Five Prime tri­al in­ves­ti­ga­tor pleads guilty to $134K in­sid­er trad­ing scheme, faces up to 25 years in prison

A tri­al in­ves­ti­ga­tor in­volved with a Phase II study run by the biotech Five Prime Ther­a­peu­tics has pled guilty to an in­sid­er trad­ing probe.

Daniel Cate­nac­ci en­tered a guilty plea on Mon­day for a sin­gle count of se­cu­ri­ties fraud, As­sis­tant US At­tor­ney Bri­an Havey tells End­points News. Cate­nac­ci faces a max­i­mum pun­ish­ment of 25 years in prison, a fine or both. The sen­tenc­ing date has not been set.

This is the lat­est, and like­ly fi­nal, de­vel­op­ment in a case that start­ed in back in late 2020. In No­vem­ber that year, Cate­nac­ci — a for­mer Uni­ver­si­ty of Chica­go as­so­ciate pro­fes­sor and di­rec­tor of the gas­troin­testi­nal on­col­o­gy pro­gram at the Uni­ver­si­ty of Chica­go School of Med­i­cine — bought more than 8,700 shares of the biotech just a few hours be­fore the com­pa­ny re­leased pos­i­tive Phase II tri­al re­sults.

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