A pharmaceutical company CIO has been charged in an alleged insider trading scheme, the Justice Department said.
Ramkumar Rayapureddy, 54, of Upper Saint Clair, Pa., is charged with one count of conspiracy to commit securities fraud and three counts of securities fraud for activities he allegedly engaged in while CIO of Mylan, a publicly traded pharma company.
While working for Mylan, Rayapureddy allegedly tipped off a former colleague, Dayakar Mallu, about nonpublic information about the firm — such as financial earnings, FDA drug approvals and a merger with a division of Pfizer — after which Mr. Mallu traded in the company's securities and paid Mr. Rayapureddy or his designee in cash, the Justice Department said Nov. 10.
In 2021, Mr. Mallu pleaded guilty to conspiracy to commit securities fraud and aiding in the preparation of a false tax return. He is awaiting sentencing.
Mr. Rayapureddy faces up to 20 years in prison on each of the security fraud charges and up to five years on the conspiracy charge.