Ex-Puma exec sentenced to prison stretch on insider-trading conviction — 'greed' made me do it
Puma Biotechnology’s $PBYI former head of regulatory affairs will be spending the next couple of years in prison, serving a sentence for insider trading after taking a guilty plea last fall.
The latest in a long string of insider trading cases in biotech features Robert Gadimian, who had to pay up after the SEC accused him of pocketing more than $1 million in illicit stock gains. Gadimian used his insider knowledge at Puma to get the scoop on neratinib, buying shares just ahead of trial results in 2013 and 2014.
According to the SEC statement, Puma accused him of trading illicitly, leading him to admit that he had done it out of pure greed. He also changed his trading records during the company probe. The US Attorney’s office got him, though, and he accepted full responsibility at his sentencing, according to a Reuters piece.
“I knew what I was doing was not only illegal but morally wrong,” he said. “There is simply no excuse for my actions.”
The biotech exec didn’t lack for resources. The story notes that he cashed in $5 million worth of stock options after he left the company.
Gadimian had to surrender $1.16 million and now also has to also pay a $25,000 fine.