Insider Trading Charges Filed Against University of Chicago Professor

January 5, 2022

University of Chicago professor Daniel Catenacci, MD has been charged with insider trading regarding his actions during a phase 2 trial of the stomach cancer treatment bemarituzumab. Catenacci is accused of buying 8,743 shares of Five Prime Therapeutics, the company sponsoring the clinical trial, the day before results were released to the public. The next day, the professor sold all the stock after the price jumped by over 300%, netting him over $134,000 in profit.

According to Ed Silverman of Stat News, “Consequently, he was charged with one count of securities fraud and faces up to 20 years in prison, according to the U.S. Attorney in Chicago, which also wants Catenacci to forfeit his profits. The U.S. Securities and Exchange Commission, meanwhile, filed civil charges and Catenacci agreed to pay a civil penalty in an amount that will be determined at a later date and is subject to court approval.”

Read more about the case by clicking here.