A biotech company employee was charged today with insider trading by the SEC. The SEC alleged that the employee had foreknowledge of the withdrawal of certain products from consideration by the US Food and Drug Administration. Securities and Exchange Commission v. Joseph Frank Vacante, No. 19-civ-1616 (S.D.N.Y. filed Feb. 21, 2019)
Joseph Frank Vacante, formerly employed at Trinity Biotech, PLC agreed to pay more than $140,000 to settle the SEC’s charges.
The SEC alleged that, on September 29, 2016, Vacante learned that the FDA had recommended that Trinity withdraw two biotech drugs which Vacante identified as vital to the company. The SEC Complaint was dated September 2019. The complaint alleged Vacante twice communicated with his broker on the same day in efforts to sell Trinity American Depository Receipts (ADRs).