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Medical News & Perspectives
July 1, 1998

SEC Going After Insider Trading Based on Medical Research Results

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JAMA. 1998;280(1):10-11. doi:10.1001/jama.280.1.10-JMN0701-4-1

THE SECURITIES Exchange Commission (SEC) is cracking down on biomedical researchers who illegally use insider information to help themselves or others profit in the stock market.

On June 8, the US District Court for the Central District of California sentenced Roger D. Wyatt, a former consultant to Chantal Pharmaceutical Corporation, of Los Angeles, Calif, to 15 months in prison and ordered him to pay a $20000 fine for committing perjury during an insider trading investigation and civil suit brought by the SEC. In November 1997, the commission obtained a final judgment against Wyatt, who lives in Houston, Tex, for allegedly using insider information about the unfavorable results of a clinical trial of the company's acne medication to sell his stock in the company and to tip off a friend who sold his. The judgment requires Wyatt to pay more than $260000 in civil penalties and other fines.