A New Jersey corporate executive has been indicted for insider trading after selling company stock based on confidential information that he knew would affect the stock price. Dale Chappell was formerly the chief scientific officer and a board member at New Jersey-based Humanigen, Inc. Chappell sold Humanigen stock after learning the FDA had postponed early approval of a much-anticipated drug.
The attorneys of The Lento Criminal Defense Team, have skillfully represented people accused of white collar crimes such as insider trading. If you or someone you know find themselves facing white collar crime charges, call us today at 888-535-3686 or contact us here.
The Lead-Up to White-Collar Crime Charges
The drug, Lenzilumab, aims to treat a variety of diseases, including severe respiratory problems. Humanigen's labs were developing Lenzilumab when the 2020 pandemic began. After millions of COVID patients developed chronic respiratory ailments, Humanigen asked the FDA to expedite its approval process because Lenzilumab showed promise for alleviating acute respiratory distress syndrome. After the FDA agreed to do so and that information went public, Humanigen's stock value rose rapidly.
A few months later, the FDA confidentially informed Humanigen's top executives that Lenzilumab had failed to meet its criteria for early approval. Knowing this news would hurt the value of Humanigen stock, Chappell sold millions of shares before the news became public, in violation of federal law. The stock value plummeted soon afterward, and selling the stock early saved Chappel $38 million in losses.
Chappell's actions attracted the attention of the U.S. Department of Justice, which launched an investigation. In late 2024, federal authorities arrested Chappell and charged him with one count of engaging in a securities fraud scheme and four counts of securities fraud for insider trading. If convicted, he could be sentenced to more than a decade in federal prison.
The Lento Law Firm's New Jersey Criminal Defense Team Represents People Charged with White-Collar Crimes
The skilled New Jersey attorneys with the Lento Law Firm Criminal Defense Team have successfully represented individuals charged with insider trading and other white-collar crimes. Lento's attorneys are sensitive to their client's needs while maintaining a laser focus on obtaining a good outcome.
“White-collar” crime refers to nonviolent crimes committed by business or government professionals. Every year state and federal law-enforcement agencies arrest individuals for white-collar business crimes including wire fraud, securities fraud, forgery, embezzlement, insider trading, money laundering, bribery, and cybercrime. Those charged with white-collar crimes can face both state and federal charges. While prison penalties for state violations vary, the federal justice system offers no opportunity for parole.
Innocently Helping a Friend Can Lead to Charges of White-Collar Crime
White-collar criminal laws are complicated and can trap people who are only remotely involved. This means doing a favor for a friend can lead to criminal charges, even if there is no criminal intent. For example, allowing a friend to use your bank account to conduct their own business transactions could connect you to criminal activity if those transactions violate federal wire laws, and federal law enforcement authorities could charge you as an accessory to a white-collar crime.
The Lento Law Firm Criminal Defense Team is available to help you right now. Lento lawyers focus on zealously defending their client's due-process rights. If you or someone you know may face charges of white-collar crime, call us now at 888-535-3686 or contact us here.
Comments
There are no comments for this post. Be the first and Add your Comment below.
Leave a Comment
Comments have been disabled.