Skip to main content

It seemed, as it must so often to those hatching them, like the perfect (alleged) scheme: A top executive at one pharmaceutical company and then another, in possession of sweet, sweet material non-public information thereon, would surreptitiously pass said information on to a friend. This friend would then make a killing—nearly $8 million in profits and losses avoided, in just two short bouts of trading. The friends would then meet up in India, where recompense would be made in the form of rupee notes, and the authorities in the U.S. would be none the wiser.

Unfortunately for Viatris Inc. global chief information officer Ramkumar Rayapureddy, someone noticed the windfall enjoyed by his buddy Dayakar Mallu, who found himself in the same trap that ensnared Al Capone. And now it is very much Rayapureddy’s problem.

Mr. Rayapureddy was charged with securities fraud and conspiracy. He pleaded not guilty in Pittsburgh federal court on Thursday and posted an unsecured bond of $500,000…. Mr. Mallu last year pleaded guilty to conspiracy to commit securities fraud and aiding in the preparation of a false tax return, according to the Justice Department’s fraud section, which is prosecuting the criminal cases.

Viatris Executive Charged in Insider-Trading Scheme Allegedly Netting Millions [WSJ]

For more of the latest in litigation, regulation, deals and financial services trends, sign up for Finance Docket, a partnership between Breaking Media publications Above the Law and Dealbreaker.

Related

Screen Shot 2017-09-29 at 3.27.06 PM

Public Relations Official Allegedly Found Another Way To Leach Off A Client

Her firm certainly didn’t help Equifax avoid any bad press post-hack, but she managed to find a way to generate some of her own.

long island iced tea

Former Long Island Iced Tea Allegedly Doing Some Long Island Insider Trading

Certainly more than its doing any iced tea, or blockchain, for that matter. Allegedly.

jail

Insider-Trader Chooses Friendship Over Freedom

We must admit it makes us question his shrinks’ advice, but not his mental health issues.

gamestop

SEC Drags GameStop Wash Traders For Dirty Deeds

There was at least one thing you allegedly couldn’t do during the madness.

temple fox school

MBA Purveyor Could Have Used A Law Degree When Allegedly Deciding To Lie To B-School Rankers

U.S. News may not be a federal agency, but fibbing to them may still be fraud.