inside information,” said U.S. Attorney Jay Clayton. “Together with our law enforcement partners, we will continue to protect our financial markets and prosecute those who misuse non-public information.”

The scheme allegedly took place from July 2022 to July 2023, during which time Jorgensen, who was Chief Revenue Officer at Doximity, had access to confidential information about the company’s financial outlook, performance, and earnings results.

Jorgensen allegedly traded based on material non-public information regarding Doximity in violation of the duties of trust and confidence owed to the company and its shareholders.

As a senior executive at Doximity, Jorgensen had a duty to protect the company’s confidential information and not use it for personal gain. Instead, he allegedly used the information to trade in advance of the company’s quarterly earnings calls, avoiding losses of more than $300,000.

Jorgensen is scheduled to be sentenced on a later date. His guilty plea marks a significant victory for the U.S. Attorney’s Office and the FBI in their efforts to protect the nation’s financial markets from insider trading schemes.

Grimy Times will continue to monitor this case and provide updates as more information becomes available.

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